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T. Rowe Price Q3 Earnings Beat on Higher AUM & Revenues, Stock Up
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Key Takeaways
T. Rowe Price's adjusted EPS of $2.81 topped estimates and rose 9.3% year over year.
Net revenues grew 6% to $1.89 billion, led by higher advisory fees and capital-based income.
AUM increased 8.6% to $1.77 trillion, supported by market appreciation and strong liquidity.
Shares of T. Rowe Price Group, Inc. (TROW - Free Report) rose 1.8% in today’s pre-market trading session on better-than-expected quarterly results. Its third-quarter 2025 adjusted earnings per share (EPS) of $2.81 beat the Zacks Consensus Estimate of $2.55. Moreover, the bottom line increased 9.3% year over year.
TROW's results benefited from a rise in investment advisory fees and capital allocation-based income. Also, higher assets under management (AUM) were another positive. However, higher expenses acted as a spoilsport.
Net income attributable to T. Rowe Price (on a GAAP basis) was $646.1 million, which rose 7.1% from the prior-year quarter. Our estimate for the metric was $471.9 million.
TROW’s Revenues Increase, Expenses Rise
Net revenues rose 6% year over year to $1.89 billion. Further, the top line surpassed the Zacks Consensus Estimate of $1.85 billion.
Investment advisory fees rose 4.4% to $1.7 billion. Our estimate for investment advisory fees was $1.59 billion.
Capital allocation-based income increased to $42 million from $4.6 million in the prior-year quarter. Our estimate for capital allocation-based income was $0.1 million.
Total operating expenses increased 6.7% to $1.25 billion in the reported quarter. Our estimate for the metric was $1.2 billion. On an adjusted basis, operating expenses were $1.13 billion, up 3.2%.
TROW’s AUM Rises, Liquidity Position Strong
As of Sept. 30, 2025, total AUM grew 8.6% year over year to $1.77 trillion. Our projection was $1.68 trillion.
In the third quarter, net market appreciation and income of $89.1 billion favorably impacted T. Rowe Price’s AUM, partially offset by net cash outflows of $7.9 billion.
The company had substantial liquidity, including cash and cash equivalents of $3.63 billion as of Sept. 30, 2025, up from $2.65 billion as of Dec. 31, 2024. This will enable TROW to keep investing.
TROW’s Capital Distribution Activities
T. Rowe Price distributed a total of $442 million to shareholders through common stock dividends and share repurchases in the third quarter.
Our View on TROW
TROW’s solid AUM balance, broadening distribution reach and efforts to diversify business through acquisitions and product enhancements are likely to support top-line growth. However, an elevated expense base and excessive reliance on investment advisory fees are concerns. Further, the current tough operating environment is a headwind. Nonetheless, a solid liquidity position enables sustainable capital distributions.
T. Rowe Price Group, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial’s (AMP - Free Report) third-quarter 2025 adjusted operating earnings of $9.92 per share handily surpassed the Zacks Consensus Estimate of $9.60. The bottom line reflected a rise of 12.3% from the year-ago quarter.
AMP’s results benefited from higher revenues and a solid improvement in AUM and assets under administration balances. However, an increase in expenses was a headwind.
Invesco’s (IVZ - Free Report) third-quarter 2025 adjusted earnings of 61 cents per share surpassed the Zacks Consensus Estimate of 45 cents. The bottom line increased 38.6% from the prior-year quarter.
IVZ’s results have been primarily aided by an increase in adjusted revenues. Moreover, growth in the AUM balance to record levels supported the results to an extent. However, an increase in adjusted operating expenses was a headwind.
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T. Rowe Price Q3 Earnings Beat on Higher AUM & Revenues, Stock Up
Key Takeaways
Shares of T. Rowe Price Group, Inc. (TROW - Free Report) rose 1.8% in today’s pre-market trading session on better-than-expected quarterly results. Its third-quarter 2025 adjusted earnings per share (EPS) of $2.81 beat the Zacks Consensus Estimate of $2.55. Moreover, the bottom line increased 9.3% year over year.
TROW's results benefited from a rise in investment advisory fees and capital allocation-based income. Also, higher assets under management (AUM) were another positive. However, higher expenses acted as a spoilsport.
Net income attributable to T. Rowe Price (on a GAAP basis) was $646.1 million, which rose 7.1% from the prior-year quarter. Our estimate for the metric was $471.9 million.
TROW’s Revenues Increase, Expenses Rise
Net revenues rose 6% year over year to $1.89 billion. Further, the top line surpassed the Zacks Consensus Estimate of $1.85 billion.
Investment advisory fees rose 4.4% to $1.7 billion. Our estimate for investment advisory fees was $1.59 billion.
Capital allocation-based income increased to $42 million from $4.6 million in the prior-year quarter. Our estimate for capital allocation-based income was $0.1 million.
Total operating expenses increased 6.7% to $1.25 billion in the reported quarter. Our estimate for the metric was $1.2 billion. On an adjusted basis, operating expenses were $1.13 billion, up 3.2%.
TROW’s AUM Rises, Liquidity Position Strong
As of Sept. 30, 2025, total AUM grew 8.6% year over year to $1.77 trillion. Our projection was $1.68 trillion.
In the third quarter, net market appreciation and income of $89.1 billion favorably impacted T. Rowe Price’s AUM, partially offset by net cash outflows of $7.9 billion.
The company had substantial liquidity, including cash and cash equivalents of $3.63 billion as of Sept. 30, 2025, up from $2.65 billion as of Dec. 31, 2024. This will enable TROW to keep investing.
TROW’s Capital Distribution Activities
T. Rowe Price distributed a total of $442 million to shareholders through common stock dividends and share repurchases in the third quarter.
Our View on TROW
TROW’s solid AUM balance, broadening distribution reach and efforts to diversify business through acquisitions and product enhancements are likely to support top-line growth. However, an elevated expense base and excessive reliance on investment advisory fees are concerns. Further, the current tough operating environment is a headwind. Nonetheless, a solid liquidity position enables sustainable capital distributions.
T. Rowe Price Group, Inc. Price, Consensus and EPS Surprise
T. Rowe Price Group, Inc. price-consensus-eps-surprise-chart | T. Rowe Price Group, Inc. Quote
Currently, TROW sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of T. Rowe Price’s Peers
Ameriprise Financial’s (AMP - Free Report) third-quarter 2025 adjusted operating earnings of $9.92 per share handily surpassed the Zacks Consensus Estimate of $9.60. The bottom line reflected a rise of 12.3% from the year-ago quarter.
AMP’s results benefited from higher revenues and a solid improvement in AUM and assets under administration balances. However, an increase in expenses was a headwind.
Invesco’s (IVZ - Free Report) third-quarter 2025 adjusted earnings of 61 cents per share surpassed the Zacks Consensus Estimate of 45 cents. The bottom line increased 38.6% from the prior-year quarter.
IVZ’s results have been primarily aided by an increase in adjusted revenues. Moreover, growth in the AUM balance to record levels supported the results to an extent. However, an increase in adjusted operating expenses was a headwind.