We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
T. Rowe Price Stock Gains as Q1 Earnings Beat Estimates, AUM Rises Y/Y
Read MoreHide Full Article
Key Takeaways
TROW Q1 EPS of $2.52 beat estimates and rose 13% Y/Y, sending shares higher in early trading.
T. Rowe Price saw revenue growth from higher advisory fees and positive capital allocation income.
TROW AUM climbed 9.1% Y/Y to $1.71T, despite net outflows and market depreciation impacts.
T. Rowe Price Group, Inc.’s (TROW - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $2.52 surpassed the Zacks Consensus Estimate of $2.37. Nevertheless, the bottom line increased 13% year over year.
Shares of the company gained 1.7% in the early trading session following the release of better-than-expected results. A full day’s trading session will depict a clearer picture.
TROW's results benefited from higher investment advisory fees and a rise in assets under management (AUM). Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind.
The results included certain items. After considering those, net income attributable to T. Rowe Price (on a GAAP basis) was $498.2 million, which rose 1.6% from the prior-year quarter.
TROW’s Revenues Increase, Expenses Rise
Net revenues rose 5.3% year over year to $1.86 billion. Further, the top line missed the Zacks Consensus Estimate by 0.32%.
Investment advisory fees rose 5.3% year over year to $1.68 billion.
Capital allocation-based income increased to $28.1 million from a loss of $1.2 million in the prior-year quarter.
Total operating expenses increased nearly 1% year over year to $1.18 billion in the reported quarter. On an adjusted basis, operating expenses were $1.15 billion, up 1.8% year over year.
TROW’s AUM Rises, Liquidity Position Strong
As of March 31, 2026, total AUM grew 9.1% year over year to $1.71 trillion.
In the first quarter, net market depreciation and income of $52.2 billion unfavorably impacted T. Rowe Price’s AUM. Also, net cash outflows were $13.7 billion.
The company had substantial liquidity, including cash and cash equivalents of $3.73 billion as of March 31, 2026, up from $2.84 billion as of March 31, 2025. This will enable TROW to keep investing.
TROW’s Capital Distribution Activities
T. Rowe Price distributed a total of $629 million to shareholders through common stock dividends and share repurchases in the first 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. 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
Franklin Resources Inc. (BEN - Free Report) reported second-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents per share. Also, the bottom line compared favorably with 47 cents reported in the year-ago quarter.
BEN’s results benefited from higher revenues. However, a slight decline in assets under management and elevated expenses remained headwinds.
Invesco’s (IVZ - Free Report) first-quarter 2026 adjusted earnings of 57 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line increased 29.5% from the prior-year quarter.
The results primarily benefited from an increase in adjusted revenues and growth in AUM balance. An increase in adjusted expenses was a headwind for IVZ.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
T. Rowe Price Stock Gains as Q1 Earnings Beat Estimates, AUM Rises Y/Y
Key Takeaways
T. Rowe Price Group, Inc.’s (TROW - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $2.52 surpassed the Zacks Consensus Estimate of $2.37. Nevertheless, the bottom line increased 13% year over year.
Shares of the company gained 1.7% in the early trading session following the release of better-than-expected results. A full day’s trading session will depict a clearer picture.
TROW's results benefited from higher investment advisory fees and a rise in assets under management (AUM). Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind.
The results included certain items. After considering those, net income attributable to T. Rowe Price (on a GAAP basis) was $498.2 million, which rose 1.6% from the prior-year quarter.
TROW’s Revenues Increase, Expenses Rise
Net revenues rose 5.3% year over year to $1.86 billion. Further, the top line missed the Zacks Consensus Estimate by 0.32%.
Investment advisory fees rose 5.3% year over year to $1.68 billion.
Capital allocation-based income increased to $28.1 million from a loss of $1.2 million in the prior-year quarter.
Total operating expenses increased nearly 1% year over year to $1.18 billion in the reported quarter. On an adjusted basis, operating expenses were $1.15 billion, up 1.8% year over year.
TROW’s AUM Rises, Liquidity Position Strong
As of March 31, 2026, total AUM grew 9.1% year over year to $1.71 trillion.
In the first quarter, net market depreciation and income of $52.2 billion unfavorably impacted T. Rowe Price’s AUM. Also, net cash outflows were $13.7 billion.
The company had substantial liquidity, including cash and cash equivalents of $3.73 billion as of March 31, 2026, up from $2.84 billion as of March 31, 2025. This will enable TROW to keep investing.
TROW’s Capital Distribution Activities
T. Rowe Price distributed a total of $629 million to shareholders through common stock dividends and share repurchases in the first 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. 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 carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of T. Rowe Price’s Peers
Franklin Resources Inc. (BEN - Free Report) reported second-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents per share. Also, the bottom line compared favorably with 47 cents reported in the year-ago quarter.
BEN’s results benefited from higher revenues. However, a slight decline in assets under management and elevated expenses remained headwinds.
Invesco’s (IVZ - Free Report) first-quarter 2026 adjusted earnings of 57 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line increased 29.5% from the prior-year quarter.
The results primarily benefited from an increase in adjusted revenues and growth in AUM balance. An increase in adjusted expenses was a headwind for IVZ.