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Higher AUM Balance Likely to Aid TROW's Q3 Earnings Amid Cost Woes
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Key Takeaways
TROW is set to report Q3'26 earnings on Oct. 29, with EPS expected to be $2.58, down 8.2% year over year.
TROW's AUM rose 5.4% year over year to $1.86 trillion as of Sept. 30, 2026, despite net outflows.
TROW's planned F/m Investments buyout could boost fixed-income AUM by nearly 9%.
T. Rowe Price Group, Inc. (TROW - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, before the opening bell. The company’s quarterly earnings are expected to decline, while revenues are projected to increase year over year.
In the last reported quarter, TROW’s results benefited from higher investment advisory fees and record assets under management (AUM). Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind.
T. Rowe Price’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 4.3%.
In August 2026, T. Rowe Price agreed to acquire F/m Investments, a fixed-income asset manager with $19 billion in AUM. The deal, expected to close in early 2027, is likely to strengthen TROW’s fixed-income platform, increase its fixed-income AUM by nearly 9% and more than double its fixed-income exchange-traded fund (ETF) AUM. The planned acquisition will support the company’s efforts to expand its ETF offerings and diversify beyond traditional actively managed mutual funds. Earlier, in July 2026, it also launched a private markets interval fund with Goldman Sachs Asset Management, expanding individual investors’ access to private markets and diversifying its offerings beyond traditional public-market strategies.
Key Factors & Estimates for TROW in Q3
In the July-September quarter, the S&P 500 Index rose nearly 2%, driven by stable performance in U.S. equities, supported by continued gains in AI-related technology stocks and resilient global markets. As such, TROW’s AUM is likely to have witnessed decent growth in the quarter to be reported.
Investor flows remained uneven across asset classes during the third quarter of 2026, with continued strong demand for exchange-traded funds, private-market strategies and diversified investment solutions. However, persistent fee pressure and the ongoing shift toward lower-cost passive investment products likely constrained organic growth and fee-based revenues for traditional active asset managers. Per the company’s monthly metrics data, its net outflows were $6.5 billion for the quarter ended Sept. 30, 2026.
The company’s preliminary AUM of $1.86 trillion as of Sept. 30, 2026, rose 5.4% from the prior-year quarter.
The Zacks Consensus Estimate for total AUM is $1.86 trillion, indicating a 5.4% year-over-year increase.
The Zacks Consensus Estimate for investment advisory fees is pegged at $1.79 trillion, indicating a 5.8% year-over-year increase.
The Zacks Consensus Estimate for administrative, distribution and servicing fees is pegged at $149.6 million, indicating a 2.1% increase from the prior year’s quarter.
Coming to expenses, T. Rowe Price continues to incur significant expenditure to attract new investment advisory clients and additional investments from existing clients. The company is also investing heavily in technology, distribution and employee compensation to strengthen its platform and keep pace with evolving customer needs. These factors are likely to have increased expenses in the quarter to be reported. However, ongoing cost-management efforts are expected to have offset the rise to some extent.
What the Zacks Model Unveils for TROW
Our proven model predicts an earnings beat for TROW this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of +0.36%.
The Zacks Consensus Estimate for third-quarter earnings has been revised downward over the past seven days to $2.58 per share, indicating an 8.2% year-over-year decline.
The consensus estimate for revenues of $1.95 billion implies a 3.2% rise from the prior-year quarter’s actual.
Performance of Other Asset Managers
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK’s results benefited from record assets under management, higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on results.
Blackstone’s (BX - Free Report) third-quarter 2026 distributable earnings of $1.32 per share outpaced the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
Results benefited from a rise in the assets under management balance to record levels and higher fee-related earnings. However, a decline in segment revenues was the undermining factor.
View the Zacks #1 Rank List
Image: Bigstock
Higher AUM Balance Likely to Aid TROW's Q3 Earnings Amid Cost Woes
Key Takeaways
T. Rowe Price Group, Inc. (TROW - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, before the opening bell. The company’s quarterly earnings are expected to decline, while revenues are projected to increase year over year.
In the last reported quarter, TROW’s results benefited from higher investment advisory fees and record assets under management (AUM). Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind.
T. Rowe Price’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 4.3%.
T. Rowe Price Group, Inc. Price and EPS Surprise
T. Rowe Price Group, Inc. price-eps-surprise | T. Rowe Price Group, Inc. Quote
T. Rowe Price’s Recent Developments
In August 2026, T. Rowe Price agreed to acquire F/m Investments, a fixed-income asset manager with $19 billion in AUM. The deal, expected to close in early 2027, is likely to strengthen TROW’s fixed-income platform, increase its fixed-income AUM by nearly 9% and more than double its fixed-income exchange-traded fund (ETF) AUM. The planned acquisition will support the company’s efforts to expand its ETF offerings and diversify beyond traditional actively managed mutual funds. Earlier, in July 2026, it also launched a private markets interval fund with Goldman Sachs Asset Management, expanding individual investors’ access to private markets and diversifying its offerings beyond traditional public-market strategies.
Key Factors & Estimates for TROW in Q3
In the July-September quarter, the S&P 500 Index rose nearly 2%, driven by stable performance in U.S. equities, supported by continued gains in AI-related technology stocks and resilient global markets. As such, TROW’s AUM is likely to have witnessed decent growth in the quarter to be reported.
Investor flows remained uneven across asset classes during the third quarter of 2026, with continued strong demand for exchange-traded funds, private-market strategies and diversified investment solutions. However, persistent fee pressure and the ongoing shift toward lower-cost passive investment products likely constrained organic growth and fee-based revenues for traditional active asset managers. Per the company’s monthly metrics data, its net outflows were $6.5 billion for the quarter ended Sept. 30, 2026.
The company’s preliminary AUM of $1.86 trillion as of Sept. 30, 2026, rose 5.4% from the prior-year quarter.
The Zacks Consensus Estimate for total AUM is $1.86 trillion, indicating a 5.4% year-over-year increase.
The Zacks Consensus Estimate for investment advisory fees is pegged at $1.79 trillion, indicating a 5.8% year-over-year increase.
The Zacks Consensus Estimate for administrative, distribution and servicing fees is pegged at $149.6 million, indicating a 2.1% increase from the prior year’s quarter.
Coming to expenses, T. Rowe Price continues to incur significant expenditure to attract new investment advisory clients and additional investments from existing clients. The company is also investing heavily in technology, distribution and employee compensation to strengthen its platform and keep pace with evolving customer needs. These factors are likely to have increased expenses in the quarter to be reported. However, ongoing cost-management efforts are expected to have offset the rise to some extent.
What the Zacks Model Unveils for TROW
Our proven model predicts an earnings beat for TROW this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of +0.36%.
Zacks Rank: T. Rowe Price currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter earnings has been revised downward over the past seven days to $2.58 per share, indicating an 8.2% year-over-year decline.
The consensus estimate for revenues of $1.95 billion implies a 3.2% rise from the prior-year quarter’s actual.
Performance of Other Asset Managers
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK’s results benefited from record assets under management, higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on results.
Blackstone’s (BX - Free Report) third-quarter 2026 distributable earnings of $1.32 per share outpaced the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
Results benefited from a rise in the assets under management balance to record levels and higher fee-related earnings. However, a decline in segment revenues was the undermining factor.