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TROW Stock Gains as Q3 Earnings Beat on Higher Revenues, AUM Rises Y/Y
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Key Takeaways
TROW's Q3'26 EPS of $2.86 beat estimates, while revenues rose 5.9% y/y, lifting shares 1.3% in early trading.
TROW's AUM climbed 5.4% y/y to $1.86 trillion, while investment advisory fees increased 5.8% to $1.80 billion.
TROW faced $28.3 billion in net client outflows and a 5.8% rise in adjusted operating expenses in Q3.
Shares of T. Rowe Price Group, Inc. (TROW - Free Report) rallied nearly 1.3% in the early trading session on better-than-expected third-quarter 2026 results. The company reported third-quarter adjusted earnings per share (EPS) of $2.86, which surpassed the Zacks Consensus Estimate of $2.58. Further, the bottom line increased 1.8% year over year.
Results benefited from higher investment advisory fees, increased average assets under management (AUM) and strong capital allocation-based income. However, substantial net client outflows and higher adjusted operating expenses were headwinds.
The results included certain items. After considering those, net income attributable to T. Rowe Price (on a GAAP basis) was $612.3 million, which declined 5.2% from the prior-year quarter.
TROW’s Revenues Increase, Expenses Decline
Net revenues rose 5.9% year over year to $2 billion. Further, the top line surpassed the Zacks Consensus Estimate of $1.95 billion by 2.8%.
Investment advisory fees rose 5.8% year over year to $1.80 billion.
Capital allocation-based income increased to $59.9 million from $42 million in the prior-year quarter.
Administrative, distribution, servicing and other fees declined 3.5% year over year to $141.3 million.
Total operating expenses declined 1.2% year over year to $1.24 billion in the reported quarter. The decline primarily reflected lower deferred compensation-related costs, acquisition-related expenses and restructuring charges. On an adjusted basis, operating expenses were $1.20 billion, up 5.8% year over year.
TROW’s AUM Rises, Liquidity Position Strong
As of Sept. 30, 2026, total AUM reached $1.86 trillion, up 5.4% year over year.
During the reported quarter, T. Rowe Price recorded net client outflows of $28.3 billion, significantly wider than $7.9 billion in the year-ago period. Further, net market depreciation and income of $2.4 billion adversely impacted the company’s AUM.
The company had substantial liquidity, including cash and cash equivalents of $3.77 billion as of Sept. 30, 2026, up from $3.63 billion as of Sept. 30, 2025. This will enable TROW to keep investing.
TROW’s Capital Distribution Activities
T. Rowe Price returned $285 million to shareholders through recurring quarterly dividends in the third quarter. The company did not repurchase shares during the reported quarter.
Our View on TROW
TROW’s higher average AUM, increased investment advisory fees and positive capital allocation-based income are likely to support top-line growth. Its expanding exchange-traded fund (ETF) business, along with product innovation and strategic partnerships, further supports growth.
The planned acquisition of F/m Investments, expected to close in early 2027, is likely to strengthen TROW’s fixed-income business. The deal is expected to increase its fixed-income AUM by nearly 9% and more than double the assets managed through its fixed-income ETFs. Its partnership with Goldman Sachs Asset Management further expands its private markets offerings. A substantial liquidity position enables the company to continue investing and sustain capital distributions. However, persistent net client outflows, a declining investment advisory effective fee rate and elevated adjusted operating expenses remain concerns.
T. Rowe Price Group, Inc. Price, Consensus and EPS Surprise
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 for BX.
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TROW Stock Gains as Q3 Earnings Beat on Higher Revenues, AUM Rises Y/Y
Key Takeaways
Shares of T. Rowe Price Group, Inc. (TROW - Free Report) rallied nearly 1.3% in the early trading session on better-than-expected third-quarter 2026 results. The company reported third-quarter adjusted earnings per share (EPS) of $2.86, which surpassed the Zacks Consensus Estimate of $2.58. Further, the bottom line increased 1.8% year over year.
Results benefited from higher investment advisory fees, increased average assets under management (AUM) and strong capital allocation-based income. However, substantial net client outflows and higher adjusted operating expenses were headwinds.
The results included certain items. After considering those, net income attributable to T. Rowe Price (on a GAAP basis) was $612.3 million, which declined 5.2% from the prior-year quarter.
TROW’s Revenues Increase, Expenses Decline
Net revenues rose 5.9% year over year to $2 billion. Further, the top line surpassed the Zacks Consensus Estimate of $1.95 billion by 2.8%.
Investment advisory fees rose 5.8% year over year to $1.80 billion.
Capital allocation-based income increased to $59.9 million from $42 million in the prior-year quarter.
Administrative, distribution, servicing and other fees declined 3.5% year over year to $141.3 million.
Total operating expenses declined 1.2% year over year to $1.24 billion in the reported quarter. The decline primarily reflected lower deferred compensation-related costs, acquisition-related expenses and restructuring charges. On an adjusted basis, operating expenses were $1.20 billion, up 5.8% year over year.
TROW’s AUM Rises, Liquidity Position Strong
As of Sept. 30, 2026, total AUM reached $1.86 trillion, up 5.4% year over year.
During the reported quarter, T. Rowe Price recorded net client outflows of $28.3 billion, significantly wider than $7.9 billion in the year-ago period. Further, net market depreciation and income of $2.4 billion adversely impacted the company’s AUM.
The company had substantial liquidity, including cash and cash equivalents of $3.77 billion as of Sept. 30, 2026, up from $3.63 billion as of Sept. 30, 2025. This will enable TROW to keep investing.
TROW’s Capital Distribution Activities
T. Rowe Price returned $285 million to shareholders through recurring quarterly dividends in the third quarter. The company did not repurchase shares during the reported quarter.
Our View on TROW
TROW’s higher average AUM, increased investment advisory fees and positive capital allocation-based income are likely to support top-line growth. Its expanding exchange-traded fund (ETF) business, along with product innovation and strategic partnerships, further supports growth.
The planned acquisition of F/m Investments, expected to close in early 2027, is likely to strengthen TROW’s fixed-income business. The deal is expected to increase its fixed-income AUM by nearly 9% and more than double the assets managed through its fixed-income ETFs. Its partnership with Goldman Sachs Asset Management further expands its private markets offerings. A substantial liquidity position enables the company to continue investing and sustain capital distributions. However, persistent net client outflows, a declining investment advisory effective fee rate and elevated adjusted operating expenses remain concerns.
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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 for BX.