T. Rowe Price Group, Inc. (TROW)

T. Rowe Price reported third-quarter 2026 net revenues of $2,004.9 million on 29 October, up 5.9% from a year earlier 1. Diluted earnings per share were $2.79, against $2.87 a year before 1.

Clients took out more than they put in 1. Net client outflows were $28.3 billion in the quarter, and assets under management ended at $1.9 trillion 1. Assets fell $30.7 billion from 30 June, driven by those outflows and a market decline of $2.4 billion 2.

The fee earned on each dollar managed slipped to 37.8 basis points from 39.1 a year earlier (a basis point is one hundredth of a percentage point) 1. The company says clients moved toward lower-fee products 1.

In August the firm agreed to buy F/m Investments for about $75 million, plus up to $50 million more depending on results 2. Closing is expected in the first quarter of 2027, subject to regulatory approvals 2.

Thomas Rowe Price founded the firm in 1937, and its stock was first offered to the public in 1986 3. The holding company structure dates from 2000 3.

The business earns fees on money it manages for others, so its revenue follows the size of the assets it manages 3. Those assets rise and fall with financial markets and with what clients add or withdraw 3.

In December 2021 the firm bought Oak Hill Advisors (OHA), an alternatives manager, and agreed to pay up to $900 million more if revenue targets were met 25. In April 2026 the two sides agreed that none of that extra payment would be earned 2.

Clients withdrew more than they added in each of the last three full years 3. Net cash outflows were $81.8 billion in 2023, $43.2 billion in 2024 and $56.9 billion in 2025 3.

Growth-oriented equity strategies were the main source of those outflows 3. Rising markets more than made up for them: assets under management grew from $1,606.6 billion to $1,775.6 billion in 2025, with $216.7 billion coming from market gains net of distributions 3.

The fee earned per dollar managed has fallen, from 41.9 basis points in 2023 to 41.0 in 2024 and 39.4 in 2025 3. The annual report blames client flows toward lower-fee strategies and products 3.

Net revenues were $7,314.8 million in 2025, up 3.1%, while net income was $2,087.1 million against $2,100.1 million the year before 3. A restructuring charge of $177.3 million, tied to the firm's expense-management program, pulled operating margin down to 29.9% from 32.9% 3.

Asset management

The firm earns fees for investing other people's money 3. Nearly 55% of its investment advisory fees come from its own U.S. mutual funds 3. Fund contracts can usually be ended without penalty after 60 days' notice 3.

At 30 September 2026, assets stood at $896.3 billion in equity, $221.8 billion in fixed income including money market, $680.6 billion in multi-asset and $64.0 billion in alternatives 1. Target date retirement products, which shift a saver's mix of holdings as a retirement year nears, held $561.4 billion at the end of 2025, or 31.6% of managed assets 3.

Retirement plans and administration

The firm also keeps records for retirement plans and runs fund accounting and shareholder services 1. Administrative, distribution, servicing and other fees were $141.3 million in the third quarter, and assets under administration were $346 billion 1.

Alternatives and Oak Hill Advisors

OHA is the firm's alternatives arm, covering strategies such as private credit 2. Commitments that do not yet earn fees were $19.0 billion at 30 September 2026, and the firm has committed $278 million to future OHA product launches through 2030 12.

Vehicles and distribution

Products come as mutual funds, collective investment trusts, exchange-traded funds, separately managed accounts and other sponsored products 3. Chief executive Rob Sharps said the firm continues to expand its ETF, SMA, and model portfolio businesses 1.

People and places

On 15 May 2026 the board named Eric Veiel president, co-head of global investments and chief investment officer, and Sharps stayed chief executive 4. Chief operating officer Kimberly Johnson announced in November 2025 that she would leave on 31 December 2025 6. The firm employed 7,640 associates at 30 September 2026, 2.4% fewer than a year earlier 1.

Headquarters moved in early 2025 to about 550,000 square feet of leased space in Harbor Point, Baltimore 3. Operations run mostly from owned campuses in Owings Mills, Maryland and Colorado Springs, Colorado, and in 2025 the firm decided to exit two of its seven Owings Mills buildings 3.

Rivals and pressures

The annual report names passive index strategies as a main rival, saying they have taken market share from active managers 3. At 31 December 2025, 48.2% of its rated U.S. mutual funds held four or five stars from Morningstar, against 32.5% of Morningstar's fund population 3.

The umbrella, in words

Revenue comes mainly through T. Rowe Price Associates, T. Rowe Price Investment Management, T. Rowe Price International and Oak Hill Advisors 3. T. Rowe Price Investment Services is the broker-dealer that distributes its U.S. mutual funds and exchange-traded funds 3.

The firm holds an investment in UTI Asset Management Company Limited of India, carried at $150.4 million on its latest balance sheet 2. It counted 823 stockholders of record, and its associates and directors own nearly 5% of the stock 3.

The company expects to close the F/m Investments purchase in the first quarter of 2027, paid from cash on hand 2. It is expected to widen the firm's fixed income ETF and SMA (separately managed account) offerings 2.

For 2026 the company expects capital spending of about $290 million, nearly all on technology 2. It estimates its full-year 2026 effective tax rate at 23.5% to 25.5% 1.

The annual report said the firm expected 2026 non-GAAP operating expenses, excluding accrued carried interest compensation, to grow 3% to 6% from $4,608.0 million 3.

The quarterly dividend was raised 2.4% in February 2026, to $1.30 a share 2. The firm says it will generally buy back stock over time to offset the dilution from equity-based pay 2.

Its multi-year initiatives include growing the U.S. wealth management channel, broadening its reach in private and alternatives markets, and building global partnerships 3. On 22 April 2026 the firm and OHA announced an updated evergreen operating arrangement 5.