T. Rowe Price Group Reports Q3 2026 Earnings with Adjusted Diluted EPS of $2.86

Executive Summary

On October 29, 2026, T. Rowe Price Group, Inc. (NASDAQ: TROW) filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing its financial results for the third quarter ended September 30, 2026.

Key Financial Highlights (Q3 2026 vs. Q3 2025)

• Net Revenues: Reached $2,004.9 million, an increase of 5.9% from $1,893.5 million in Q3 2025 and up 5.1% sequentially from $1,907.4 million in Q2 2026.
• Investment Advisory Fees: Increased 5.8% YoY to $1,796.4 million, compared to $1,698.7 million in Q3 2025.
• Operating Expenses (GAAP): Decreased 1.2% YoY to $1,235.1 million from $1,250.3 million.
• Adjusted Operating Expenses: Rose 5.8% YoY to $1,200.1 million compared to $1,134.4 million in Q3 2025.
• Net Operating Income (GAAP): Increased 19.7% YoY to $769.8 million compared to $643.2 million.
• Net Income Attributable to T. Rowe Price Group:
  • GAAP Basis: $612.3 million, down 5.2% from $646.1 million in Q3 2025 (reflecting lower non-operating income of $17.6M vs. $238.4M in Q3 2025).
  • Adjusted Basis: $629.5 million, relatively flat (-0.3%) compared to $631.7 million in Q3 2025.
• Diluted Earnings Per Share (EPS):
  • GAAP Diluted EPS: $2.79, down 2.8% from $2.87 in Q3 2025.
  • Adjusted Diluted EPS: $2.86, up 1.8% from $2.81 in Q3 2025.

Assets Under Management (AUM) and Flows

• Ending AUM: $1,862.7 billion ($1.86 trillion), representing a 5.4% YoY growth from $1,767.2 billion at September 30, 2025, but a 1.6% sequential contraction from $1,893.4 billion at June 30, 2026.
• Average AUM: $1,887.2 billion, up 9.5% YoY from $1,723.0 billion.
• Net Client Outflows: Recorded $28.3 billion in net outflows during the third quarter.
• Annualized Effective Fee Rate (EFR): 37.8 bps (excluding performance fees), down from 39.1 bps in Q3 2025.

Management Commentary

Chair and CEO Rob Sharps emphasized strategic expansion across ETFs, separately managed accounts (SMAs), and model portfolios, positioning the firm to extend active investment strategies across broader portfolio solutions amid ongoing market shifts.