TROW T. Rowe Price 8-K 2026-04-30

Summary

Q1 2026 results. Higher average AUM supported revenue growth, while client outflows and market depreciation drove a sequential decline in ending AUM.

Metric	Q1 2026
Net revenues	$1.86B, +5.3% Y/Y
Net operating income	$681M, +14.1% Y/Y
Net operating income, non-GAAP	$706M, +10.2% Y/Y
Net income attributable to T. Rowe Price Group, Inc.	$498M, +1.6% Y/Y
Net income attributable to T. Rowe Price, non-GAAP	$562M, +10.3% Y/Y
Diluted EPS	$2.23, +3.7% Y/Y
Diluted EPS, non-GAAP	$2.52, +13.0% Y/Y
Operating cash flow attributable to T. Rowe Price	$966M
Ending AUM	$1.71T, +9.2% Y/Y

AUM declined $65.9B during Q1: $13.7B of net outflows and $52.2B of net market depreciation and income. Average AUM rose 9.6% to $1.78T, but the advisory effective fee rate excluding performance-based fees fell to 38.4 bps from 40.0 bps Y/Y as flows and transfers shifted the mix toward lower-fee products and asset classes.
GAAP non-operating results were a $(48.3)M loss vs $70.7M income Y/Y; non-GAAP non-operating income was $30.9M vs $35.5M, primarily reflecting lower market returns.
The quarter included a $10M restructuring charge, primarily severance. The firm returned $629M through its recurring quarterly dividend and repurchases; cash was $3.73B vs $3.38B at 12/31/2025, and common shares outstanding were 214.9M vs 221.1M.

Metric	Period	Guidance	Prior	Direction
U.S. GAAP effective tax rate	FY2026	23%-26%	—	—
Adjusted effective tax rate	FY2026	23%-26%	—	—

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
U.S. GAAP effective tax rate	FY2026	23%-27%	23%-26%	narrowed (lowered high end)
Adjusted effective tax rate	FY2026	24%-27%	23%-26%	lowered

Watch client flows and the effective fee rate in coming quarters: continued outflows or a further shift toward lower-fee assets could weigh on AUM and advisory-fee growth.