T. Rowe Price 8-K
PositiveEarningsNew guidanceRestructuring
Market gains drove record $1.89T AUM despite outflows and fundamental active equity pressure; lower-fee product mix squeezed fee rates.
Filed 2026-07-31 07:03 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with FY2026 tax-rate guidance. Record AUM grew as market appreciation more than offset net client outflows, while positive flows in May and June contrasted with continued pressure in fundamental active equity. A mix shift toward lower-fee products weighed on the effective fee rate.
Key Figures
| Metric | Q2 2026 | H1 2026 |
|---|---|---|
| Revenue | $1.91B, +10.7% Y/Y | $3.76B, +8.0% Y/Y |
| Net operating income, GAAP | $541M, +13.0% Y/Y | $1.22B, +13.6% Y/Y |
| Net operating income, non-GAAP | $709M, +15.4% Y/Y | $1.42B, +12.8% Y/Y |
| Net income attributable to T. Rowe Price Group, Inc., GAAP | $632M, +25.1% Y/Y | $1.13B, +13.5% Y/Y |
| Net income attributable to T. Rowe Price, non-GAAP | $565M, +11.5% Y/Y | $1.13B, +10.9% Y/Y |
| Diluted EPS, GAAP | $2.88, +28.6% Y/Y | $5.10, +16.4% Y/Y |
| Diluted EPS, non-GAAP | $2.57, +14.7% Y/Y | $5.09, +13.9% Y/Y |
| Operating cash flow attributable to T. Rowe Price | — | $1.77B |
| Ending AUM | $1.89T, +12.9% Y/Y | $1.89T, +12.9% Y/Y |
| Net client flows | $(6.5)B | $(20.2)B |
- Q2 AUM increased $183.7B: $190.2B of market appreciation and income more than offset outflows. The investment advisory annualized effective fee rate excluding performance-based fees fell 1.5 bp Y/Y to 38.1 bp, reflecting a shift toward lower-fee products and asset classes.
- Returned $441M through the recurring dividend and share repurchases. Common shares outstanding were 213.3M at 6/30/2026 vs 218.6M at 12/31/2025.
- Restructuring charges were $6.7M in Q2 and $16.7M in H1, primarily compensation-related costs, mainly severance, under the ongoing expense-management program.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Effective tax rate, GAAP | FY2026 | 23.0%-26.0% | — | — |
| Effective tax rate, adjusted | FY2026 | 23.0%-26.0% | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Effective tax rate, GAAP | FY2026 | 23%-26% | 23.0%-26.0% | reaffirmed |
| Effective tax rate, adjusted | FY2026 | 23%-26% | 23.0%-26.0% | reaffirmed |
Investor Takeaways
- Watch whether client flows improve and the mix shift stabilizes, which would support the effective fee rate.
- Track the FY2026 effective tax rate against the stated 23.0%-26.0% range on both GAAP and adjusted bases.
The summary is written by an AI model reading the filing.
Model 005 · prompt 5998ea898f · 2026-10-16 19:54:46Z