T. Rowe Price 8-K
EarningsNew guidance
Equity-led outflows reached $28.3B and a lower-fee mix cut the advisory fee rate, while higher average AUM lifted revenue.
Filed 2026-10-29 07:05 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results. T. Rowe Price ended the quarter with $1.863T in assets under management (AUM) despite net client outflows, while higher average AUM lifted advisory revenue. Management highlighted expansion of its exchange-traded fund, separately managed account, and model portfolio businesses to bring its active investment capabilities to more clients.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Net revenues | $2.00B, +5.9% Y/Y | $5.77B, +7.2% Y/Y |
| Net operating income, GAAP | $770M, +19.7% Y/Y | $1.99B, +15.9% Y/Y |
| Net operating income, non-GAAP | $809M, +4.5% Y/Y | $2.22B, +9.6% Y/Y |
| Net income attributable to T. Rowe Price Group, Inc., GAAP | $612M, -5.2% Y/Y | $1.74B, +6.1% Y/Y |
| Net income attributable to T. Rowe Price Group, Inc., non-GAAP | $630M, -0.3% Y/Y | $1.76B, +6.6% Y/Y |
| Diluted EPS, GAAP | $2.79, -2.8% Y/Y | $7.89, +8.8% Y/Y |
| Diluted EPS, non-GAAP | $2.86, +1.8% Y/Y | $7.95, +9.2% Y/Y |
| Operating cash flow attributable to T. Rowe Price Group, Inc. | — | $2.75B |
| Ending AUM | $1.863T, +5.4% Y/Y | $1.863T, +5.4% Y/Y |
- Q3 net client outflows were $28.3B, led by $25.6B from equity and $7.6B from multi-asset strategies; fixed income had $3.4B of inflows. Market depreciation and income reduced AUM by a further $2.4B, leaving ending AUM $30.7B below the quarter’s start. For 9M, $48.5B in net outflows was partly offset by $135.6B of market appreciation and income.
- Q3 average AUM rose 9.5% Y/Y to $1.887T, supporting 5.9% revenue growth, but the advisory effective fee rate excluding performance-based fees fell to 37.8 basis points from 39.1 basis points as flows and transfers shifted the mix toward lower-fee products and asset classes. Adjusted operating expenses increased 5.8% Y/Y, while GAAP net income attributable to the company declined amid lower non-operating income.
- 9M operating cash flow attributable to the company was $2.75B; consolidated investment products used $874M, resulting in $1.88B of reported consolidated operating cash flow.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Effective income tax rate, GAAP | FY2026 | 23.5%-25.5% | — | — |
| Effective income tax rate, adjusted | FY2026 | 23.5%-25.5% | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Effective income tax rate, GAAP | FY2026 | 23.0%-26.0% | 23.5%-25.5% | narrowed (raised low end, lowered high end) |
| Effective income tax rate, adjusted | FY2026 | 23.0%-26.0% | 23.5%-25.5% | narrowed (raised low end, lowered high end) |
Investor Takeaways
- Watch net client flows and the advisory fee rate: narrowing outflows and stabilization in the fee rate would support the revenue-growth trajectory; continued outflows or further fee-rate decline would weigh on it.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-29 14:41:36Z