T. Rowe Price Q2 Earnings Top Estimates on Higher Revenues & Record AUM

T. Rowe Price Group, Inc.'s TROW second-quarter 2026 adjusted earnings per share (EPS) of $2.57 surpassed the Zacks Consensus Estimate of $2.52. Further, the bottom line increased 14.7% year over year.

TROW's results benefited from higher investment advisory fees and record assets under management (AUM). Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind.

The results included certain items. After considering those, net income attributable to T. Rowe Price (on a GAAP basis) was $632 million, which rose 25.1% from the prior-year quarter.

TROW's Revenues Increase, Expenses Rise

Net revenues rose 10.7% year over year to $1.91 billion. However, the top line missed the Zacks Consensus Estimate of $1.92 billion by 0.66%.

Investment advisory fees rose 11.3% year over year to $1.74 billion.

Capital allocation-based income was $11.9 million against a loss of $0.4 million in the prior-year quarter.

Administrative, distribution, servicing and other fees declined 3.7% year over year to $144.2 million.

Total operating expenses increased 9.8% year over year to $1.37 billion in the reported quarter. On an adjusted basis, operating expenses were $1.20 billion, up 4.9% year over year.

TROW's AUM Rises, Liquidity Position Strong

As of June 30, 2026, total AUM reached a record $1.89 trillion, up 12.9% year over year.

In the second quarter, net market appreciation and income of $190.2 billion favorably impacted T. Rowe Price's AUM. However, net cash outflows were $6.5 billion.

The company had substantial liquidity, including cash and cash equivalents of $3.23 billion as of June 30, 2026, up from $3.06 billion as of June 30, 2025. This will enable TROW to keep investing.

TROW's Capital Distribution Activities

T. Rowe Price returned $441 million to shareholders through recurring quarterly dividends and share repurchases in the second quarter.

Our View on TROW

TROW's record AUM balance, higher investment advisory fees and positive capital allocation-based income are likely to support top-line growth. Its broadening distribution reach and efforts to diversify the business through acquisitions and product enhancements further support growth. A substantial liquidity position enables the company to continue investing and sustain capital distributions. However, persistent net cash outflows and an elevated expense base remain concerns.

T. Rowe Price Group, Inc. Price, Consensus and EPS SurpriseT. Rowe Price Group, Inc. Price, Consensus and EPS Surprise

T. Rowe Price Group, Inc. price-consensus-eps-surprise-chart | T. Rowe Price Group, Inc. Quote

Story Continues

Currently, TROW carries a Zacks Rank #3 (Hold).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performance of T. Rowe Price's Peers

Invesco's IVZ second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line increased 97.2% from the prior-year quarter.

IVZ's results primarily benefited from an increase in adjusted revenues and substantial growth in AUM balance. Record net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind.

Ameriprise Financial's AMP second-quarter 2026 adjusted operating earnings were $11.07 per share, which handily surpassed the Zacks Consensus Estimate of $10.72. The bottom line reflected a rise of 22% from the year-ago quarter.

Results benefited from higher revenues and an improvement in AUM and assets under administration balances to record levels. However, an increase in expenses was a headwind for AMP.

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This article originally published on Zacks Investment Research (zacks.com).

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