T. Rowe Price Group (NASDAQ:TROW) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

T. Rowe Price Group (NASDAQ:TROW) announced its quarterly earnings data on Wednesday. The asset manager reported $2.44 EPS for the quarter, missing analysts’ consensus estimates of $2.46 by ($0.02), FiscalAI reports. The firm had revenue of $1.93 billion during the quarter, compared to the consensus estimate of $1.92 billion. T. Rowe Price Group had a net margin of 28.89% and a return on equity of 19.95%. The firm’s quarterly revenue was up 6.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.12 earnings per share.

Here are the key takeaways from T. Rowe Price Group’s conference call:

• Closed 2025 with $1.78 trillion in assets under management, up over 10% year‑over‑year, as market appreciation more than offset $56.9 billion in net outflows.
• Net outflows were concentrated in equity and mutual fund products — about $75 billion from equity and nearly $64 billion from mutual funds in 2025 — and a shift toward lower‑priced vehicles pressured the firm’s effective fee rate.
• Investment performance is improving but mixed — roughly half of funds outperformed peers across 1-, 3-, 5-, and 10‑year periods, with particularly strong asset‑weighted results in fixed income and long‑term target‑date strategies.
• Strategic growth initiatives accelerated with a co‑development partnership with Goldman Sachs, a new strategic partnership with First Abu Dhabi Bank, 13 ETFs launched (ETF AUM > $21 billion), and the first close of a T. Rowe Price private equity fund to expand alternatives and distribution.
• Financials showed resilience — full‑year adjusted diluted EPS of $9.72 (up 4.2%), over $2 billion of free cash flow, nearly $1.8 billion returned to shareholders (including $624.6 million in buybacks) and a 39th consecutive dividend increase, while 2026 expense guidance targets controlled mid‑single‑digit growth.

T. Rowe Price Group Stock Performance

Shares of T. Rowe Price Group stock traded down $5.26 on Wednesday, hitting $97.40. The stock had a trading volume of 2,381,922 shares, compared to its average volume of 1,866,316. T. Rowe Price Group has a twelve month low of $77.85 and a twelve month high of $118.22. The stock has a 50 day moving average of $104.83 and a 200 day moving average of $104.67. The firm has a market capitalization of $21.26 billion, a P/E ratio of 10.58, a PEG ratio of 2.58 and a beta of 1.53.

Trending Headlines about T. Rowe Price Group

Here are the key news stories impacting T. Rowe Price Group this week:

• Positive Sentiment: Q4 revenue growth and strong profitability — Revenue was $1.93B (up 6% YoY) and the business reported a 28.9% net margin and 19.95% ROE, showing operating leverage despite industry headwinds. MarketBeat earnings report
• Positive Sentiment: New product launch could support fee income — T. Rowe introduced an actively managed Innovation Leaders ETF, which may help distribution and long‑term fee growth. Yahoo Finance: ETF launch
• Positive Sentiment: Attractive valuation narrative — Analysts and commentators continue to flag TROW as a value name given its P/E and stable cash generation, which can support investor interest if AUM stabilizes. Zacks: value thesis
• Neutral Sentiment: Company release, call and slides available — Management published the full PR and supporting slide deck and held a conference call; these are the primary sources for guidance and AUM/flow details that will drive near‑term sentiment. PR Newswire: Q4 & full‑year results Slide deck
• Neutral Sentiment: Analyst previews and expectations ahead of the print focused on AUM trends and expense pressure; these previews set expectations but did not point to a major surprise. Zacks: earnings preview
• Negative Sentiment: Earnings slightly missed consensus — EPS of $2.44 was $0.03 below the consensus $2.47, which prompted the immediate negative reaction despite underlying revenue strength. Zacks: EPS miss
• Negative Sentiment: Analyst price‑target cut — Morgan Stanley trimmed its target from $128 to $123 (maintained equal‑weight), a move that can weigh on sentiment even though the adjusted target still implies substantial upside. MarketScreener: PT cut

Insider Activity

In other T. Rowe Price Group news, VP Arif Husain sold 4,260 shares of T. Rowe Price Group stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $101.96, for a total transaction of $434,349.60. Following the sale, the vice president directly owned 47,102 shares of the company’s stock, valued at approximately $4,802,519.92. The trade was a 8.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On T. Rowe Price Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Northern Trust Corp lifted its stake in shares of T. Rowe Price Group by 6.4% in the 3rd quarter. Northern Trust Corp now owns 2,529,116 shares of the asset manager’s stock valued at $259,588,000 after purchasing an additional 152,451 shares during the period. Caisse de depot et placement du Quebec lifted its position in shares of T. Rowe Price Group by 81.0% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 1,306,922 shares of the asset manager’s stock valued at $134,142,000 after acquiring an additional 584,949 shares during the period. Ameriprise Financial Inc. boosted its position in T. Rowe Price Group by 5.5% during the third quarter. Ameriprise Financial Inc. now owns 873,092 shares of the asset manager’s stock worth $89,614,000 after purchasing an additional 45,845 shares in the last quarter. Franklin Resources Inc. increased its holdings in T. Rowe Price Group by 8.2% during the 3rd quarter. Franklin Resources Inc. now owns 532,079 shares of the asset manager’s stock valued at $54,613,000 after acquiring an additional 40,450 shares in the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of T. Rowe Price Group by 19.4% in the third quarter. AQR Capital Management LLC now owns 474,752 shares of the asset manager’s stock valued at $48,729,000 after purchasing an additional 77,086 shares in the last quarter. Institutional investors own 73.39% of the company’s stock.

Analyst Upgrades and Downgrades

TROW has been the subject of several research analyst reports. Jefferies Financial Group upped their price target on shares of T. Rowe Price Group from $104.00 to $106.00 and gave the stock a “hold” rating in a report on Tuesday, October 7th. Citigroup raised their price objective on T. Rowe Price Group from $105.00 to $107.00 in a research report on Monday, November 3rd. Morgan Stanley decreased their price target on shares of T. Rowe Price Group from $128.00 to $123.00 and set an “equal weight” rating for the company in a research note on Monday. BMO Capital Markets boosted their target price on shares of T. Rowe Price Group from $108.00 to $110.00 and gave the stock a “market perform” rating in a research report on Tuesday, January 13th. Finally, Barclays dropped their price target on shares of T. Rowe Price Group from $102.00 to $101.00 and set an “underweight” rating on the stock in a research report on Thursday, January 15th. Eleven analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, T. Rowe Price Group presently has a consensus rating of “Reduce” and a consensus price target of $106.92.

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm’s product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.