01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
T.
Rowe Price Group, Inc.'s first-quarter 2026 Form 10-Q shows net revenues of $1,857.0 milliona, up from $1,763.9 million in the first quarter of 2025, driven primarily by investment advisory fees of $1,683.0 million and a $29.3 million increase in capital allocation-based income. U.S. GAAP net operating income rose to $680.5 million from $596.3 million, while net income attributable to T. Rowe Price Group was $498.2 million, or $2.23 per diluted share, compared with $490.5 million, or $2.15, a year earlier.
Non-operating results were a loss of $48.3 millionb, compared with income of $70.7 million, largely reflecting $41.4 million of losses on consolidated investment products and $32.6 million of losses on investments used to hedge deferred compensation liabilities. On a non-GAAP adjusted basis, diluted earnings per share were $2.52, compared with $2.23. Assets under management ended the quarter at $1,709.7 billion, down $65.9 billion from December 31, 2025, reflecting market depreciation of $52.2 billion and net cash outflows of $13.7 billion.
Average AUM rose 9.6% year over year to $1,775.8 billionc, while the investment advisory annualized effective fee rate without performance-based fees declined to 38.4 basis points from 40.0 basis points. The company repurchased 3.7 million shares for $340.4 million and paid $289.1 million in dividends, and it recorded a $10.0 million restructuring charge tied to its ongoing expense management program. Cash and cash equivalents increased to $3,729.8 million from $3,378.2 million at year-end.
The filing reports no material changes to risk factors from the 2025 Form 10-K. The company disclosed a commitment of $249 milliond for future OHA product launches through 2026, which it agreed in April to extend to 2030, and an OHA-related contingent earnout of up to $900 million, valued at zero at March 31, 2026. KPMG LLP reported that it was not aware of any material modifications to the interim financial information.
02—Key points
Key Highlights
- Net revenues were $1,857.0 million, up from $1,763.9 million, with investment advisory fees of $1,683.0 million versus $1,598.4 million.
- U.S. GAAP net income attributable to T. Rowe Price Group was $498.2 million, or $2.23 per diluted share, compared with $490.5 million, or $2.15, in the prior-year quarter.
- Non-GAAP adjusted diluted EPS was $2.52, compared with $2.23 in the first quarter of 2025.
- Ending AUM was $1,709.7 billion, down $65.9 billion from year-end 2025 on $52.2 billion of market depreciation and $13.7 billion of net outflows.
- Average AUM rose 9.6% to $1,775.8 billion, but the annualized effective fee rate without performance-based fees fell to 38.4 basis points from 40.0 basis points.
- Non-operating results swung to a loss of $48.3 million from income of $70.7 million, driven mainly by consolidated investment product losses of $41.4 million.
- The company repurchased $340.4 million of stock and paid $289.1 million in dividends, and recorded a $10.0 million restructuring charge.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.86B$1.76B | +5.3% |
| Operating Expenses | $1.18B$1.17B | +0.8% |
| Operating Income | $680.50M$596.30M | +14.1% |
| Net Income | $498.20M$490.50M | +1.6% |
| EPS (Basic) | $2.23$2.15 | +3.7% |
| EPS (Diluted) | $2.23$2.15 | +3.7% |
| Shares Outstanding (Basic) | 217.50M222.30M | −2.2% |
| Shares Outstanding (Diluted) | 217.60M222.60M | −2.2% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue this quarter?
Net revenues rose $93.1 million to $1,857.0 million, mainly from investment advisory fees, which increased $84.6 million as average AUM grew 9.6%. Capital allocation-based income also improved by $29.3 million, to $28.1 million, reflecting a $31.3 million change in accrued carried interest.
Why did non-operating income turn negative?
Non-operating income was a loss of $48.3 million, compared with income of $70.7 million a year earlier. The filing attributes the change mainly to $41.4 million of net losses on consolidated investment products and $32.6 million of losses on investments used to hedge deferred compensation liabilities.
How did assets under management change during the quarter?
AUM decreased $65.9 billion to $1,709.7 billion at March 31, 2026. Market depreciation accounted for $52.2 billion of the decline and net cash outflows for $13.7 billion. Equity AUM fell $68.0 billion, and multi-asset AUM fell $2.0 billion.
How much capital did the company return to stockholders?
In the first quarter, the company repurchased 3.7 million shares for $340.4 million and paid $289.1 million in cash dividends. The quarterly dividend was increased to $1.30 per share from $1.27 in February 2026.
Are there any significant pending contingent obligations?
The filing discloses up to $900 million of contingent cash consideration tied to the OHA acquisition, payable in 2026 and 2027 if defined cumulative revenue targets are met. It was valued at zero at March 31, 2026. The company also has a $249 million commitment to future OHA product launches, which it agreed in April to extend through 2030.
06—Continue