01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
T.
Rowe Price Group, Inc.'s Form 10-Q for the quarter ended June 30, 2026 shows net revenues of $1,907.4 milliona for the second quarter, up from $1,723.3 million a year earlier, driven by investment advisory fees of $1,744.8 million and average assets under management of $1,837.7 billion. U.S. GAAP net income attributable to T. Rowe Price Group was $632.0 million, or $2.88 per diluted share, compared with $505.2 million, or $2.24, in the second quarter of 2025.
On a non-GAAP adjusted basis, diluted earnings per share were $2.57b versus $2.24 a year earlier. Ending assets under management were $1,893.4 billion at June 30, 2026, up $183.7 billion from March 31, 2026, with market appreciation of $190.2 billion more than offsetting net cash outflows of $6.5 billion in the quarter. For the six months ended June 30, 2026, net revenues were $3,764.4 million and U.S. GAAP net income attributable to the company was $1,130.2 million, or $5.10 per diluted share.
Operating expenses rose 5.4% on a U.S. GAAP basis, with compensation costs boosted by a $126.5 millionc market-related change in deferred compensation liabilities in the quarter, and the firm recorded a $6.7 million restructuring charge in the quarter ($16.7 million year to date), primarily severance. The average effective fee rate without performance-based fees declined to 38.1 basis points in the quarter from 39.6 basis points a year earlier, which the filing attributes to a mix shift toward lower-fee products and asset classes. The balance sheet remained strong, with cash and cash equivalents of $3,234.3 million and investments of $4,090.2 million at June 30, 2026.
Total stockholders' equity attributable to T. Rowe Price Group was $11,002.5 milliond.
During the first half of 2026, the company repurchased $497.5 million of common stock (5.3 million shares) and paid $572.3 million in recurring dividends, with the quarterly dividend raised to $1.30 per share. The filing also reports that the earnout tied to the OHA acquisition will not be earned or paid at the end of 2026, a determination made in April 2026.
02—Key points
Key Highlights
- Net revenues rose 10.7% to $1,907.4 million in Q2 2026, driven by an 11.3% increase in investment advisory fees as average AUM grew 15.7% to $1,837.7 billion.
- Diluted EPS was $2.88 on a U.S. GAAP basis versus $2.24 a year earlier; adjusted (non-GAAP) diluted EPS was $2.57 versus $2.24.
- Ending AUM reached $1,893.4 billion, up $183.7 billion in the quarter, with market appreciation of $190.2 billion and net cash outflows of $6.5 billion.
- The effective fee rate without performance-based fees declined to 38.1 basis points from 39.6 basis points, reflecting a mix shift toward lower-fee products and asset classes.
- A $6.7 million restructuring charge (primarily severance) was recorded in Q2 2026 under the ongoing expense management program, bringing the year-to-date charge to $16.7 million.
- Capital returns continued: $497.5 million in first-half share repurchases and $572.3 million in recurring dividends, with the quarterly dividend raised to $1.30 per share from $1.27.
- No contingent consideration will be earned or paid on the OHA acquisition earnout at the end of 2026, as determined in April 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.91B$1.72B | +10.7% |
| Operating Expenses | $1.37B$1.25B | +9.8% |
| Operating Income | $540.50M$478.30M | +13.0% |
| Net Income | $632.00M$505.20M | +25.1% |
| EPS (Basic) | $2.88$2.24 | +28.6% |
| EPS (Diluted) | $2.88$2.24 | +28.6% |
| Shares Outstanding (Basic) | 214.00M220.20M | −2.8% |
| Shares Outstanding (Diluted) | 214.20M220.40M | −2.8% |
05—Questions
Frequently Asked Questions
Why did reported diluted EPS rise more than adjusted diluted EPS in the second quarter of 2026?
U.S. GAAP diluted EPS was $2.88, while adjusted diluted EPS was $2.57. The gap reflects non-GAAP adjustments, including the removal of the market-related change in deferred compensation liabilities ($126.5 million in operating expenses, offset by $133.7 million of hedge gains in non-operating income) and consolidated investment product results, which add to GAAP earnings but are excluded from the adjusted measure.
What drove the growth in investment advisory fees?
Investment advisory fees increased 11.3% to $1,744.8 million in Q2 2026, as average AUM rose 15.7% to $1,837.7 billion. Multi-asset average AUM grew 21.5% and equity average AUM grew 13.0%, while the effective fee rate declined, partly offsetting the asset growth.
How did operating expenses change, and what drove the increase?
U.S. GAAP operating expenses rose 9.8% to $1,366.9 million in Q2 2026. The filing attributes about half the increase to higher compensation expense tied to deferred compensation liabilities as markets rose, with higher compensation, distribution and servicing costs, technology and occupancy costs, and general and administrative costs also contributing. Adjusted operating expenses rose 4.9% to $1,203.2 million.
What happened to the company's assets under management in the quarter?
Ending AUM was $1,893.4 billion at June 30, 2026, up from $1,709.7 billion at March 31, 2026. Market appreciation contributed $190.2 billion, while net cash outflows were $6.5 billion. Over the first six months, net cash outflows totaled $20.2 billion against $138.0 billion of market appreciation.
What did the company return to stockholders in the first half of 2026?
The company repurchased 5.3 million shares for $497.5 million at an average price of $94.44 per share, and paid recurring dividends of $572.3 million declared for the six months. The quarterly dividend was raised 2.4% to $1.30 per share in February 2026. Since the end of 2023, the company has returned $4.3 billion to stockholders.
06—Continue