01—Abstract
Summary
Summary of the 10-Q filed October 29, 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 September 30, 2026 reports net revenues of $2,004.9 milliona for the third quarter, up from $1,893.5 million a year earlier, driven by a rise in investment advisory fees to $1,796.4 million and higher average AUM of $1,887.2 billion. U.S. GAAP operating expenses were $1,235.1 million, down from $1,250.3 million, while net income attributable to T. Rowe Price Group was $612.3 million, or $2.79 diluted EPS, versus $2.87 a year earlier.
The filing notes that the decline in non-operating income, which fell to $17.6 millionb from $238.4 million, drove the lower diluted EPS despite higher operating income. For the nine months, net income attributable to the firm rose to $1,742.5 million ($7.89 diluted EPS) from $1,641.8 million ($7.25). Ending AUM was $1,862.7 billion, with net cash outflows of $48.5 billion year-to-date offset by $135.6 billion of market appreciation.
The effective fee rate without performance-based fees declined to 38.1 bps from 39.6 bps for the nine months. Cash and cash equivalents were $3,774.3 millionc at September 30, 2026, and the firm repurchased $497.5 million of stock in the first nine months. The filing also discloses an agreement in August 2026 to acquire F/m Investments, LLC for about $75 million plus up to $50 million in contingent consideration, expected to close in the first quarter of 2027.
Management determined in April 2026 that no OHA earnout would be earned or paid at the end of 2026. KPMG LLP issued a review report on the interim statements, dated October 29, 2026.
02—Key points
Key Highlights
- Third-quarter net revenues rose 5.9% to $2,004.9 million, with average AUM up 9.5% to $1,887.2 billion.
- Third-quarter diluted EPS was $2.79, down from $2.87, as non-operating income fell to $17.6 million from $238.4 million.
- Nine-month diluted EPS increased to $7.89 from $7.25, driven by higher operating income and lower weighted-average shares.
- Ending AUM was $1,862.7 billion at September 30, 2026, with nine-month net cash outflows of $48.5 billion.
- The firm agreed in August 2026 to acquire F/m Investments, LLC for about $75 million plus up to $50 million in contingent consideration, expected to close in Q1 2027.
- The OHA earnout was determined in April 2026 to yield no contingent consideration payable at the end of 2026.
- Cash and cash equivalents were $3,774.3 million at September 30, 2026, up from $3,378.2 million at December 31, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.00B$1.89B | +5.9% |
| Operating Expenses | $1.24B$1.25B | −1.2% |
| Operating Income | $769.80M$643.20M | +19.7% |
| Net Income | $612.30M$646.10M | −5.2% |
| EPS (Basic) | $2.79$2.88 | −3.1% |
| EPS (Diluted) | $2.79$2.87 | −2.8% |
| Shares Outstanding (Basic) | 213.30M219.40M | −2.8% |
| Shares Outstanding (Diluted) | 213.60M219.70M | −2.8% |
05—Questions
Frequently Asked Questions
How did T. Rowe Price's third-quarter 2026 earnings compare with the prior year?
Net income attributable to T. Rowe Price Group was $612.3 million, or $2.79 per diluted share, compared with $646.1 million, or $2.87 per diluted share, in the third quarter of 2025. Net operating income rose 19.7% to $769.8 million, but lower non-operating income of $17.6 million, versus $238.4 million a year earlier, offset that gain.
What drove revenue growth in the period?
Investment advisory fees rose 5.8% to $1,796.4 million in the third quarter, as average AUM increased 9.5% to $1,887.2 billion. Multi-asset fees rose 9.2% and capital allocation-based income increased to $59.9 million from $42.0 million.
What is the status of the F/m Investments acquisition?
The firm agreed in August 2026 to acquire F/m Investments, LLC for about $75 million plus up to $50 million in contingent consideration that may be due as an earnout. The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals and customary closing conditions, and to be funded with existing cash balances.
How much did the firm return to stockholders in 2026?
In the first nine months of 2026, the firm repurchased 5.3 million shares for $497.5 million at an average price of $94.44 per share and paid recurring dividends of $857.6 million declared. The quarterly dividend was increased in February 2026 to $1.30 per share from $1.27.
06—Continue