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Price T Rowe Group 8-K Report, Financial Results (Feb 4, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 4, 2026
Period End
February 4, 2026
Security
TROW
In the record · 2016–202610-K1110-Q338-K83

TROW filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 83 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Apr ’22Apr ’22
  2. Leadership change8-K · Oct ’24Oct ’24

01—Abstract

Summary

Summary of the 8-K filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.

T.

Rowe Price Group, Inc. (NASDAQ-GS: TROW) reported fourth-quarter and full-year 2025 results in an earnings release furnished under Item 2.02 of this Form 8-K, dated February 4, 2026. The firm ended 2025 with $1.8 trilliona in assets under management (ending AUM of $1,775.6 billion), but experienced net client outflows of $25.5 billion in Q4 2025 and $56.9 billion for the full year. Q4 2025 U.S. GAAP diluted EPS was $1.99 versus $1.92 in Q4 2024, while adjusted diluted EPS was $2.44 versus $2.12.

For 2025, U.S. GAAP diluted EPS was $9.24b and adjusted diluted EPS was $9.72. Q4 2025 net revenues were $1,934.1 million, up 6.0% from Q4 2024, driven by investment advisory fees of $1,737.6 million (up 4.2%) and a swing in capital allocation-based income to $40.8 million from a loss of $5.2 million a year earlier. Operating expenses rose 16.5% year over year to $1,463.1 million on U.S. GAAP basis, including a $148.8 million restructuring charge tied to the firm's ongoing expense management program.

The investment advisory annualized effective fee rate excluding performance-based fees declined to 38.8 basis points from 40.5 basis points, as client flows shifted assets toward lower-fee products and asset classes. The firm employed 7,773 associates at year-end, down from 8,158 a year earlier. The release states that results are unaudited, that KPMG LLP is completing its audits of the 2025 financial statements and internal controls, and that the firm expects to file its 2025 Form 10-K after KPMG completes its work in mid-February.

The firm estimates its 2026 effective tax rate will be 23.0%c to 27.0% on a U.S. GAAP basis and 24.0% to 27.0% on an adjusted basis. CEO Rob Sharps stated that the firm made progress on new partnerships and grew its ETFs and alternatives business.

02—Key points

Key Highlights

  1. Assets under management reached $1.8 trillion at December 31, 2025, with ending AUM of $1,775.6 billion, up $8.4 billion during Q4 2025.
  2. Net client outflows were $25.5 billion in Q4 2025 and $56.9 billion for full-year 2025.
  3. Q4 2025 diluted EPS was $1.99 (U.S. GAAP) and $2.44 (adjusted), compared with $1.92 and $2.12 in Q4 2024; full-year 2025 diluted EPS was $9.24 (U.S. GAAP) and $9.72 (adjusted).
  4. Q4 2025 net revenues were $1,934.1 million, up 6.0% from Q4 2024, aided by capital allocation-based income of $40.8 million versus a loss of $5.2 million a year earlier.
  5. A $148.8 million restructuring charge in Q4 2025 relates to the expense management program, including $127.3 million of accelerated depreciation and impairment charges on certain owned real estate.
  6. The investment advisory annualized effective fee rate, excluding performance-based fees, fell to 38.8 basis points from 40.5 basis points a year earlier, reflecting a mix shift toward lower-fee products.
  7. The firm estimates its 2026 effective tax rate at 23.0% to 27.0% on a U.S. GAAP basis and 24.0% to 27.0% on an adjusted basis; the 2025 financial statements remain unaudited pending KPMG's completion of its work.

03—Questions

Frequently Asked Questions

  1. Why did T. Rowe Price report net client outflows in 2025?

    The release reports net client outflows of $25.5 billion in Q4 2025 and $56.9 billion for full-year 2025, but it does not attribute the outflows to specific causes beyond noting that client flows and transfers drove a mix shift toward lower-fee products and asset classes.

  2. What drove the increase in operating expenses in Q4 2025?

    U.S. GAAP operating expenses rose 16.5% to $1,463.1 million, primarily reflecting the $148.8 million restructuring charge. Technology, occupancy, and facility costs rose to $193.4 million and distribution and servicing costs rose to $101.6 million, while advertising and promotion costs fell to $30.1 million.

  3. Are the 2025 financial results final?

    The release states that the results are unaudited. KPMG LLP is completing its audits of the 2025 consolidated financial statements and internal controls over financial reporting, and the firm expects KPMG to finish in mid-February, after which the 2025 Form 10-K will be filed with the SEC.

  4. What is the difference between U.S. GAAP and adjusted results?

    The firm's adjusted measures exclude items such as acquisition-related amortization and impairments, the restructuring charge, market-related changes in deferred compensation liabilities, and certain consolidated investment product effects. For Q4 2025, adjusted diluted EPS was $2.44 versus $1.99 on a U.S. GAAP basis, and the release notes the firm believes these measures aid comparability, though they are not substitutes for GAAP measures.

  5. What tax rate should investors expect in 2026?

    The firm estimates its 2026 effective tax rate will be in the range of 23.0% to 27.0% on a U.S. GAAP basis and 24.0% to 27.0% on an adjusted basis, compared with 23.2% (U.S. GAAP) and 24.3% (adjusted) for 2025.

04—Continue

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