How did T. Rowe Price perform on net flows and assets in Q3 2026?

The firm reported net client outflows of $28.3 billion for the quarter. Ending AUM was $1,862.7 billion, down $30.7 billion from June 30, 2026, after net cash flows of -$28.3 billion and net market depreciation and income of -$2.4 billion.

Why did GAAP earnings decline while revenues grew?

U.S. GAAP net income attributable to the firm fell 5.2% to $612.3 million, mainly because non-operating income dropped to $17.6 million from $238.4 million a year earlier. Net revenues rose 5.9%, and GAAP net operating income increased 19.7%.

What is driving the decline in the fee rate?

The annualized effective fee rate excluding performance-based fees was 37.8 basis points, down from 39.1 basis points in Q3 2025. The filing attributes this to client flows and transfers shifting assets toward lower-fee products and asset classes, partially offset by equity market appreciation.

What drove the difference between GAAP and adjusted EPS?

Adjusted diluted EPS of $2.86 exceeded GAAP diluted EPS of $2.79 for Q3 2026. The reconciliation adds back acquisition-related amortization and impairments, deferred compensation market changes, restructuring charges, and consolidated investment product effects, and removes other non-operating gains.

What did management say about the outlook for taxes and operating costs?

The firm estimates its full-year 2026 effective income tax rate, on both U.S. GAAP and adjusted bases, will be in the range of 23.5% to 25.5%. Adjusted operating expenses rose 5.8% year over year in Q3 2026, and the firm continues its broad, ongoing expense management program.

TROW 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.

Rowe Price Group, Inc. reported third-quarter 2026 results on October 29, 2026, via an earnings release furnished as Exhibit 99.1 under Item 2.02. Ending AUM was $1.9 trillion^a ($1,862.7 billion), and the firm recorded net client outflows of $28.3 billion in the quarter. U.S. GAAP net revenues were $2,004.9 million, up 5.9% from Q3 2025 and 5.1% from Q2 2026, while U.S. GAAP diluted EPS was $2.79 versus $2.87 a year earlier.

Adjusted diluted EPS was $2.86^b, compared with $2.81 in Q3 2025. GAAP net income attributable to T. Rowe Price Group was $612.3 million, down 5.2% year over year, with the decline driven mainly by lower non-operating income ($17.6 million versus $238.4 million a year earlier).

Operating expenses fell 1.2% from Q3 2025 to $1,235.1 million^c, while adjusted operating expenses rose 5.8% to $1,200.1 million. Capital allocation-based income rose to $59.9 million, largely from the recently launched late-stage venture fund. The effective average fee rate excluding performance fees declined to 37.8 basis points from 39.1 basis points, as client flows shifted assets toward lower-fee products and asset classes.

For the nine months ended September 30, 2026, U.S. GAAP diluted EPS was $7.89^d versus $7.25, and adjusted diluted EPS was $7.95 versus $7.28. The firm also guided its full-year 2026 effective income tax rate to a range of 23.5% to 25.5% on both a U.S. GAAP and adjusted basis. The financial results are unaudited, and the firm stated it expected to file its Form 10-Q for the quarter the same day.

02—Key points

Key Highlights

Ending AUM of $1,862.7 billion at September 30, 2026, down $30.7 billion from June 30, 2026, with net client outflows of $28.3 billion in Q3 2026.
U.S. GAAP net revenues of $2,004.9 million, up 5.9% year over year and 5.1% sequentially; investment advisory fees were $1,796.4 million, up 5.8% year over year.
U.S. GAAP diluted EPS of $2.79 (down 2.8% year over year) versus adjusted diluted EPS of $2.86 (up 1.8% year over year).
Investment advisory annualized effective fee rate excluding performance fees fell to 37.8 basis points from 39.1 basis points a year earlier, reflecting a mix shift toward lower-fee products and asset classes.
Net operating income on a U.S. GAAP basis rose 19.7% to $769.8 million, while non-operating income fell to $17.6 million from $238.4 million.
Headcount was 7,640 associates at September 30, 2026, down 2.4% from a year earlier.
Full-year 2026 effective income tax rate guidance of 23.5% to 25.5% on both U.S. GAAP and adjusted bases.

03—Questions

Frequently Asked Questions

How did T. Rowe Price perform on net flows and assets in Q3 2026?
The firm reported net client outflows of $28.3 billion for the quarter. Ending AUM was $1,862.7 billion, down $30.7 billion from June 30, 2026, after net cash flows of -$28.3 billion and net market depreciation and income of -$2.4 billion.
Why did GAAP earnings decline while revenues grew?
U.S. GAAP net income attributable to the firm fell 5.2% to $612.3 million, mainly because non-operating income dropped to $17.6 million from $238.4 million a year earlier. Net revenues rose 5.9%, and GAAP net operating income increased 19.7%.
What is driving the decline in the fee rate?
The annualized effective fee rate excluding performance-based fees was 37.8 basis points, down from 39.1 basis points in Q3 2025. The filing attributes this to client flows and transfers shifting assets toward lower-fee products and asset classes, partially offset by equity market appreciation.
What drove the difference between GAAP and adjusted EPS?
Adjusted diluted EPS of $2.86 exceeded GAAP diluted EPS of $2.79 for Q3 2026. The reconciliation adds back acquisition-related amortization and impairments, deferred compensation market changes, restructuring charges, and consolidated investment product effects, and removes other non-operating gains.
What did management say about the outlook for taxes and operating costs?
The firm estimates its full-year 2026 effective income tax rate, on both U.S. GAAP and adjusted bases, will be in the range of 23.5% to 25.5%. Adjusted operating expenses rose 5.8% year over year in Q3 2026, and the firm continues its broad, ongoing expense management program.

04—Continue

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