$TROW · PRICE T ROWE GROUP INC
T. Rowe Price filed its Q3 2026 10-Q, reporting net revenues of $2.005B (+5.9% YoY) on average AUM of $1.887T (+9.5% YoY). GAAP net income attributable to T. Rowe Price fell 5.2% YoY to $612.3M, with diluted EPS of $2.79 vs. $2.87 a year ago, as non-operating income plunged from $238.4M to $17.6M. Adjusted diluted EPS was $2.86, up 1.8% YoY.
- Net revenues rose 5.9% YoY to $2.005B, driven by 9.5% higher average AUM of $1.887T.
- GAAP diluted EPS fell 2.8% YoY to $2.79 as non-operating income collapsed from $238.4M to $17.6M.
- Adjusted diluted EPS was $2.86, up 1.8% YoY, excluding restructuring charges and acquisition-related amortization.
- Ending AUM reached $1.863T, up 5.4% YoY, with multi-asset AUM surging 15.9% on average.
- The company repurchased 5.3M shares for $497.5M in the first nine months and declared a $1.30 quarterly dividend.
Stock is up 1.27% on the session at $105.32, suggesting the market is looking past the GAAP EPS decline and focusing on the 5.9% revenue growth and strong AUM trends.
The stark divergence between healthy 5.9% revenue growth and declining GAAP EPS highlights how investment-gains volatility can mask T. Rowe's underlying operating momentum.
T. Rowe's 5.9% revenue growth and AUM expansion to $1.86T reflect the broader tailwind of rising markets benefiting active asset managers, though fee-rate compression remains an industry-wide headwind.
The effective fee rate continues to compress — annualized EFR without performance fees fell 3.3% YoY to 37.8 bps, reflecting mix shift and pricing pressure. Non-operating income is highly volatile, with net gains on investments dropping from $161.2M to $32.3M YoY, which directly hits GAAP earnings.