EarningsQ3 2026 Earnings Report
MX:TROW Q3 2026 EPS Results
Actual EPS$53.73
Consensus EPS$49.50
Beat/MissBeat by +$4.23
One Year Ago EPS$52.79
MX:TROW Q3 2026 Revenue Results
Actual Revenue$37.67B
Expected Revenue$37.13B
Beat/MissBeat by +$531.93M
YoY Revenue Growth+5.88%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeBefore Open
Conference CallThursday, October 29, 2026
MX:TROW Upcoming Earnings
T Rowe Price's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TROW Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented substantial progress in ETFs, SMAs, models, fixed income, alternatives, partnerships, AI and investment performance, supported by revenue growth, strong earnings and a solid balance sheet. However, these positives were offset by $28.3 billion of quarterly net outflows, persistent active equity and mutual fund pressure, Target Date redemptions, a lower effective fee rate and challenging near-term flow conditions. Management remained confident in the long-term direction, but the material current flow headwinds make the overall tone balanced.Company Guidance
Strong Assets Under Management and Earnings Growth
Assets under management ended the quarter at $1.86 trillion. Adjusted diluted earnings per share was $2.86, up from $2.57 in Q2 2026 and $2.81 in Q3 2025, with the increases driven by higher average AUM; a lower share count also contributed to the year-over-year increase.
Improving Investment Performance Across Key Periods
More than 50% of fund assets outperformed their peer groups over the 1-, 3- and 10-year periods. Results improved notably from the prior quarter for the 1- and 3-year periods, particularly in equities, where 48% and 58% of fund assets outperformed, respectively.
Strong Fixed Income and Target Date Performance
Fixed income fund assets outperforming peers were 85% for the 1-year period, 74% for the 3-year period, 76% for the 5-year period and 82% for the 10-year period. In Target Date, 80% of assets outperformed over 1 and 3 years, 55% over 5 years and 98% over 10 years.
Improved Large-Cap Growth and Equity Strategy Results
All three funds in the large-cap growth suite beat their peer groups during the quarter, reversing the underperformance reported in the prior quarter. U.S. Equity Research remained a top-quartile performer over 3, 5 and 10 years, while Capital Appreciation and Global Stock beat their peer groups across all reported time periods.
Strong Alternatives Performance
Performance across OHA strategies was strong in Q3, supported by strength in public and private software exposures. This contributed to strong performance in private credit, including institutional, wealth and CLO strategies, as well as positive relative performance in loans and multi-asset credit. Distressed and opportunistic funds also generated gains from positive idiosyncratic developments.
Fixed Income Franchise Continued to Attract Flows
The fixed income franchise generated $3.4 billion of net inflows during the quarter. Management also stated that fixed income had recorded 11 consecutive quarters of net inflows.
F/m Investments Acquisition Planned
T. Rowe Price announced plans to acquire F/m Investments, with closing expected early in 2027. F/m is a fixed income asset manager and ETF specialist with approximately $20 billion in assets under management across ETFs, institutional separate accounts, and taxable and municipal separately managed accounts. Management stated that the transaction is intended to enhance the fixed income platform and accelerate growth in ETFs and solutions.
Expansion of CLO and Strategic Partnership Offerings
T. Rowe Price extended its platform with two managed CLOs, including a CLO that closed in August and issued approximately $400 million in notes. Through its Aspida relationship, the company launched the first index strategy in Aspida's fixed index annuity suite. In collaboration with Goldman Sachs, it launched two interval funds during the quarter, including the T. Rowe Price Goldman Sachs Private Markets Fund and the All Equity Access Fund.
Progress in Retirement and Model Portfolio Solutions
The company added a sixth Goldman Sachs model, the Goldman Sachs T. Rowe Price Dynamic ETF and Alts Portfolio, and continued preparations for the T. Rowe Price Goldman Sachs Retirement Blend Plus Target Date sister series. Management reported an active pipeline of interested plan sponsors, with several progressing toward implementation.
ETF Net Inflows and Rapid Asset Growth
ETF net inflows were $3.8 billion in Q3, bringing year-to-date ETF net inflows to $11 billion. ETF assets under management reached $33.8 billion, up from $6.9 billion two years earlier, driven by more than $23 billion of net flows over that period.
Broader and Growing ETF Lineup
The company launched six new ETFs in the third quarter, bringing its lineup to 39 ETFs, including 11 with more than $1 billion in assets under management. The launches included two fixed income ETFs, three equity ETFs and an Active Crypto ETF. T. Rowe Price stated that it now covers 72% of the Morningstar category and is the 13th-largest active ETF manager.
Active ETF Market Share Momentum
T. Rowe Price's organic growth rate has outpaced the active ETF industry every month since March. The company stated that four ETFs generated $1 billion in net flows over the past year and that it has averaged more than $1 billion in monthly ETF net inflows since the start of the year.
International ETF Expansion
The company launched integrated Global Equity and integrated U.S. Equity Enhanced Index UCITS ETFs in Europe. Management said these products combine quantitative and fundamental research insights and that additional core exposures are planned before more differentiated thematic and outcome-oriented strategies.
SMA Business Expanded and Scaled
Five SMA strategies were launched in the third quarter, bringing the externally available lineup to 44 strategies. SMA assets reached $20.6 billion at the end of September, up from $16.8 billion at year-end, with $2.2 billion of year-to-date net flows. Funded SMA accounts reached roughly 36,000, up more than 50% from the prior year and more than double the level in mid-2023.
Broader SMA Distribution and Customization Capabilities
SMA strategies were available across 40 wealth and platform relationships. The company highlighted capabilities including daily tax-loss harvesting where possible, tax-aware transitions, concentrated-position management, client-specific restrictions and tax reporting.
Model Portfolio Demand and Distribution Investment
T. Rowe Price reported traction in proprietary models, home-office models and customized models. Its products, including OHA-managed strategies, are building blocks across six Goldman Sachs models. The company also announced plans to add 50 associates to its intermediary business, partly supporting expansion of the model business.
AI Capabilities and Workflow Development
Through its relationship with Anthropic, portfolio managers and analysts have access to Claude and Cowork, while developers have access to Claude Code. The company is developing AI-enabled workflows across investments, distribution and operations, with applications governed by responsible-use standards and human judgment and accountability. AI workflow initiatives in middle- and back-office processes are expected to develop over the next 12 to 24 months.
Strong Revenue and Carried Interest Growth
Q3 adjusted net revenue was $2.0 billion, up 5.3% from Q3 2025 and 5.1% from the prior quarter. Investment advisory revenue was $1.8 billion, up 5.8% year over year and 3% sequentially. Adjusted carried interest increased to $63.1 million from $15.2 million in Q2 2026.
Expense Outlook and Balance Sheet Strength
Adjusted operating expenses excluding carried interest expense were nearly $1.2 billion, down 1.6% from Q2 2026 and up 5.7% from Q3 2025. Based on third-quarter average AUM, the company expects 2026 adjusted operating expenses excluding carried interest expense to increase 4% to 7% over 2025's $4.6 billion, trending toward the middle of that range. Cash and discretionary investments were $4.9 billion.
Share Repurchase and Capital Flexibility
The company repurchased approximately 5.3 million shares for just under $500 million during the first half of the year. Management said the third-quarter pause did not represent a change in posture and that repurchases remain opportunistic, while capital priorities also include investment, seed capital, the dividend and maintaining balance-sheet flexibility.
Tokenization and Active ETF Innovation
Robinhood announced plans, subject to regulatory approval, to bring tokenized versions of actively managed ETFs on chain for eligible investors outside the U.S., with T. Rowe Price's active ETF strategies expected to be first. Management described the initiative as an opportunity to learn how tokenization is developing and how investors may engage with established investment strategies in new ways.
MX:TROW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed