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T Rowe Price
(NASDAQ:TROW)
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Rating:79Outperform
Price Target:
$130.00
â–²(11.59% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial quality (high profitability, very low leverage, and solid cash generation) and an appealing valuation (low P/E and high dividend yield). Offsetting these positives are mixed near-term technicals and a balanced earnings-call backdrop, where EPS/revenue strength and product momentum are tempered by net outflows, modest fee compression, and guided expense growth.
Positive Factors
High Profitability and Margins
T. Rowe Price’s consistently high net and operating margins indicate durable operating efficiency and pricing power among asset managers. Sustained margins support strong earnings retention, dividend capacity, and buybacks, making earnings less dependent on short-term flow swings.
Negative Factors
Persistent Net Outflows and Active Equity Pressure
Ongoing outflows, especially from active equity, represent a structural headwind to asset‑based fees. Continued redemptions erode AUM, reduce revenue potential, and force greater reliance on retention, product repositioning, or higher cost distribution to stabilize AUM over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability and Margins
T. Rowe Price’s consistently high net and operating margins indicate durable operating efficiency and pricing power among asset managers. Sustained margins support strong earnings retention, dividend capacity, and buybacks, making earnings less dependent on short-term flow swings.
Read all positive factors
T Rowe Price Key Performance Indicators (KPIs)
Any
AUM by Geography
Details how assets are allocated across the U.S., Europe, Asia and other regions, indicating geographic diversification and where future expansion may come from. Heavy concentration in one market raises exposure to local economic, regulatory, and currency risks, while international growth can broaden client reach and revenue sources.
Details how assets are allocated across the U.S., Europe, Asia and other regions, indicating geographic diversification and where future expansion may come from. Heavy concentration in one market raises exposure to local economic, regulatory, and currency risks, while international growth can broaden client reach and revenue sources.
Data provided by:
The Fly
The FlyT Rowe Price (TROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.74B
Dividend Yield4.65%
Average Volume (3M)2.12M
Price to Earnings (P/E)11.1
Beta (1Y)0.99
Revenue Growth6.97%
EPS Growth11.41%
CountryUS
Employees7,544
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)9.98
Shares Outstanding213,315,860
10 Day Avg. Volume1,789,174
30 Day Avg. Volume2,120,100
Financial Highlights & Ratios
PEG Ratio12.69
Price to Book (P/B)2.11
Price to Sales (P/S)3.13
P/FCF Ratio15.49
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$108.00Price Target Upside-7.30% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)10.2
Revenue Forecast (FY)$7.75B
T Rowe Price Business Overview & Revenue Model
Company Description
T. Rowe Price Group, Inc. operates as a publicly traded entity specializing in investment management. The firm extends its financial expertise to a diverse range of clients, including individual investors, institutional organizations, retirement b...
How the Company Makes Money
T. Rowe Price primarily makes money by charging fees for managing client assets. Its core revenue stream is investment advisory (management) fees, typically calculated as a percentage of assets under management (AUM) and influenced by the mix of p...
T Rowe Price Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: the firm delivered revenue and EPS growth, expanded ETFs/SMAs, advanced strategic partnerships, and scaled AI adoption while returning capital and maintaining a strong balance sheet. Offsetting these positives are ongoing net outflows, continued pressure in active equity, modest declines in effective fees, higher operating expenses with guidance for mid-single-digit growth, and mixed near-term performance in parts of the portfolio. Management highlighted meaningful strategic progress (product launches, Goldman collaboration, alternatives expansion) but warned that flows will be more challenging in the second half.Positive Updates
Assets Under Management and Scale
Ended the quarter with $1.9 trillion AUM; integrated active approaches account for about $200 billion of AUM.
Negative Updates
Net Outflows and Active Equity Pressure
Q2 net outflows of $6.5 billion; management notes fundamental active equity remains under pressure and expects this to continue into the second half of the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Assets Under Management and Scale
Ended the quarter with $1.9 trillion AUM; integrated active approaches account for about $200 billion of AUM.
Read all positive updates
Company Guidance
Management guided full‑year adjusted operating expenses (excluding carried interest) to rise 4%–7% versus 2025’s $4.6 billion (implying roughly $4.78–$4.92B) and said controllable expenses should grow in the low single‑digits in 2026–2027 while they continue cost‑savings and AI productivity efforts; they expect 2026 to be a record year for gross flows but warned H2 net flows will be meaningfully more challenging given Q2 net outflows of $6.5B and ongoing pressure in active equity. Key Q2 metrics supporting the guidance: adjusted diluted EPS $2.57 (Q1 $2.52; Q2 2025 $2.24), adjusted net revenue $1.9B (+2.7% QoQ, +8.5% YoY), investment advisory revenue $1.7B, annualized effective fee rate 38.1 bps (vs 38.4 bps), adjusted operating expenses $1.2B (+4.2% QoQ, +4.9% YoY); product and distribution metrics noted include integrated approaches ~$200B AUM with $16B YTD net inflows, ETF business 34 funds / $30B AUM with $4.4B Q2 inflows, SMA platform 43 products / $20B AUM, Q2 buybacks $157M (YTD >$497M, ~2.5% of shares), shares outstanding 213.3M, and cash/discretionary investments $4.4B.T Rowe Price Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.59B | 7.31B | 7.09B | 6.46B | 6.49B | 7.67B |
| Gross Profit | 5.37B | 4.58B | 3.68B | 3.21B | 3.57B | 4.68B |
| EBITDA | 2.85B | 2.88B | 2.98B | 2.52B | 3.14B | 3.95B |
| Net Income | 2.22B | 2.09B | 2.10B | 1.79B | 1.56B | 3.08B |
Balance Sheet | ||||||
| Total Assets | 15.36B | 14.61B | 13.47B | 12.28B | 11.64B | 12.51B |
| Cash, Cash Equivalents and Short-Term Investments | 3.23B | 3.38B | 2.65B | 2.07B | 1.76B | 1.52B |
| Total Debt | 429.40M | 860.20M | 278.70M | 308.50M | 329.60M | 249.20M |
| Total Liabilities | 3.18B | 2.55B | 2.02B | 1.99B | 1.96B | 2.26B |
| Stockholders Equity | 11.00B | 10.86B | 10.35B | 9.51B | 8.84B | 9.02B |
Cash Flow | ||||||
| Free Cash Flow | 2.18B | 1.48B | 1.26B | 911.20M | 2.12B | 3.21B |
| Operating Cash Flow | 2.31B | 1.75B | 1.69B | 1.22B | 2.36B | 3.45B |
| Investing Cash Flow | -469.40M | 230.30M | -177.50M | 128.20M | -41.50M | -1.10B |
| Financing Cash Flow | -1.53B | -1.28B | -936.60M | -1.08B | -2.08B | -2.99B |
T Rowe Price Technical Analysis
Neutral
116.50
Price Trends
113.08
Negative
105.27
Positive
101.16
Positive
Market Momentum
-0.64
Positive
40.91
Neutral
16.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TROW, the sentiment is Neutral. The current price of 116.5 is above the 20-day moving average (MA) of 115.25, above the 50-day MA of 113.08, and above the 200-day MA of 101.16, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 16.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TROW.
T Rowe Price Risk Analysis
T Rowe Price disclosed 32 risk factors in its most recent earnings report. T Rowe Price reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
T Rowe Price Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $12.77B | 18.34 | 28.86% | 1.05% | 11.21% | 6.93% | |
79 Outperform | $23.74B | 11.08 | 20.45% | 4.41% | 6.97% | 11.41% | |
71 Outperform | $52.15B | 16.63 | 12.40% | 1.81% | 1.05% | 27.32% | |
68 Neutral | $34.85B | 16.35 | 17.14% | 1.77% | 3.18% | 37.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $17.20B | 22.57 | 7.42% | 4.03% | 8.39% | 181.11% |
* Financial Sector Average
TROW
T Rowe Price
110.56
8.84
8.69%
BEN
Franklin Resources
33.86
9.81
40.80%
SEIC
SEI Investments Company
106.38
19.24
22.08%
STT
State Street
191.74
83.46
77.08%
NTRS
Northern
191.41
68.19
55.34%
T Rowe Price Corporate Events
Business Operations and StrategyExecutive/Board Changes
T. Rowe Price Names Eric Veiel President and CIO
Positive
May 18, 2026
On May 15, 2026, T. Rowe Price Group, Inc. appointed Eric L. Veiel as President, Co-Head of Global Investments, and Chief Investment Officer, with the changes taking effect immediately. The company confirmed that Rob Sharps will continue in his ro...
Executive/Board ChangesShareholder Meetings
T. Rowe Price Shareholders Back Board and Executive Pay
Positive
May 11, 2026
T. Rowe Price held its annual stockholder meeting on May 7, 2026, following a proxy filing in March, with 217,605,891 shares eligible to vote as of the February 20, 2026 record date. Shareholders re-elected the full slate of director nominees, eac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.