T. Rowe Price Group (TROW) Q2 2026 earnings summary

Executive summary

• Assets under management (AUM) reached a record $1.9 trillion at quarter-end, up from $1.71 trillion in Q1 2026, driven by market appreciation despite $6.5 billion in net outflows, with positive flows in May and June from large mandates.

• Diluted EPS was $2.88, up 28.6% year-over-year; adjusted diluted EPS was $2.57, up from $2.24 in Q2 2025, reflecting higher average AUM and investment advisory revenue.

• Net revenues increased 10.7% year-over-year to $1.91 billion, with growth across all major asset classes.

• Continued momentum in integrated equity, fixed income, active ETFs, and SMAs, with new product launches including active crypto and market opportunities ETFs.

• Strategic alliances and leadership changes, including a partnership with Goldman Sachs and new executive appointments, supported growth and execution.

Financial highlights

• Adjusted diluted EPS for Q2 2026 was $2.57, up from $2.52 in Q1 2026 and $2.24 in Q2 2025.

• Net revenues were $1.91 billion, up 2.7% sequentially and 10.7% year-over-year.

• Adjusted operating expenses were $1.2 billion, up 4.9% year-over-year, driven by market-driven expenses and higher technology costs.

• Investment advisory revenue reached $1.74 billion, with an annualized effective fee rate of 38.1 bps, down from 38.4 bps in Q1 2026 due to asset mix shifts.

• $4.4 billion in net ETF inflows and positive flows in fixed income, multi-asset, and alternatives.

Outlook and guidance

• Net flows expected to be more challenging in the second half of 2026 due to ongoing active equity outflows, absence of large mandates, and portfolio rebalancing.

• Full-year adjusted operating expenses (excluding carried interest) projected to rise 4%-7% over 2025’s $4.6 billion.

• 2026 anticipated to be a record year for gross flows, with strong interest in lower tracking error offerings, integrated equity, and active ETFs.

• Effective tax rate for full-year 2026 is estimated at 23.0% to 26.0%.

• Capital expenditures for 2026 are expected to be about $270 million, focused on technology initiatives.