T. Rowe Price Group (TROW) Q4 2025 earnings summary

Executive summary

• Assets under management (AUM) ended 2025 at $1.78 trillion to $1.8 trillion, up over 10% year-over-year, despite $56.9 billion in net outflows.

• Net outflows were concentrated in equity and mutual funds, while fixed income, alternatives, and ETFs saw positive inflows and growth.

• Adjusted diluted EPS for 2025 was $9.72, with Q4 adjusted EPS at $2.44; GAAP diluted EPS for the year was $9.24.

• Nearly $1.8 billion was returned to stockholders in 2025 through dividends and share repurchases, marking the 39th consecutive year of dividend increases.

• Strategic initiatives included partnerships with Goldman Sachs and First Abu Dhabi Bank, global retirement product launches, and ETF and alternatives expansion.

Financial highlights

• Full-year adjusted net revenue was $7.31 billion, up 3.1% year-over-year; Q4 net revenue was $1.93 billion, up 6% year-over-year.

• Q4 2025 GAAP net income was $445.3 million; full-year GAAP net income was $2.09 billion; adjusted net income for the year was $2.19 billion.

• Q4 adjusted operating expenses were $1.2–$1.25 billion; full-year adjusted operating expenses (excluding carried interest) were $4.6–$4.67 billion, up 3.4%–3.7%.

• Q4 2025 included a $148.8 million restructuring charge related to expense management and real estate.

• Ended 2025 with $3.8–$3.84 billion in cash and discretionary investments.

Outlook and guidance

• 2026 adjusted operating expenses (excluding carried interest) expected to rise 3%–6% over 2025, with continued focus on expense management and investment in growth.

• Base case for 2026 anticipates continued equity outflow pressure, offset by inflows in target-date funds, steady fixed income growth, and accelerating alternatives.

• Estimated effective tax rate for 2026 is expected to be 23.0%–27.0% (GAAP) and 24.0%–27.0% (adjusted).