T. Rowe Price Group Reports Q2 Earnings and Outlines Strategic Growth Initiatives
T. Rowe Price Group (NASDAQ:TROW) reported second-quarter adjusted diluted earnings per share of $2.57, up from $2.24 a year earlier, driven by higher average assets under management and investment advisory revenue. The firm ended the quarter with $1.9 trillion in AUM but faced net outflows totaling $6.5 billion. Despite this, it recorded positive flows in May and June across several key mandates. The company's adjusted net revenue rose 8.5% year over year to $1.9 billion, supported by increased advisory fees from higher assets under management. However, the annualized effective fee rate declined slightly due to shifts in asset mix and client demand for lower-fee strategies. T. Rowe Price expects continued pressure on active equity strategies and more difficult net flows in 2026's second half. T. Rowe Price is investing in ETFs, separately managed accounts, alternatives, advice-led offerings, and artificial intelligence while aiming to keep controllable expenses growing at a low single-digit rate. The firm also repurchased $157 million of stock during the quarter.
Tickers: $TROW
Topics: assets_under_management financial_services investment_flows stock_repurchase