T. Rowe Price Group (NASDAQ:TROW) Posts Quarterly Earnings Results, Misses Expectations By $0.03 EPS

T. Rowe Price Group (NASDAQ:TROW) released its earnings results on Wednesday. The asset manager reported $2.44 EPS for the quarter, missing analysts’ consensus estimates of $2.47 by ($0.03), FiscalAI reports. T. Rowe Price Group had a return on equity of 20.36% and a net margin of 28.53%.The business had revenue of $1.93 billion for the quarter, compared to the consensus estimate of $1.92 billion. During the same quarter in the previous year, the firm earned $2.12 earnings per share. The company’s revenue for the quarter was up 6.0% on a year-over-year basis.

Here are the key takeaways from T. Rowe Price Group’s conference call:

• Closed 2025 with $1.78 trillion in assets under management, up over 10% year?over?year, as market appreciation more than offset $56.9 billion in net outflows.
• Net outflows were concentrated in equity and mutual fund products — about $75 billion from equity and nearly $64 billion from mutual funds in 2025 — and a shift toward lower?priced vehicles pressured the firm’s effective fee rate.
• Investment performance is improving but mixed — roughly half of funds outperformed peers across 1-, 3-, 5-, and 10?year periods, with particularly strong asset?weighted results in fixed income and long?term target?date strategies.
• Strategic growth initiatives accelerated with a co?development partnership with Goldman Sachs, a new strategic partnership with First Abu Dhabi Bank, 13 ETFs launched (ETF AUM > $21 billion), and the first close of a T. Rowe Price private equity fund to expand alternatives and distribution.
• Financials showed resilience — full?year adjusted diluted EPS of $9.72 (up 4.2%), over $2 billion of free cash flow, nearly $1.8 billion returned to shareholders (including $624.6 million in buybacks) and a 39th consecutive dividend increase, while 2026 expense guidance targets controlled mid?single?digit growth.

T. Rowe Price Group Trading Down 5.2%

Shares of TROW opened at $92.02 on Friday. T. Rowe Price Group has a 1-year low of $77.85 and a 1-year high of $118.22. The firm has a market capitalization of $20.08 billion, a price-to-earnings ratio of 9.95, a PEG ratio of 2.36 and a beta of 1.53. The firm’s 50-day moving average price is $104.53 and its 200-day moving average price is $104.53.

Key Stories Impacting T. Rowe Price Group

Here are the key news stories impacting T. Rowe Price Group this week:

• Positive Sentiment: AUM and fee momentum provide support — management pointed to higher assets under management and advisory-fee growth that helped revenue rise ~6% year-over-year, offering some offset to the EPS miss. Earnings highlights
• Positive Sentiment: Analyst action: Argus upgraded TROW to a “hold,” signaling some analysts see limited downside from here. Argus upgrade
• Neutral Sentiment: Earnings call and transcripts posted — full Q4 2025 call and presentation are available for investors wanting line-item detail and management commentary on flows, expenses and strategy. Earnings transcript
• Negative Sentiment: EPS miss and higher costs pressured the stock — Q4 EPS of $2.44 missed the $2.47 consensus and the company cited higher operating expenses, prompting investor concern about margin pressure. Earnings miss
• Negative Sentiment: Heavy put buying signals bearish positioning — unusually large options activity (?2,489 puts, +77% vs. average) suggests speculative or hedging bets on further downside. Options activity
• Negative Sentiment: Multiple analyst cuts and an underweight from JPMorgan raise near-term pressure — several firms (JPMorgan, TD Cowen, Evercore ISI, KBW) trimmed price targets and moved to hold/underweight or market-perform, which can weigh on sentiment. Analyst PT changes
• Negative Sentiment: Shares gapped down on the print — coverage highlights and market reaction emphasize the combination of cost pressure, outflows and analyst downgrades as drivers of today’s decline. Gap down article

Insider Transactions at T. Rowe Price Group

In other news, VP Arif Husain sold 4,260 shares of the business’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $101.96, for a total transaction of $434,349.60. Following the sale, the vice president owned 47,102 shares in the company, valued at approximately $4,802,519.92. The trade was a 8.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On T. Rowe Price Group

A number of institutional investors and hedge funds have recently made changes to their positions in TROW. Quarry LP bought a new stake in shares of T. Rowe Price Group in the 3rd quarter worth approximately $61,000. MUFG Securities EMEA plc purchased a new position in T. Rowe Price Group during the second quarter valued at $63,000. Quadrant Capital Group LLC bought a new position in T. Rowe Price Group in the 3rd quarter worth about $96,000. Geneos Wealth Management Inc. boosted its stake in T. Rowe Price Group by 22.5% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,181 shares of the asset manager’s stock worth $114,000 after purchasing an additional 217 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in T. Rowe Price Group by 44.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,546 shares of the asset manager’s stock valued at $149,000 after purchasing an additional 478 shares during the last quarter. Institutional investors own 73.39% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on TROW shares. Bank of America boosted their target price on T. Rowe Price Group from $85.00 to $86.00 in a research report on Wednesday, January 14th. The Goldman Sachs Group dropped their target price on T. Rowe Price Group from $97.00 to $95.00 and set a “sell” rating for the company in a report on Wednesday, January 14th. Barclays set a $94.00 price objective on T. Rowe Price Group in a research report on Thursday. Zacks Research lowered T. Rowe Price Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 9th. Finally, Morgan Stanley cut their target price on shares of T. Rowe Price Group from $128.00 to $123.00 and set an “equal weight” rating on the stock in a report on Monday. Twelve equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $104.15.

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm’s product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.