Introduction#

T. Rowe Price Group Inc. has released its earnings report for the first quarter of 2026, revealing adjusted earnings per share (EPS) that surpassed analysts' predictions. However, the company's revenue fell slightly short of expectations, causing a dip in its stock price.

Company Performance#

In Q1 2026, T. Rowe Price reported an EPS of $2.52, which is 6.8% higher than the expected $2.36. This growth represents a 13% increase compared to the same quarter last year, largely due to higher average assets under management (AUM) and improved expense management. However, the company's revenue was $1.86 billion, which missed the forecast of $1.87 billion by a small margin of 0.53%. This decline in revenue was attributed to a lower effective fee rate and fewer business days in the quarter.

Financial Highlights#

  • Revenue: $1.86 billion, a 5% increase year-over-year but below forecast.
  • Earnings per share: $2.52, up 13% year-over-year and exceeding expectations.
  • Ending AUM: $1.71 trillion as of March 31, 2026.
  • Net outflows: $13.7 billion for the quarter.

Market Reaction#

Following the earnings report, T. Rowe Price's stock fell by 0.47% in pre-market trading, settling at $100 per share. This decline may reflect investor concerns regarding the revenue shortfall and the significant net asset outflows. The stock is currently trading within a 52-week range of $85.22 to $118.22, indicating potential for volatility in the near future.

Outlook & Guidance#

Looking ahead, T. Rowe Price expects continued growth in its exchange-traded fund (ETF) platform and separately managed accounts. The company projects an EPS of $2.25 for Q2 2026 and $9.36 for the full year. Revenue forecasts suggest modest growth, with a focus on expanding product offerings and geographic reach. However, it's important to note that 10 analysts have lowered their earnings estimates for the upcoming period.