The accelerating outflows (from $6.5B to $28.3B QoQ) and declining effective fee rate are structural headwinds that offset the earnings beat. Monitor the Q4 flows trajectory and any update on the expense management program for signs of stabilization.
Price Chart
Executive Summary
T. Rowe Price reported Q3 2026 adjusted EPS of $2.86, beating the $2.65 consensus by 7.9%, and revenue of $2.005B, above the $1.97B consensus. However, net client outflows accelerated to $28.3B (from $6.5B in Q2), and GAAP net income declined 5.2% YoY, tempering the headline beat.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS of $2.86 vs consensus $2.65 (beat by 7.9%)
- Net revenues of $2.005B vs consensus $1.97B (beat by 1.8%)
- Net client outflows of $28.3 billion in Q3 2026, up from $6.5B in Q2 2026
- GAAP net income attributable to T. Rowe Price of $612.3M, down 5.2% from $646.1M in Q3 2025
- GAAP diluted EPS of $2.79, down 2.8% from $2.87 in Q3 2025
- Ending AUM of $1.86 trillion, down 1.6% from $1.89 trillion at June 30, 2026
- Adjusted net operating income of $809.2M, up 4.5% from $774.1M in Q3 2025
- Effective fee rate declined to 37.8 bps from 39.1 bps a year ago
Financial Impact
Adjusted EPS beat consensus by $0.21 (7.9%); revenue beat by ~$35M (1.8%); net outflows of $28.3B represent ~1.5% of beginning-period AUM
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Equity | $1.0B | +3.5% |
| Fixed income, including money market | $118.7M | +7.8% |
| Multi-asset | $537.6M | +9.2% |
| Alternatives | $92.7M | +9.4% |
Risk Factors
- Sustained net outflows, particularly in equity ($25.6B) and multi-asset ($7.6B), pressure future fee revenue
- Effective fee rate continues to compress (37.8 bps vs 39.1 bps a year ago) due to mix shift toward lower-fee products
- GAAP net income declined YoY despite revenue growth, driven by lower non-operating income
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001113169-26-000003 |
| Document: trow-20261029.htm | 0001113169-26-000003 |
| Document: 0001113169-26-000003-index-headers.html | 0001113169-26-000003 |
| Document: 0001113169-26-000003-index.html | 0001113169-26-000003 |
| Document: 0001113169-26-000003.txt | 0001113169-26-000003 |
| 8-K Data (Synthetic) | 0001113169-26-000003 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $106.63 | awaiting T+5 | awaiting T+5 | $103.90 (−2.56%) |
Oct 16, 2026 16d ago | Institutional Cluster | $100.04 $103.49 | ▲ +3.45% | ▲ +3.60% | $103.90 (+3.86%) |
Jul 31, 2026 13w ago | 8-K | $111.75 $114.02 | ▲ +2.03% | ▼ −1.48% | $103.90 (−7.02%) |
May 18, 2026 23w ago | 8-K | $101.67 $104.47 | ▲ +2.76% | ▲ +0.46% | $103.90 (+2.20%) |
Apr 22, 2026 27w ago | 8-K | $100.19 $101.13 | ▲ +0.94% | ▲ +0.89% | $103.90 (+3.71%) |
Mar 17, 2026 32w ago | DEFA14A | $88.39 $88.80 | ▲ +0.47% | ▲ +3.12% | $103.90 (+17.55%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers