T. Rowe Price Q3 Revenue Rises 5.9% as Outflows Hit $28.3 Billion

T. Rowe Price (TROW ) Group reported net revenues of $2,004.9 million for the third quarter of 2026 on October 29, 2026, an increase of 5.9% from $1,893.5 million in the year-ago quarter and 5.1% from the second quarter of 2026, according to the firm’s earnings release. The Baltimore-based asset manager reported diluted earnings per share of $2.79, down from $2.87 in the third quarter of 2025, and adjusted diluted earnings per share of $2.86, up from $2.81 a year earlier. Net income attributable to T. Rowe Price Group was $612.3 million, down 5.2% from $646.1 million in the prior-year quarter.

Assets under management ended the quarter at $1,862.7 billion, up 5.4% from a year earlier and down 1.6% from June 30, 2026, as net client outflows reached $28.3 billion. Average assets under management were $1,887.2 billion, up 9.5% from $1,723.0 billion in the third quarter of 2025.

“We continue to expand our ETF, SMA, and model portfolio businesses, extending our active investment expertise to more clients through a broader range of portfolio solutions,” said Rob Sharps, chair and chief executive officer.

Assets Under Management and Client Flows

Assets under management decreased $30.7 billion during the quarter, reflecting net cash outflows of $28.3 billion and net market depreciation and income of $2.4 billion. Equity portfolios recorded net outflows of $25.6 billion and multi-asset portfolios $7.6 billion, while fixed income, including money market, added a net $3.4 billion and alternatives added a net $1.5 billion, a figure that includes $1.2 billion of manager-driven distributions. Ending assets stood at $896.3 billion in equity, $221.8 billion in fixed income, $680.6 billion in multi-asset, and $64.0 billion in alternatives.

The firm’s earnings release supplement shows institutional clients accounted for net outflows of $18.8 billion in the quarter and retail clients for $9.5 billion. U.S. clients withdrew a net $28.6 billion, while clients in the APAC, EMEA, and Canada regions added a net $0.3 billion. Firmwide net flows were negative $7.9 billion in the third quarter of 2025, negative $25.5 billion in the fourth, negative $13.7 billion in the first quarter of 2026, and negative $6.5 billion in the second.

Target date portfolios recorded net outflows of $6.5 billion in the quarter, including a large redemption from a defined contribution plan. Target date assets ended at $614 billion, U.S. defined contribution assets at $842 billion, and retirement assets overall at 64% of firmwide assets under management. Alternatives assets comprised private markets at $27 billion, collateralized loan obligations at $23 billion, and liquid strategies at $14 billion, with $19.0 billion in unfunded capital commitments that do not earn fees compared with $21.6 billion at December 31, 2025.

Assets under administration were $346 billion at September 30, 2026, of which $186 billion were assets the firm manages, spanning more than 9,000 U.S. retirement plans and more than 2.4 million participants.

Revenue, Expenses, and Capital Returns

Investment advisory fees rose 5.8% to $1,796.4 million, comprising equity fees of $1,047.4 million, fixed income fees of $118.7 million, multi-asset fees of $537.6 million, and alternatives fees of $92.7 million. Performance-based advisory fees were $7.3 million. The investment advisory annualized effective fee rate excluding performance-based fees was 37.8 basis points, down from 39.1 basis points in the third quarter of 2025 and 38.1 basis points in the second quarter of 2026; the firm attributed the decline to client flows and transfers shifting the asset mix toward lower-fee products and asset classes, partially offset by equity market appreciation.

Capital allocation-based income was $59.9 million versus $42.0 million a year earlier, including a $63.1 million change in accrued carried interest that the release ties primarily to the firm’s recently launched late-stage venture fund. Administrative, distribution, servicing, and other fees fell $5.1 million to $141.3 million, a decrease the firm attributed primarily to lower recordkeeping fees and transfer agent services.

Operating expenses were $1,235.1 million, down 1.2% from the third quarter of 2025 and 9.6% from the second quarter of 2026, while adjusted operating expenses of $1,200.1 million rose 5.8% year over year. Compensation, benefits, and related costs of $664.7 million increased $32.2 million from a year earlier on a higher interim bonus accrual and long-term incentive compensation, partially offset by lower salaries and temporary personnel costs; the market-related change in deferred compensation liabilities was $1.5 million versus $50.8 million in the prior-year quarter. The quarter included a $4.0 million restructuring charge under the firm’s previously announced expense management program, and technology, occupancy, and facility costs of $205.1 million reflected the reversal of about $10 million in accrued technology-related expenses. The firm employed 7,640 associates at September 30, 2026, down 2.4% from 7,830 a year earlier.

Non-operating income was $17.6 million versus $238.4 million in the third quarter of 2025, and adjusted non-operating income was $18.0 million; the firm attributed the lower investment gains primarily to losses on fixed income holdings resulting from rising interest rates, which more than offset higher dividends on cash equivalents and other fixed income holdings. The year-to-date effective income tax rate was 23.7%, and the firm estimates its full-year 2026 effective tax rate will be in a range of 23.5% to 25.5% on both a U.S. GAAP and adjusted basis.

The firm returned $285 million to stockholders in third-quarter dividends at a rate of $1.30 per share. Over the last 12 months, dividends totaled $1,142 million and share repurchases $638 million. Cash and cash equivalents stood at $3,774.3 million at September 30, 2026, with discretionary investments of $1,151.7 million.

The firm’s ETF business held $33.8 billion in assets at quarter-end, with year-to-date net inflows of $11 billion including $3.8 billion in the third quarter. The lineup comprised 39 ETFs at September 30, 2026, including six launched during the quarter, and 11 of the 39 have surpassed $1 billion in assets. Citing Strategic Insight Simfund data through September 30, 2026, the supplement identifies T. Rowe Price as the 13th largest active ETF manager.

The reported results are unaudited, and the firm expects to file its Form 10-Q for the third quarter with the U.S. Securities and Exchange Commission later on October 29, 2026. Management reviewed the results on a webcast held from 8:00 to 8:45 a.m. Eastern Time, with Sharps, Chief Financial Officer Jen Dardis, and Head of Global Distribution Dee Sawyer presenting and Eric Veiel, president, co-head of global investments and chief investment officer, joining for questions. A replay is available on the firm’s investor relations website.