T. Rowe Price reported third quarter 2026 results that exceeded analyst expectations on both the top and bottom lines. While net client outflows remained high at $28.3 billion, ending assets under management (AUM) reached $1.86 trillion. The firm continues to face fee compression, with its annualized effective fee rate declining to 37.8 basis points as client transfers drove a mix shift toward lower-fee products.
Key Highlights
- Adjusted diluted EPS of $2.86 beat the consensus estimate of $2.65, supported by a 5.9% year-over-year increase in net revenues to $2.00 billion.
- Assets under management ended the quarter at $1.86 trillion, a slight sequential decrease from $1.89 trillion in Q2 2026.
- Persistent net client outflows reached $28.3 billion during the quarter, heavily weighted toward equity strategy redemptions which accounted for $25.6 billion.
- Investment advisory annualized effective fee rates compressed to 37.8 bps from 39.1 bps in the prior year period, reflecting the ongoing shift in asset mix.