T. Rowe Price reported higher third-quarter revenue and operating income, but lower net income and earnings per share than a year earlier. The asset manager ended September with $1.9 trillion under management and recorded $28.3 billion in net client outflows.
The company also highlighted efforts to expand its exchange-traded funds, separately managed accounts and model-portfolio businesses, alongside product launches, investment performance and strategic partnerships.
Key details
- Revenue and fees increased: Third-quarter net revenue was $2.00 billion, up 5.9% from a year earlier and 5.1% from the second quarter. Investment advisory fees rose 5.8% year over year to $1.80 billion.
- Operating performance improved: Operating expenses fell 1.2% year over year to $1.24 billion. Net operating income increased 19.7% to $769.8 million compared with the third quarter of 2025, and was up 42.4% from the prior quarter.
- Reported earnings declined: Net income was $612.3 million, down 5.2% from $646.1 million a year earlier. Diluted earnings per share fell 2.8% to $2.79, from $2.87. Adjusted diluted EPS was $2.86.
- Non-operating results were much lower: Non-operating income was $17.6 million, compared with $238.4 million in the year-earlier quarter and $369.1 million in the second quarter. That decline contrasted with the year-over-year improvement in operating income.
- Client flows remained a headwind: The firm reported $28.3 billion in net outflows for the quarter, despite its $1.9 trillion in assets under management.
- Management cited business expansion efforts: CEO Rob Sharps said the firm is extending its active-investment expertise through ETFs, separately managed accounts and model portfolios, and pointed to product launches, improving investment performance and progress on strategic partnerships.