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T Rowe Price
(NASDAQ:TROW)
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Rating:82Outperform
Price Target:
$138.00
â–²(42.30% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by strong fundamentals (low leverage, healthy profitability, and strong free-cash-flow conversion) and attractive valuation (low P/E with a ~5% dividend yield). Technicals are mildly positive, while earnings-call and recent updates highlight ongoing headwinds from net outflows and fee compression that keep the score below the top tier.
Positive Factors
Cash generation & profitability
T. Rowe Price converts earnings into cash at a very high rate (TTM OCF $2.32B, FCF $2.27B, FCF/net income ~0.94). Durable free cash flow supports recurring dividend increases, buybacks and strategic investments, improving financial resilience across market cycles.
Negative Factors
Material net outflows
Large quarterly net outflows ($13.7B) materially reduce AUM and fee revenue; because the firm’s core earnings are AUM-driven, sustained or recurring outflows can erode revenue and limit operating leverage, pressuring margins and capital returns over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & profitability
T. Rowe Price converts earnings into cash at a very high rate (TTM OCF $2.32B, FCF $2.27B, FCF/net income ~0.94). Durable free cash flow supports recurring dividend increases, buybacks and strategic investments, improving financial resilience across market cycles.
Read all positive factors
T Rowe Price Key Performance Indicators (KPIs)
Any
AUM by Geography
Details how assets are allocated across the U.S., Europe, Asia and other regions, indicating geographic diversification and where future expansion may come from. Heavy concentration in one market raises exposure to local economic, regulatory, and currency risks, while international growth can broaden client reach and revenue sources.
Details how assets are allocated across the U.S., Europe, Asia and other regions, indicating geographic diversification and where future expansion may come from. Heavy concentration in one market raises exposure to local economic, regulatory, and currency risks, while international growth can broaden client reach and revenue sources.
Data provided by:
The Fly
The FlyT Rowe Price (TROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.40B
Dividend Yield4.88%
Average Volume (3M)1.99M
Price to Earnings (P/E)12.7
Beta (1Y)1.03
Revenue Growth4.23%
EPS Growth5.77%
CountryUS
Employees8,084
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)9.34
Shares Outstanding214,266,600
10 Day Avg. Volume2,274,096
30 Day Avg. Volume1,993,178
Financial Highlights & Ratios
PEG Ratio12.69
Price to Book (P/B)2.11
Price to Sales (P/S)3.13
P/FCF Ratio15.49
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue2.68
Enterprise Value/Gross Profit3.89
Enterprise Value/Ebitda6.88
Forecast
1Y Price Target
$96.50Price Target Upside-0.49% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)9.58
Revenue Forecast (FY)$7.46B
T Rowe Price Business Overview & Revenue Model
Company Description
T. Rowe Price Group, Inc. operates as a publicly traded entity specializing in investment management. The firm extends its financial expertise to a diverse range of clients, including individual investors, institutional organizations, retirement b...
How the Company Makes Money
T. Rowe Price primarily makes money by charging fees for managing client assets. Its core revenue stream is investment advisory (management) fees, typically calculated as a percentage of assets under management (AUM) and influenced by the mix of p...
T Rowe Price Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call balanced solid financial and product progress—13% YoY EPS growth, 5% revenue growth, AUM up ~9.6% YoY on average, strong ETF/SMA/target-date inflows, and notable alternatives momentum—with clear near-term headwinds: meaningful net outflows of $13.7B, compression of effective fees, challenged 1-year performance in several franchises, and elevated market/credit volatility. Management emphasized cost discipline, capital returns (dividend and buybacks), and strategic investments (ETFs, alternatives, partnerships) to offset flow and fee pressures.Positive Updates
Adjusted EPS Growth
Adjusted EPS of $2.52 for Q1 2026, up 13% year-over-year and up 3% sequentially from Q4 2025, driven by higher revenue from increased average AUM, lower expenses, a lower tax rate, and reduced share count.
Negative Updates
Net Outflows and Equity Pressure
Reported net outflows of $13.7 billion for the quarter. Equities—particularly U.S. growth-oriented strategies—remained in outflows, contributing materially to overall net redemption pressure.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted EPS of $2.52 for Q1 2026, up 13% year-over-year and up 3% sequentially from Q4 2025, driven by higher revenue from increased average AUM, lower expenses, a lower tax rate, and reduced share count.
Read all positive updates
Company Guidance
On guidance, management reiterated that 2026 adjusted operating expenses (excluding carried interest) are expected to be up 3%–6% versus 2025 (with 2025 operating expenses ≈ $4.6 billion), said it’s too early to narrow broader full‑year guidance, and noted the expense forecast remains comfortably within that range despite year‑to‑date market volatility; they pointed to Q1 results that support this stance — adjusted EPS $2.52 (+13% YoY, +3% QoQ), adjusted net revenue >$1.8B (+5% YoY), Q1 adjusted operating expenses ex‑carried interest $1.14B (+1% YoY, −7% QoQ), average AUM $1.78T (+9.6% YoY) with period‑end AUM $1.71T and $13.7B net outflows, cash & discretionary investments >$4.1B, $340M of stock repurchases in Q1 (YTD ~4M shares for just under $400M), and a raised quarterly dividend of $1.30 (40th consecutive annual increase).T Rowe Price Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.41B | 7.31B | 7.09B | 6.46B | 6.49B | 7.67B |
| Gross Profit | 5.12B | 4.58B | 3.68B | 3.21B | 3.57B | 4.68B |
| EBITDA | 2.89B | 2.88B | 2.98B | 2.52B | 3.14B | 3.95B |
| Net Income | 2.09B | 2.09B | 2.10B | 1.79B | 1.56B | 3.08B |
Balance Sheet | ||||||
| Total Assets | 14.39B | 14.61B | 13.47B | 12.28B | 11.64B | 12.51B |
| Cash, Cash Equivalents and Short-Term Investments | 3.73B | 3.38B | 2.65B | 2.07B | 1.76B | 1.52B |
| Total Debt | 438.10M | 860.20M | 278.70M | 308.50M | 329.60M | 249.20M |
| Total Liabilities | 2.52B | 2.55B | 2.02B | 1.99B | 1.96B | 2.26B |
| Stockholders Equity | 10.78B | 10.86B | 10.35B | 9.51B | 8.84B | 9.02B |
Cash Flow | ||||||
| Free Cash Flow | 2.34B | 1.48B | 1.26B | 911.20M | 2.12B | 3.21B |
| Operating Cash Flow | 2.45B | 1.75B | 1.69B | 1.22B | 2.36B | 3.45B |
| Investing Cash Flow | 289.40M | 230.30M | -177.50M | 128.20M | -41.50M | -1.10B |
| Financing Cash Flow | -1.69B | -1.28B | -936.60M | -1.08B | -2.08B | -2.99B |
T Rowe Price Technical Analysis
Positive
96.98
Price Trends
104.40
Positive
97.38
Positive
98.77
Positive
Market Momentum
3.27
Negative
78.43
Negative
88.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TROW, the sentiment is Positive. The current price of 96.98 is below the 20-day moving average (MA) of 108.58, below the 50-day MA of 104.40, and below the 200-day MA of 98.77, indicating a bullish trend. The MACD of 3.27 indicates Negative momentum. The RSI at 78.43 is Negative, neither overbought nor oversold. The STOCH value of 88.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TROW.
T Rowe Price Risk Analysis
T Rowe Price disclosed 32 risk factors in its most recent earnings report. T Rowe Price reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
T Rowe Price Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $25.40B | 12.69 | 19.48% | 4.88% | 4.23% | 5.77% | |
81 Outperform | $11.00B | 15.26 | 30.64% | 1.18% | 9.37% | 28.61% | |
73 Outperform | $32.66B | 18.39 | 14.45% | 2.21% | -5.75% | -10.69% | |
71 Outperform | $17.72B | 25.46 | 6.69% | 5.33% | 3.11% | 89.49% | |
71 Outperform | $47.24B | 17.05 | 11.09% | 2.43% | 1.43% | 10.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TROW
T Rowe Price
118.55
23.38
24.57%
BEN
Franklin Resources
34.11
10.49
44.41%
SEIC
SEI Investments Company
91.43
-0.56
-0.61%
STT
State Street
170.69
63.15
58.72%
NTRS
Northern
176.50
47.72
37.06%
T Rowe Price Corporate Events
Business Operations and StrategyExecutive/Board Changes
T. Rowe Price Names Eric Veiel President and CIO
Positive
May 18, 2026
On May 15, 2026, T. Rowe Price Group, Inc. appointed Eric L. Veiel as President, Co-Head of Global Investments, and Chief Investment Officer, with the changes taking effect immediately. The company confirmed that Rob Sharps will continue in his ro...
Executive/Board ChangesShareholder Meetings
T. Rowe Price Shareholders Back Board and Executive Pay
Positive
May 11, 2026
T. Rowe Price held its annual stockholder meeting on May 7, 2026, following a proxy filing in March, with 217,605,891 shares eligible to vote as of the February 20, 2026 record date. Shareholders re-elected the full slate of director nominees, eac...
Business Operations and StrategyExecutive/Board Changes
T. Rowe Price Deepens Alternatives Push With OHA Alignment
Positive
Apr 22, 2026
On April 22, 2026, T. Rowe Price Group and its alternatives affiliate Oak Hill Advisors updated their evergreen operating arrangement, reinforcing OHA’s role as a leading alternatives manager to institutional, insurance, wealth, and retireme...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.