T Rowe Price (TROW)
NASDAQ:TROW
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T Rowe Price
(NASDAQ:TROW)
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Rating:76Outperform
Price Target:
$112.00
â–²(15.49% Upside)
Action:ReiteratedDate:04/22/26
The score is driven primarily by strong financial quality (zero/minimal leverage and improved free-cash-flow momentum) and reasonable valuation. This is partially offset by mixed earnings-call fundamentals (notably large outflows and fee pressure with expense growth guidance) and technically stretched, near-overbought momentum that raises near-term pullback risk.
Positive Factors
Conservative Balance Sheet
An exceptionally conservative balance sheet with minimal debt (falling to zero in 2025) materially reduces financial leverage risk, preserves strategic optionality for buybacks, M&A or investments, and supports resilient capital returns through market cycles.
Negative Factors
Large Net Outflows
Substantial net outflows ($56.9B in 2025) are a durable headwind for fee revenue since asset managers’ economics scale with AUM. Persistent or recurring outflows, especially from equities and mutual funds, can erode revenue and limit operating leverage over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
An exceptionally conservative balance sheet with minimal debt (falling to zero in 2025) materially reduces financial leverage risk, preserves strategic optionality for buybacks, M&A or investments, and supports resilient capital returns through market cycles.
Read all positive factors
T Rowe Price (TROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.06B
Dividend Yield4.88%
Average Volume (3M)2.51M
Price to Earnings (P/E)11.0
Beta (1Y)1.06
Revenue Growth3.12%
EPS Growth0.90%
CountryUS
Employees8,084
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)N/A
Shares Outstanding217,605,900
10 Day Avg. Volume1,976,134
30 Day Avg. Volume2,507,579
Financial Highlights & Ratios
PEG Ratio12.60
Price to Book (P/B)2.11
Price to Sales (P/S)3.13
P/FCF Ratio15.49
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.65
Enterprise Value/Gross Profit4.23
Enterprise Value/Ebitda6.74
Forecast
1Y Price Target
$92.22Price Target Upside-4.91% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)9.26
Revenue Forecast (FY)$7.48B
T Rowe Price Business Overview & Revenue Model
Company Description
T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income...
How the Company Makes Money
T. Rowe Price primarily makes money by charging investment management fees based on assets under management (AUM). These fees are typically calculated as a percentage of average AUM and vary by product type and mandate (for example, retail mutual ...
T Rowe Price Key Performance Indicators (KPIs)
T Rowe Price Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call conveys a mixed but constructive picture: the firm delivered modest organic earnings and revenue growth, grew AUM to $1.78 trillion, launched products and partnerships, and showed strength in fixed income, ETFs, and alternatives fundraising. Offsetting these positives are significant net outflows concentrated in equities and mutual funds, one‑year performance weaknesses, declining performance‑based fees, and continued fee pressure from a shift to lower‑priced vehicles. Management emphasized strategic investments and expense discipline but acknowledged flow volatility and reliance on market returns.Positive Updates
Assets Under Management Growth
Closed 2025 with $1.78 trillion AUM, up over 10% from the start of the year despite significant net outflows; equity market appreciation added nearly $50 billion of equity AUM during the year.
Negative Updates
Large Net Outflows
Full-year net outflows totaled $56.9 billion, with Q4 outflows of $25.5 billion. Net outflows were concentrated in equity and mutual funds (stated $75 billion of equity outflows and nearly $64 billion from mutual funds on a vehicle basis in 2025).
Read all updates
Q4-2025 Updates
Positive
Negative
Assets Under Management Growth
Closed 2025 with $1.78 trillion AUM, up over 10% from the start of the year despite significant net outflows; equity market appreciation added nearly $50 billion of equity AUM during the year.
Read all positive updates
Company Guidance
The company guided 2026 adjusted operating expenses (excluding carried interest) to rise 3%–6% versus 2025’s $4.6 billion (2025 adj. operating expenses ex-carried interest were $4.6B, up 3.4% from 2024’s $4.46B), noting this incorporates ongoing expense management (targeting low single‑digit growth on two‑thirds of controllable costs) and investments in growth areas while acknowledging one‑third of the expense base is variable and equity market returns remain the biggest driver of margins. Financials and flow context: Q4 adjusted diluted EPS was $2.44 and full‑year adjusted diluted EPS was $9.72 (up 4.2% Y/Y); Q4 adjusted net revenue was $1.9B and FY adjusted net revenue was nearly $7.4B (up 2.8% Y/Y); Q4 investment advisory revenue was $1.7B (+2.3% Q/Q, +4.2% Y/Y) and FY investment advisory revenue was $6.6B (+3.1% Y/Y) with a Q4 annualized effective fee rate ex-performance of 38.8 bps (down from 39.1 bps). Flows and balance sheet highlights: Q4 net outflows were $25.5B and full‑year outflows $56.9B, yet year‑end AUM totaled $1.78T (up >10% from the start of the year), equity AUM benefitted by nearly $50B of market appreciation, free flow exceeded $2B, ~$1.8B of cash was returned to shareholders, buybacks were $141M in Q4 and $624.6M for 2025 (2.8% of shares), and cash discretionary investments finished at $3.8B (up $735M). Operational/product metrics cited to frame the outlook included ETFs (13 launched in 2025, total 30, ETF AUM >$21B with $1.8B Q4 and ~$10.5B FY net inflows), target date net inflows of $5.2B for the year, fixed income’s eight consecutive quarters of positive flows, and lower full‑year performance fees ($37.4M in 2025 vs. $59.3M in 2024).T Rowe Price Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.31B | 7.09B | 6.46B | 6.49B | 7.67B |
| Gross Profit | 4.58B | 3.68B | 3.21B | 3.57B | 4.68B |
| EBITDA | 2.88B | 2.98B | 2.52B | 3.14B | 3.91B |
| Net Income | 2.09B | 2.10B | 1.79B | 1.56B | 3.08B |
Balance Sheet | |||||
| Total Assets | 14.61B | 13.47B | 12.28B | 11.64B | 12.51B |
| Cash, Cash Equivalents and Short-Term Investments | 3.38B | 2.65B | 2.07B | 1.76B | 1.52B |
| Total Debt | 860.20M | 278.70M | 308.50M | 329.60M | 249.20M |
| Total Liabilities | 2.55B | 2.02B | 1.99B | 1.96B | 2.26B |
| Stockholders Equity | 10.86B | 10.35B | 9.51B | 8.84B | 9.02B |
Cash Flow | |||||
| Free Cash Flow | 1.48B | 1.26B | 911.20M | 2.12B | 3.21B |
| Operating Cash Flow | 1.75B | 1.69B | 1.22B | 2.36B | 3.45B |
| Investing Cash Flow | 230.30M | -177.50M | 128.20M | -41.50M | -1.10B |
| Financing Cash Flow | -1.28B | -936.60M | -1.08B | -2.08B | -2.99B |
T Rowe Price Technical Analysis
Positive
96.98
Price Trends
91.18
Positive
96.90
Positive
98.92
Negative
Market Momentum
1.38
Negative
68.77
Neutral
89.78
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 above the 20-day moving average (MA) of 91.17, above the 50-day MA of 91.18, and below the 200-day MA of 98.92, indicating a neutral trend. The MACD of 1.38 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 89.78 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $11.13B | 13.68 | 30.64% | 1.18% | 9.41% | 28.61% | |
76 Outperform | $22.06B | 10.98 | 19.58% | 4.88% | 3.12% | 0.90% | |
74 Outperform | $92.30B | 12.56 | 13.48% | 1.71% | 1.89% | 31.72% | |
72 Outperform | $14.36B | 8.82 | 5.06% | 5.33% | 2.05% | 66.56% | |
69 Neutral | $42.65B | 11.53 | 11.09% | 2.43% | 2.99% | 10.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $31.10B | 12.32 | 14.45% | 2.21% | -5.75% | -10.69% |
* Financial Sector Average
TROW
T Rowe Price
100.77
16.76
19.94%
BK
Bank of New York Mellon
133.54
54.61
69.20%
BEN
Franklin Resources
29.46
11.72
66.03%
SEIC
SEI Investments Company
91.51
14.15
18.28%
STT
State Street
152.48
66.78
77.93%
NTRS
Northern
166.90
75.23
82.07%
T Rowe Price Corporate Events
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.