T. Rowe Price Group (TROW)
NASDAQ:TROW
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T Rowe Price
(NASDAQ:TROW)
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Rating:73Outperform
Price Target:
$103.00
â–²(12.19% Upside)
Action:ReiteratedDate:02/06/26
The score is primarily supported by strong financial strength (near-zero leverage, solid profitability, and robust free cash flow) and attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technical momentum and a mixed earnings outlook driven by significant net outflows, fee pressure, and rising expense guidance.
Positive Factors
Conservative balance sheet
Near-zero debt and a growing equity base materially reduce solvency and refinancing risk, giving T. Rowe Price durable financial flexibility. Low leverage supports sustained dividend and buyback capacity, funds strategic investments, and cushions earnings during cyclical outflow periods.
Negative Factors
Large net outflows
Substantial, concentrated outflows materially reduce revenue base and pressure margins because fees are AUM-linked. Persistent redemptions from equities and mutual funds can erode higher-fee assets, force reallocation or fund-level changes, and leave longer-term revenue growth vulnerable to market and performance cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Near-zero debt and a growing equity base materially reduce solvency and refinancing risk, giving T. Rowe Price durable financial flexibility. Low leverage supports sustained dividend and buyback capacity, funds strategic investments, and cushions earnings during cyclical outflow periods.
Read all positive factors
T Rowe Price (TROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.02B
Dividend Yield4.88%
Average Volume (3M)2.56M
Price to Earnings (P/E)12.9
Beta (1Y)1.07
Revenue Growth4.26%
EPS Growth0.42%
CountryUS
Employees8,084
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.44
Shares Outstanding218,072,900
10 Day Avg. Volume2,422,946
30 Day Avg. Volume2,555,371
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 Cap0.87
Enterprise Value/Revenue2.39
Enterprise Value/Gross Profit3.82
Enterprise Value/Ebitda6.08
Forecast
1Y Price Target
$93.38Price Target Upside1.71% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering8
EPS Forecast (FY)9.78
Revenue Forecast (FY)$7.57B
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 generates revenue primarily through management fees charged on the assets it manages on behalf of clients. These fees are typically a percentage of the assets under management (AUM) and vary by investment product. In addition to mana...
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:Apr 30, 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
Neutral
91.81
Price Trends
92.26
Negative
97.09
Negative
98.84
Negative
Market Momentum
-0.44
Negative
56.37
Neutral
62.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TROW, the sentiment is Neutral. The current price of 91.81 is above the 20-day moving average (MA) of 88.65, below the 50-day MA of 92.26, and below the 200-day MA of 98.84, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 62.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $20.02B | 12.86 | 19.58% | 4.88% | 4.26% | 0.42% | |
73 Outperform | $9.52B | 14.01 | 30.29% | 1.18% | 9.33% | 33.17% | |
69 Neutral | $87.88B | 14.74 | 12.66% | 1.71% | 4.22% | 51.01% | |
69 Neutral | $12.96B | 12.10 | 5.06% | 5.33% | 2.31% | 5.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $37.94B | 12.46 | 10.76% | 2.43% | 5.62% | 49.49% | |
58 Neutral | $28.20B | 13.74 | 13.45% | 2.21% | -4.52% | 7.01% |
* Financial Sector Average
TROW
T Rowe Price
91.81
6.27
7.33%
BK
Bank of New York Mellon
127.94
50.23
64.63%
BEN
Franklin Resources
24.88
7.31
41.57%
SEIC
SEI Investments Company
77.85
5.68
7.87%
STT
State Street
136.13
56.05
70.00%
NTRS
Northern
151.74
60.76
66.79%
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.