T. Rowe Price Group, Inc. TROW is scheduled to report first-quarter 2026 results tomorrow, before the opening bell. The company’s quarterly earnings and revenues are expected to have increased from the year-ago reported levels.
In the last reported quarter, TROW’s earnings missed the Zacks Consensus Estimate. The results were affected by higher expenses. Nonetheless, an increase in investment advisory fees and capital allocation-based income supported the results. Also, higher assets under management were another positive.
T. Rowe Price’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 4.97%.
T. Rowe Price Group, Inc. Price and EPS Surprise
T. Rowe Price Group, Inc. price-eps-surprise | T. Rowe Price Group, Inc. Quote
Key Factors & Estimates for TROW in Q1
In the January-March quarter, the S&P 500 Index fell 4.9%, signaling a volatile market performance. Subdued performance was largely due to geopolitical tensions (mainly the Middle East conflict) and AI-driven disruption. The fixed-income market performance was mixed but more resilient than equities. As such, TROW’s asset under management (AUM) is likely to have witnessed decent growth, while the private credit market weakness is likely to have weighed on AUM expansion.
Amid the challenging operating environment, T. Rowe Price is likely to have continued to record net outflows in the first quarter. Per the company’s monthly metrics data, its net outflows were $3.2 billion for the quarter ended March 31, 2026.
The company’s preliminary AUM of $1.71 trillion as of March 31, 2026, fell from $1.80 trillion as of Dec. 31, 2025. The decline was due to lower performance in fixed income (including money market), multi-asset, equity and alternative products.
The Zacks Consensus Estimate for total AUM is pegged at $1.71 trillion, indicating a sequential decline of 3.7%.
The Zacks Consensus Estimate for investment advisory fees is pegged at $1.66 billion, suggesting a decline of 4.2% on a sequential basis.
The Zacks Consensus Estimate for administrative, distribution and servicing fees of $144.4 million implies an increase of 2% from the prior quarter’s actual.
Coming to expenses, T. Rowe Price continues to incur significant expenditure to attract investment advisory clients and additional investments from existing clients. The company is also investing heavily in technology, distribution and employee compensation to keep pace with evolving customer needs and strengthen its platform. This is expected to have increased its expenses in the quarter to be reported. However, the company’s cost-management efforts are likely to have offset the rise to some extent.
