T. Rowe Price Group, Inc. reported its financial results for the third quarter of 2026 on October 29, 2026. The firm reported assets under management (AUM) of $1.9 trillion as of September 30, 2026, a decrease of $30.7 billion from the prior quarter. The filing details that net client outflows for the quarter totaled $28.3 billion. These outflows were driven by equity and multi-asset classes, with equity outflows reaching $25.6 billion and multi-asset outflows of $7.6 billion. Conversely, fixed income saw net cash inflows of $3.4 billion, and alternatives saw inflows of $2.7 billion.
Despite the net outflows, the firm reported net revenues of $2.0 billion for the three months ended September 30, 2026, an increase of 5.9% compared to the same period in 2025. This growth was attributed to higher investment advisory fees and performance-based fees, which increased by 5.8% and 14.1%, respectively. The investment advisory annualized effective fee rate, excluding performance-based fees, was 37.8 basis points.
On the expense side, total operating expenses were $1.235 billion, a decrease of 1.2% from the prior year. Adjusted operating expenses were $1.200 billion. The firm reported net income of $629.5 million, or $2.86 per diluted share, on an adjusted basis. Diluted earnings per common share were $2.79 on a U.S. GAAP basis.
Rob Sharps, the chair and CEO, stated that the company continues to expand its ETF, SMA, and model portfolio businesses. He noted that the firm is well positioned to deliver long-term value for clients and stockholders through innovative product launches and improved investment performance.
