T. ROWE PRICE GROUP REPORTS THIRD QUARTER 2026 RESULTS
BALTIMORE (October 29, 2026) - T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) today reported its results for the third quarter of 2026.
Rob Sharps, chair and CEO, commented, “We continue to expand our ETF, SMA, and model portfolio businesses, extending our active investment expertise to more clients through a broader range of portfolio solutions. With innovative product launches, improving investment performance, and continued progress on our strategic partnerships, we are well positioned to continue delivering long-term value for clients and stockholders."
(1) n/m - the percentage change is not meaningful. (2) Capital allocation-based income represents the change in accrued carried interest along with acquisition- related, non-cash amortization and impairments. (3) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. (4) Beginning July 1, 2025, managed account - model delivery assets are included in assets under management. 1
During Q3 2026, assets under management (AUM) decreased $30.7 billion to $1.9 trillion. The components of the change in AUM, by asset class, are shown in the table below.
(1) Firmwide AUM includes assets in which T. Rowe Price Group, Inc. and its affiliates have full discretionary authority along with managed account - model delivery assets.
(2) The underlying AUM of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns.
(3) The alternatives asset class includes strategies authorized to invest more than 50% of its holdings in private credit, leveraged loans, mezzanine, real assets/CRE, structured products, stressed/distressed, non-investment grade CLOs, special situations, business development companies, private equity or that have absolute return as its investment objective. Generally, only those strategies with longer than daily liquidity are included. Unfunded capital commitments that do not earn fees were $19.0 billion at September 30, 2026 and $21.0 billion at June 30, 2026, and are not reflected in the AUM above.
Investors domiciled outside the United States account for 9.3% of the firm's AUM at September 30, 2026, 9.1% at June 30, 2026 and 8.8% at December 31, 2025.
The firm provides participant accounting and plan administration for retirement plans that primarily invest in the firm's U.S. mutual funds, collective investment trusts and products managed outside of the firm's complex. At September 30, 2026, the firm's assets under administration were $346 billion, of which $186 billion were assets the firm manages.
The firm's multi-asset investment division provides advisory solutions, including investment insights, strategic asset allocation design, tactical asset allocation recommendations, and portfolio rebalancing services. The assets in these portfolios, predominantly in the United States, were $31.4 billion at September 30, 2026, compared to $31.1 billion at June 30, 2026. 2
(1) Capital allocation-based income represents the change in accrued carried interest along with acquisition-related, non-cash amortization and impairments. The percentage change is not meaningful (n/m).
in Q3 2026 were $2.0 billion, an increase of 5.9% from Q3 2025 and 5.1% from Q2 2026. Performance-based fees earned in all periods were primarily in alternatives strategies.
The investment advisory annualized effective fee rate, excluding performance- based fees, of 37.8 basis points in Q3 2026 decreased from 39.1 basis points in Q3 2025 and 38.1 basis points in Q2 2026. In comparison to prior periods, client flows and transfers drove a mix shift in assets under management toward lower fee products and asset classes, partially offset by equity market appreciation.
The change in accrued carried interest from Q3 2025 was primarily driven by carried interest related to the firm's recently launched late-stage venture fund, while the change in accrued carried interest from Q2 2026 was primarily driven by relative performance in credit strategies. The decrease in acquisition-related amortization and impairments from Q3 2025 primarily reflects impairments recognized in Q3 2025 that did not recur in Q3 2026. A portion of capital allocation-based income is passed through as compensation, with 3 unpaid amounts reported as non-controlling interest on the consolidated balance sheet. For detail on the quarterly changes in accrued carried interest, which was reported as part of investments on the consolidated balance sheet, and related non-controlling interest, refer to the tables at the end of this release.
Administrative, distribution, servicing, and other fees in Q3 2026 were $141.3 million, a decrease of $5.1 million from Q3 2025 and $2.9 million from Q2 2026. The decrease from Q3 2025 was primarily driven by lower recordkeeping fees and transfer agent services. The decrease from Q2 2026 was primarily driven by the timing of cost reimbursements from the firm's U.S. mutual funds.
(2) Capital allocation-based income compensation represents the change in accrued carried interest compensation along with acquisition-related, non-cash amortization and impairments.
(3) In Q1 2026, the firm began reporting technology-related professional fees and servicing costs from general, administrative, and other costs to technology, occupancy, and facility costs to better align with the nature of the expenses following the outsourcing and expansion of the firm's technology capabilities through trusted vendor partnerships. Prior periods were recast to reflect this change. Amount reclassified was $14.2M for Q3 2025.
(4) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release.
Compensation, benefits, and related costs in Q3 2026 of $664.7 million increased $32.2 million from Q3 2025 and decreased $11.2 million from Q2 2026. The increase from Q3 2025 was primarily driven by a higher interim bonus accrual and long-term incentive compensation partially offset by lower salaries and temporary personnel costs. The decrease from Q2 2026 was primarily driven by a lower interim bonus accrual and lower employee benefits. The firm employed 7,640 associates at September 30, 2026, a decrease of 2.4% from 7,830 associates at September 30, 2025, and an increase of 1.3% from 7,544 associates at June 30, 2026. 4
Distribution and servicing costs in Q3 2026 of $111.0 million increased $15.2 million from Q3 2025 and $4.9 million from Q2 2026. The increases from prior periods were primarily driven by higher average assets under management distributed through third-party intermediaries.
Technology, occupancy, and facility costs in Q3 2026 of $205.1 million increased $7.8 million from Q3 2025 and decreased $0.8 million from Q2 2026. The Q3 2025 and Q2 2026 periods reflect higher technology costs associated with the firm's decision in prior periods to outsource certain technology capabilities, which were partially offset by a reduction in compensation expenses, along with higher costs for cloud-based infrastructure and hosted solutions. The third quarter of 2026 was also impacted by the reversal of about $10 million in accrued technology-related expenses related to work that is expected to be completed in future periods.
General, administrative, and other costs in Q3 2026 of $95.5 million increased $7.9 million from Q3 2025 and decreased $9.4 million from Q2 2026. The changes from prior periods were primarily attributable to period-specific items, including a benefit recognized in Q3 2025 and costs recognized in Q2 2026, neither of which recurred in Q3 2026.
Restructuring charge in Q3 2026 of $4.0 million relates to actions taken under the previously announced broad and ongoing expense management program, which allows the firm to reduce expense growth and realign resources to support investment in existing and future capabilities. 5
(in millions) Net gains (losses) from non-consoli… investment products Cash and Three months discretiona… ended investments 9/30/2026 9/30/2025 6/30/2026 ────────────────────────────────────────────────────────────────────────────── Dividend $ 40.5 $ 38.1 $ 37.7 income Market-rela… gains (losses) and -22.0 12.1 0.7 equity in earnings (losses) Total net gains (losses) from cash 18.5 50.2 38.4 and discretiona… investments Seed capital investments Dividend 1.5 0.5 0.6 income Market-rela… gains (losses) and -5.6 17.1 66.1 equity in earnings (losses) Net gains (losses) recognized 4.3 — — upon deconsolida… Investments used to hedge the -4.4 53.0 133.7 deferred compensation liabilities Total net gains (losses) from 14.3 120.8 238.8 non-consoli… investment products Other investment 18.0 40.4 -1.4 income (loss) Net gains (losses) on 32.3 161.2 237.4 investments Net gains (losses) on consolidated -18.0 72.6 132.6 investment products Other gains (losses), including foreign 3.3 4.6 -0.9 currency gains (losses) Non-operati… income $ 17.6 $ 238.4 $ 369.1 (loss) Adjusted non-operati… $ 18.0 $ 50.2 $ 38.5 income (loss)(1)
(1) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release.
On an adjusted basis, non-operating income (loss) consists of investment gains and losses generated from the firm's cash and discretionary investment portfolio. Lower investment gains during Q3 2026 compared to prior periods were primarily driven by losses on fixed income holdings resulting from rising interest rates, which more than offset higher dividends on cash equivalents and other fixed income holdings. 6
The following reconciles the statutory federal income tax rate to the firm's effective income tax rate for the nine months ended September 30, 2026 and 2025:
Nine months ended 9/30/2026 9/30/2025 Statutory U.S. federal income 21.0 % 21.0 % tax rate State income taxes, net of federal 2.6 2.5 income tax benefits Net (income) losses attributable to -0.3 -1.0 redeemable non-controlli… interests(1) Net excess tax losses (benefits) from -0.1 -0.2 stock-based compensation plans activity Valuation — -0.2 allowances Other items 0.5 0.7 Effective income tax 23.7 % 22.8 % rate Adjusted effective 24.0 % 23.8 % income tax rate
(1) Net income attributable to redeemable non-controlling interests represents the portion of earnings held in the firm's consolidated investment products, which are not taxable to the firm despite being included in pre-tax income.
The year-to-date 2026 U.S. GAAP effective income tax rate increased compared to 2025 primarily driven by net income attributable to redeemable non-controlling interests. The adjusted effective income tax rate increase was primarily driven by higher valuation allowances in 2026 compared to 2025.
The firm estimates that its effective income tax rate for the full year 2026, on a U.S. GAAP and adjusted basis, will be in the range of 23.5% to 25.5%.
The financial results presented in this release are unaudited. The firm expects that it will file its Form 10-Q Quarterly Report for the third quarter of 2026 with the U.S. Securities and Exchange Commission later today. The Form 10-Q will include additional information on the firm's unaudited financial results at September 30, 2026.
Certain statements in this earnings release may represent “forward-looking information,” including information relating to anticipated changes in revenues, operations, expenses, earnings, liquidity, cash flows and capital expenditures, industry or market conditions, amount or composition of assets under management, flows into products, regulatory developments, changes in effective fee rate, demand for and pricing of products, new products and services, effective income tax rates, net income and earnings per common share, future transactions, strategic initiatives, general economic conditions, dividends, stock repurchases, and other market factors. For a discussion concerning risks and other factors that could affect future results, see the firm's 2025 Annual Report on Form 10-K and subsequent Form 10-Q Quarterly Reports. 7 T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing $1.86 trillion in client assets at September 30, 2026, about two-thirds of which are retirement-related. Renowned for over 85 years of investment excellence, retirement leadership, and independent proprietary research, the firm leverages its longstanding expertise to ask better questions that can drive better investment decisions. Built on a culture of integrity and prioritizing client interests, T. Rowe Price empowers millions of investors worldwide to thrive amidst evolving markets. Visit troweprice.com/newsroom for news and public policy commentary.
T. Rowe Price management will provide an update on the business, review financial results, and take questions on a webcast to be held on Thursday, October 29, 2026, from 8:00 - 8:45 AM (Eastern Time).
To access the webcast or to obtain dial in instructions to ask a question, please visit: investors.troweprice.com. Supplemental materials will be available on the firm's investor relations website. A replay of the webcast will be available on the firm's investor relations website shortly after the event.
( 1 ) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. (2) In Q1 2026, the firm began reporting technology- related professional fees and servicing costs from general, administrative, and other costs to technology, occupancy, and facility costs to better align with the nature of the expenses following the outsourcing and expansion of technology capabilities through trusted vendor partnerships. Prior periods were recast to reflect this change. Amounts reclassified for the three- and nine-month periods ended September 30, 2025 were $14.2M and $43.3M, respectively. 9
(1) Firmwide AUM includes assets in which T. Rowe Price Group, Inc. and its affiliates have full discretionary authority along with managed account - model delivery assets.
(2) The underlying AUM of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns.
(3) The alternatives asset class includes strategies authorized to invest more than 50% of its holdings in private credit, leveraged loans, mezzanine, real assets/CRE, structured products, stressed/distressed, non-investment grade CLOs, special situations, business development companies, private equity or that have absolute return as its investment objective. Generally, only those strategies with longer than daily liquidity are included. Unfunded capital commitments that do not earn fees were $19.0 billion at September 30, 2026 and $21.6 billion at December 31, 2025, and are not reflected in the AUM above.
Non-Operating Income (Loss) (in millions) Net gains (losses) from non-consolidated investment products Cash and discretionary Nine months ended investments 9/30/2026 9/30/2025 ────────────────────────────────────────────────────────────────────────────── Dividend income $ 112.4 $ 102.3 Market-related gains (losses) and equity -24.6 29.6 in earnings (losses) Total net gains (losses) from cash and 87.8 131.9 discretionary investments Seed capital investments Dividend income 3.1 0.9 Market-related gains (losses) and equity 49.3 42.6 in earnings (losses) Net gains (losses) recognized upon 4.5 3.1 deconsolidation Investments used to hedge the deferred 96.7 112.8 compensation liabilities Total net gains (losses) from 241.4 291.3 non-consolidated investment products Other investment income 22.2 67.7 (loss) Net gains (losses) on 263.6 359.0 investments Net gains (losses) on consolidated 73.2 183.1 investment products Other gains (losses), including foreign 1.6 2.5 currency gains (losses) Non-operating income (loss) $ 338.4 $ 544.6 Adjusted non-operating $ 87.4 $ 132.8 income (loss)(1)
(1) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. 10 The following table summarizes the cash flows for the nine months ended September 30, 2026 that are attributable to T. Rowe Price, consolidated investment products, and the related eliminations required.
Unaudited Condensed Consolidated Balance Sheet Information At (in millions) 9/30/2026 12/31/2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 3,774.3 $ 3,378.2 Accounts receivable and 952.2 931.2 accrued revenue Investments 4,185.2 3,325.2 Assets of consolidated investment 2,624.0 1,951.0 products Operating lease assets 359.8 382.9 Property, equipment and 804.9 845.3 software, net Goodwill and intangible 2,875.3 2,917.0 assets Other assets 573.2 611.0 Total assets 16,148.9 14,341.8 Deferred compensation 1,255.4 1,176.8 liabilities Total other liabilities, includes $554.4 million at September 30, 2026 and $21.3 2,280.9 1,111.8 million at December 31, 2025, from consolidated investment products Non-controlling interests(1) 1,242.1 1,193.1 Stockholders' equity attributable to T. Rowe Price Group, Inc., 213.3 common shares outstanding at $ 11,370.5 $ 10,860.1 September 30, 2026 and 218.6 common shares outstanding at December 31, 2025
(1) This includes both redeemable and non-redeemable non-controlling interest in consolidated entities. 11 The following tables detail changes in the firm's investments in affiliated private investment funds - carried interest and non-controlling interest in consolidated entities.
The firm believes the non-GAAP financial measures below provide relevant and meaningful information to investors about its core operating results. These measures have been established to increase transparency in evaluating the firm's core business, comparing current results with prior-period results, and making more meaningful comparisons with industry peers. However, non-GAAP financial measures should not be considered as a substitute for financial measures calculated in accordance with U.S. GAAP and may be calculated differently by other companies. 12 The following schedules reconcile U.S. GAAP financial measures to non-GAAP financial measures for the three months ended September 30, 2026 and 2025 and June 30, 2026.
The following schedules reconcile certain U.S. GAAP financial measures for the nine months ended September 30, 2026 and 2025.
(1) These non-GAAP adjustments remove the impact of acquisition-related amortization of intangible assets, amortization of acquired investment and non- controlling interest basis differences and amortization of compensation-related arrangements. The firm believes adjusting for these charges helps the reader's ability to understand core operating results and increases comparability period to period.
(2) This non-GAAP adjustment eliminates the compensation expense impact from market valuation changes in deferred compensation liabilities, including the supplemental savings plan and restricted fund units, and the related net gains (losses) on investments used as economic hedges against the related liabilities. The liabilities are adjusted based on the performance of hypothetical investments selected by participants. The firm uses investment products to economically hedge the market risk associated with the supplemental savings plan liability and the expected settlement value of unvested restricted fund units. The firm believes it is useful to offset the non-operating investment income (loss) of the hedges against the related compensation expense and remove the net impact to help the reader's ability to understand the firm's core operating results and to increase comparability period to period.
(3) This non‑GAAP adjustment removes the impact of actions taken as part of the firm’s broad, ongoing plan to reduce expense growth and realign resources to invest in existing and future capabilities. The firm believes this adjustment helps the reader’s ability to understand the firm's core operating results and increases comparability period to period.
(4) This non-GAAP adjustment removes the impact of the consolidated investment products by adding back their operating expenses and subtracting their investment income. The operating expense adjustment represents their operating expenses net of related investment advisory and administrative fees. The adjustment to net income attributable to T. Rowe Price Group, Inc. represents the consolidated investment products' net income, net of redeemable non- controlling interests. The firm believes this adjustment helps the reader’s ability to understand core operating results and increases comparability period to period.
(5) This non-GAAP adjustment removes non-operating income (loss) earned on those investments that are not economic hedges for the deferred compensation liabilities and are not part of the cash and discretionary investment portfolio. The firm retains gains from cash and discretionary investments in non-GAAP measures, as they are considered part of the firm's core operations. The firm believes adjusting for the remaining non-operating income (loss) helps the reader’s ability to understand the firm's core operating results and increases comparability period to period. Additionally, the firm does not emphasize this portion of non-operating income (loss) when assessing the firm's performance.
(6) The income tax impacts were calculated in order to achieve an overall year- to-date non-GAAP effective income tax rate of 24.0% in 2026 and 23.8% in 2025. As such, the non-GAAP effective income tax rate for the third quarter was 23.9% in 2026 and 23.4% in 2025. 15 (7) This non-GAAP measure was calculated by applying the two-class method to adjusted net income attributable to T. Rowe Price Group, Inc. divided by the weighted-average common shares outstanding assuming dilution. The calculation of adjusted net income allocated to common stockholders is as follows:
Full text with the tables
NEWS RELEASE
T. ROWE PRICE GROUP REPORTS THIRD QUARTER 2026 RESULTS
BALTIMORE (October 29, 2026) - T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) today
reported its results for the third quarter of 2026.
▪
Assets under management (AUM) of $1.9 trillion
▪
Net client outflows of $28.3 billion
▪
Diluted earnings per common share (EPS) of $2.79
▪
Adjusted diluted EPS of $2.86
Rob Sharps, chair and CEO, commented, “We continue to expand our ETF, SMA, and
model portfolio businesses, extending our active investment expertise to more
clients through a broader range of portfolio solutions. With innovative product
launches, improving investment performance, and continued progress on our
strategic partnerships, we are well positioned to continue delivering long-term
value for clients and stockholders."
Financial Highlights
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(1) n/m - the percentage change is not meaningful. (2) Capital allocation-based
income represents the change in accrued carried interest along with acquisition-
related, non-cash amortization and impairments. (3) See the reconciliation to
the comparable U.S. GAAP measures at the end of this earnings release. (4)
Beginning July 1, 2025, managed account - model delivery assets are included in
assets under management.
1
Assets Under Management
(1)
During Q3 2026, assets under management (AUM) decreased $30.7 billion to $1.9
trillion. The components of the change in AUM, by asset class, are shown in the
table below.
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(1) Firmwide AUM includes assets in which T. Rowe Price Group, Inc. and its
affiliates have full discretionary authority along with managed account - model
delivery assets.
(2) The underlying AUM of the multi-asset portfolios have been aggregated and
presented in this category and not reported in the equity and fixed income
columns.
(3) The alternatives asset class includes strategies authorized to invest more
than 50% of its holdings in private credit, leveraged loans, mezzanine, real
assets/CRE, structured products, stressed/distressed, non-investment grade CLOs,
special situations, business development companies, private equity or that have
absolute return as its investment objective. Generally, only those strategies
with longer than daily liquidity are included. Unfunded capital commitments that
do not earn fees were $19.0 billion at September 30, 2026 and $21.0 billion at
June 30, 2026, and are not reflected in the AUM above.
(4) Includes net distributions not reinvested of $0.7 billion.
Investors domiciled outside the United States account for 9.3% of the firm's AUM
at September 30, 2026, 9.1% at June 30, 2026 and 8.8% at December 31, 2025.
The firm provides participant accounting and plan administration for retirement
plans that primarily invest in the firm's U.S. mutual funds, collective
investment trusts and products managed outside of the firm's complex. At
September 30, 2026, the firm's assets under administration were $346 billion, of
which $186 billion were assets the firm manages.
The firm's multi-asset investment division provides advisory solutions,
including investment insights, strategic asset allocation design, tactical asset
allocation recommendations, and portfolio rebalancing services. The assets in
these portfolios, predominantly in the United States, were $31.4 billion at
September 30, 2026, compared to $31.1 billion at June 30, 2026.
2
Financial Results Highlights
Net Revenues
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(1) Capital allocation-based income represents the change in accrued carried
interest along with acquisition-related, non-cash amortization and impairments.
The percentage change is not meaningful (n/m).
Net revenues
in Q3 2026 were $2.0 billion, an increase of 5.9% from Q3 2025 and 5.1% from Q2
2026. Performance-based fees earned in all periods were primarily in
alternatives strategies.
▪
The investment advisory annualized effective fee rate, excluding performance-
based fees, of 37.8 basis points in Q3 2026 decreased from 39.1 basis points in
Q3 2025 and 38.1 basis points in Q2 2026. In comparison to prior periods, client
flows and transfers drove a mix shift in assets under management toward lower
fee products and asset classes, partially offset by equity market appreciation.
▪
Capital allocation-based income impacted net revenues as follows:
Three
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The change in accrued carried interest from Q3 2025 was primarily driven by
carried interest related to the firm's recently launched late-stage venture
fund, while the change in accrued carried interest from Q2 2026 was primarily
driven by relative performance in credit strategies. The decrease in
acquisition-related amortization and impairments from Q3 2025 primarily reflects
impairments recognized in Q3 2025 that did not recur in Q3 2026. A portion of
capital allocation-based income is passed through as compensation, with
3
unpaid amounts reported as non-controlling interest on the consolidated balance
sheet. For detail on the quarterly changes in accrued carried interest, which
was reported as part of investments on the consolidated balance sheet, and
related non-controlling interest, refer to the tables at the end of this
release.
▪
Administrative, distribution, servicing, and other fees in Q3 2026 were $141.3
million, a decrease of $5.1 million from Q3 2025 and $2.9 million from Q2 2026.
The decrease from Q3 2025 was primarily driven by lower recordkeeping fees and
transfer agent services. The decrease from Q2 2026 was primarily driven by the
timing of cost reimbursements from the firm's U.S. mutual funds.
Operating Expenses
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C…
b…
a… $ 66… $ 632… 5.1 % $ 675… -1.7 %
r…
c…
A…
r… 14… 14.2 — % 14.2 — %
a…
C…
a… 23… 16.8 n/m 6.8 n/m
i…
c…
M…
c…
in 1.5 50.8 n/m 126… n/m
d…
c…
l…
T…
c…
a… 70… 714… -1.5 % 823… -14… %
r…
c…
D…
a… 11… 95.8 15.9 % 106… 4.6 %
s…
c…
A…
a… 21… 21.3 1.9 % 20.3 6.9 %
p…
c…
P…
a…
r… 79… 78.7 0.8 % 83.1 -4.6 %
r…
c…
T…
o…
a… 20… 197… 4.0 % 205… -0.4 %
f…
c…
G…
a…
a… 95… 87.6 9.0 % 104… -9.0 %
o…
c…
A…
a…
i… 15… 26.8 -44… % 16.5 -9.1 %
a…
o…
c…
R… 4.0 28.5 n/m 6.7 n/m
c…
T…
o… $ 1,… $ 1,2… -1.2 % $ 1,3… -9.6 %
e…
T…
a… $ 1,… $ 1,1… 5.8 % $ 1,2… -0.3 %
o…
e…
(1) n/m - the percentage change is not meaningful.
(2) Capital allocation-based income compensation represents the change in
accrued carried interest compensation along with acquisition-related, non-cash
amortization and impairments.
(3) In Q1 2026, the firm began reporting technology-related professional fees
and servicing costs from general, administrative, and other costs to technology,
occupancy, and facility costs to better align with the nature of the expenses
following the outsourcing and expansion of the firm's technology capabilities
through trusted vendor partnerships. Prior periods were recast to reflect this
change. Amount reclassified was $14.2M for Q3 2025.
(4) See the reconciliation to the comparable U.S. GAAP measures at the end of
this earnings release.
Operating expenses
were $1,235.1 million, a decrease of 1.2% from Q3 2025 and 9.6% from Q2 2026.
Adjusted operating expenses
in Q3 2026 were $1,200.1 million, an increase of 5.8% from Q3 2025 and a
decrease of 0.3% from Q2 2026.
▪
Compensation, benefits, and related costs in Q3 2026 of $664.7 million increased
$32.2 million from Q3 2025 and decreased $11.2 million from Q2 2026. The
increase from Q3 2025 was primarily driven by a higher interim bonus accrual and
long-term incentive compensation partially offset by lower salaries and
temporary personnel costs. The decrease from Q2 2026 was primarily driven by a
lower interim bonus accrual and lower employee benefits. The firm employed 7,640
associates at September 30, 2026, a decrease of 2.4% from 7,830 associates at
September 30, 2025, and an increase of 1.3% from 7,544 associates at June 30,
2026.
4
▪
Distribution and servicing costs in Q3 2026 of $111.0 million increased $15.2
million from Q3 2025 and $4.9 million from Q2 2026. The increases from prior
periods were primarily driven by higher average assets under management
distributed through third-party intermediaries.
▪
Technology, occupancy, and facility costs in Q3 2026 of $205.1 million increased
$7.8 million from Q3 2025 and decreased $0.8 million from Q2 2026. The Q3 2025
and Q2 2026 periods reflect higher technology costs associated with the firm's
decision in prior periods to outsource certain technology capabilities, which
were partially offset by a reduction in compensation expenses, along with higher
costs for cloud-based infrastructure and hosted solutions. The third quarter of
2026 was also impacted by the reversal of about $10 million in accrued
technology-related expenses related to work that is expected to be completed in
future periods.
▪
General, administrative, and other costs in Q3 2026 of $95.5 million increased
$7.9 million from Q3 2025 and decreased $9.4 million from Q2 2026. The changes
from prior periods were primarily attributable to period-specific items,
including a benefit recognized in Q3 2025 and costs recognized in Q2 2026,
neither of which recurred in Q3 2026.
▪
Restructuring charge in Q3 2026 of $4.0 million relates to actions taken under
the previously announced broad and ongoing expense management program, which
allows the firm to reduce expense growth and realign resources to support
investment in existing and future capabilities.
5
Non-Operating Income (Loss)
(in
millions)
Net gains
(losses)
from
non-consoli…
investment
products
Cash and Three months
discretiona… ended
investments 9/30/2026 9/30/2025 6/30/2026
──────────────────────────────────────────────────────────────────────────────
Dividend $ 40.5 $ 38.1 $ 37.7
income
Market-rela…
gains
(losses) and -22.0 12.1 0.7
equity
in earnings
(losses)
Total net
gains
(losses)
from cash 18.5 50.2 38.4
and
discretiona…
investments
Seed capital
investments
Dividend 1.5 0.5 0.6
income
Market-rela…
gains
(losses) and -5.6 17.1 66.1
equity
in earnings
(losses)
Net gains
(losses)
recognized 4.3 — —
upon
deconsolida…
Investments
used to
hedge the -4.4 53.0 133.7
deferred
compensation
liabilities
Total net
gains
(losses)
from 14.3 120.8 238.8
non-consoli…
investment
products
Other
investment 18.0 40.4 -1.4
income
(loss)
Net gains
(losses) on 32.3 161.2 237.4
investments
Net gains
(losses) on
consolidated -18.0 72.6 132.6
investment
products
Other gains
(losses),
including
foreign 3.3 4.6 -0.9
currency
gains
(losses)
Non-operati…
income $ 17.6 $ 238.4 $ 369.1
(loss)
Adjusted
non-operati… $ 18.0 $ 50.2 $ 38.5
income
(loss)(1)
(1) See the reconciliation to the comparable U.S. GAAP measures at the end of
this earnings release.
On an adjusted basis, non-operating income (loss) consists of investment gains
and losses generated from the firm's cash and discretionary investment
portfolio. Lower investment gains during Q3 2026 compared to prior periods were
primarily driven by losses on fixed income holdings resulting from rising
interest rates, which more than offset higher dividends on cash equivalents and
other fixed income holdings.
6
Income Taxes
The following reconciles the statutory federal income tax rate to the firm's
effective income tax rate for the nine months ended September 30, 2026 and 2025:
Nine months
ended
9/30/2026 9/30/2025
Statutory U.S.
federal income 21.0 % 21.0 %
tax rate
State income
taxes, net of
federal 2.6 2.5
income tax
benefits
Net (income)
losses
attributable
to -0.3 -1.0
redeemable
non-controlli…
interests(1)
Net excess tax
losses
(benefits)
from -0.1 -0.2
stock-based
compensation
plans activity
Valuation — -0.2
allowances
Other items 0.5 0.7
Effective
income tax 23.7 % 22.8 %
rate
Adjusted
effective 24.0 % 23.8 %
income tax
rate
(1) Net income attributable to redeemable non-controlling interests represents
the portion of earnings held in the firm's consolidated investment products,
which are not taxable to the firm despite being included in pre-tax income.
The year-to-date 2026 U.S. GAAP effective income tax rate increased compared to
2025 primarily driven by net income attributable to redeemable non-controlling
interests. The adjusted effective income tax rate increase was primarily driven
by higher valuation allowances in 2026 compared to 2025.
The firm estimates that its effective income tax rate for the full year 2026, on
a U.S. GAAP and adjusted basis, will be in the range of 23.5% to 25.5%.
Other Matters
The financial results presented in this release are unaudited. The firm expects
that it will file its Form 10-Q Quarterly Report for the third quarter of 2026
with the U.S. Securities and Exchange Commission later today. The Form 10-Q will
include additional information on the firm's unaudited financial results at
September 30, 2026.
Certain statements in this earnings release may represent “forward-looking
information,” including information relating to anticipated changes in revenues,
operations, expenses, earnings, liquidity, cash flows and capital expenditures,
industry or market conditions, amount or composition of assets under management,
flows into products, regulatory developments, changes in effective fee rate,
demand for and pricing of products, new products and services, effective income
tax rates, net income and earnings per common share, future transactions,
strategic initiatives, general economic conditions, dividends, stock
repurchases, and other market factors. For a discussion concerning risks and
other factors that could affect future results, see the firm's 2025 Annual
Report on Form 10-K and subsequent Form 10-Q Quarterly Reports.
7
T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm,
entrusted with managing $1.86 trillion in client assets at September 30, 2026,
about two-thirds of which are retirement-related. Renowned for over 85 years of
investment excellence, retirement leadership, and independent proprietary
research, the firm leverages its longstanding expertise to ask better questions
that can drive better investment decisions. Built on a culture of integrity and
prioritizing client interests, T. Rowe Price empowers millions of investors
worldwide to thrive amidst evolving markets. Visit troweprice.com/newsroom for
news and public policy commentary.
Webcast Information
T. Rowe Price management will provide an update on the business, review
financial results, and take questions on a webcast to be held on Thursday,
October 29, 2026, from 8:00 - 8:45 AM (Eastern Time).
To access the webcast or to obtain dial in instructions to ask a question,
please visit: investors.troweprice.com. Supplemental materials will be available
on the firm's investor relations website. A replay of the webcast will be
available on the firm's investor relations website shortly after the event.
T. ROWE PRICE CONTACTS:
Public Relations
Arminta Plater
410-577-2813
arminta.plater@troweprice.com
Investor Relations
Linsley Carruth
410-345-3717
linsley.carruth@troweprice.com
8
Un…
Co…
St…
of
In…
(in
mi…
ex… Thr… Nine
pe… mon… mont…
am… end… ended
Re… 9/3… 9/3… 6/30… 9/30… 9/30…
──────────────────────────────────────────────────────────────────────────────
In…
ad… $ 1,7… $ 1,6… $ 1,7… $ 5,2… $ 4,8…
fe…
Pe…
ad… 7.3 6.4 6.5 21.3 23.2
fe…
Ca…
al… 59.9 42.0 11.9 99.9 40.4
in…
Ad…
di…
se… 141… 146… 144… 423… 452…
and
ot…
fe…
Net 2,0… 1,8… 1,9… 5,7… 5,3…
re…
Op…
ex…
Co…
be…
and 664… 632… 675… 1,9… 1,9…
re…
co…
Ac…
re… 14.2 14.2 14.2 42.6 42.5
ar…
Ca…
al… 23.1 16.8 6.8 41.3 14.9
in…
co…
Ma…
ch…
in 1.5 50.8 126… 107… 109…
de…
co…
li…
To…
co…
and 703… 714… 823… 2,1… 2,1…
re…
co…
Di…
and 111… 95.8 106… 316… 281…
se…
co…
Ad…
and 21.7 21.3 20.3 60.4 77.3
pr…
co…
Pr…
and
re… 79.3 78.7 83.1 236… 237…
re…
co…
Te…
oc…
and 205… 197… 205… 615… 573…
fa…
co…
Ge…
ad…
and 95.5 87.6 104… 292… 271…
ot…
co…
Ac…
am…
im… 15.0 26.8 16.5 49.5 86.7
and
ot…
co…
Re… 4.0 28.5 6.7 20.7 28.5
ch…
To…
op… 1,2… 1,2… 1,3… 3,7… 3,6…
ex…
Net
op… 769… 643… 540… 1,9… 1,7…
in…
No…
in…
Net
ga… 32.3 161… 237… 263… 359…
on
in…
Net
ga…
(l…
on -18… 72.6 132… 73.2 183…
co…
in…
pr…
Ot…
ga…
(l…
in… 3.3 4.6 -0.9 1.6 2.5
fo…
cu…
ga…
(l…
To…
no… 17.6 238… 369… 338… 544…
in…
In…
be… 787… 881… 909… 2,3… 2,2…
in…
ta…
Pr…
for 190… 195… 214… 552… 514…
in…
ta…
Net 597… 686… 695… 1,7… 1,7…
in…
Le…
net
in…
(l…
at… -15… 40.4 63.4 34.1 105…
to
re…
no…
in…
Net
in…
at…
to
T. 612… 646… 632… 1,7… 1,6…
Ro…
Pr…
Gr…
In…
Le…
net
in…
al…
to
ou… 17.2 14.7 16.0 45.7 39.5
re…
st…
and
st…
un…
ho…
Net
in…
al…
to
T.
Ro… $ 595… $ 631… $ 616… $ 1,6… $ 1,6…
Pr…
Gr…
In…
co…
st…
Ea…
per
sh…
on
co…
st…
of
T.
Ro…
Pr…
Gr…
In…
Ba… $ 2.79 $ 2.88 $ 2.88 $ 7.90 $ 7.26
Di… $ 2.79 $ 2.87 $ 2.88 $ 7.89 $ 7.25
We…
co…
sh…
Ou… 213… 219… 214… 214… 220…
Ou…
as… 213… 219… 214… 215… 220…
di…
Su… Thr… Nine
of mon… mont…
ad… end… ended
ba…
(in
mi…
ex… 9/3… 9/3… 6/30… 9/30… 9/30…
pe…
da…
Op… $ 1,2… $ 1,1… $ 1,2… $ 3,5… $ 3,4…
ex…
Op…
ex…
ex…
ac… $ 1,1… $ 1,1… $ 1,1… $ 3,5… $ 3,3…
ca…
in…
re…
co…
Net
op… $ 809… $ 774… $ 709… $ 2,2… $ 2,0…
in…
No…
in… $ 18.0 $ 50.2 $ 38.5 $ 87.4 $ 132…
(l…
Net
in…
at…
to
T. $ 629… $ 631… $ 565… $ 1,7… $ 1,6…
Ro…
Pr…
Gr…
In…
Di…
ea…
per $ 2.86 $ 2.81 $ 2.57 $ 7.95 $ 7.28
co…
sh…
( 1 ) See the reconciliation to the comparable U.S. GAAP measures at the end of
this earnings release. (2) In Q1 2026, the firm began reporting technology-
related professional fees and servicing costs from general, administrative, and
other costs to technology, occupancy, and facility costs to better align with
the nature of the expenses following the outsourcing and expansion of technology
capabilities through trusted vendor partnerships. Prior periods were recast to
reflect this change. Amounts reclassified for the three- and nine-month periods
ended September 30, 2025 were $14.2M and $43.3M, respectively.
9
As… Nine Fix…
Un… mon… inc…
Ma… end… inc…
(in 9/3… mon…
bi… Equ… mar… Mul… Alt… Total
──────────────────────────────────────────────────────────────────────────────
As…
un…
ma…
at $ 878… $ 211.6 $ 627.0 $ 58.5 $ 1,7…
be…
of
pe…
Net
ca…
fl…
pr… -61… 11.5 -3.1 7.4 -45…
to
ma…
di…
Ma… — — — -2.6 -2.6
di…
Net
ca… -61… 11.5 -3.1 4.8 -48…
fl…
Net
ma…
ap… 79.5 -1.3 56.7 0.7 135…
(d…
and
in…
Ch…
du… 17.8 10.2 53.6 5.5 87.1
the
pe…
As…
un…
ma…
at $ 896… $ 221.8 $ 680.6 $ 64.0 $ 1,8…
Se…
30,
20…
(1) Firmwide AUM includes assets in which T. Rowe Price Group, Inc. and its
affiliates have full discretionary authority along with managed account - model
delivery assets.
(2) The underlying AUM of the multi-asset portfolios have been aggregated and
presented in this category and not reported in the equity and fixed income
columns.
(3) The alternatives asset class includes strategies authorized to invest more
than 50% of its holdings in private credit, leveraged loans, mezzanine, real
assets/CRE, structured products, stressed/distressed, non-investment grade CLOs,
special situations, business development companies, private equity or that have
absolute return as its investment objective. Generally, only those strategies
with longer than daily liquidity are included. Unfunded capital commitments that
do not earn fees were $19.0 billion at September 30, 2026 and $21.6 billion at
December 31, 2025, and are not reflected in the AUM above.
(4) Includes net distributions not reinvested of $1.9 billion.
Net
Revenues
(in
millions) Nine
Investment months
advisory ended
fees 9/30/2026 9/30/2025 % Change
──────────────────────────────────────────────────────────────────────────────
Equity $ 3,034.0 $ 2,894.6 4.8 %
Fixed
income,
including 344.0 319.2 7.8 %
money
market
Multi-ass… 1,576.2 1,402.7 12.4 %
Alternati… 270.0 248.2 8.8 %
Total
investment $ 5,224.2 $ 4,864.7 7.4 %
advisory
fees
Average
AUM (in
billions):
Equity $ 885.5 $ 825.7 7.2 %
Fixed
income,
including 218.6 197.8 10.5 %
money
market
Multi-ass… 668.8 566.8 18.0 %
Alternati… 61.1 54.1 12.9 %
Total
average $ 1,834.0 $ 1,644.4 11.5 %
AUM
Non-Operating Income (Loss)
(in millions)
Net gains (losses) from
non-consolidated investment
products
Cash and discretionary Nine months ended
investments 9/30/2026 9/30/2025
──────────────────────────────────────────────────────────────────────────────
Dividend income $ 112.4 $ 102.3
Market-related gains
(losses) and equity -24.6 29.6
in earnings (losses)
Total net gains (losses)
from cash and 87.8 131.9
discretionary investments
Seed capital investments
Dividend income 3.1 0.9
Market-related gains
(losses) and equity 49.3 42.6
in earnings (losses)
Net gains (losses)
recognized upon 4.5 3.1
deconsolidation
Investments used to hedge
the deferred 96.7 112.8
compensation liabilities
Total net gains (losses)
from 241.4 291.3
non-consolidated investment
products
Other investment income 22.2 67.7
(loss)
Net gains (losses) on 263.6 359.0
investments
Net gains (losses) on
consolidated 73.2 183.1
investment products
Other gains (losses),
including foreign 1.6 2.5
currency gains (losses)
Non-operating income (loss) $ 338.4 $ 544.6
Adjusted non-operating $ 87.4 $ 132.8
income (loss)(1)
(1) See the reconciliation to the comparable U.S. GAAP measures at the end of
this earnings release.
10
The following table summarizes the cash flows for the nine months ended
September 30, 2026 that are attributable to T. Rowe Price, consolidated
investment products, and the related eliminations required.
Nine
months
ended
9/30/…
Cash
(in flow Cash
mill… attri… flow
Cash to T. attri…
flows Rowe to
from Price conso…
oper… Group, inves… As
acti… Inc. produ… Elims repor…
──────────────────────────────────────────────────────────────────────────────
Net
inco… $ 1,742… $ 64.6 $ -30.5 $ 1,776…
(los…
Adju…
to
reco…
net
inco…
(los…
to
net
cash
prov…
by
(used
in)
oper…
acti…
Depr…
amor…
and
impa…
of 213.6 — — 213.6
prop…
equi…
and
soft…
Amor…
and
impa…
of
acqu… 97.3 — — 97.3
asse…
and
rete…
arra…
Stoc…
comp… 135.5 — — 135.5
expe…
Net
(gai…
loss… -269.6 — 30.5 -239.1
reco…
on
inve…
Total
non-… 176.8 — 30.5 207.3
adju…
Net
rede…
from
inve…
prod…
used 60.8 — 15.4 76.2
to
econ…
hedge
defe…
comp…
liab…
Net
chan…
in
trad…
secu… — -982.4 — -982.4
held
by
cons…
inve…
prod…
Other 772.6 43.5 -8.9 807.2
chan…
Net
cash
prov…
by 2,752… -874.3 6.5 1,884…
(used
in)
oper…
acti…
Net
cash
prov…
by -985.0 -1.4 271.5 -714.9
(used
in)
inve…
acti…
Net
cash
prov…
by -1,37… 948.8 -278.0 -700.8
(used
in)
fina…
acti…
Effe…
of
exch…
rate
chan…
on
cash — -2.9 — -2.9
and
cash
equi…
of
cons…
inve…
prod…
Net
chan…
in
cash
and 396.1 70.2 — 466.3
cash
equi…
duri…
peri…
Cash
and
cash
equi… 3,378… 39.1 — 3,417…
at
begi…
of
year
Cash
and
cash
equi… $ 3,774… $ 109.3 $ — $ 3,883…
at
end
of
peri…
Unaudited Condensed
Consolidated Balance Sheet
Information At
(in millions) 9/30/2026 12/31/2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 3,774.3 $ 3,378.2
Accounts receivable and 952.2 931.2
accrued revenue
Investments 4,185.2 3,325.2
Assets of consolidated
investment 2,624.0 1,951.0
products
Operating lease assets 359.8 382.9
Property, equipment and 804.9 845.3
software, net
Goodwill and intangible 2,875.3 2,917.0
assets
Other assets 573.2 611.0
Total assets 16,148.9 14,341.8
Deferred compensation 1,255.4 1,176.8
liabilities
Total other liabilities,
includes $554.4
million at September 30, 2026
and $21.3 2,280.9 1,111.8
million at December 31, 2025,
from
consolidated investment
products
Non-controlling interests(1) 1,242.1 1,193.1
Stockholders' equity
attributable to T.
Rowe Price Group, Inc., 213.3
common
shares outstanding at $ 11,370.5 $ 10,860.1
September 30, 2026
and 218.6 common shares
outstanding at
December 31, 2025
(1) This includes both redeemable and non-redeemable non-controlling interest in
consolidated entities.
11
The following tables detail changes in the firm's investments in affiliated
private investment funds - carried interest and non-controlling interest in
consolidated entities.
In…
in
af…
pr…
in…
fu…
-
ca… Thr… Nine
in… mon… mont…
(in end… ended
mi… 9/3… 9/3… 6/30… 9/30… 9/30…
──────────────────────────────────────────────────────────────────────────────
Ba…
at
be… $ 381… $ 371… $ 377… $ 390… $ 426…
of
pe…
Ca…
al…
in…
Ch…
in
ac… 63.1 56.2 15.2 109… 101…
ca…
in…
Ac…
am… -3.2 -14… -3.3 -9.7 -61…
and
im…
Net -0.1 -0.2 -8.2 -49… -54…
di…
Ba…
at
end $ 440… $ 413… $ 381… $ 440… $ 413…
of
pe…
No…
in…
(N…
in
co… Thr… Nine
en… mon… mont…
(in end… ended
mi… 9/3… 9/3… 6/30… 9/30… 9/30…
──────────────────────────────────────────────────────────────────────────────
Ba…
at
be… $ 161… $ 153… $ 157… $ 157… $ 160…
of
pe…
Ca…
al…
in…
co…
Ch…
in
ac… 24.6 22.6 8.3 45.8 39.8
ca…
in…
co…
Ac…
am… -1.5 -5.8 -1.5 -4.5 -24…
and
im…
Net
co… 0.6 -0.1 -3.4 -13… -5.6
(d…
Ba…
at
end $ 184… $ 170… $ 161… $ 184… $ 170…
of
pe…
Non-GAAP Information and Reconciliation
The firm believes the non-GAAP financial measures below provide relevant and
meaningful information to investors about its core operating results. These
measures have been established to increase transparency in evaluating the firm's
core business, comparing current results with prior-period results, and making
more meaningful comparisons with industry peers. However, non-GAAP financial
measures should not be considered as a substitute for financial measures
calculated in accordance with U.S. GAAP and may be calculated differently by
other companies.
12
The following schedules reconcile U.S. GAAP financial measures to non-GAAP
financial measures for the three months ended September 30, 2026 and 2025 and
June 30, 2026.
Net
in…
at…
Th… to
(… mo… Pr… T.
m… en… (b… Ro… Di…
e… 9/… Net No… for Pr… ea…
p… Op… op… in… in… Gr… per
d… ex… in… (l… ta… In… sh…
──────────────────────────────────────────────────────────────────────────────
U…
G…
B… $ 1,… $ 76… $ 17… $ 19… $ 612… $ 2.79
(…
l…
i…
N…
a…
A…
I…
a…
N…
a…
a…
i…
a… 1.5 1.7 — 0.5 1.2 0.01
i…
a…
C…
a…
r…
c…
A…
r…
a… -1… 14… — 4.3 9.9 0.04
a…
r…
c…
I…
a…
a… -1… 15… — 4.5 10.5 0.05
a…
i…
T… -2… 30… — 9.3 21.6 0.10
a…
D…
c…
l… -1… 1.5 4.4 1.8 4.1 0.02
a…
r…
c…
R… -4… 4.0 — 1.2 2.8 —
c…
C…
i… -1… 3.0 18… 1.7 4.1 0.02
p…
O…
n… — — -2… -6… -15… -0.…
i…
A… $ 1,… $ 80… $ 18… $ 19… $ 629… $ 2.86
B…
Net
in…
at…
Th… to
(… mo… Pr… T.
m… en… (b… Ro… Di…
e… 9/… Net No… for Pr… ea…
p… Op… op… in… in… Gr… per
d… ex… in… (l… ta… In… sh…
──────────────────────────────────────────────────────────────────────────────
U…
G…
B… $ 1,… $ 64… $ 23… $ 19… $ 646… $ 2.87
(…
l…
i…
N…
a…
A…
I…
a…
N…
a…
a…
i…
a… 5.8 8.4 — 1.2 7.2 0.03
i…
a…
C…
a…
r…
c…
A…
r…
a… -1… 14… — 2.1 12.1 0.05
a…
r…
c…
I…
a…
a… -2… 26… — 3.9 22.9 0.10
a…
i…
T… -3… 49… — 7.2 42.2 0.18
a…
D…
c…
l… -5… 50… -5… -0… -1.9 -0.…
a…
r…
c…
R… -2… 28… — 4.2 24.3 0.11
c…
C…
i… -1… 2.2 -7… -4… -25… -0.…
p…
O…
n… — — -6… -9… -53… -0.…
i…
A… $ 1,… $ 77… $ 50… $ 19… $ 631… $ 2.81
B…
13
Net
in…
at…
Th… to
(… mo… Pr… T.
m… en… (b… Ro… Di…
e… 6/… Net No… for Pr… ea…
p… Op… op… in… in… Gr… per
d… ex… in… (l… ta… In… sh…
──────────────────────────────────────────────────────────────────────────────
U…
G…
B… $ 1,… $ 54… $ 36… $ 21… $ 632… $ 2.88
(…
l…
i…
N…
a…
A…
I…
a…
N…
a…
a…
i…
a… 1.5 1.8 — 0.4 1.4 —
i…
a…
C…
a…
r…
c…
A…
r…
a… -1… 14… — 3.5 10.7 0.05
a…
r…
c…
I…
a…
a… -1… 16… — 4.0 12.5 0.06
a…
i…
T… -2… 32… — 7.9 24.6 0.11
a…
D…
c…
l… -1… 12… -1… -1… -5.5 -0.…
a…
r…
c…
R… -6… 6.7 — 2.1 4.6 0.02
c…
C…
i… -1… 2.9 -1… -2… -42… -0.…
p…
O…
n… — — -6… -1… -48… -0.…
i…
A… $ 1,… $ 70… $ 38… $ 18… $ 565… $ 2.57
B…
The following schedules reconcile certain U.S. GAAP financial measures for the
nine months ended September 30, 2026 and 2025.
Net
in…
at…
Ni… to
(… mo… Pr… T.
m… en… (b… Ro… Di…
e… 9/… Net No… for Pr… ea…
p… Op… op… in… in… Gr… per
d… ex… in… (l… ta… In… sh…
──────────────────────────────────────────────────────────────────────────────
U…
G…
B… $ 3,… $ 1,… $ 33… $ 55… $ 1,7… $ 7.89
(…
l…
i…
N…
a…
A…
I…
a…
N…
a…
a…
i…
a… 4.5 5.2 — 1.4 3.8 0.02
i…
a…
C…
a…
r…
c…
A…
r…
a… -4… 42… — 12… 30.6 0.14
a…
r…
c…
I…
a…
a… -4… 49… — 13… 35.7 0.16
a…
i…
T… -8… 97… — 27… 70.1 0.32
a…
D…
c…
l… -1… 10… -9… 3.6 6.7 0.03
a…
r…
c…
R… -2… 20… — 6.3 14.4 0.06
c…
C…
i… -4… 8.6 -7… -1… -16… -0.…
p…
O…
n… — — -8… -2… -60… -0.…
i…
A… $ 3,… $ 2,… $ 87… $ 55… $ 1,7… $ 7.95
B…
14
Net
in…
at…
Ni… to
(… mo… Pr… T.
m… en… (b… Ro… Di…
e… 9/… Net No… for Pr… ea…
p… Op… op… in… in… Gr… per
d… ex… in… (l… ta… In… sh…
──────────────────────────────────────────────────────────────────────────────
U…
G…
B… $ 3,… $ 1,… $ 54… $ 51… $ 1,6… $ 7.25
(…
l…
i…
N…
a…
A…
I…
a…
N…
a…
a…
i…
a… 24… 36… — 7.7 28.9 0.13
i…
a…
C…
a…
r…
c…
A…
r…
a… -4… 42… — 8.3 34.2 0.15
a…
r…
c…
I…
a…
a… -8… 86… — 17… 69.6 0.31
a…
i…
T… -1… 16… — 33… 132… 0.59
a…
D…
c…
l… -1… 10… -1… -0… -2.3 -0.…
a…
r…
c…
R… -2… 28… — 4.2 24.3 0.11
c…
C…
i… -3… 7.1 -1… -1… -54… -0.…
p…
O…
n… — — -1… -2… -94… -0.…
i…
A… $ 3,… $ 2,… $ 13… $ 51… $ 1,6… $ 7.28
B…
(1) These non-GAAP adjustments remove the impact of acquisition-related
amortization of intangible assets, amortization of acquired investment and non-
controlling interest basis differences and amortization of compensation-related
arrangements. The firm believes adjusting for these charges helps the reader's
ability to understand core operating results and increases comparability period
to period.
(2) This non-GAAP adjustment eliminates the compensation expense impact from
market valuation changes in deferred compensation liabilities, including the
supplemental savings plan and restricted fund units, and the related net gains
(losses) on investments used as economic hedges against the related liabilities.
The liabilities are adjusted based on the performance of hypothetical
investments selected by participants. The firm uses investment products to
economically hedge the market risk associated with the supplemental savings plan
liability and the expected settlement value of unvested restricted fund units.
The firm believes it is useful to offset the non-operating investment income
(loss) of the hedges against the related compensation expense and remove the net
impact to help the reader's ability to understand the firm's core operating
results and to increase comparability period to period.
(3) This non‑GAAP adjustment removes the impact of actions taken as part of the
firm’s broad, ongoing plan to reduce expense growth and realign resources to
invest in existing and future capabilities. The firm believes this adjustment
helps the reader’s ability to understand the firm's core operating results and
increases comparability period to period.
(4) This non-GAAP adjustment removes the impact of the consolidated investment
products by adding back their operating expenses and subtracting their
investment income. The operating expense adjustment represents their operating
expenses net of related investment advisory and administrative fees. The
adjustment to net income attributable to T. Rowe Price Group, Inc. represents
the consolidated investment products' net income, net of redeemable non-
controlling interests. The firm believes this adjustment helps the reader’s
ability to understand core operating results and increases comparability period
to period.
(5) This non-GAAP adjustment removes non-operating income (loss) earned on those
investments that are not economic hedges for the deferred compensation
liabilities and are not part of the cash and discretionary investment portfolio.
The firm retains gains from cash and discretionary investments in non-GAAP
measures, as they are considered part of the firm's core operations. The firm
believes adjusting for the remaining non-operating income (loss) helps the
reader’s ability to understand the firm's core operating results and increases
comparability period to period. Additionally, the firm does not emphasize this
portion of non-operating income (loss) when assessing the firm's performance.
(6) The income tax impacts were calculated in order to achieve an overall year-
to-date non-GAAP effective income tax rate of 24.0% in 2026 and 23.8% in 2025.
As such, the non-GAAP effective income tax rate for the third quarter was 23.9%
in 2026 and 23.4% in 2025.
15
(7) This non-GAAP measure was calculated by applying the two-class method to
adjusted net income attributable to T. Rowe Price Group, Inc. divided by the
weighted-average common shares outstanding assuming dilution. The calculation of
adjusted net income allocated to common stockholders is as follows:
Thr… Nine
mon… mont…
(in end… ended
mi… 9/3… 9/3… 6/30… 9/30… 9/30…
──────────────────────────────────────────────────────────────────────────────
Ad…
net
in…
at…
to $ 629… $ 631… $ 565… $ 1,7… $ 1,6…
T.
Ro…
Pr…
In…
Le…
ad…
net
in…
al…
to
ou… 17.6 14.3 14.2 45.9 39.7
re…
st…
and
st…
un…
ho…
Ad…
net
in…
al… $ 611… $ 617… $ 550… $ 1,7… $ 1,6…
to
co…
st…
16