T. Rowe Price Group, Inc. reported its financial results for the first quarter of 2026, revealing a net income of $498.2 million, a slight increase from $490.5 million in the same period last year. The company's diluted earnings per share rose to $2.23, up from $2.15 in the first quarter of 2025. Total net revenues for the quarter reached $1.857 billion, marking a 5.3% increase compared to $1.764 billion in the prior year, primarily driven by a 5.3% rise in investment advisory fees, which totaled $1.683 billion.
The company experienced a decrease in assets under management (AUM), which fell to $1.710 trillion, down $65.9 billion from the end of 2025. This decline was attributed to market depreciation of $52.2 billion and net cash outflows of $13.7 billion. Despite this, the average AUM for the quarter increased by 9.6% to $1.776 trillion, reflecting a favorable market environment earlier in the quarter. The firm noted that investment advisory fees are closely tied to the value and composition of AUM, which can fluctuate based on market conditions.
Operationally, T. Rowe Price reported a restructuring charge of $10 million in the first quarter, part of an ongoing expense management program aimed at realigning resources and reducing expense growth. The company’s employee headcount decreased to 7,507, a reduction of 3.4% from the end of 2025. Additionally, the firm repurchased 3.7 million shares of its common stock for $340.4 million during the quarter, reflecting its commitment to returning capital to shareholders.
Looking ahead, T. Rowe Price anticipates continued volatility in global financial markets, which may impact its revenues and AUM. The company remains focused on aligning its expense growth with anticipated revenue growth and is committed to investing in technology and new product offerings to enhance its competitive position. The firm expects its effective tax rate for the full year 2026 to range between 23.0% and 26.0%, with ongoing evaluations of its financial strategies in response to market conditions.
About PRICE T ROWE GROUP INC
T. Rowe Price Group is a global investment management firm offering active equity, fixed income, multi-asset, and alternative strategies. Serving individual, institutional, and retirement clients worldwide, it provides mutual funds, ETFs, managed accounts, and private investments. Its core value lies in active, independent investing, delivering long-term performance, client service, and leveraging diverse distribution channels and a strong corporate culture.
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