T. Rowe Price Q2 2026: revenue up 10.7%, but clients pulled out $6.5 billion
T. Rowe Price's second quarter of 2026 looks solid on the surface: revenue rose 10.7% to $1.91 billion, GAAP EPS jumped 28.6% to $2.88 and adjusted EPS of $2.57 edged past the $2.5493 consensus. The catch is that growth came from markets, not clients — net outflows were $6.5 billion and the fee rate slipped to 38.1 basis points. Read the GAAP profit line carefully: a big slice of it is investment gains.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $2.88 rose 28.6% from $2.24, but that number includes $369.1 million of non-operating income that has little to do with managing money for clients. Adjusted diluted EPS — the firm's own core measure — was $2.57, up 14.7% year over year and just above the $2.5493 consensus. Adjusted net operating income of $709.1 million rose 15.4%, which is the cleaner read on the operating business.
Net revenues of $1.91 billion rose 10.7% from $1.72 billion a year earlier and 2.7% from the $1.86 billion booked in Q1 2026. Investment advisory fees did the heavy lifting at $1.74 billion, up 11.3% year over year, with multi-asset fees up 16.1% to $529.5 million. The weak spot is pricing: the effective fee rate was 38.1 basis points versus 39.6 a year ago, because client flows and transfers keep shifting the mix toward cheaper products.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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