T. Rowe Price Gears Up for Q4 Earnings: Here's What to Expect

Core Viewpoint - T. Rowe Price Group, Inc. (TROW) is expected to report an increase in both earnings and revenues for the fourth quarter of 2025 compared to the previous year, despite facing challenges such as net outflows and rising expenses [1][7]. Financial Performance - In the last reported quarter, TROW's earnings exceeded the Zacks Consensus Estimate, driven by higher assets under management (AUM) and increased investment advisory fees, although higher expenses negatively impacted results [2][6]. - The consensus estimate for fourth-quarter earnings is $2.46 per share, reflecting a year-over-year increase of 16%, while revenues are estimated at $1.92 billion, indicating a 5.1% rise from the prior year [8][9]. Assets Under Management - TROW's preliminary AUM as of December 31, 2025, is $1.78 trillion, showing a slight increase from September 30, 2025, supported by improved performance in fixed income, multi-asset, and alternative products [4][5]. - The Zacks Consensus Estimate for total AUM is also pegged at $1.78 trillion, indicating a marginal sequential increase [5]. Market Conditions - The S&P 500 Index gained approximately 3.1% during the October-December quarter, suggesting moderate market performance, which likely benefited TROW through steady fixed-income inflows and stable equity market returns [3]. Net Outflows and Expenses - TROW experienced net outflows of $11.6 billion for the quarter ended December 31, 2025, amid a challenging operating environment [4]. - The company continues to incur significant expenses to attract new clients and invest in technology and employee compensation, which is expected to have increased overall expenses for the quarter [6].