Core Insights - Truist Financial Corp reduced its stake in T. Rowe Price Group by 31.9%, holding 20,121 shares valued at $2,065,000 after selling 9,417 shares in Q3 [2] - Several large investors have made significant changes to their positions in T. Rowe Price Group, with First Trust Advisors LP increasing its stake by 137.7% in Q2, now owning 3,441,458 shares valued at $332,101,000 [3] - T. Rowe Price Group's stock opened at $94.58, with a market cap of $20.64 billion and a P/E ratio of 10.22, indicating a relatively low valuation compared to its earnings potential [5] Institutional Holdings - Institutional investors own 73.39% of T. Rowe Price Group's stock, indicating strong institutional interest [3] - Notable changes in institutional holdings include ARGA Investment Management LP increasing its stake by 3,807.3% in Q2, now holding 477,161 shares valued at $46,046,000 [3] Insider Trading - VP Arif Husain sold 4,260 shares at an average price of $101.96, resulting in a total transaction of $434,349.60, which represents an 8.29% decrease in his ownership [4] Earnings Performance - T. Rowe Price Group reported Q4 earnings of $2.44 per share, missing estimates by $0.03, with revenue of $1.93 billion, a 6.0% year-over-year increase [7] - The company had a net margin of 28.53% and a return on equity of 20.36%, indicating strong profitability metrics [7] Analyst Sentiment - Argus upgraded T. Rowe Price Group to a "hold," while Goldman Sachs cut its price target to $90, maintaining a "sell" rating, reflecting mixed analyst sentiment [6][8] - Multiple analysts have lowered their target prices, contributing to a consensus target price of $103.50, with twelve analysts rating the stock as "hold" and four as "sell" [8]

Core Insights - The active tech ETF TTEQ is signaling a buy as it concludes a strong year, making it an attractive option for investors looking to refresh their tech holdings for 2026 [1] - TTEQ has achieved a 21% return over the past year and crossed the $100 million AUM mark recently, indicating strong performance and investor interest [1] Performance Metrics - As of December 26th, TTEQ's price was $32.89, above its 50 and 200-day Simple Moving Averages (SMAs), suggesting positive momentum [1] - The fund's Relative Strength Index (RSI) indicates it is not in "Overbought" territory, providing a favorable entry point for investors [1] Investment Strategy - TTEQ employs a bottom-up portfolio construction approach, focusing on innovative firms that are expected to disrupt their sectors and are essential to global technology infrastructure [1] - Unlike passive index funds that may carry concentration risk, TTEQ offers fundamentals-driven exposure to emerging tech companies [1] Unique Features - The fund has the flexibility to invest in AI technologies, exemplified by its recent investment in OpenAI, and can adjust its strategy based on market conditions [1] - TTEQ is positioned as a long-term satellite strategy, making it a compelling addition for investors in the crowded tech space [1]

Core Viewpoint - T. Rowe Price Group, Inc. is facing mixed analyst opinions and increased investor uncertainty, reflected in its stock performance and options trading activity [1][3][5]. Stock Performance - The current stock price of T. Rowe Price is $97.02, down by $5.64 or -5.49% from the previous trading session [2]. - The stock has fluctuated between a low of $93 and a high of $99 during the trading day [2]. - Over the past year, the stock reached a high of $118.22 and a low of $77.85 [2]. - The market capitalization of T. Rowe Price is approximately $21.3 billion, with a trading volume of 5,365,907 shares [2]. Options Trading Activity - There has been a significant increase in options trading, with 2,489 put options acquired, marking a 77% increase compared to the average volume of 1,403 put options [3]. Analyst Ratings and Price Targets - Citigroup raised its price target for T. Rowe Price from $105 to $107 [4]. - Barclays lowered its price target from $102 to $101 and assigned an "underweight" rating [4]. - Zacks Research downgraded the stock from a "strong-buy" to a "hold" rating [4]. - Evercore ISI increased its price objective from $115 to $116 [4]. - Weiss Ratings reaffirmed a "hold (c+)" rating on the company's shares [4].

Core Insights - T. Rowe Price Group, Inc. (TROW) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.44, missing the Zacks Consensus Estimate of $2.47, but reflecting a year-over-year increase of 15.1% [1][8] - The company's shares fell nearly 6.4% in early trading following the earnings report [1] - TROW's net income attributable to the company was $445.3 million, a 1.2% increase from the prior-year quarter [2] Financial Performance - Net revenues for the fourth quarter rose 6% year over year to $1.93 billion, surpassing the Zacks Consensus Estimate of $1.92 billion [4] - For the full year 2025, net revenues were $7.31 billion, up 3.1% year over year, also exceeding the Zacks Consensus Estimate of $7.30 billion [4] - Investment advisory fees increased by 4.2% year over year to $1.74 billion, while capital allocation-based income improved to $40.8 million from a loss of $5.2 million in the prior-year quarter [4] Expense Analysis - Total operating expenses increased by 16.5% year over year to $1.46 billion in the reported quarter, with adjusted operating expenses at $1.25 billion, up 2.2% year over year [5] Assets Under Management (AUM) - As of December 31, 2025, total AUM grew by 10.5% year over year to $1.77 trillion, supported by net market appreciation and income of $33.9 billion, despite net cash outflows of $25.5 billion [6] - The company maintained a strong liquidity position with cash and cash equivalents of $3.38 billion as of December 31, 2025, up from $2.65 billion a year earlier [6] Capital Distribution - T. Rowe Price distributed a total of $426 million to shareholders through common stock dividends and share repurchases in the fourth quarter [7] Strategic Outlook - The company's solid AUM balance, expanding distribution reach, and efforts to diversify through acquisitions and product enhancements are expected to support top-line growth [8] - However, elevated expenses and reliance on investment advisory fees pose concerns, alongside a challenging operating environment [9]

分组1 - T. Rowe Price reported quarterly earnings of $2.44 per share, missing the Zacks Consensus Estimate of $2.47 per share, but showing an increase from $2.12 per share a year ago, resulting in an earnings surprise of -1.22% [1] - The company posted revenues of $1.93 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.79%, compared to year-ago revenues of $1.82 billion [2] - T. Rowe shares have increased by approximately 0.3% since the beginning of the year, while the S&P 500 has gained 1.1% [3] 分组2 - The earnings outlook for T. Rowe is mixed, with the current consensus EPS estimate for the coming quarter at $2.45 on revenues of $1.89 billion, and for the current fiscal year at $10.29 on revenues of $7.74 billion [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Sound Point Meridian Capital, Inc., is expected to report quarterly earnings of $0.55 per share, reflecting a year-over-year change of -11.3% [9]

Financial Data and Key Metrics Changes - The company closed 2025 with $1.78 trillion in assets under management, an increase of over 10% from the start of the year, despite experiencing $56.9 billion in net outflows [4][16] - Adjusted diluted earnings per share for Q4 2025 was $2.44, bringing full-year adjusted diluted EPS to $9.72, which is up 4.2% from 2024 [16] - Q4 adjusted net revenue was $1.9 billion, raising full-year adjusted net revenue to nearly $7.4 billion, an increase of 2.8% from 2024 [18] Business Line Data and Key Metrics Changes - Net outflows were concentrated in the equity and mutual fund business, with $75 billion of net outflows from equity and almost $64 billion from mutual funds in 2025 [5][16] - Fixed income and alternatives had positive net flows for the quarter, with fixed income delivering eight consecutive quarters of positive net flows [17] - The target date franchise ended the year with net inflows of $5.2 billion, while the ETF business had $1.8 billion in net inflows during Q4 [17] Market Data and Key Metrics Changes - The company noted a narrowing market dominated by a handful of mega-cap stocks, with riskier names outperforming quality and value [4] - The company experienced elevated redemptions from its legacy equity and mutual fund business, but strong equity market returns offset the net outflows [16] - The company maintained its position as an industry leader in active target date solutions, surpassing $560 billion in assets under management across a diverse suite of solutions [10] Company Strategy and Development Direction - The company established a strategic collaboration with Goldman Sachs to pursue opportunities in wealth and retirement through co-developed public-private offerings [9] - The company is focused on integrating digital capabilities and enhancing its strategic vision through organizational changes [13][14] - The company is investing in growth areas such as ETFs, SMAs, and alternatives, while maintaining a strong cash position for potential acquisitions [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's plan and people, noting improvements in investment performance across several key strategies [7] - The company anticipates continued pressure in equity flows, but expects to offset this with inflows in target-date funds and growth in fixed income and alternatives [45] - Management highlighted the importance of equity market returns on operating margins and the need to balance investments for long-term success [26][27] Other Important Information - The company returned nearly $1.8 billion of cash to stockholders and extended its regular dividend for the 39th consecutive year [6][23] - The company launched 13 ETFs in 2025, bringing its total to 30, with assets under management growing to over $21 billion [11] Q&A Session Summary Question: Operating perspective for 2026 and margin outlook - Management indicated that equity market returns are the biggest factor affecting operating margins and that a portion of expenses is variable [25][26] Question: Tokenization and blockchain experimentation - The company is investing in digitization capabilities and exploring efficiency, product, and distribution opportunities related to tokenization [32][33] Question: Migration of privates into the 401(k) channel - Management noted that the investment case for including private market alternatives in defined contribution solutions is strong, but there is mixed sentiment among plan sponsors [36][37] Question: Target date business outlook - Management acknowledged softer flows in Q4, driven by equities, but noted that the blend category is growing faster than passive, which could help mitigate headwinds [41][43] Question: AI disruption exposure - Management stated that the company has been studying AI disruption risks and opportunities, and is positioned to adapt to changing market environments [49][52]

Financial Data and Key Metrics Changes - The company closed 2025 with $1.78 trillion in assets under management, an increase of over 10% from the start of the year, despite experiencing $56.9 billion in net outflows [4][15] - Adjusted diluted earnings per share for Q4 2025 was $2.44, bringing full-year adjusted diluted EPS to $9.72, which is up 4.2% from 2024 [15] - Q4 adjusted net revenue was $1.9 billion, raising full-year adjusted net revenue to nearly $7.4 billion, an increase of 2.8% from 2024 [17] Business Line Data and Key Metrics Changes - Net outflows were concentrated in the equity and mutual fund business, with $75 billion of net outflows from equity and almost $64 billion from mutual funds in 2025 [5] - Fixed income and alternatives had positive net flows for the quarter, with fixed income delivering eight consecutive quarters of positive net flows [16] - The ETF business saw $1.8 billion in net inflows during Q4, bringing 2025 net inflows to nearly $10.5 billion [16] Market Data and Key Metrics Changes - The company noted a narrowing market dominated by a few mega-cap stocks, with riskier names outperforming quality and value [4] - The fourth quarter showed signs of market broadening, which could benefit fundamental, research-driven, active management [4] Company Strategy and Development Direction - The company established a strategic collaboration with Goldman Sachs to pursue opportunities in wealth and retirement through co-developed public-private offerings [9] - The company is focusing on integrating digital capabilities and enhancing its strategic vision through organizational changes [13] - The company plans to launch an active crypto ETF in 2026, indicating a move towards digitization and innovation in investment products [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in their plan and people, noting improvements in investment performance across several key strategies [7] - The company anticipates continued pressure in equity outflows but expects to see positive flows in target-date funds and steady growth in fixed income and alternatives [44] - Management acknowledged the challenges posed by elevated redemptions from legacy equity and mutual fund businesses but highlighted strong equity market returns offsetting these outflows [15][16] Other Important Information - The company returned nearly $1.8 billion of cash to stockholders and extended its history of increasing regular dividends, marking the 39th consecutive year of increases since its IPO in 1986 [6][22] - The company launched 13 ETFs in 2025, bringing the total to 30, and grew assets under management in this segment to over $21 billion [11] Q&A Session Summary Question: Operating perspective for 2026 and margin outlook - Management indicated that equity market returns are the biggest factor affecting operating margins and that a portion of expenses is variable [25][26] Question: Tokenization and blockchain experimentation - The company is investing in digitization capabilities and sees opportunities in efficiency, product development, and distribution through tokenization [32] Question: Migration of privates into the 401(k) channel - Management noted that there is a mixed view among plan sponsors regarding fiduciary risk and liquidity, and they are working on product design for the Goldman Sachs partnership [36] Question: Target date business outlook - Management acknowledged outflows in the target date business due to M&A activity and noted that fully active target date funds are losing share to passive and blend strategies [42][43] Question: Impact of recent market disruptions on equity flows - Management stated that client reactions to market disruptions vary, with some clients inclined to rebalance and add to equities despite short-term market shocks [48]

Financial Data and Key Metrics Changes - The company closed 2025 with $1.78 trillion in assets under management, up over 10% from the start of the year, despite $56.9 billion in net outflows [4] - Adjusted diluted earnings per share for Q4 2025 was $2.44, bringing full-year adjusted diluted EPS to $9.72, which is up 4.2% from 2024 [16] - Q4 adjusted net revenue was $1.9 billion, raising full-year adjusted net revenue to nearly $7.4 billion, an increase of 2.8% from 2024 [18] - Adjusted operating expenses for Q4 were $1.2 billion, bringing full-year adjusted operating expenses to $4.6 billion, which is up 3.4% from 2024 [21] Business Line Data and Key Metrics Changes - Net outflows were concentrated in the equity and mutual fund business, with $75 billion of net outflows from equity and almost $64 billion from mutual funds in 2025 [5] - Fixed income and alternatives had positive net flows for the quarter, with fixed income delivering eight consecutive quarters of positive net flows [17] - The target date franchise ended the year with net inflows of $5.2 billion, while the ETF business had $1.8 billion in net inflows during the quarter [17] Market Data and Key Metrics Changes - The company experienced elevated redemptions from its legacy equity and mutual fund business, but strong equity market returns offset the net outflows [16] - The average effective fee rate for Q4 was 38.8 basis points, down from 39.1 basis points in Q3 2025, driven by changes in asset and vehicle mix [19] Company Strategy and Development Direction - The company established a strategic collaboration with Goldman Sachs to pursue opportunities in wealth and retirement through co-developed public-private offerings [9] - The company is focused on integrating digital capabilities and enhancing its strategic vision through organizational changes [13] - The company plans to launch an active crypto ETF in 2026, utilizing a blend of fundamental and quantitative analysis [34] Management's Comments on Operating Environment and Future Outlook - Management noted that the biggest factor affecting operating margins is equity market returns, with a portion of the expense base being variable [26] - The company anticipates continued pressure in equities but expects to offset this with inflows in target-date funds and growth in fixed income and alternatives [45] - Management expressed confidence in the company's strategic initiatives and the ability to navigate changing market cycles [22] Other Important Information - The company returned nearly $1.8 billion of cash to stockholders and extended its regular dividend for the 39th consecutive year [5] - The company launched 13 ETFs in 2025, bringing the total to 30, with assets under management growing to over $21 billion at year-end [11] Q&A Session Summary Question: How is the company planning for 2026 in terms of operating expenses? - Management indicated that a third of the expense base is variable and that they are balancing cost savings with investments in growth areas [26][28] Question: What is the company's approach to tokenization and blockchain? - The company is exploring efficiency opportunities, product opportunities, and distribution opportunities related to tokenization and blockchain [33] Question: What is the outlook for the target date business given recent outflows? - Management noted that outflows were driven by M&A activity and that the company is well-positioned to mitigate headwinds with strong blend and hybrid offerings [43][44] Question: How does the company expect to respond to recent market disruptions? - Management stated that client reactions vary, but the overall impact on flows is not expected to be substantial in the long term [48] Question: What is the company's exposure to investments potentially disrupted by AI? - Management emphasized that they have a rigorous credit process and are well-positioned to navigate potential disruptions in the market [53]

Q4 2025 Earnings Release Supplement A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of December 31, 2025, unless otherwise noted. All figures are USD, unless otherwise noted. T. Rowe Price Group, Inc. | Key Metric | Q4 2024 | Q3 2025 | Q4 2025 | 2024 | 2025 | | --- | --- | --- | --- | --- | --- | | AUM, Flows, & Investment Advisory Effective Fee Rate (EFR) | | | | | | | Net Flows | ($19.3B) | ($7.9B) | ($25.5B) | ($43.2B) | ($56.9B) | | A ...

NEWS RELEASE T. ROWE PRICE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS n/m - the percentage change is not meaningful. Capital allocation-based income represents the change in accrued carried interest. See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. Beginning July 1, 2025, managed account - model delivery assets are included in assets under management. (1) (2) (3) (4) 1 ▪ Assets under management (AUM) of $1.8 trillion at December 31, 2025 ▪ Net cli ...