T. Rowe Price reported third‑quarter 2025 earnings on October 31, 2025, posting net revenues of $1.89 billion, a 6 % year‑over‑year increase, and a non‑GAAP earnings per share of $2.81, surpassing consensus estimates of $2.54 to $2.55.
Total net profit for the quarter was $646.1 million, and GAAP earnings per share were $2.87. Assets under management reached $1.77 trillion, up from $1.70 trillion a year earlier. Investment advisory fee income rose, while the company’s effective fee rate fell to 39.1 basis points from 40.7 basis points in the prior year. Operating expenses increased 6.7 % year‑over‑year to $1.25 billion, and adjusted operating expenses grew 3.2 %.
The company experienced net client outflows of $7.9 billion in Q3 2025, primarily from U.S. equities and lower‑fee vehicles. A $28.5 million restructuring charge related to workforce reductions was recorded, and management plans to target low single‑digit controllable expense growth in the coming years.
T. Rowe Price returned $442 million to shareholders through dividends and stock repurchases. The firm also announced a strategic collaboration with Goldman Sachs to develop co‑branded target‑date and multi‑asset solutions aimed at retirement and wealth distribution clients.
Management highlighted continued momentum in its ETF and alternative investment businesses as key growth drivers and reiterated its outlook for the remainder of the year, emphasizing fee‑income growth and disciplined expense management.
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