T. Rowe Price Earnings Preview: What to Expect

Baltimore, Maryland-based T. Rowe Price Group, Inc. (TROW) is a publicly owned investment manager that provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. Valued at $21.3 billion by market cap, the company provides investment advisory services and manages a broad range of U.S. and international stock, blended asset, bond, and money market mutual funds and other investment portfolios. The leading asset management firm is expected to announce its fiscal third-quarter earnings for 2026 before the market opens on Thursday, Oct. 29. 

Ahead of the event, analysts expect T. Rowe Price to report a profit of $2.59 per share on a diluted basis, down 7.8% from $2.81 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect T. Rowe Price to report EPS of $10.10, up 3.9% from $9.72 in fiscal 2025. However, its EPS is expected to fall marginally year over year to $10.06 in fiscal 2027. 

TROW stock has notably underperformed the S&P 500 Index’s ($SPX) 16.2% gains over the past 52 weeks, with shares down 6.1% during this period. Similarly, it underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 2.4% gains over the same time frame.

TROW has underperformed primarily due to persistent net asset outflows and structural pressure on active investment management fees. As an active manager heavily weighted in mutual funds, the firm continues to face secular industry headwinds from investors shifting capital toward lower-cost passive index products and ETFs. Although TROW has expanded its active ETF offerings, pursued strategic acquisitions, and integrated AI capabilities into its investment process, these initiatives have yet to fully offset revenue compression from client redemptions. 

On Jul. 31, TROW shares closed down more than 6% after reporting its Q2 results. Its adjusted EPS of $2.57 topped Wall Street expectations of $2.52. The company’s revenue was $1.91 billion, missing Wall Street forecasts of $1.92 billion.

Analysts’ consensus opinion on TROW stock is moderately bearish, with a “Moderate Sell” rating overall. Out of 14 analysts covering the stock, nine give a “Hold” rating, one advocates a “Moderate Sell,” and four recommend a “Strong Sell.” TROW’s average analyst price target is $104.15, indicating a potential upside of 4.5% from the current levels. 

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.