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Get filing alertsT. Rowe Price reports record $1.9T AUM but posts $6.5B net outflows in Q2 2026
Filed July 31, 2026 · Period ending July 31, 2026 · ~1 min read
Key Changes
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high
Net client outflows of $6.5B driven by $13.5B equity outflows, partially offset by $4.6B fixed income and $2.0B alternatives inflows; fundamental active equity strategies remain under pressure despite positive flows in May and June in ETF and SMA growth areas.
Exhibit 99 view on EDGAR → -
high
Investment advisory effective fee rate declined 1.5 basis points year-over-year to 38.1 bps, reflecting mix shift toward lower-fee products and asset classes despite market appreciation partially offsetting the decline.
Exhibit 99 view on EDGAR → -
high
Diluted EPS of $2.88 (up 28.6% year-over-year) and adjusted diluted EPS of $2.57 (up 14.7%); net revenues increased 10.7% to $1.9B driven by higher average AUM.
Exhibit 99 view on EDGAR → -
medium
Headcount reduced 6.4% year-over-year to 7,544 associates; adjusted operating expenses rose 4.9% to $1.2B; quarter included $6.7M restructuring charge for severance costs as firm realigns resources.
Exhibit 99 view on EDGAR → -
medium
Returned $441M to stockholders through recurring quarterly dividend and share repurchases; weighted-average shares outstanding declined to 214.0M from 220.2M prior year.
Exhibit 99 view on EDGAR →
Summary
T. Rowe Price delivered a mixed Q2 2026, reaching record assets under management of $1.9 trillion while grappling with persistent client outflows. The firm posted net outflows of $6.5 billion as $13.5 billion in equity redemptions overwhelmed $4.6 billion in fixed income inflows and $2.0 billion in alternatives inflows.
Management noted that fundamental active equity strategies remain under pressure industry-wide, though May and June saw positive flows in growth areas like ETFs and separately managed accounts where the firm is investing. The effective fee rate compressed 1.5 basis points to 38.1 bps as client flows shifted toward lower-fee products, a headwind that market appreciation only partially offset.
Despite the flow challenges, earnings grew substantially: diluted EPS rose 28.6% to $2.88 and adjusted EPS climbed 14.7% to $2.57, driven by higher average AUM and expense discipline. The firm reduced headcount 6.4% to 7,544 associates and took a $6.7 million restructuring charge for severance as it realigns resources toward strategic priorities. T. Rowe Price returned $441 million to stockholders through dividends and buybacks, shrinking the share count to 214.0 million. The quarter illustrates the firm's ability to grow earnings and return capital even as it navigates a difficult environment for active equity management and works to reposition toward faster-growing product categories.
Section-by-Section Diff
Event · Exhibit 99
T. Rowe Price reported Q2 2026 results with record $1.9T AUM, $6.5B net outflows, diluted EPS of $2.88 ($2.57 adjusted), and returned $441M to stockholders.
Added in current filing · view on EDGAR →
Assets under management (AUM) of $1.9 trillion
▪Net client outflows of $6.5 billion
▪Diluted earnings per common share (EPS) of $2.88
▪Adjusted diluted EPS of $2.57
▪Returned $441 million to stockholders from the recurring quarterly dividend and stock repurchases
T. Rowe Price ended Q2 2026 with record assets under management of $1.9 trillion despite net client outflows of $6.5 billion. The firm reported diluted earnings per share of $2.88 on a GAAP basis and $2.57 on an adjusted basis, representing increases of 28.6% and 14.7% respectively versus the prior year quarter. The company returned $441 million to stockholders through dividends and share repurchases during the quarter.
Added in current filing · view on EDGAR →
Net revenues $ 1,907.4 $ 1,723.3 10.7 % $ 1,857.0 2.7 % ... Investment advisory annualized effective fee rate (EFR) (in bps)
EFR without performance-based fees 38.1 39.6 (1.5) 38.4 (0.3)
Net revenues increased 10.7% year-over-year to $1.9 billion, driven by higher average assets under management. However, the investment advisory effective fee rate declined 1.5 basis points to 38.1 bps compared to the prior year quarter, reflecting a mix shift toward lower-fee products and asset classes as client flows moved into these areas despite market appreciation partially offsetting the decline.
Added in current filing · view on EDGAR →
Total operating expenses $ 1,366.9 $ 1,245.0 9.8 % $ 1,176.5 16.2 %
Total adjusted operating expenses(4) $ 1,203.2 $ 1,147.2 4.9 % $ 1,155.2 4.2 % ... The firm employed 7,544 associates as of June 30, 2026, a decrease of 6.4% from 8,063 associates as of June 30, 2025
Operating expenses on a GAAP basis increased 9.8% year-over-year to $1.4 billion, while adjusted operating expenses rose 4.9% to $1.2 billion. The firm reduced headcount by 6.4% year-over-year to 7,544 associates as part of its ongoing expense management program. The quarter included a $6.7 million restructuring charge related to severance costs as the firm realigns resources to support investment in existing and future capabilities.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 3, 2026 · How we verify