Q1 2026 T Rowe Price Group Inc Earnings Call Transcript
Key Points
- T. Rowe Price Group Inc (TROW) reported a 13% increase in adjusted earnings per share from Q1 2025, driven by higher revenue growth and lower expenses.
- The company's ETF and SMA businesses showed strong growth, with ETFs generating over $2.8 billion in net flows in the first quarter.
- T. Rowe Price Group Inc (TROW) launched two new ETFs, bringing their total to 32, with 8 of them surpassing $1 billion in AUM.
- The target date franchise continued to deliver solid growth with $4.9 billion in net inflows, driven by blend products.
- The company has a strong balance sheet with over $4.1 billion in cash and discretionary investments, allowing for strategic capital management.
- T. Rowe Price Group Inc (TROW) faced $13.7 billion in net outflows, particularly from US growth-oriented equity strategies.
- The one-year performance of many funds remains challenged, with only 8% of target date fund AUM outperforming peers.
- The effective fee rate declined due to growth in lower-fee products and outflows from higher-fee equity strategies.
- Market volatility, driven by geopolitical tensions and AI disruption, has introduced uncertainty into global economic growth expectations.
- The company continues to face challenges in stabilizing flows in its equity and mutual fund businesses.
Good morning. My name is Victor, and I'll be your conference facilitator today. Welcome to T. Rowe Price's first-quarter 2026 earnings conference call. (Operator Instructions)
As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly after the call concludes. I will now turn the call over to Linsley Carruth, T. Rowe Price's Director of Investor Relations.
Hello and thank you for joining us today for our first-quarter earnings call. The press release and a supplemental materials document can be found on our IR website at investors.troweprice.com. We'll start the call with our Chair, CEO and President, Rob Sharps; and CFO, Jen Dardis, discussing the company results. After which, Glenn August, CEO of OHA, will provide an update on our alternatives business. Then we'll open it up to your questions, at which time we'll be joined by Head of Global Investments, Eric Veiel.
(Event Instructions)
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