T. Rowe Price Group, Inc. (NASDAQ: TROW) saw its shares decline on Wednesday after reporting fourth-quarter 2025 financial results that fell short of analyst expectations. The stock was trading at $97.02 per share during intraday sessions, representing a decrease of 5.49%.
Market Capitalization
The market capitalization for T. Rowe Price Group, Inc. stands at $22.4 billion as of February 4, 2026.
Latest Quarterly Results
T. Rowe Price reported consolidated net revenue of $1.93 billion for the fourth quarter ended December 31, 2025, a 6.0% increase from $1.82 billion in the prior-year period. Net profit attributable to the company rose 1.2% year-over-year to $445.3 million. The firm ended the quarter with $1.78 trillion in assets under management (AUM), despite net client outflows of $25.5 billion during the period.
Segment highlights based on investment advisory fees include:
- Equity: $1.029 billion (2.3% year-over-year increase)
- Fixed Income: $113.8 million (7.2% year-over-year increase)
- Multi-Asset: $507.9 million (7.2% year-over-year increase)
- Alternatives: $86.8 million (7.2% year-over-year increase)
Full-Year Results Context
For the full year 2025, net revenue totaled $7.31 billion, a 3.1% increase from $7.09 billion in 2024. Net income attributable to the company for the year was $2.09 billion, representing a contraction of 0.6% compared to $2.10 billion in the previous year. Total net client outflows for 2025 reached $56.9 billion, primarily concentrated in equity and mutual fund products.
Financial Trends
Business & Operations Update
The company launched 13 new exchange-traded funds (ETFs) in 2025, bringing its total ETF lineup to 30 with more than $21 billion in AUM. Management confirmed plans to target a cryptocurrency ETF for release in 2026. Additionally, the firm closed its first managed private equity fund in January 2026.
M&A or Strategic Moves
T. Rowe Price announced a strategic collaboration with Goldman Sachs to develop public-private offerings and advice solutions for wealth and retirement markets. The company also established its first partnership in the Middle East to broaden international diversification.
Equity Analyst Commentary
Institutional research noted that while higher average AUM supported revenue, results were impacted by an 16.5% increase in total operating expenses to $1.46 billion. Analysts highlighted concerns regarding the compression of the annualized effective fee rate, which declined to 38.8 basis points in the fourth quarter from 39.1 basis points in the preceding quarter.
Guidance & Outlook
For the full year 2026, the company issued guidance for its effective tax rate in the range of 23.0% to 27.0% on a U.S. GAAP basis. Management indicated a focus on the continued acceleration of deal volume within its alternatives and private credit pipelines.
Performance Summary
T. Rowe Price stock moved 5.49% lower following the disclosure of quarterly results that missed consensus estimates. Revenue increased to $1.93 billion, though net outflows remained elevated at $25.5 billion for the quarter. Growth in the fixed income and multi-asset segments offset fee pressures in the equity division.
