Q2 25 EPS
$2.24
BEAT +4.94%
Est. $2.13
Q2 25 Revenue
$1.72B
MISS 1.37%
Est. $1.75B
vs S&P Since Q2 25
-9.7%
TRAILING MARKET
TROW +6.2% vs S&P +15.9%
Market Reaction
Did TROW Beat Earnings? Q2 2025 Results
T. Rowe Price delivered a mixed but ultimately earnings-positive second quarter, posting adjusted diluted EPS of $2.24 that cleared the $2.13 consensus estimate by 4.94%, even as revenue came in just shy of expectations. Net revenues of $1.72 billion… Read more T. Rowe Price delivered a mixed but ultimately earnings-positive second quarter, posting adjusted diluted EPS of $2.24 that cleared the $2.13 consensus estimate by 4.94%, even as revenue came in just shy of expectations. Net revenues of $1.72 billion slipped 0.6% year-over-year and missed the $1.75 billion consensus by 1.37%, weighed down by fee rate compression as the firm's annualized effective advisory fee rate fell to 39.6 basis points from 41.1 bps a year ago, a reflection of client flows migrating toward lower-fee products. A significant surge in non-operating income, rising to $235.50 million from $80.30 million in the prior-year period, provided crucial lift to the bottom line, helping offset a 6.5% rise in GAAP operating expenses tied partly to the firm's new headquarters. AUM climbed 6.9% year-over-year to $1.68 trillion, and subsequent data showing assets approaching $1.70 trillion in July signals some continued momentum. Looking ahead, T. Rowe Price projects its full-year 2025 effective tax rate at 23.5% to 27.5% on a GAAP basis while pursuing ongoing expense discipline to fund longer-term investment.
Key Takeaways
- • Net market appreciation of $125.4 billion during Q2 2025 drove AUM growth to $1.68 trillion
- • Fee rate compression to 39.6 bps from 41.1 bps YoY driven by asset mix shift toward lower-fee products
- • Net client outflows of $14.9 billion in Q2 2025
- • Strong non-operating income of $235.5 million driven by investment gains
- • Technology, occupancy, and facility costs increased 11.5% YoY from new corporate headquarters depreciation and higher hosted solutions costs
- • Market-related deferred compensation liability changes of $66.3 million increased operating expenses
TROW YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
TROW Revenue by Segment
With YoY comparisons, source: SEC Filings
“We are building momentum for the long-term—growing our ETF business, leveraging partnerships to extend our reach, and expanding our leadership in retirement. We have developed a broad and ongoing plan to reduce our expense growth over time while continuing to invest in capabilities and client reach. We believe that our plan will drive efficiency to fund investment in the future of the business. While we acknowledge the short-term headwinds, we are confident we are positioned to take advantage of the opportunities ahead.”
— Rob Sharps, Q2 2025 Earnings Press Release
TROW Earnings Trends
TROW vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TROW EPS Trend
Earnings per share: estimate vs actual
TROW Revenue Trend
Quarterly revenue: estimate vs actual
TROW Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $2.52 | — | $1.86B | +0.22% |
| Q4 25 MISS FY | $2.46 | $2.44 | -0.81% | $1.93B | -4.00% |
| FY Full Year | $9.70 | $9.72 | +0.16% | $7.31B | -1.09% |
| Q3 25 BEAT | $2.54 | $2.81 | +10.50% | $1.89B | -0.25% |
| Q2 25 BEAT | $2.13 | $2.24 | +4.94% | $1.72B | -1.37% |
| Q1 25 BEAT | $2.13 | $2.23 | +4.68% | $1.76B | -0.70% |