T. Rowe Price Group Inc.

TROW
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.9B
Q1 FY26 · +1.6% YoY
TTM ROIC
23%
FY25 · NOPAT / Invested Capital · WACC ~10% · Moat spread +13pp

Financial Snapshot


ticker: TROW step: 04 generated: 2026-05-12 source: quick-research

T. Rowe Price Group (TROW) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$6.00B ~$6.46B $7.09B +9.8%
Operating Margin ~40% ~35% ~36%
Net Margin ~22% ~25% ~29.6%
Net Income ~$1.3B ~$1.6B ~$2.1B +17.9% EPS
EPS (diluted) ~$5.75 ~$7.25 ~$8.87 +22%

Note: 2022 revenue and earnings declined from peak 2021 levels as global equity markets sold off, compressing AUM-linked fees. Recovery in 2023–2024 driven by market appreciation.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$2.0B
Free Cash Flow ~$1.5B
Cash & Equivalents ~$2.5B
Investments (seed capital) ~$2.0B
Total Debt Minimal (essentially debt-free)

FCF declined sharply in 2023 ($0.91B vs. $2.1B in 2022) due to elevated seed capital deployment and comp costs; partially recovered in 2024.

Key Ratios (approximate)

  • P/E: ~9.6x | EV/EBITDA: ~8x | Dividend Yield: ~5.8%
  • Revenue Growth (FY2024): +9.8% | Net Margin: ~29.6%
  • AUM: $1.607T (Dec 2024) → $1.775T (Dec 2025) — market appreciation driven

Growth Profile

T. Rowe Price's revenues are highly correlated to equity market levels. The 2022 bear market compressed AUM from ~$1.69T to ~$1.27T, reducing revenue by ~15%. Markets recovering in 2023–2024 drove a strong revenue rebound. The key concern is structural: net outflows totaled $43.2B in 2024 and $56.9B in 2025 — meaning organic AUM growth is negative despite strong market performance. The company is debt-free with a large net cash and investment position, supporting its ability to return capital via dividends and buybacks through the cycle.

Forward Estimates (FY2025 / FY2026)

  • FY2025 Revenue: ~$7.3B (actual — +3.1% YoY)
  • Net outflows ongoing but partially offset by ETF/alternatives growth and market appreciation
  • Dividend: ~$4.88/share annualized; 38+ consecutive years of dividend growth (Dividend Aristocrat)
  • Q1 2026: Revenue $1.86B, EPS up YoY despite AUM miss — cost discipline improving margins

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $TROW.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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