T Rowe Price Group Inc. Reports Q4 2025 Results Amid AUM Growth and Earnings Beat

T Rowe Price Group Inc. (NASDAQ: TROW) concluded the fiscal year 2025 on a positive note, announcing fourth‑quarter earnings that surpassed consensus estimates and a solid uptick in assets under management (AUM). The company’s financial conference call on 4 February 2026 detailed the metrics that will shape investor sentiment in the coming months.

Earnings and Revenue Performance

  • Quarterly EPS rose to $1.99 per share, an increase of $0.07 (≈ 3.7 %) over the same period a year earlier.
  • Full‑year EPS was guided at $9.24, edging higher than last year’s $9.15.
  • Total revenue for the quarter reached $1.93 billion, up 6.01 % from $1.82 billion in Q4 2024.
  • Revenue growth was underpinned by AUM expansion and fee‑income gains, despite a backdrop of net outflows across certain funds.

AUM Growth Outpaces Outflows

While the firm faced net outflows in several high‑profile funds, its overall AUM grew by more than 10 %, a performance highlighted in multiple earnings‑call transcripts and analyst summaries. The upward trend underscores the firm’s ability to attract new capital even amid market volatility and shifting investor preferences.

Market Reaction and Analyst Sentiment

  • Morgan Stanley revised its price objective for TROW downward to $123.00 from $128.00, citing the recent earnings miss in Q4 2025 and ongoing outflow concerns.
  • Barclays lowered its target to $101.00 and switched to an “underweight” rating.
  • JPMorgan Chase & Co. also trimmed its price target, reflecting a broader cautious stance among analysts.

These adjustments, however, coexist with a price‑earnings ratio of 11.11, suggesting that the stock remains reasonably valued relative to its earnings trajectory.

Strategic Highlights

  • Equity Income Fund: T Rowe Price’s equity income vehicles continue to focus on high‑yield opportunities, with recent picks in sectors such as utilities (e.g., Alliant Energy) and consumer staples.
  • Portfolio Diversification: The firm’s diversified portfolio of U.S. and international equity, blended asset, bond, and money‑market funds remains a cornerstone of its revenue model.

Forward‑Looking Outlook

  • Fee‑income resilience is expected to sustain revenue growth as the firm leverages its global brand and advisory capabilities.
  • AUM expansion will likely continue if the firm can navigate the current macroeconomic environment and mitigate the impact of outflows.
  • Valuation pressures from analysts will persist until the firm demonstrates consistent earnings growth and robust capital inflows.

In summary, T Rowe Price Group’s Q4 2025 results reinforce its position as a leading capital‑markets player while highlighting the need for disciplined asset‑growth strategies amid a complex market backdrop.