T. Rowe Price reported Q2 2026 results that beat on revenue and EPS, but the tone on flows was cautious. The key takeaway from the call centers around the launch of new products like the actively-managed crypto ETF and partnerships with Goldman Sachs, alongside the significant restructuring of the Russell indices due to AI exposure. Q2 FY2026 adjusted EPS was $2.57, beating Q1's $2.52, while net revenue rose to $1.9 billion.
T. Rowe Price reported Q2 2026 results that beat on revenue and EPS, but the tone on flows was cautious. The key takeaway from the call centers around the launch of new products like the actively-managed crypto ETF and partnerships with Goldman Sachs, alongside the significant restructuring of the Russell indices due to AI exposure. Q2 FY2026 adjusted EPS was $2.57, beating Q1's $2.52, while net revenue rose to $1.9 billion.
T. Rowe Price reported Q2 2026 results that beat on revenue and EPS, but the tone on flows was cautious. The key takeaway from the call centers around the launch of new products like the actively-managed crypto ETF and partnerships with Goldman Sachs, alongside the significant…
Q2 FY2026 adjusted EPS was $2.57, beating Q1's $2.52, while net revenue rose to $1.9 billion.
Management emphasized meaningful progress in AI, with over 130 AI solutions deployed and more than 70% associated with revenue streams, and is embedding AI into end-to-end workflows to enhance decision-making and operational efficiency, while keeping investment judgment with…
Full-year 2026 adjusted operating expense growth is guided to 4-7%.
Management emphasized meaningful progress in AI, with over 130 AI solutions deployed and more than 70% associated with revenue streams, and is embedding AI into end-to-end workflows to enhance decision-making and operational efficiency, while keeping investment judgment with associates.
Target date pipeline shows late-stage air pocket. Management acknowledged continued active equity outflows and fee pressure but highlighted strategic progress in ETFs, SMAs, fixed income, alternatives, and AI, expressing confidence in long-term growth.
Expense guidance raised to 4-7% growth for 2026, driven by higher AUM, with investments in ETFs, SMAs, outcomes-oriented solutions, advice-led offerings, and AI. Cost savings initiatives are ongoing to offset some increases.
Management acknowledged continued active equity outflows and fee pressure but highlighted strategic progress in ETFs, SMAs, fixed income, alternatives, and AI, expressing confidence in long-term growth.
“There was over $300 billion of turnover, but more importantly, there was a substantial migration of AI-related exposures, momentum factors, and technology leadership across benchmarks. ... In the Russell large and mid-cap growth benchmarks…”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Op margin | FY2026 | 4%–7% | 5.5% | GUIDED |
The strategic alliance with Goldman Sachs is progressing with the launch of the first interval fund and plans for a second, signalling strong partnership momentum and potential for revenue growth.
“We're also advancing our strategic alliance with Goldman Sachs. On the 1st of July, we launched the T. Rowe Price Goldman Sachs Private Markets Fund, our first interval fund in collaboration with Goldman Sachs.”
… Active Crypto ETF, which is an actively managed multi-token exchange-traded product and our first non-investment company ETF. With these launches, our ETF business has grown to 34 funds and $30 billion in assets under management. In addition, we celebrated the three-year anniversary of our first four fully transparent ETFs. Our SMA platform now includes 43 products and $20 billion in assets under management. We're also advancing our strategic alliance with Goldman Sachs. On the 1st of July, we launched the T. Rowe Price Goldman Sachs Private Markets Fund, our first interval fund in collaboration with Goldman Sachs. We completed the first filing for the second fund, a public-private equity interval fund, that we expect to launch later this year. And we are hearing positive client feedback on the Target Date Sister series and are operationally ready to launch as a CIT when client demand materializes. Finally, we continue to see strong interest in our T. Rowe Price Managed Late Stage Venture Fund and expect to exceed our target fund size later this year, providing a foundation to build on this platform with a second fund anticipated in 2027. We are making meaningful progress in …
The 2026 Russell reconstitution was not a routine rebalance but a significant reshaping of benchmark risk characteristics, with substantial migration of AI-related exposures and momentum factors across benchmarks, causing volatility and creating opportunities for active management. — This unique 'rebalancing' event forced a reassignment of exposures, causing new buyers and sellers into stocks and adding volatility, which directly impacts active managers and those positioned around AI-driven growth.
“There was over $300 billion of turnover, but more importantly, there was a substantial migration of AI-related exposures, momentum factors, and technology leadership across benchmarks. ... In the Russell large and mid-cap growth”