Why Is T. Rowe (TROW) Up 0% Since Last Earnings Report?

A month has gone by since the last earnings report for T. Rowe Price (TROW). Shares have added about 0% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent trend continue leading up to its next earnings release, or is T. Rowe due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for T. Rowe Price Group, Inc. before we dive into how investors and analysts have reacted as of late.

T. Rowe Price Q4 Earnings Miss Estimates, Expenses Rise Y/Y

T. Rowe Price reported fourth-quarter 2025 adjusted earnings per share of $2.44 missed the Zacks Consensus Estimate of $2.47. Nevertheless, the bottom line increased 15.1% year over year.

The results were affected by higher expenses. Nonetheless, an increase in investment advisory fees and capital allocation-based income supported the results. Also, higher assets under management were another positive.

The results included certain items. After considering those, net income attributable to T. Rowe Price (on a GAAP basis) was $445.3 million, which rose 1.2% from the prior-year quarter.

In 2025, adjusted earnings of $9.72 per share missed the consensus estimate of $9.75 but rose 4.2% year over year. Net income attributable to the company was $2.1 billion, down nearly 1% year over year.

Revenues Increase, Expenses Rise

Net revenues rose 6% year over year to $1.93 billion. Further, the top line surpassed the Zacks Consensus Estimate of $1.92 billion.

In 2025, net revenues were $7.31 billion, up 3.1% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $7.30 billion.

Investment advisory fees rose 4.2% year over year to $1.74 billion.

Capital allocation-based income increased to $40.8 million from a loss of $5.2 million in the prior-year quarter.

Total operating expenses increased 16.5% year over year to $1.46 billion in the reported quarter. On an adjusted basis, operating expenses were $1.25 billion, up 2.2% year over year.

AUM Rises, Liquidity Position Strong

As of Dec. 31, 2025, total AUM grew 10.5% year over year to $1.77 trillion.

In the fourth quarter, net market appreciation and income of $33.9 billion favorably impacted T. Rowe Price’s AUM, partially offset by net cash outflows of $25.5 billion.

The company had substantial liquidity, including cash and cash equivalents of $3.38 billion as of Dec. 31, 2025, up from $2.65 billion as of Dec. 31, 2024. This will enable the company to keep investing.

Capital Distribution Activities

T. Rowe Price distributed a total of $426 million to shareholders through common stock dividends and share repurchases in the fourth quarter.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, T. Rowe has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, T. Rowe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

T. Rowe belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, MSCI (MSCI), has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

MSCI reported revenues of $822.53 million in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $4.66 for the same period compares with $4.18 a year ago.

For the current quarter, MSCI is expected to post earnings of $4.38 per share, indicating a change of +9.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for MSCI. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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