T. Rowe Price Reports Q4 Earnings, Sees Outflows and Fee Pressure

Asset manager cites market volatility, client preference shifts, and lower effective fee rates

Published on Feb. 6, 2026

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T. Rowe Price Group reported fourth-quarter 2025 adjusted diluted earnings per share of $2.44 and full-year adjusted diluted EPS of $9.72, up 4.2% from 2024, as higher average assets under management and investment advisory revenue offset continued net outflows and fee pressure tied to shifting client preferences. The company saw $25.5 billion in net outflows in Q4 and $56.9 billion for the full year, though equity market appreciation helped offset those outflows.

Why it matters

T. Rowe Price's results reflect broader industry trends, with active managers facing headwinds from client preference shifts toward lower-cost passive and hybrid investment vehicles. The company's commentary on the challenges of fundamental research and active management in the current market environment provides insight into the pressures facing the asset management industry.

The details

CEO Rob Sharps said 2025 marked a 'third straight year of strong global market returns,' though he described the market as narrow and led by a handful of mega-cap stocks—an environment he said was 'not highly conducive to fundamental research, active management, and long-term investing.' CFO Jen Dardis said the decline in the firm's effective fee rate continues to be driven by changes in asset and vehicle mix as demand shifts toward lower-priced vehicles and strategies such as ETFs, trusts, and separately managed accounts.

  • T. Rowe Price reported Q4 2025 and full-year 2025 results on February 6, 2026.
  • The company saw $25.5 billion in net outflows in Q4 2025 and $56.9 billion for the full year 2025.
  • T. Rowe Price launched 13 new ETFs in 2025, bringing its total ETF lineup to 30 by year-end.

The players

T. Rowe Price Group

A global investment management firm headquartered in Baltimore, Maryland, founded in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients.

Rob Sharps

CEO of T. Rowe Price Group.

Jen Dardis

CFO of T. Rowe Price Group.

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What they’re saying

“2025 marked a 'third straight year of strong global market returns,' though he described the market as narrow and led by a handful of mega-cap stocks—an environment he said was 'not highly conducive to fundamental research, active management, and long-term investing'.”

— Rob Sharps, CEO (transcriptdaily.com)

“The decline in the firm's effective fee rate continues to be driven by changes in asset and vehicle mix as demand shifts toward lower-priced vehicles and strategies such as ETFs, trusts, and separately managed accounts.”

— Jen Dardis, CFO (transcriptdaily.com)

What’s next

T. Rowe Price plans to launch a new active crypto ETF in 2026, using a blend of fundamental and quantitative analysis for a multi-token fund.

The takeaway

T. Rowe Price's results highlight the ongoing challenges facing active asset managers, as client preferences shift toward lower-cost passive and hybrid investment vehicles. The firm's commentary on the market environment and its efforts to adapt through new product launches and partnerships provide insights into the evolving landscape of the asset management industry.