30-07-2025
T. Rowe Q2 Earnings Preview: Can Market Gains Finally Stop the Bleeding?
T. Rowe Price Group Inc. (NASDAQ:TROW) will report second-quarter earnings before the market opens on Friday, August 1. Analysts expect EPS of $2.15 on $1.728 billion in revenue, representing flat growth as market-driven AUM recovery offsets continued pressure on flows. The stock has lagged year-to-date, weighed down by tepid organic growth, cost control efforts, and ongoing concerns over the competitiveness of active strategies.
Key metrics will include total AUM, organic net flows, and average fee rate trends. While the S&P 500 and other major benchmarks posted strong gains in Q2, investor sentiment remains cautious over whether T. Rowe can convert market beta into net inflows. T. Rowe reported net outflows of $8.6 billion in Q1 2025, marking its sixteenth consecutive quarter of redemptions, meaning even a modest inflow this quarter would represent a meaningful break in trend and could help shift sentiment.
Expense discipline will also be in focus as management seeks to protect margins without compromising strategic investments, particularly in retirement solutions and model portfolios.
With shares still more than 50% below their all-time high, bulls are watching for signs that heightened volatility, recent market strength, and renewed interest in active management can lift both earnings and sentiment. But without clearer evidence of flow stabilization or traction in new products, the upside may remain capped.
This article first appeared on GuruFocus.
