• In the past week, T. Rowe Price Group reported its second quarter 2025 earnings, with earnings per share exceeding analyst expectations even as revenues showed a slight year-over-year decline and the company experienced net client outflows of US$14.9 billion. Management continues to focus on cost efficiency and expanding its ETF and retirement business to address ongoing equity strategy challenges and evolving client preferences.
• An interesting insight is that T. Rowe Price aims to include model delivery assets in its reported assets under management beginning August 12, reflecting its efforts to more fully capture and represent the impact of newer product initiatives within its business metrics.
• We will now examine how ongoing client outflows may affect T. Rowe Price’s outlook in light of its diversified growth strategy.

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T. Rowe Price Group Investment Narrative Recap

To be a shareholder in T. Rowe Price Group, you need to believe in the company’s disciplined approach to cost management, active ETF and retirement product expansion, and its ability to offset industry headwinds such as ongoing net outflows. The recent earnings report, which showed both an earnings beat and significant net outflows, does not materially change the biggest near-term catalyst: success in attracting net inflows through new products, even as the company’s main risk remains persistent client redemptions and pressure on fee rates.

Among recent announcements, the latest share buyback program stands out. Between April and June 2025, T. Rowe Price repurchased 1.21 million shares for US$108.56 million, reinforcing its commitment to enhancing shareholder value by reducing shares outstanding, the same metric that supports earnings per share growth amid fluctuating revenues and assets under management.

Yet with ongoing net client outflows, investors should be especially mindful of how continued redemptions could limit the potential benefits of...

Read the full narrative on T. Rowe Price Group (it's free!)

T. Rowe Price Group's outlook anticipates $7.6 billion in revenue and $2.2 billion in earnings by 2028. This scenario is built on a projected annual revenue growth rate of 2.3% and an increase in earnings of $0.2 billion from the current level of $2.0 billion.

Uncover how T. Rowe Price Group's forecasts yield a $101.50 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community range from US$85.16 to US$165.67 per share. As participant views spread across nearly double the current share price, fee rate pressure and persistent outflows remain top-of-mind issues for anyone considering the company’s future performance.

Explore 7 other fair value estimates on T. Rowe Price Group - why the stock might be worth as much as 56% more than the current price!

Build Your Own T. Rowe Price Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your T. Rowe Price Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free T. Rowe Price Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate T. Rowe Price Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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