T. Rowe Price Q1 2026: EPS Beats on ETF Strength, OHA Expansion

Transcript intelligence

What changed

Compared to the prior quarter, net outflows narrowed sharply from $56.9 billion to $13.7 billion, though AUM still declined from $1.78 trillion to $1.71 trillion reflecting market depreciation. ETF momentum accelerated with $2.8 billion of net inflows and total ETF AUM crossing $25 billion across 32 tickers. OHA alternatives grew assets to $112 billion with $30 billion in dry powder, up from $88 billion at year-end 2024. Share repurchases accelerated to $340 million in Q1. New product launches were announced including the OFlex multi-strategy interval fund, a new target-date sister series, and the firm's first European ETFs. Geopolitical risk from the Iran conflict emerged as a new concern. The crypto ETF and tokenization initiatives highlighted in the prior quarter were not prominently featured this period.

Guidance delta

Guidance was maintained. The 2026 expense growth outlook remains at 3-6% above 2025 levels, unchanged from the prior quarter. Management tone remained confident, and no new financial guidance metrics were introduced or revised.

Key takeaways

• Adjusted EPS of $2.52 beat consensus of $2.33 by 8.2%, up 13% year-over-year.
• AUM of $1.71 trillion, down from $1.78 trillion at year-end 2025, as market depreciation and $13.7 billion of net outflows offset gross sales.
• Active ETF platform added $2.8 billion in net inflows, pushing ETF AUM above $25 billion across 32 tickers.
• OHA alternatives business grew to $112 billion in assets with $30 billion in dry powder, launching new wealth-focused products including the OCREDIT BDC and OFlex interval fund.
• Share repurchases accelerated to $340 million in the quarter.
• Equity mutual fund outflows of $13.7 billion persisted, though multi-asset, fixed income, and alternatives saw net inflows.

Management priorities

• Expand active ETF platform with new tickers and a planned European ETF launch later in 2026.
• Scale OHA alternatives into wealth distribution with the OCREDIT BDC and OFlex multi-strategy interval fund.
• Activate the First Abu Dhabi Bank partnership in mid-2026 for Middle East distribution.
• Continue disciplined expense management within the 3-6% growth range.
• Introduce a new target-date sister series later in the year.
• Evaluate opportunistic M&A and further product development.