T. Rowe Price Q1 2025 Earnings Beat, Outflows Ease

T. Rowe Price Group reported first-quarter 2025 adjusted earnings per share of $2.23, exceeding analyst estimates but down from $2.38 in Q1 2024. Net revenues grew modestly by 0.8% to $1.76 billion, while average assets under management rose 1.6% year-over-year to $1.57 trillion. Net income declined 14.5% to $490.5 million, primarily due to lower investment gains and negative capital allocation-based income. The firm recorded net outflows of $8.6 billion, which was a significant improvement compared to the prior quarter's $19.3 billion outflow. Operating expenses increased slightly, but operating margins improved sequentially. Despite sequential financial improvements and earnings beats, ongoing net outflows and market headwinds constrained profitability.