T. Rowe Price beats profit forecasts with $2.86 a share as revenue misses
The company will discuss the results on a call with analysts at 8:00 AM Eastern.
Published
Chart: TROW, one-minute prices, three sessions
T. Rowe Price earned $2.86 a share for the third quarter, $0.16 more than analysts had expected. Revenue was $2.00 billion, short of the $2.02 billion forecast. Profit beat expectations while sales came in slightly under, so the quarter's result rests more on earnings than on the top line.
The company also set a tax assumption for 2026. It expects its effective tax rate, the share of pre-tax profit paid in tax, to fall between 23.5% and 25.5% for the full year. The same range applies to both GAAP (generally accepted accounting principles, the standard US rules) and adjusted results. Analysts' earnings models will therefore use one tax figure for each measure.
That range is two percentage points wide, so analysts modeling 2026 net income will still have to pick a single rate within it. The revenue gap is the other figure they must reconcile with the profit result.
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