TROW · 10-Q · 2026Q3 · Full report
Operating Margin Drivers
PRICE T ROWE GROUP INC · 2026-10-29 · Importance 41 · Surprise 22 · No source text
GAAP operating margin increased to 38.4% in Q3 2026 from 34.0% in Q3 2025 as revenue grew and operating expenses declined. For the nine months ended September 30, 2026, operating margin rose to 34.5% from 31.9% in 2025. Year-to-date net revenues increased 7.2% to $5,769.3 million, outpacing the 3.2% increase in GAAP operating expenses to $3,778.5 million. Adjusted operating income increased 9.6% to $2,224.4 million for the nine-month period.
Key facts
- Q3 2026 U.S. GAAP operating margin was 38.4%, compared with 34.0% in Q3 2025, driven by revenue growth and lower operating expenses. source
- Nine-month 2026 U.S. GAAP operating margin was 34.5%, compared with 31.9% in 2025, as revenue growth outpaced expense growth, primarily due to higher investment advisory fees. source
- Adjusted diluted EPS was $2.86 in Q3 2026, compared with $2.81 in Q3 2025, primarily due to lower weighted-average shares outstanding. source
- Adjusted diluted EPS was $7.95 for the nine months ended September 30, 2026, compared with $7.28 in 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +4.4% | Q3 2026 U.S. GAAP operating margin was 38.4%, compared with 34.0% in Q3 2025, driven by revenue growth and lower operating expenses. |
| margin | positive | realized | +2.6% | Nine-month 2026 U.S. GAAP operating margin was 34.5%, compared with 31.9% in 2025, as revenue growth outpaced expense growth, primarily… |