T. Rowe Price Group Inc.

Headline results & capital return - Q2 2026 adjusted diluted EPS: $2.57 (vs $2.52 in Q1 2026, $2.24 in Q2 2025). - Net outflows: $6.5B in Q2 (outflow pressure persists, especially April), but May and June were positive due to large wins. - Buybacks: $157M repurchased in Q2; $497M+ YTD (~2.5% of shares). Share count ended Q2 at 213.3M. - Balance sheet: $4.4B cash & discretionary investments (supports investment + opportunistic M&A).

Flows outlook (what management expects next) - Strategic message: active equity remains under pressure; management expects this to continue in 2H 2026. - Second-half expectations (explicit): net flows expected to be meaningfully more challenging than 1H, driven by: - ongoing open-ended mutual fund and some growth strategy outflows, - absence of the large mandates that boosted May/June, - Q3 rebalancing away from equities after YTD gains, - a noted “air pocket” in late-stage TDF pipeline, implying lull in Q3/Q4 TDF flows. - Despite that, positives: management still expects 2026 to be a record year for gross flows.

Revenue/expense guidance & key cost risk - Adjusted net revenue (Q2): $1.9B (+2.7% vs Q1, +8.5% vs Q2 2025), helped by higher AUM; partially offset by lower change in accrued carried interest. - Fee rate pressure: annualized effective fee rate (ex-performance) 38.1 bps vs 38.4 bps in Q1—mix shift toward lower-fee strategies/vehicles and redemption pressure in higher-fee equity. - Expense guidance (important): full-year adjusted operating expenses (ex-carried interest expense) expected up 4%–7% vs 2025 (2025 base $4.6B). - How they reconcile AI/tech with costs: they aim to keep controllable expense growth in low single-digits by combining tech/AI productivity gains with cost-savings efforts, while investing for ETF/SMA growth and other priorities.