How does T. Rowe Price (TROW) make money?

T. Rowe Price (TROW) generates revenue primarily from Asset Management, which accounted for 98.4% of total revenue in TTM through Q1 2026. The company reported $7.41B in revenue and converted 28.3% of it into net profit, equivalent to roughly $2.09B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of T. Rowe Price (TROW)?

T. Rowe Price (TROW) reported a gross profit margin of 69.1% in TTM through Q1 2026, equivalent to $5.12B in gross profit on $7.41B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of T. Rowe Price (TROW)?

T. Rowe Price (TROW) reported an operating profit margin of 30.2% in TTM through Q1 2026, equivalent to $2.24B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of T. Rowe Price (TROW)?

T. Rowe Price (TROW) reported a net profit margin of 28.3% in TTM through Q1 2026, equivalent to $2.09B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is T. Rowe Price (TROW) profitable?

Yes. T. Rowe Price (TROW) reported $2.09B in net income for TTM through Q1 2026, with a net profit margin of 28.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does T. Rowe Price (TROW) spend on capital expenditures?

T. Rowe Price (TROW) spent $110M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.5% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does T. Rowe Price (TROW) generate?

T. Rowe Price (TROW) generated $2.34B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 31.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of T. Rowe Price (TROW)?

T. Rowe Price (TROW) had an effective tax rate of 23% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of T. Rowe Price (TROW)?

T. Rowe Price (TROW) reports revenue across 2 reportable product segments, led by Asset Management at 98.4% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How T. Rowe Price Makes Money: 2026 Visual Revenue Map

T. Rowe Price (TROW) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 30, 2026).

T. Rowe Price discloses geographic revenue only in annual filings. to view the full breakdown.

T. Rowe Price (TROW) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for T. Rowe Price (TROW), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Asset Management	$7.29B	98.4%
Capital Allocation Based Income	$120M	1.6%
Total	$7.41B	100%

Asset Management$7.29B
Capital Allocation Based Income$120M
Total$7.41B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, T. Rowe Price (TROW) reports revenue across 2 reportable product segments; the largest segment was Asset Management at 98.4%, followed by Capital Allocation Based Income (1.6%).

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