Franklin Resources (NYSE:BEN) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Franklin Resources (NYSE:BEN) posted its quarterly earnings results on Friday. The closed-end fund reported $0.72 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06, FiscalAI reports. The firm had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $1.76 billion. Franklin Resources had a return on equity of 10.58% and a net margin of 8.12%.The business’s revenue was up 14.3% compared to the same quarter last year. During the same period last year, the company earned $0.49 earnings per share.

Here are the key takeaways from Franklin Resources’ conference call:

• Broad-based organic growth: Franklin Templeton reported $18.4 billion in long-term net inflows for the quarter and $63.3 billion year to date, with positive flows across every asset class and geography; assets under management reached a record $1.8 trillion.
• Private markets exceeded expectations: Alternatives AUM reached a record $294 billion, while private-markets fundraising totaled $10.3 billion in the quarter and $33 billion year to date. Management now expects roughly $40 billion of private-markets fundraising for fiscal 2026, above its original $25 billion–$30 billion target.
• Growth platforms continued to scale: ETF AUM reached $75.6 billion with $7.1 billion of quarterly inflows, retail SMAs reached $187.6 billion with $4.4 billion of inflows, and Canvas AUM grew to $30.3 billion with $3.7 billion of inflows.
• Profitability improved: Adjusted operating income rose 35% year over year to $508.9 million, supported by higher average AUM, expense discipline and efficiency initiatives. Management expects operating margins near 30% in the fiscal fourth quarter and 29%–30% for full-year 2027, assuming flat markets.
• Public-private integration is a key strategic focus: Management is positioning its $620 billion combined public- and private-credit platform to win multi-asset credit mandates, while continuing to re-engage clients of Western Asset. Executives also noted ongoing pressure from distribution and platform fees, though they characterized it as a normal feature of the industry.

Franklin Resources Stock Performance

Shares of BEN traded up $0.74 during mid-day trading on Friday, reaching $33.91. The company’s stock had a trading volume of 10,847,843 shares, compared to its average volume of 5,088,683. Franklin Resources has a 1-year low of $21.10 and a 1-year high of $34.92. The stock has a market cap of $17.62 billion, a P/E ratio of 25.89, a PEG ratio of 0.72 and a beta of 1.54. The business has a 50-day simple moving average of $32.62 and a two-hundred day simple moving average of $28.79. The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 1.10.

Franklin Resources Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Monday, June 29th were paid a $0.33 dividend. The ex-dividend date was Monday, June 29th. This represents a $1.32 annualized dividend and a yield of 3.9%. Franklin Resources’s dividend payout ratio is currently 100.76%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the company. Evercore reiterated an “underperform” rating and set a $35.00 price objective on shares of Franklin Resources in a research note on Friday, July 10th. Wall Street Zen raised shares of Franklin Resources from a “hold” rating to a “buy” rating in a research note on Sunday, June 14th. TD Cowen boosted their target price on shares of Franklin Resources from $37.00 to $40.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. The Goldman Sachs Group upped their price target on shares of Franklin Resources from $30.50 to $34.00 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Finally, Morgan Stanley increased their price target on shares of Franklin Resources from $31.00 to $34.00 and gave the company an “equal weight” rating in a research note on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $32.00.

Key Headlines Impacting Franklin Resources

Here are the key news stories impacting Franklin Resources this week:

• Positive Sentiment: Adjusted earnings exceeded expectations. Franklin Resources reported quarterly adjusted EPS of $0.72, above the $0.66 consensus estimate and up from $0.49 a year earlier. Revenue of approximately $2.28 billion also surpassed the $1.76 billion estimate and increased 14.3% year over year. Franklin Resources Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Asset flows improved. Assets under management reached approximately $1.79 trillion at June 30, while the quarter included $18.4 billion of long-term net inflows. Western Asset Management’s $1 billion of long-term net outflows was described as a better flow result than in prior periods, supporting investor confidence in the firm’s ability to retain and attract assets. Franklin Resources Rises as Earnings Beat and Asset Flows Stay Firm
• Positive Sentiment: Capital returns supported the stock. Franklin Resources repurchased 10.4 million shares for $348.1 million during the quarter and returned a total of $521.5 million to shareholders, including buybacks. These actions may improve per-share value and signal management’s confidence in the company’s financial position. Franklin Resources Reports Quarterly Net Income
• Neutral Sentiment: Corporate name change announced. Effective August 17, 2026, the company will become Franklin Templeton, Inc., while continuing to trade under the BEN ticker. The rebrand may have limited immediate financial impact but reinforces the Franklin Templeton identity. Franklin Resources Rebrands as Franklin Templeton
• Negative Sentiment: GAAP earnings declined sequentially. Reported net income was $171.5 million, or $0.31 per diluted share, compared with $268.2 million, or $0.49 per share, in the prior quarter. Investors appear to be emphasizing adjusted results and revenue growth, but the sequential decline remains a risk to monitor. Franklin Resources Announces Third Quarter Results

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Holocene Advisors LP bought a new position in Franklin Resources during the second quarter worth $51,384,000. Northern Trust Corp raised its position in shares of Franklin Resources by 49.8% in the third quarter. Northern Trust Corp now owns 4,118,686 shares of the closed-end fund’s stock valued at $95,265,000 after purchasing an additional 1,370,132 shares during the period. Squarepoint Ops LLC raised its position in shares of Franklin Resources by 381.7% in the third quarter. Squarepoint Ops LLC now owns 1,433,816 shares of the closed-end fund’s stock valued at $33,164,000 after purchasing an additional 1,136,174 shares during the period. Two Sigma Investments LP lifted its stake in shares of Franklin Resources by 167.5% during the 3rd quarter. Two Sigma Investments LP now owns 1,494,817 shares of the closed-end fund’s stock worth $34,575,000 after buying an additional 936,105 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Franklin Resources by 8.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 10,882,860 shares of the closed-end fund’s stock worth $259,988,000 after buying an additional 816,952 shares during the last quarter. 47.56% of the stock is owned by institutional investors and hedge funds.

About Franklin Resources

Franklin Resources, Inc, doing business as Franklin Templeton, is a global investment management organization that offers a wide range of asset management solutions to institutional and individual investors. The firm’s core focus is on delivering active portfolio management across equities, fixed income, multi-asset strategies and alternative investments. Franklin Templeton’s product lineup includes mutual funds, exchange-traded funds (ETFs), closed-end funds, separately managed accounts and sub-advisory services designed to meet varying risk-return objectives and income needs.

Founded in 1947 by Rupert H.