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

Franklin Resources (NYSE:BEN) issued 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 business 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 quarterly revenue was up 14.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.49 EPS.

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 NYSE BEN traded up $0.74 during midday trading on Friday, hitting $33.91. 11,415,336 shares of the company’s stock were exchanged, compared to its average volume of 5,128,134. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.87 and a quick ratio of 1.87. The stock’s 50 day moving average price is $32.62 and its 200-day moving average price is $28.79. The firm 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. Franklin Resources has a twelve month low of $21.10 and a twelve month high of $34.92.

Franklin Resources Announces Dividend

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

Wall Street Analysts Forecast Growth

BEN has been the subject of a number of research reports. Barclays lifted their price objective on shares of Franklin Resources from $31.00 to $34.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 14th. Morgan Stanley raised their price target on shares of Franklin Resources from $31.00 to $34.00 and gave the stock an “equal weight” rating in a research report on Friday, June 26th. Wall Street Zen raised shares of Franklin Resources from a “hold” rating to a “buy” rating in a report on Sunday, June 14th. Weiss Ratings raised shares of Franklin Resources from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, June 3rd. Finally, JPMorgan Chase & Co. raised their price target on Franklin Resources from $28.00 to $31.00 and gave the stock a “neutral” rating in a report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Franklin Resources presently has a consensus rating of “Hold” and an average target price of $32.00.

Key Headlines Impacting Franklin Resources

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

• Positive Sentiment: Earnings and revenue beat estimates: Franklin reported adjusted earnings of approximately $0.72 per share, above the $0.66 consensus estimate and up from $0.49 a year earlier. Revenue reached about $2.28 billion, exceeding the $1.76 billion estimate and increasing 14.3% year over year. Franklin Resources Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Record AUM and healthier flows: Assets under management reached approximately $1.79 trillion at June 30, supported by market gains and $18.4 billion of long-term net inflows. Western Asset Management’s $1 billion of long-term outflows represented an improvement over recent periods, suggesting better asset-gathering momentum. Franklin Q3 Earnings Beat on Higher Revenues, AUM Hits Record High
• Positive Sentiment: Capital returns supported the investment case: Franklin repurchased 10.4 million shares for $348.1 million and returned $521.5 million to shareholders during the quarter, including dividends and buybacks. Franklin Resources Reports Quarterly Net Income
• Neutral Sentiment: Corporate rebranding: The company will change its name to Franklin Templeton, Inc. on August 17, 2026, while retaining the NYSE ticker BEN. The change may improve brand alignment but does not directly alter operations or shareholder economics. Franklin Resources Rebrands as Franklin Templeton
• Negative Sentiment: GAAP results and expenses remain concerns: Reported net income was $171.5 million, or $0.31 per diluted share, below the prior quarter’s $268.2 million and $0.49 per share. Higher expenses also tempered the otherwise strong quarter.

Institutional Trading of Franklin Resources

Several hedge funds have recently added to or reduced their stakes in BEN. Dimensional Fund Advisors LP grew its stake in shares of Franklin Resources by 8.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 10,882,860 shares of the closed-end fund’s stock worth $259,988,000 after purchasing an additional 816,952 shares in the last quarter. Invesco Ltd. raised its stake in shares of Franklin Resources by 8.2% during the fourth quarter. Invesco Ltd. now owns 10,122,937 shares of the closed-end fund’s stock valued at $241,837,000 after purchasing an additional 768,707 shares in the last quarter. Northern Trust Corp raised its stake in shares of Franklin Resources by 49.8% during 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 in the last quarter. Kopernik Global Investors LLC lifted its holdings in Franklin Resources by 23.2% in the fourth quarter. Kopernik Global Investors LLC now owns 3,369,165 shares of the closed-end fund’s stock worth $80,489,000 after purchasing an additional 633,541 shares during the period. Finally, Holocene Advisors LP bought a new position in Franklin Resources in the 2nd quarter valued at about $51,384,000. Institutional investors own 47.56% of the company’s stock.

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.