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

Franklin Resources (NYSE:BEN) posted its quarterly earnings data on Friday. The closed-end fund reported $0.72 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.06, FiscalAI reports. The company had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $1.76 billion. Franklin Resources had a return on equity of 10.58% and a net margin of 8.12%.The firm’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same period last year, the firm 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 Trading Up 2.2%

Franklin Resources stock traded up $0.74 during midday trading on Friday, reaching $33.91. The stock had a trading volume of 10,847,843 shares, compared to its average volume of 5,088,683. The stock’s 50-day simple moving average is $32.62 and its 200 day simple moving average is $28.79. Franklin Resources has a twelve month low of $21.10 and a twelve month high of $34.92. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.87 and a current ratio of 1.87. The stock has a market capitalization of $17.62 billion, a PE ratio of 25.89, a price-to-earnings-growth ratio of 0.72 and a beta of 1.54.

Franklin Resources Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Monday, June 29th were issued a $0.33 dividend. The ex-dividend date was Monday, June 29th. This represents a $1.32 dividend on an annualized basis and a yield of 3.9%. Franklin Resources’s dividend payout ratio (DPR) is presently 100.76%.

Key Stories 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

Hedge Funds Weigh In On Franklin Resources

Large investors have recently modified their holdings of the company. Mariner LLC increased its holdings in Franklin Resources by 0.7% during the 4th quarter. Mariner LLC now owns 56,151 shares of the closed-end fund’s stock worth $1,341,000 after purchasing an additional 377 shares in the last quarter. Zions Bancorporation National Association UT grew its position in Franklin Resources by 35.5% in the fourth quarter. Zions Bancorporation National Association UT now owns 1,512 shares of the closed-end fund’s stock valued at $36,000 after purchasing an additional 396 shares in the last quarter. Public Employees Retirement System of Ohio grew its position in Franklin Resources by 0.5% in the third quarter. Public Employees Retirement System of Ohio now owns 102,708 shares of the closed-end fund’s stock valued at $2,376,000 after purchasing an additional 497 shares in the last quarter. CANADA LIFE ASSURANCE Co increased its stake in Franklin Resources by 0.4% in the 4th quarter. CANADA LIFE ASSURANCE Co now owns 124,376 shares of the closed-end fund’s stock valued at $2,972,000 after buying an additional 548 shares during the last quarter. Finally, Gotham Asset Management LLC increased its stake in Franklin Resources by 0.5% in the 3rd quarter. Gotham Asset Management LLC now owns 122,857 shares of the closed-end fund’s stock valued at $2,842,000 after buying an additional 641 shares during the last quarter. 47.56% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on BEN. Weiss Ratings raised shares of Franklin Resources from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, June 3rd. Evercore reissued an “underperform” rating and issued a $35.00 price objective on shares of Franklin Resources in a research note on Friday, July 10th. Wall Street Zen raised Franklin Resources from a “hold” rating to a “buy” rating in a report on Sunday, June 14th. JPMorgan Chase & Co. raised their price target on shares of Franklin Resources from $28.00 to $31.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 29th. Finally, Morgan Stanley raised their price objective on Franklin Resources from $31.00 to $34.00 and gave the stock an “equal weight” rating in a report on Friday, June 26th. One research 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 given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $32.00.

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.