Franklin Resources (NYSE:BEN) Releases Earnings Results, Beats Expectations By $0.17 EPS

Franklin Resources (NYSE:BEN) posted its quarterly earnings data on Friday. The closed-end fund reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.17, FiscalAI reports. Franklin Resources had a net margin of 8.72% and a return on equity of 11.55%. The firm had revenue of $1.88 billion during the quarter, compared to analysts’ expectations of $1.86 billion. During the same quarter in the previous year, the company posted $0.67 EPS. Franklin Resources’s revenue was up 3.9% on a year-over-year basis.

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

• Franklin Templeton reported $84.1 billion in long-term net inflows for fiscal 2026, with positive flows in every quarter across regions and channels. Adjusted operating income rose 23% and adjusted operating margin expanded 350 basis points to 28%.
• Private-markets fundraising reached $43.2 billion for the year, and the company raised its fiscal 2029 fundraising target from $100 billion to $150 billion. Management cited demand across secondaries, private credit, real estate, and venture, while noting fiscal 2027 fundraising is expected to be around the mid-$30 billions.
• ETFs and Canvas both exceeded growth expectations: ETF AUM reached $84.6 billion and Canvas AUM reached $32.6 billion. Franklin Templeton more than doubled its fiscal 2029 targets to $200 billion for ETFs and $100 billion for Canvas.
• Management expects adjusted operating margin to reach approximately 30% in fiscal 2027 and raised its fiscal 2029 goal to 35%, citing growth, cost discipline, and operational efficiencies. The outlook assumes flat markets, and fiscal 2027 adjusted expenses are expected to be in line with or slightly above fiscal 2026.

Franklin Resources Stock Up 5.1%

Shares of Franklin Resources stock opened at $33.84 on Friday. The business has a fifty day simple moving average of $32.58 and a 200 day simple moving average of $30.38. The stock has a market cap of $17.19 billion, a PE ratio of 17.09, a price-to-earnings-growth ratio of 0.60 and a beta of 1.56. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 1.22. Franklin Resources has a 12 month low of $21.10 and a 12 month high of $36.28.

Franklin Resources Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Wednesday, September 30th were paid a dividend of $0.33 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.9%. Franklin Resources’s payout ratio is 89.80%.

Key Franklin Resources News

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

• Positive Sentiment: Adjusted earnings were $0.94 per share, above analyst expectations of roughly $0.77–$0.78 and up from $0.67 a year earlier. Revenue of $1.88 billion also topped estimates of $1.86 billion and increased 3.9% year over year. Article: Franklin Templeton Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Reports attributed the results to higher revenue, year-over-year growth in assets under management, robust long-term net inflows and lower operating expenses—indicators that support earnings momentum. Article: Franklin Q4 Earnings Beat Estimates on Higher Revenues, AUM Rises Year Over Year

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. JPMorgan Chase & Co. lifted their target price on Franklin Resources from $34.00 to $35.00 and gave the company a “neutral” rating in a research note on Monday, October 12th. UBS Group assumed coverage on Franklin Resources in a report on Wednesday, October 7th. They issued a “buy” rating and a $40.00 price target on the stock. Weiss Ratings reiterated a “buy (b-)” rating on shares of Franklin Resources in a research report on Monday, August 31st. Zacks Research cut Franklin Resources from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 25th. Finally, Keefe, Bruyette & Woods assumed coverage on shares of Franklin Resources in a research report on Wednesday, September 9th. They set a “hold” rating and a $38.00 target price on the stock. Four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Franklin Resources presently has a consensus rating of “Hold” and an average price target of $35.89.

Franklin Resources Company Profile

Franklin Resources, Inc is a global investment management company that operates under the Franklin Templeton name. It offers investment products and services to individual investors, financial professionals, institutions and other clients, including mutual funds, exchange-traded funds and separately managed accounts.

The company invests across a range of asset classes and strategies, including equities, fixed income, multi-asset portfolios and alternative investments. Its services also include retirement solutions and wealth management.

Founded in 1947, Franklin Resources has grown through acquisitions, including its 2020 acquisition of Legg Mason.