Franklin Resources (NYSE:BEN) Announces Earnings Results

Franklin Resources (NYSE:BEN) posted its earnings results on Friday. The closed-end fund reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.15, FiscalAI reports. Franklin Resources had a net margin of 5.98% and a return on equity of 9.12%. The business had revenue of $1.75 billion for the quarter, compared to analysts’ expectations of $2.23 billion. During the same quarter in the prior year, the business earned $0.59 EPS. The business’s revenue for the quarter was up 3.4% compared to the same quarter last year.

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

• Franklin reported record scale with $1.68 trillion AUM and strong client activity—record long‑term inflows of $118.6 billion and long‑term net inflows of $28 billion (or $34.6 billion excluding Western), marking nine consecutive quarters of positive comparable flows.
• Private markets and alternatives are a growth engine: $274 billion in alternatives AUM, $10.8 billion raised this quarter (including $9.5 billion private), strategic bolt‑ons like the Apera acquisition, and expanded private credit and perpetual fund offerings.
• Management is targeting margin expansion via cost savings and scale—$437.3 million adjusted operating income this quarter, a $200 million cost‑savings program (20% realized in Q1), and guidance to exit fiscal 2026 in the high‑20s margin with a target of >30% in fiscal 2027 if plans hold.
• Retail and distribution momentum: ETFs reached a new high of $58 billion (17th consecutive positive quarter) with strong active ETF and Canvas/SMAs adoption (Canvas at $18 billion AUM), supported by new AI tools like the Intelligence Hub to boost sales effectiveness.
• Near‑term headwinds include fixed‑income pressure (net outflows of ~$2.4 billion excluding Western), some short‑term performance declines in 1‑ and 3‑year periods for select strategies, and ongoing remediation/support for Western Asset that has weighed on margins.

Franklin Resources Stock Performance

Shares of NYSE BEN traded up $0.47 during trading on Friday, hitting $26.35. The company had a trading volume of 9,094,042 shares, compared to its average volume of 4,916,198. Franklin Resources has a 12 month low of $16.25 and a 12 month high of $26.90. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.40 and a current ratio of 1.40. The firm has a market capitalization of $13.74 billion, a P/E ratio of 29.04, a price-to-earnings-growth ratio of 1.22 and a beta of 1.44. The stock has a 50 day simple moving average of $24.18 and a 200 day simple moving average of $24.01.

Franklin Resources Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Tuesday, December 30th were given a $0.33 dividend. The ex-dividend date was Tuesday, December 30th. This is a positive change from Franklin Resources’s previous quarterly dividend of $0.32. This represents a $1.32 dividend on an annualized basis and a yield of 5.0%. Franklin Resources’s dividend payout ratio (DPR) is currently 145.05%.

Franklin Resources News Summary

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

• Positive Sentiment: Q1 EPS beat consensus — Franklin reported $0.70 EPS vs. the $0.55 consensus, driven by net inflows that lifted profitability; this EPS surprise is a primary driver of the positive market reaction. Franklin Resources Q1 profit exceeds consensus on net inflows
• Positive Sentiment: Profitability and operating income improved sharply — net income and operating income rose significantly year-over-year and sequentially (net income $255.5M; operating income up materially), supporting margins and earnings per share. Franklin Resources, Inc. Announces First Quarter Results
• Neutral Sentiment: Revenue rose modestly year-over-year (+3.4%) and management provided slide materials and a press release for more detail — investors can review the deck for AUM, inflow composition and segment breakdowns to assess sustainability. View Press Release
• Negative Sentiment: Revenue missed analyst expectations — quarterly revenue was $1.75B versus ~$2.23B consensus, which tempers the EPS beat and raises questions about top-line momentum. Franklin Resources (BEN) Q1 Earnings and Revenues Surpass Estimates
• Negative Sentiment: Analyst sentiment remains cautious — some brokerages maintain a “Reduce” consensus and analysts flag mixed near-term outlook despite recent outperformance, which could limit upside until revenue/AUM trends improve. Franklin Resources, Inc. (NYSE:BEN) Receives Consensus Rating of “Reduce” from Brokerages Do Wall Street Analysts Like Franklin Resources Stock?

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on BEN. Barclays increased their price objective on shares of Franklin Resources from $22.00 to $25.00 and gave the company an “underweight” rating in a research report on Thursday, January 15th. Wall Street Zen cut Franklin Resources from a “buy” rating to a “hold” rating in a report on Sunday, December 14th. JPMorgan Chase & Co. cut their price objective on Franklin Resources from $26.00 to $25.00 and set a “neutral” rating for the company in a report on Monday, November 10th. TD Cowen reduced their price objective on Franklin Resources from $31.00 to $30.00 and set a “buy” rating for the company in a research report on Wednesday, January 14th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Franklin Resources in a research report on Monday, December 29th. Three research analysts have rated the stock with a Buy rating, five have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $24.64.

Institutional Investors Weigh In On Franklin Resources

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BEN. Northern Trust Corp boosted 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 worth $95,265,000 after purchasing an additional 1,370,132 shares during the period. Holocene Advisors LP purchased a new position in shares of Franklin Resources during the 2nd quarter valued at $51,384,000. Bank of America Corp DE boosted its holdings in Franklin Resources by 41.7% in the 2nd quarter. Bank of America Corp DE now owns 1,637,376 shares of the closed-end fund’s stock worth $39,051,000 after buying an additional 481,980 shares during the period. Two Sigma Investments LP boosted its holdings in Franklin Resources by 167.5% in 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 period. Finally, Squarepoint Ops LLC increased its stake in Franklin Resources by 381.7% in the 3rd quarter. Squarepoint Ops LLC now owns 1,433,816 shares of the closed-end fund’s stock worth $33,164,000 after buying an additional 1,136,174 shares in the last quarter. 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.