Franklin Resources Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did BEN Beat Earnings? Q3 2025 Results
Franklin Resources delivered a mixed fiscal third quarter, falling short on both top and bottom lines as softening revenues and rising costs weighed on results. The asset management giant posted adjusted earnings of $0.49 per diluted share, missing the $0.50 consensus estimate by 2.39%, while revenue of $2.06 billion trailed expectations by 1.10% and slipped 2.8% from a year ago. The headline disappointment masked some underlying momentum: GAAP net income tumbled 47% year-over-year to $92.30 million, pressured by a 34% surge in intangible asset amortization to $112.20 million and sharply lower investment income, compressing the GAAP operating margin to 7.5% from 10.5%. Yet total AUM climbed 5% during the quarter to $1.61 trillion, buoyed by $78.00 billion in positive net market change, and long-term net outflows narrowed dramatically to $9.30 billion from $26.20 billion last quarter. Management pointed to a record institutional pipeline of $24.40 billion in won-but-unfunded mandates and the pending acquisition of European private credit firm Apera Asset Management as evidence the firm's diversified platform is gaining traction with clients navigating volatile markets.
- Long-term net outflows improved significantly to $9.3 billion from $26.2 billion last quarter
- Excluding Western Asset Management, long-term net inflows of $7.8 billion for seventh consecutive quarter
- Positive net market change, distributions, and other of $78.0 billion drove AUM increase
- ETF platform attracted $4.3 billion in net flows, 15th consecutive quarter of positive net flows
- Canvas custom indexing AUM grew 20% sequentially to $13.7 billion
- Alternatives fundraising of $6.2 billion in the quarter, $5.3 billion in private markets
- Institutional pipeline of won-but-unfunded mandates rose to record $24.4 billion
“As investors navigate today's complex market and geopolitical landscape, we remain committed to being a trusted partner to our clients, offering solutions across public and private markets. This quarter, we saw progress across asset classes, investment vehicles and geographies, highlighting the strength of our diversified global platform. Long-term net outflows were $9.3 billion, a significant improvement from last quarter, and excluding Western Asset Management, long-term net inflows were $7.8 billion, the seventh consecutive quarter of positive net flows. Our institutional pipeline of won-but-unfunded mandates rose by net $4 billion to a record $24.4 billion, reflecting strong client demand across all asset classes.”
Franklin Resources CEO, on the earnings call
Forward Guidance & Outlook
Franklin Resources indicated it is well positioned to help clients navigate the current period of market volatility by offering comprehensive solutions across public and private markets. The company highlighted its record institutional pipeline of won-but-unfunded mandates at $24.4 billion, reflecting strong client demand across all asset classes. Management emphasized continued focus on expense discipline and operational efficiencies, and noted the balance sheet remains strong for strategic investments and shareholder capital returns. The pending acquisition of Apera Asset Management is expected to expand direct lending capabilities across Europe's lower middle market.
BEN YoY Financials
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Figures from SEC filings and company reports. Not investment advice.