Franklin Resources Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did BEN Beat Earnings? Q4 2025 Results
Franklin Resources delivered a stronger-than-expected fourth fiscal quarter, with adjusted diluted EPS of $0.67 beating the $0.59 consensus estimate by 14.02% and revenue of $2.34 billion clearing expectations by 7.61% on 6.0% year-over-year growth, as a meaningful reduction in intangible asset impairment charges helped swing GAAP net income to $117.60 million from a loss of $84.70 million a year earlier. The most consequential underlying dynamic remained the drag from Western Asset Management, which logged $23.30 billion in long-term net outflows during the quarter alone, though the broader franchise continued to show resilience, with the rest of the business generating $11.40 billion in net inflows for an eighth straight quarter of positive flows on that basis. Alternatives AUM reached $270.00 billion following the Apera Asset Management acquisition, while total AUM of $1.66 trillion rose 3% sequentially. CEO Jenny Johnson pointed to a healthy institutional pipeline of $20.40 billion in won-but-unfunded mandates as reason for confidence heading into fiscal 2026, with alternatives, retail SMAs, and ETFs cited as key growth vectors.
- Long-term inflows increased across every asset class to $84.6 billion, up 12% from prior quarter
- Excluding Western Asset Management, $11.4 billion in net inflows for eighth consecutive quarter of positive flows
- Alternative AUM reached record $270 billion after Apera acquisition and $26.2 billion in fundraising
- Retail SMAs, ETFs and Canvas each delivered positive net flows with double-digit AUM growth rates
- Investment management fees increased 6% year-over-year to $1,868.1 million
- Adjusted operating income increased 25% quarter-over-quarter to $472.4 million
“Franklin Templeton delivered solid fourth quarter and fiscal year 2025 results, demonstrating continued growth and diversification across our global platform. Momentum continued in the fourth quarter with progress across key growth areas. Long-term inflows increased across every asset class to $84.6 billion, an increase of 12% from the prior quarter. Long-term net outflows totaled $11.9 billion. Excluding Western Asset Management, we had $11.4 billion in net inflows, our eighth consecutive quarter of positive flows, excluding Western Asset. Importantly, our institutional pipeline of won-but-unfunded mandates remains healthy at $20.4 billion following record fundings in the quarter.”
Franklin Resources CEO, on the earnings call
Forward Guidance & Outlook
CEO Jenny Johnson expressed confidence entering fiscal 2026, stating that the company's business strategy positions it well to capture long-term trends reshaping the industry across public and private markets. The institutional pipeline of won-but-unfunded mandates remains healthy at $20.4 billion. The company continues to focus on growth in alternatives, retail SMAs, ETFs, and Canvas while maintaining expense discipline.
BEN YoY Financials
BEN Revenue by Segment
BEN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.