Franklin Resources Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.29%.
Did BEN Beat Earnings? Q2 2026 Results
Franklin Resources delivered a standout fiscal second quarter, with earnings per share of $0.71 beating the $0.55 consensus estimate by 28.65% and revenue of $2.29 billion topping expectations by 11.77% on 8.7% year-over-year growth. The most material driver behind the beat was a dramatic improvement in operating leverage: GAAP operating income more than doubled to $323.30 million as total operating expenses held essentially flat year-over-year at $1.97 billion, pushing operating margin to 14.1% from 6.9% a year ago. Equally notable was a sharp swing in long-term net flows, with the firm generating $16.90 billion in net inflows compared to $26.20 billion in net outflows in the prior-year quarter, led by strength in alternatives and multi-asset strategies. AUM closed the quarter at $1.68 trillion and has since climbed to $1.74 trillion as of April 30, reflecting continued momentum. CEO Jenny Johnson noted the company's multi-year strategy remains ahead of plan, with private markets fundraising, ETFs, and custom indexing identified as key engines of sustainable growth going forward.
- $17 billion in long-term net inflows across public and private markets, reversing $26.2 billion of net outflows a year ago
- Long-term inflows of $118 billion, up from $86.8 billion in the prior-year quarter
- $14.3 billion in alternatives fundraising including $13.2 billion in private market assets
- $9.5 billion in multi-asset net inflows, 19th consecutive quarter of positive flows in that asset class
- ETFs and Canvas reached record AUM with $4.5 billion and $5.3 billion in net inflows respectively
- Positive long-term net flows in every region
- Improved gross sales across all asset classes
- Absence of prior-year intangible asset impairment charge of $24.4 million
- Reduction in amortization of intangible assets to $50.6 million from $112.5 million year-over-year
“Franklin Templeton delivered another strong quarter, with $17 billion in long-term net inflows across public and private markets, reflecting the strength of our diversified global platform. We saw improved gross sales across all asset classes, and importantly, positive long-term net flows in every region, demonstrating the impact of our local client engagement and global reputation.”
Franklin Resources CEO, on the earnings call
Forward Guidance & Outlook
CEO Jenny Johnson indicated that while markets remain uncertain, the company's multi-year strategy is clear and ahead of plan. The firm is focused on delivering strong investment outcomes, deepening client relationships, and evolving capabilities to drive sustainable long-term growth. Key growth areas include alternatives/private markets fundraising, ETFs, Canvas custom indexing, and multi-asset strategies.
BEN YoY Financials
BEN Revenue by Segment
BEN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.