Franklin Resources (NYSE:BEN – Get Free Report) released its quarterly earnings data on Tuesday. The closed-end fund reported $0.71 EPS for the quarter, topping analysts’ consensus estimates of $0.55 by $0.16, FiscalAI reports. Franklin Resources had a return on equity of 9.58% and a net margin of 6.97%.The business had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.70 billion. During the same period in the prior year, the firm posted $0.47 EPS. The business’s revenue for the quarter was up 8.7% on a year-over-year basis.
Here are the key takeaways from Franklin Resources’ conference call:
- Franklin reported $16.9 billion of long‑term net inflows, record gross sales and total AUM of $1.68 trillion, saying the firm is ahead of its five‑year plan.
- Alternatives and private markets were a major driver — the firm raised $14.3 billion this quarter (including $13.2 billion in private markets), with alternative AUM of $283 billion and management expecting full‑year fundraising to exceed prior targets.
- Scale in ETFs and personalization is building momentum: ETF AUM reached $61.6 billion (up 67% year‑over‑year) and Canvas hit $22.9 billion with $5.3 billion of net flows; tax‑managed products total $110 billion.
- Financial outlook — adjusted operating income was $475 million (up 25.8% YoY) and management forecasts margin expansion (Q4 in the high‑20s, full year in the mid‑20s to high‑20s), while guiding for higher near‑term expenses tied to AI investments and elevated fundraising costs.
- Near‑term risks include $4.7 billion equity net outflows and ~$300 million fixed‑income outflows (Western Asset drag), ongoing elevated fundraising‑related G&A, and potential regulatory/market scrutiny around secondaries valuation practices (e.g., Lexington).
Franklin Resources Stock Up 0.6%
Shares of NYSE:BEN traded up $0.19 during mid-day trading on Wednesday, hitting $29.65. 1,221,056 shares of the company traded hands, compared to its average volume of 5,411,878. The firm’s 50 day simple moving average is $25.56 and its 200 day simple moving average is $24.61. The firm has a market cap of $15.44 billion, a P/E ratio of 27.41, a PEG ratio of 1.06 and a beta of 1.44. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.86 and a current ratio of 1.86. Franklin Resources has a 52-week low of $18.17 and a 52-week high of $30.28.
Franklin Resources Dividend Announcement
Franklin Resources News Summary
Here are the key news stories impacting Franklin Resources this week:
- Positive Sentiment: Q2 beat on both EPS and revenue, which supports near‑term upside as earnings surprised expectations and revenue rose year‑over‑year. Franklin Resources (BEN) Beats Q2 Earnings and Revenue Estimates
- Positive Sentiment: Large long‑term net inflows and strength in alternatives and multi‑asset strategies signal higher fee income and better revenue mix (alternatives fundraising ~$14.3B; long‑term net flows +$16.9B). Franklin Resources rallies as quarterly results highlight strong inflows, higher profits, and buybacks
- Positive Sentiment: Company repurchased shares (~2.3M shares for ~$57.1M) during the quarter — a direct boost to EPS and signal of capital‑return priority. Franklin Resources rallies as quarterly results highlight strong inflows, higher profits, and buybacks
- Positive Sentiment: Earnings‑call commentary and the company slide deck emphasized growth momentum (scaling alternatives, private markets and multi‑asset flows), which supports investor confidence in forward fee growth. Franklin Resources Earnings Call Highlights Growth Momentum
- Neutral Sentiment: Earnings call transcript and presentation are available for deeper review (useful for modeling fee margin trajectory and flow sustainability). Franklin (BEN) Q2 2026 Earnings Call Transcript
- Neutral Sentiment: Press and analyst‑call coverage (Wall Street research roundups) is highlighting the results but offering mixed takes — helpful for gauging catalyst timing but not definitive. Here Are Wednesday’s Top Wall Street Analyst Research Calls
- Negative Sentiment: Some sell‑side skepticism remains — Barclays and other analysts have underweight/low targets and the median recent target (~$26) sits below current trading, which could cap upside if flows slow. Franklin Resources rallies as quarterly results highlight strong inflows, higher profits, and buybacks
- Negative Sentiment: Notable institutional repositioning in recent quarters (large sells by some managers) adds volatility risk if sentiment shifts or flows decelerate. Franklin Resources rallies as quarterly results highlight strong inflows, higher profits, and buybacks
Analysts Set New Price Targets
BEN has been the subject of several research analyst reports. Morgan Stanley upped their price target on Franklin Resources from $21.00 to $22.00 and gave the stock an “underweight” rating in a research note on Tuesday, February 3rd. TD Cowen reaffirmed a “buy” rating on shares of Franklin Resources in a research note on Thursday, April 9th. Barclays set a $31.00 target price on shares of Franklin Resources and gave the stock an “equal weight” rating in a research report on Wednesday. Wall Street Zen cut shares of Franklin Resources from a “buy” rating to a “hold” rating in a research report on Saturday, March 21st. Finally, Weiss Ratings upgraded shares of Franklin Resources from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, April 22nd. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $27.00.
Institutional Inflows and Outflows
A number of institutional investors have recently made changes to their positions in BEN. Dimensional Fund Advisors LP grew its holdings in Franklin Resources by 8.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 10,882,860 shares of the closed-end fund’s stock valued at $259,988,000 after purchasing an additional 816,952 shares in the last quarter. Invesco Ltd. boosted its position in Franklin Resources by 8.2% in the 4th quarter. Invesco Ltd. now owns 10,122,937 shares of the closed-end fund’s stock valued at $241,837,000 after buying an additional 768,707 shares during the last quarter. Northern Trust Corp grew its stake in shares of Franklin Resources by 49.8% during the third quarter. Northern Trust Corp now owns 4,118,686 shares of the closed-end fund’s stock valued at $95,265,000 after acquiring an additional 1,370,132 shares in the last quarter. Kopernik Global Investors LLC increased its position in shares of Franklin Resources by 23.2% during the fourth quarter. Kopernik Global Investors LLC now owns 3,369,165 shares of the closed-end fund’s stock worth $80,489,000 after acquiring an additional 633,541 shares during the last quarter. Finally, Holocene Advisors LP purchased a new stake in Franklin Resources during the 2nd quarter worth approximately $51,384,000. 47.56% of the stock is owned by institutional investors and hedge funds.
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.
Further Reading
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