Franklin Resources (NYSE:BEN) Posts Quarterly Earnings Results, Beats Expectations By $0.15 EPS

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

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 Trading Up 2.6%

Franklin Resources stock opened at $26.57 on Friday. The stock’s 50 day simple moving average is $24.28 and its two-hundred day simple moving average is $24.03. Franklin Resources has a 12 month low of $16.25 and a 12 month high of $26.90. The firm has a market cap of $13.85 billion, a PE ratio of 29.19, a P/E/G ratio of 1.25 and a beta of 1.44. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 0.95.

Franklin Resources Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Stockholders of record on Tuesday, December 30th were paid a dividend of $0.33 per share. The ex-dividend date was Tuesday, December 30th. This is an increase from Franklin Resources’s previous quarterly dividend of $0.32. This represents a $1.32 annualized dividend and a dividend yield of 5.0%. Franklin Resources’s payout ratio is presently 145.05%.

Institutional Investors Weigh In On Franklin Resources

A number of hedge funds have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC raised its position in shares of Franklin Resources by 4.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 22,879 shares of the closed-end fund’s stock worth $529,000 after acquiring an additional 902 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new position in Franklin Resources in the third quarter valued at approximately $723,000. NewEdge Advisors LLC raised its holdings in Franklin Resources by 21.4% during the third quarter. NewEdge Advisors LLC now owns 14,895 shares of the closed-end fund’s stock worth $345,000 after purchasing an additional 2,623 shares in the last quarter. CANADA LIFE ASSURANCE Co lifted its position in shares of Franklin Resources by 3.6% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 123,828 shares of the closed-end fund’s stock worth $2,888,000 after buying an additional 4,263 shares during the last quarter. Finally, Caxton Associates LLP acquired a new position in shares of Franklin Resources in the 3rd quarter valued at $222,000. 47.56% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

BEN has been the subject of several research reports. Weiss Ratings reissued a “hold (c+)” rating on shares of Franklin Resources in a research note on Monday, December 29th. BMO Capital Markets assumed coverage on shares of Franklin Resources in a research report on Friday, October 3rd. They issued an “outperform” rating and a $26.00 price objective for the company. JPMorgan Chase & Co. reduced their target price on Franklin Resources from $26.00 to $25.00 and set a “neutral” rating on the stock in a report on Monday, November 10th. Evercore ISI dropped their price objective on shares of Franklin Resources from $25.00 to $23.00 and set an “underperform” rating on the stock in a report on Thursday, October 9th. Finally, Barclays boosted their price target on shares of Franklin Resources from $22.00 to $25.00 and gave the stock an “underweight” rating in a report on Thursday, January 15th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, Franklin Resources currently has a consensus rating of “Reduce” and a consensus target price of $24.64.

Key Stories Impacting Franklin Resources

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

• Positive Sentiment: Q1 EPS beat and stronger profitability: BEN reported $0.70 EPS vs. a $0.55 consensus and higher net income and operating income versus prior periods — a core driver of the rally because earnings power beat expectations. Investing.com: Earnings beat
• Positive Sentiment: Assets under management and net inflows improved: Several reports note sequential AUM growth and net inflows, which lift fee revenue prospects and support recurring revenue. This helped sentiment alongside the earnings beat. Zacks: AUM rises
• Positive Sentiment: Operational detail and management commentary available: The company released a formal press release, slide deck and an earnings-call transcript with details on margins, flows and strategy — useful for confirming sustainability of the beat. BusinessWire: Q1 results Seeking Alpha: Call transcript
• Neutral Sentiment: Market-driven fee tailwind but revenue mix matters: Coverage notes that market rallies boosted fee income (helpful), but revenue comparisons and sustainability depend on future flows and market levels — worth watching in coming quarters. MSN: Profit rises
• Negative Sentiment: Analyst downgrades and caution: Morgan Stanley issued a “sell” and broker consensus on some screens is “reduce” — these downgrades can cap upside despite the quarter, as analysts point to cautious outlook or valuation concerns. Globe and Mail: Morgan Stanley sell AmericanBankingNews: Consensus Reduce
• Negative Sentiment: Revenue reporting discrepancies and mixed headlines: Some headlines say revenue topped estimates while others highlight misses versus certain analyst models — this mixed signal can create short-term volatility until the market parses the underlying drivers. Yahoo Finance: Q4/CY2025 recap

Franklin Resources Company Profile

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.