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

Franklin Resources (NYSE:BEN) announced its quarterly earnings data 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 firm had revenue of $1.75 billion for the quarter, compared to analysts’ expectations of $2.23 billion. Franklin Resources had a net margin of 5.98% and a return on equity of 9.12%. The business’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 earnings per share.

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 Stock Up 1.2%

Shares of Franklin Resources stock traded up $0.32 on Friday, hitting $26.20. The company had a trading volume of 9,942,254 shares, compared to its average volume of 4,944,374. The stock has a 50-day moving average of $24.18 and a 200-day moving average of $24.01. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.40 and a quick ratio of 1.40. Franklin Resources has a twelve month low of $16.25 and a twelve month high of $26.90. The firm has a market capitalization of $13.66 billion, a P/E ratio of 28.92, a P/E/G ratio of 1.22 and a beta of 1.44.

Franklin Resources Increases Dividend

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

Key Headlines Impacting Franklin Resources

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

• Positive Sentiment: EPS topped estimates — Franklin reported $0.70 EPS vs. the $0.55 consensus, up from $0.59 a year ago, which supports near-term earnings confidence. Franklin Resources (BEN) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Profitability and inflows improved materially — operating income and net income rose sharply year-over-year and the company highlighted net inflows, which underpin fee revenue and margin expansion. Franklin Resources, Inc. Announces First Quarter Results
• Neutral Sentiment: Management materials and call available — the earnings slide deck and earnings-call presentation have been posted, offering more detail on inflows, segment performance and outlook for investors who want to dig into drivers. Franklin Resources, Inc. 2026 Q1 – Results – Earnings Call Presentation
• Negative Sentiment: Revenue missed expectations — total revenue was $1.75 billion versus analyst estimates near $2.23 billion, signaling pressure on gross sales or fee-related revenue despite EPS strength; this constrains upside until top-line trends improve. Franklin Resources (BEN) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Analyst sentiment remains cautious — broker consensus and some analyst commentary are conservative (consensus “Reduce”), which could cap multiple expansion despite the beat and makes the stock sensitive to guidance and AUM trends. Franklin Resources, Inc. (NYSE:BEN) Receives Consensus Rating of “Reduce” from Brokerages

Hedge Funds Weigh In On Franklin Resources

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

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on BEN. TD Cowen reduced their price target on Franklin Resources from $31.00 to $30.00 and set a “buy” rating on the stock in a research report on Wednesday, January 14th. Wall Street Zen lowered Franklin Resources from a “buy” rating to a “hold” rating in a research note on Sunday, December 14th. JPMorgan Chase & Co. decreased their target price on Franklin Resources from $26.00 to $25.00 and set a “neutral” rating for the company in a research report on Monday, November 10th. Barclays upped their price target on Franklin Resources from $22.00 to $25.00 and gave the company an “underweight” rating in a research note on Thursday, January 15th. Finally, Evercore ISI reduced their price objective on shares of Franklin Resources from $25.00 to $23.00 and set an “underperform” rating on the stock in a research note on Thursday, October 9th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $24.64.

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.