BEN earnings analysis
What we found in BEN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Franklin Resources reported quarterly operating revenues of $2,294.9 million (up 9% YoY) and operating income of $323.3 million (up 122% YoY), driving diluted EPS of $0.49 (up 88% YoY). Total AUM increased to $1,682.1 billion (up 9% YoY) supported by long-term net inflows of $16.9 billion for the quarter and $44.9 billion for the six months. Management highlights revenue and margin expansion but AUM was negatively impacted by $30.2 billion of net market change, distributions and other for the quarter.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue up 9% YoY
- Operating revenues increased 9% year-over-year to $2,294.9 million for the three months ended March 31, 2026 (vs. $2,111.4 million a year earlier).
- Operating margin expanded materially
- Operating income rose to $323.3 million and operating margin expanded to 14.1% from 6.9% in the prior-year quarter (operating income was $145.6 million and margin 6.9% in the three months ended March 31, 2025).
- EPS improved significantly
- Diluted earnings per share increased to $0.49, up 88% from $0.26 in the prior-year quarter; adjusted diluted EPS was $0.71 for the quarter.
- AUM growth and strong inflows
- Total AUM was $1,682.1 billion at March 31, 2026, up 9% from $1,540.6 billion a year earlier, with long-term net inflows of $16.9 billion in the quarter and $44.9 billion for the six months ended March 31, 2026.
- Investment management fee growth
- Investment management fees increased to $1,819.3 million for the quarter, up $145.7 million (9%) from $1,673.6 million in the prior-year quarter.
- Operating expenses largely contained
- Total operating expenses were essentially flat at $1,971.6 million versus $1,965.8 million in the prior-year quarter, supporting margin expansion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Large negative market impact on AUM
- Net market change, distributions and other reduced AUM by $30.2 billion during the quarter, including $17.3 billion of market depreciation and $10.9 billion of distributions.
- WAM outflows remain a headwind
- Long-term net outflows at Western Asset Management were $4.1 billion in the quarter and $10.6 billion included in the six-month long-term net outflows figure, weighing on fixed income AUM.
- Fixed income AUM declined
- Fixed income AUM decreased to $434.3 billion, down 3% from $446.0 billion at March 31, 2025.
- Special termination benefits increased
- Other compensation and benefits included a $12.8 million increase in special termination benefits for the quarter and a $28.4 million increase for the six months, pressuring compensation expense.
- Concentration of performance fees
- Performance fees were $100.8 million for the quarter (vs. $71.9 million prior year), indicating revenue sensitivity to performance fee timing and investment results.
- Legal/regulatory contingency disclosure
- MD&A reiterates potential impacts from WAM-related investigations and other proceedings referenced in Note 10 and Note 15 that could result in additional costs or reputational harm (matters disclosed in the filing).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.49
- Operating margin
- 14.1%
- Segment
- Operating revenue mix: Investment management fees $1,819.3M; Sales and distribution fees $396.6M; Shareholder servicing fees $69.0M; Other $10.0M (three months ended March 31, 2026).
- Segment
- AUM by asset class (March 31, 2026): Equity $669.7B (+12% YoY from $598.1B); Fixed Income $434.3B (-3% YoY from $446.0B); Alternative $282.8B (+12% YoY from $251.8B); Multi-Asset $207.5B (+18% YoY from $175.8B); Cash Management $87.8B (+27% YoY from $68.9B).
What they said about what is next.
MD&A contains forward-looking statements (see ‘‘Forward-Looking Statements’’) but does not provide quantitative revenue or EPS guidance in this Form 10‑Q; management emphasizes expense management and strategic investment but no numeric outlook is given.
The filing reads better than the one before it.
What came before.
- 10-Q · January 30, 2026
- Franklin Resources reported Q1 (three months ended December 31, 2025) operating revenues of $2,327.1 million, up $75.5 million (+3.4%) versus the prior year quarter and essentially flat versus the prior quarter.…
- 10-Q · August 1, 2025
- Franklin Resources reported total operating revenues of $2,064.0 million for the three months ended June 30, 2025, a modest decline from $2,122.9 million in the year-ago quarter. Operating income was $154.1 million…
- 10-K · November 12, 2024
- Franklin Resources positions itself as a global, specialist-driven asset manager with $1,678.6 billion in AUM as of September 30, 2024, offering capabilities across equity, fixed income, alternatives, multi-asset and…
- 10-Q · July 26, 2024
- Franklin Resources reported Q3 operating revenues of $2,122.9 million, up $153.9 million (+7.8%) versus Q3 2023. Despite revenue growth, operating income fell to $222.5 million (down $92.4 million, -29.4% YoY) and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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