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.…
Earnings analysis · 10-Q
BEN earnings analysis
Filed April 28, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.49
- Operating margin
- 14.1%
What stood out
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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).
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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).
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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Fixed income AUM declined
Fixed income AUM decreased to $434.3 billion, down 3% from $446.0 billion at March 31, 2025.
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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.
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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.
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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).
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.