BEN
Franklin Resources, Inc.23.47
-0.15-0.64%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
Expense details, margin path clarified
Q&A delivered detailed expense guidance—flat to FY25 ex-perf fees/investments despite AI pushes—with H2 margins expanding to high-20s% on flat markets, accelerating to 30%+ by FY27 versus peers' mid-30s. M&A stays selective on alts bolt-ons, distribution, HNW amid elevated buyback bar given stock price. Western flows stabilizing post-DOJ no-charges clarity. Wealth alts perpetuals to drive 15-20% growth in 2026. Margins hit 30% by 2027. Management confident on integrations, AI efficiencies; investors eye alts fundraising durability.
Key Stats
Market Cap
12.23BP/E (TTM)
25.79Basic EPS (TTM)
0.91Dividend Yield
0.05%Recent Filings
8-K
Stock plans expanded 30M shares
Franklin Resources stockholders approved amendments to its ESIP and USIP at the February 3, 2026 annual meeting, adding 5 million and 25 million common shares respectively for employee incentives. All 11 director nominees sailed through election. Stock plans passed handily. This bolsters talent retention amid competitive pressures.
8-K
Q1 profits soar on inflows
Franklin Resources reported Q1 net income of $255.5 million ($0.46/share), up 56% year-over-year, with operating income surging 28% to $281.0 million on $1,684.0 billion AUM. Long-term net inflows hit $28.0 billion, fueled by record equity and alternatives flows, plus Apera's October 1 acquisition adding $6.1 billion. Momentum builds across public-private markets. Western Asset drags flows.
10-Q
Q1 FY2026 results
Franklin Resources posted solid Q1 FY2026 results for the quarter ended December 31, 2025, with operating revenues up 3% y/y to $2,327.1M on higher investment management fees, driving operating income 28% higher to $281.0M at a 12.1% margin, while diluted EPS rose 59% y/y to $0.46, reconciled to 518.3M shares. Luxembourg revenues jumped 10% y/y to $357.4M, fueled by stronger sales and distribution fees, yet expenses grew just 1% y/y thanks to 51% lower intangible amortization. Cash dipped q/q to $2,672.1M with $2.4B debt steady; closed Apera's acquisition October 1 for €65.2M cash net, adding $6.1B AUM. Strong flows lifted AUM 7% y/y to $1,684B. Western Asset regulatory probes linger.
8-K
Credit line up $400M
Franklin Resources boosted its revolving credit facility by $400 million to $1.5 billion via a Joinder Agreement on December 11, 2025, adding new lenders like Mizuho and RBC. Board then authorized extra 20.8 million share repurchases on December 17, lifting total capacity to 40 million shares atop 19.2 million remaining. Repurchases hinge on market conditions. Liquidity surges.
8-K
DOJ clears Western Asset charges
Franklin Resources' Western Asset dodged criminal charges from the DOJ over past treasury derivatives trade allocations, as disclosed on December 13, 2025. The resolution talks continue, with DOJ praising Western Asset's full cooperation. No charges filed. This clears a key overhang from the internal probe.
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