Franklin Resources Q3 Revenue Surges 34% Above Consensus on $1.79T AUM
BEN sits 56% above its 52-week low of $21.105.
Summary
Franklin Resources reported Q3 FY2026 revenue of $2.36B, a 34% beat, with adjusted EPS of $0.72. AUM reached $1.79T on long-term net inflows, and the company amended its credit facility to $1.5B through 2031.
Key Events · Earnings and Guidance · BEN
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Revenue Beat by 34%
Driven by higher average AUM and performance fees, Q3 operating revenue of $2.36B exceeded the $1.76B consensus.
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Adjusted EPS Nearly Doubles
Reflecting strong operating leverage and investment gains, adjusted diluted EPS of $0.72 compared to $0.49 a year ago.
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AUM Climbs to $1.79 Trillion
Total AUM rose 11% YoY to $1.79T, with long-term net inflows of $18.4B for the quarter, reversing prior outflows.
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$100M SEC Settlement Impacts GAAP
GAAP net income included a $100M civil penalty related to the Western Asset Management investigation, now resolved.
Analysis · BEN · Finance
A standout quarter saw operating revenue of $2.36 billion crush the $1.76 billion consensus. Adjusted EPS of $0.72 nearly doubled the prior year's $0.49, fueled by a 12% jump in average AUM and a shift to long-term net inflows. While the $100 million SEC settlement weighed on GAAP results, the underlying business demonstrated broad strength across equity and multi-asset classes. Reinforcing liquidity, the subsequent amendment to a $1.5 billion credit facility extends maturities to 2031.
At the time of this filing, BEN was trading at $33.00 on NYSE in the Finance sector, with a market capitalization of approximately $17.2B. The 52-week trading range was $21.11 to $34.92. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.