BEN

Franklin Templeton has delivered a 57.4% return over the past three years, yet its current checks send mixed signals about whether the recent share price level around US$34.73 offers much of a margin of safety. The Excess Returns intrinsic value estimate points to some undervaluation, while earnings based multiples suggest the stock screens on the expensive side. A 57.4% three year return suggests Franklin Templeton shareholders have already seen a meaningful payoff from the stock. Future fee based revenue and cash flow resilience can support the intrinsic value case, although pressure on assets under management or margins may weigh on what investors are willing to pay. With a mixed overall value score, Franklin Templeton screens as neither a clear bargain nor clearly overpriced when looking across the 3 out of 6 valuation checks it passes. The issue now is whether Franklin Templeton's current share price already reflects the intrinsic value suggested by the Excess Returns model or still leaves room for further upside on a risk aware basis. Compare Franklin Templeton's mixed value score and 57.4% three year return with hand picked 47 high quality undervalued stocks that also combine resilient balance sheets with earnings power. The Excess Returns model evaluates how much profit Franklin Templeton can earn on its equity above the cost of that equity and then values those excess profits over time. For Franklin Templeton, the model uses a Book Value of $23.13 per share and a Stable EPS of $2.68 per share, based on weighted future Return on Equity estimates from 4 analysts. With a Cost of Equity of $1.98 per share and an Excess Return of $0.70 per share, the assumptions imply an Average Return on Equity of 11.29% on a Stable Book Value of $23.78 per share, drawn from the median book value over the past five years. Taken together, these inputs point to an intrinsic value of about $38.92 per share from the Excess Returns model. That compares to the current share price around $34.73, which implies roughly a 10.8% discount to this intrinsic value estimate. On this Excess Returns view, Franklin Templeton stock currently appears undervalued. Our Excess Returns analysis suggests Franklin Templeton is undervalued by 10.8%. Track this in your watchlist or portfolio, or discover 47 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Franklin Templeton. The P/E ratio is a useful cross check for Franklin Templeton because earnings remain a key driver of how investors value asset managers. Right now the stock trades on a P/E of about 23.2x, compared with an industry average P/E for Capital Markets companies of around 39.7x and a peer group average of roughly 43.7x. On the more tailored fair P/E estimate of 14.5x, which factors in Franklin Templeton’s business profile and risk, the current 23.2x multiple sits well above what this framework suggests as reasonable. The stock therefore prices in a richer earnings multiple than the fair ratio implies, even if it is below the broad industry and peer averages. Taken on its own, Franklin Templeton stock currently screens as expensive on the P/E multiple relative to this fair value framework. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Franklin Templeton's valuation puzzle leaves off by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth meaningfully more or less than today’s price. Each one sets out Franklin Templeton's fair value as a thesis you can track over time so you can see how the story and the numbers evolve on the Community page. Franklin Templeton draws sharply different reactions in the community, with one camp seeing durable earnings power and another focused on structural pressure on fees and flows. Bull case: roughly fairly valued Read the full Bull Case to see why Franklin Templeton could be undervalued Bear case: 27% overvalued Read the full Bear Case to see why Franklin Templeton could be overvalued Do you think there's more to the story for Franklin Templeton? Head over to our Community to see what others are saying! For Franklin Templeton, the Excess Returns intrinsic value estimate points to some undervaluation, while the earnings multiple view flags the stock as overvalued relative to its tailored fair P/E. The split largely reflects different emphasis. The intrinsic value view leans on fee based cash flow durability, while the multiple view focuses on what investors are currently willing to pay for that earnings stream. With a mixed overall value picture, the key question from here is whether Franklin Templeton can sustain returns on equity and margins strongly enough to support the intrinsic value case, or whether pressure on fees and flows keeps the P/E multiple capped. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BEN. Have feedback on this article? Concerned about the content? Get in touch with us directly. 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Franklin Resources, Inc. BEN used its third-quarter fiscal 2026 earnings call to emphasize faster margin expansion and private markets fundraising. Management said it is ahead of its five-year plan after positive flows across every asset class and geography. Adjusted earnings of $0.72 per share topped the Zacks Consensus Estimate of $0.66, while revenues of $2.36 billion exceeded the consensus mark of $2.27 billion. The call emphasized higher fundraising expectations and a faster path to a 30% adjusted operating margin. Franklin Resources, Inc. price-consensus-eps-surprise-chart | Franklin Resources, Inc. Quote Responding to a TD Cowen analyst, CEO Jennifer Johnson said that fiscal 2026 private markets fundraising should reach about $40 billion, above the original $25-$30 billion target. Fiscal year-to-date fundraising was $33 billion. Johnson said Lexington generated about 40% of the quarter’s $10.3 billion private markets raise. More than 30 strategies contributed, and real estate regained traction. A Jefferies analyst pressed on economics. Johnson said about 80% of the private markets platform is fee-generating. Co-president, CFO and COO Matthew Nicholls put the blended fee near 65 basis points, plus performance fees. A Goldman Sachs analyst asked how public and private fixed income would work together. Johnson said that Franklin Templeton wants clients to view the business as one $620 billion platform, including more than $100 billion in private credit. Johnson added that Brandywine and Putnam are integrated, while Western Asset is moving closer. Investment teams will retain independence while sharing resources and origination capabilities. Co-president and chief commercial officer Daniel Gamba cited a new multi-asset credit mandate from a public pension. New offerings include a target-date strategy with 2-8% private market exposure. An Autonomous Research analyst sought fourth-quarter cost details. Nicholls guided to $850 million of compensation, $165 million for technology, $70 million of occupancy expense and $200 million of general and administrative expense. Nicholls expects the fiscal fourth-quarter adjusted operating margin to approach 30%, with the full-year margin at least in the mid-27% range. The outlook assumes flat markets. For fiscal 2027, Nicholls projected a 29-30% margin and at least 30% later in the year. Johnson called 30% a waypoint, while Nicholls put the industry range at 30-35%. A Morgan Stanley analyst asked where AI was producing measurable returns. Johnson said that the Microsoft-linked Intelligence Hub increased client visits or contacts by 25% in deployed territories and lifted sales by more than 11%. Johnson said that investment teams use more than 1,000 agents and are testing three strategies focused on research, portfolio construction and AI-driven investing. She stressed balancing adoption with operating costs. Nicholls said that management tracks AI spending against productivity targets across front-office, risk and finance functions. Johnson added that operations teams apply AI to coding, RFP processing and due diligence. A Goldman Sachs analyst asked about increased repurchases. Nicholls said that the company returned $521.5 million to shareholders, including $348.1 million in buybacks, while preserving capital for organic growth. Nicholls stated that BEN has $3 billion of balance-sheet capital invested in funds, including $1.75 billion in private markets, and expects that amount to grow in fiscal 2027. Dividend growth and opportunistic repurchases remain priorities. An Autonomous Research analyst raised platform fee pressure. Johnson called revenue-sharing negotiations normal industry practice and said the economics of newer wrappers such as ETFs and SMAs limit how high those fees can move. Johnson closed with an emphasis on diversified organic growth. Long-term net inflows were $18.4 billion, assets under management reached $1.8 trillion, and the won-but-unfunded institutional pipeline rose to $28.6 billion. Management is focused on scaling private markets, integrated credit, personalized portfolios and technology while maintaining expense discipline. The Aug. 17 corporate name change to Franklin Templeton, Inc. reinforces that unified model, with the BEN ticker unchanged. BEN sports a Zacks Rank #1 (Strong Buy) at present, indicating favorable earnings estimate revisions and stronger near-term performance potential under the Zacks methodology. You can see the complete list of today’s Zacks #1 Rank stocks here. The Value Score of C, Growth Score of F, Momentum Score of D and VGM Score of D offer less support across the main trading styles, where A and B are preferred. The Zacks Rank can change as analyst estimates are revised after the results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Resources, Inc. (BEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Franklin Resources (BEN) reported revenue of $2.36 billion, up 14.3% over the same period last year. EPS came in at $0.72, compared to $0.49 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.27 billion, representing a surprise of +4.11%. The company delivered an EPS surprise of +9.09%, with the consensus EPS estimate being $0.66. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Franklin Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: EOP Net Flows - Equity: $2.00 billion versus $0.30 billion estimated by two analysts on average. EOP Net Flows - Fixed Income: $2.60 billion versus $2.06 billion estimated by two analysts on average. EOP Net Flows - Multi-Asset: $4.70 billion compared to the $5.75 billion average estimate based on two analysts. EOP Net Flows - Cash Management (Hybrid): $-7.00 billion versus the two-analyst average estimate of $-8.05 billion. Assets Under Management - Alternative: $294.20 billion versus the two-analyst average estimate of $290.69 billion. Assets Under Management - Cash Management: $80.50 billion versus $80.60 billion estimated by two analysts on average. EOP Net Flows - Alternatives: $9.10 billion compared to the $9.49 billion average estimate based on two analysts. Assets Under Management - Total: $1,791.60 billion versus $1,787.89 billion estimated by two analysts on average. Operating Revenues- Other: $13.4 million compared to the $11.05 million average estimate based on two analysts. The reported number represents a change of +17.5% year over year. Operating Revenues- Sales and distribution fees: $404.5 million compared to the $411.68 million average estimate based on two analysts. The reported number represents a change of +15% year over year. Operating Revenues- Shareholder servicing fees: $74.3 million versus $67.35 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +24% change. Operating Revenues- Investment management fees: $1.87 billion versus $1.78 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change. View all Key Company Metrics for Franklin Resources here>>> Shares of Franklin Resources have returned -2.8% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Resources, Inc. (BEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Franklin Resources Inc. BEN reported third-quarter fiscal 2026 (ended June 30, 2026) adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 66 cents per share. The bottom line also improved from 49 cents reported in the year-ago quarter. Results benefited from higher operating revenues and record assets under management (AUM). However, elevated operating expenses acted as a headwind. Results include certain items. After considering those, net income (GAAP basis) was $171.5 million, up 85.8% year over year. Total operating revenues increased 14.3% year over year to $2.36 billion in the fiscal third quarter. Further, the reported figure outpaced the Zacks Consensus Estimate of $2.27 billion. The increase was driven by growth across all revenue categories. Investment management fees rose 13.7% year over year to $1.87 billion. Sales and distribution fees increased 14.9% to $404.5 million from the prior-year quarter. Shareholder servicing fees climbed 24% to $74.3 million, while other revenues grew 17.5% to $13.4 million from the year-ago quarter. Total operating expenses increased 12.2% year over year to $2.14 billion, primarily due to higher compensation and benefits, sales, distribution and marketing expenses, general and administrative costs, and impairment charges. Franklin reported an operating margin of 9.2% compared with 7.5% in the year-ago quarter. As of June 30, 2026, total AUM was a record $1.79 trillion, increasing 11.2% from the prior-year quarter. The company generated $18.4 billion of long-term net inflows during the quarter compared with long-term net outflows of $9.3 billion in the year-ago period. The average AUM increased 11.8% year over year to $1.75 trillion. As of June 30, 2026, cash and cash equivalents and investments totaled $5.4 billion, while total stockholders’ equity was $12.9 billion. During the quarter, Franklin Resources repurchased 10.4 million shares of common stock for $348.1 million. Overall, the company returned $521.5 million to shareholders during the quarter through share repurchases and dividends. In June 2026, the company's asset management arm, Franklin Templeton completed its previously announced acquisition of 250 Digital, an active cryptocurrency investment management firm. The transaction included 250 Digital’s investment team and all liquid cryptocurrency strategies previously managed by CoinFund. Following the completion, the company formally launched Franklin Crypto, a dedicated active digital asset management division focused on institutional clients. The move strengthens BEN’s cryptocurrency investment capabilities by combining crypto-native expertise with Franklin Templeton’s global distribution, research, portfolio construction and risk-management platform. Franklin Resources delivered a strong quarter, supported by broad-based revenue growth, record AUM and robust long-term net inflows. The company also continued returning capital to shareholders through sizable share repurchases. However, rising operating expenses and impairment-related charges remain areas to monitor. Franklin Resources, Inc. price-consensus-eps-surprise-chart | Franklin Resources, Inc. Quote Currently, Franklin sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Invesco’s IVZ second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line increased 97.2% from the prior-year quarter. IVZ’s results primarily benefited from an increase in adjusted revenues and substantial growth in AUM balance. Record net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind. Ameriprise Financial’s AMP second-quarter 2026 adjusted operating earnings were $11.07 per share, which handily surpassed the Zacks Consensus Estimate of $10.72. The bottom line reflected a rise of 22% from the year-ago quarter. Results benefited from higher revenues and an improvement in AUM and assets under administration balances to record levels. However, an increase in expenses was a headwind for AMP. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Resources, Inc. (BEN) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Franklin Resources, Inc.? Here are five stocks we like better. Franklin Resources reported strong fiscal Q3 results, with $18.4 billion in long-term net inflows for the quarter, $63.3 billion fiscal year to date and record assets under management of $1.8 trillion. Private markets and customized solutions drove growth. Alternatives fundraising reached $11.8 billion during the quarter, while ETF, retail SMA and Canvas businesses all posted record assets and significant net inflows. Adjusted operating income rose 35% year over year to $508.9 million, and the company returned $521.5 million to shareholders. Franklin Resources will change its corporate name to Franklin Templeton Inc. on Aug. 17, 2026, while retaining the BEN ticker and existing shareholder rights. 3 of the Most Highly Anticipated IPOs of 2026 Franklin Resources (NYSE:BEN) reported positive long-term net inflows across every asset class and geography during its fiscal third quarter ended June 30, 2026, as the asset manager cited broad demand for public markets, private markets, exchange-traded funds and customized portfolio solutions. Chief Executive Officer Jenny Johnson said the company generated $18.4 billion of long-term net inflows in the quarter, bringing fiscal year-to-date long-term net inflows to $63.3 billion. Long-term inflows reached a record $122 billion, while assets under management rose to a record $1.8 trillion. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Safe Space? 3 Dividend Aristocrats With 5% Yield “This was another strong quarter for Franklin Templeton that demonstrated our strategy is working,” Johnson said, pointing to positive flows across all asset classes and geographies and record assets in alternatives, ETFs, retail separately managed accounts and Canvas, its custom portfolio platform. Alternatives AUM reached a record $294 billion after $3 billion of realizations and distributions. The company raised $11.8 billion across its alternatives platform during the quarter, including $10.3 billion in private markets. Fiscal year-to-date fundraising totaled $33 billion, exceeding Franklin’s original full-year private-markets fundraising target of $25 billion to $30 billion. → Microsoft Just Flipped the AI Spending Narrative Overnight Johnson said the company expects to end the fiscal year with about $40 billion in private-markets fundraising. She said Lexington Partners accounted for roughly 40% of quarterly private-markets fundraising, with contributions from its flagship, middle-market, continuation and perpetual strategies. However, she emphasized that more than 30 strategies across secondaries, real estate, private credit and venture capital contributed to fundraising. Franklin’s Evergreen platform, which includes secondary private equity, private credit and real estate strategies for wealth-management clients, grew to $8.9 billion in AUM. Wealth management represented about 20% of private-markets fundraising year to date across Evergreen and drawdown vehicles. → Carrier Earnings Could Send the Stock to a New All-Time High Co-President and Chief Commercial Officer Daniel Gamba said the wealth channel raised $3 billion for alternative strategies during the quarter and $6.6 billion year to date. He added that 29% of alternative sales came from international markets, including 18% from Europe and the Middle East and 11% from Asia-Pacific. Equities returned to positive net flows of $2 billion, supported by demand for U.S. large-cap value and core, international equity, infrastructure and systematic strategies. The global fixed-income platform posted $2.6 billion in net inflows, driven by enhanced liquidity, municipal, multi-sector and stable-value strategies, as well as customized institutional mandates. Excluding Western Asset, Franklin Templeton Fixed Income reported its 10th consecutive quarter of positive net flows, totaling $3.5 billion. Johnson said Franklin is integrating its liquid and private credit capabilities more closely, with $520 billion in fixed-income AUM and more than $100 billion in private-credit AUM. Gamba said the company won a U.S. public-pension multi-asset credit mandate and is participating in additional requests for proposals. Franklin has also repositioned a target-date strategy, Retirement Advantage Plus, to include between 2% and 8% in private real estate and private credit, he said. Multi-asset solutions generated $4.7 billion of positive net flows, led by Canvas, the Franklin Income Fund and Franklin Templeton Investment Solutions. Franklin’s ETF business ended the quarter with a record $75.6 billion in AUM and $7.1 billion in net inflows. Active ETFs accounted for 61% of ETF net flows, according to Johnson. Retail SMA AUM reached $187.6 billion after $4.4 billion of net inflows. Canvas, which provides custom portfolio and tax-overlay capabilities, reached $30.3 billion in AUM and recorded $3.7 billion of net inflows. Johnson said Canvas has expanded from $2 billion in AUM when Franklin acquired it to $30 billion. Gamba said the platform added 26 partners during the quarter, bringing its total to 220. The company also introduced a preferred-partner program that allows strategic partners to use Canvas’s tax-overlay technology with their active investment strategies. Adjusted operating income was $508.9 million, up 7% sequentially and 35% from a year earlier. Johnson attributed the increase to higher average AUM, expense management and efficiency initiatives. Chief Financial Officer Matt Nicholls said Franklin expects its effective fee rate to remain in the mid-to-high 37 basis-point range in the fiscal fourth quarter. The company expects to be near a 30% operating margin in the fourth quarter and at least in the mid-27% range for fiscal 2026. Nicholls said Franklin expects a full-year operating margin of roughly 29% to 30% in fiscal 2027, assuming flat markets. The company returned $521.5 million to shareholders during the quarter, including $348.1 million in share repurchases. Nicholls said the repurchase total included an opportunistic transaction with Great-West Lifeco, which sold more than 1% of Franklin’s outstanding shares above its previously disclosed 4.9% long-term strategic investment. Franklin also said it will change its corporate name from Franklin Resources Inc. to Franklin Templeton Inc. effective Aug. 17, 2026. The company said the change will not affect its capital structure, shares, CUSIP number or shareholder rights, and its stock will continue trading on the New York Stock Exchange under the BEN ticker. Digital-asset AUM ended the quarter at $3.2 billion, including $2.4 billion in tokenized funds and about $600 million in crypto ETFs. Franklin completed its acquisition of 250 Digital, launched Franklin Crypto, and announced partnerships with MoonPay and Payward, Kraken’s parent company, to expand access to tokenized investment products. Johnson said Franklin’s Microsoft-supported Intelligence Hub has helped territories increase client visits or contacts by 25% and sales by more than 11%. The company is also using artificial intelligence across investment research, operations, marketing, risk management and other functions, while tracking the costs and expected productivity benefits of its AI initiatives. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Franklin Resources Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Franklin Resources (BEN) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.09%. A quarter ago, it was expected that this investment manager would post earnings of $0.55 per share when it actually produced earnings of $0.71, delivering a surprise of +29.09%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Franklin Resources, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $2.36 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.11%. This compares to year-ago revenues of $2.06 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Franklin Resources shares have added about 38.9% since the beginning of the year versus the S&P 500's gain of 8.7%. While Franklin Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Franklin Resources was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $2.36 billion in revenues for the coming quarter and $2.81 on $9.26 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Capital Southwest (CSWC), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This business development company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -6.8%. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. Capital Southwest's revenues are expected to be $60.4 million, up 8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Resources, Inc. (BEN) : Free Stock Analysis Report Capital Southwest Corporation (CSWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SAN MATEO, Calif., July 31, 2026--(BUSINESS WIRE)--Franklin Resources, Inc. (the "Company") [NYSE: BEN] today announced net income1 of $171.5 million or $0.31 per diluted share for the quarter ended June 30, 2026, as compared to $268.2 million or $0.49 per diluted share for the previous quarter, and $92.3 million or $0.15 per diluted share for the quarter ended June 30, 2025. Operating income was $215.8 million for the quarter ended June 30, 2026, as compared to $323.3 million for the previous quarter and $154.1 million for the prior year. As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income2 was $386.3 million and adjusted diluted earnings per share2 was $0.72 for the quarter ended June 30, 2026, as compared to $384.5 million and $0.71 for the previous quarter, and $263.4 million and $0.49 for the quarter ended June 30, 2025. Adjusted operating income2 was $508.9 million for the quarter ended June 30, 2026, as compared to $474.6 million for the previous quarter and $377.8 million for the prior year. "Our third quarter results reflect the successful execution of our strategy and the strength of Franklin Templeton's diversified global platform," said Jenny Johnson, Chief Executive Officer of Franklin Resources, Inc. "We delivered $18.4 billion in long-term net inflows across public and private assets, bringing fiscal year-to-date long-term net inflows to $63.3 billion. During the quarter, we generated positive net flows across every asset class and geography, demonstrating the breadth of our investment capabilities and the strength of our global distribution platform. Assets under management grew to a record $1.8 trillion. These results reinforce that our strategy is driving broad-based growth across the business. "Our momentum continues to build across asset classes, investment vehicles and geographies. Alternative AUM reached a record $294.2 billion as we fundraised $11.8 billion, including $10.3 billion in private market strategies, across secondary private equity, alternative credit, real estate and venture capital. Fiscal year-to-date private markets fundraising reached $33.0 billion, exceeding our fiscal year target with one quarter still to go. Demand also remained strong across ETFs, retail SMAs and Canvas, our custom portfolio solutions platform, while our institutional won-but-unfunded pipeline grew to a record $28.6 billion. International markets reached a record approximately $525 billion in AUM. "This activity reflects a broader shift in client demand. Investors are increasingly seeking partners that can deliver integrated solutions across public and private assets. We remain focused on executing our strategy by investing in new capabilities, deepening client relationships and expanding our platform, while maintaining a disciplined approach to capital allocation. This quarter, we returned $521.5 million to shareholders, including $348.1 million in share repurchases. Our balance sheet provides the financial flexibility to invest in future growth, pursue strategic opportunities and continue returning capital to shareholders. We believe this positions Franklin Templeton to deliver sustainable organic growth and create long-term value for our clients, shareholders and employees." Total AUM was $1,791.6 billion at June 30, 2026, up $109.5 billion during the quarter due to the positive impact of $98.0 billion of net market change, distributions, and other and $18.4 billion of long-term net inflows, inclusive of $1.1 billion of long-term net outflows at Western, partially offset by $7.0 billion of cash management net outflows. Long-term net inflows for the quarter include $4.1 billion of long-term reinvested distributions. Cash and cash equivalents and investments were $5.4 billion and, including the Company’s direct investments in consolidated investment products ("CIPs"), were $6.5 billion4 at June 30, 2026. Total stockholders’ equity was $12.9 billion and the Company had 507.5 million shares of common stock outstanding at June 30, 2026. The Company repurchased 10.4 million shares of its common stock for a total cost of $348.1 million during the quarter ended June 30, 2026. Corporate Name Change The Company today announced it will change its corporate name from Franklin Resources, Inc. to Franklin Templeton, Inc., effective as of August 17, 2026 ("Name Change"). The Name Change reflects the continued evolution of Franklin Templeton as a unified global organization and alignment with the Franklin Templeton brand. This is a corporate name change only. The Name Change will not affect the Company’s corporate or capital structure, domicile, outstanding shares, CUSIP number, or the voting or other rights of its stockholders. Following the Name Change, the Company’s common stock will continue to be traded on the New York Stock Exchange under the ticker symbol "BEN". Conference Call Information A written commentary on the results by Jenny Johnson, CEO; Daniel Gamba, Co-President and Chief Commercial Officer; and Matthew Nicholls, Co-President, CFO and COO; will be available via investors.franklinresources.com today at approximately 8:30 a.m. Eastern Time. Ms. Johnson and Messrs. Gamba and Nicholls will also lead a live teleconference today at 10:00 a.m. Eastern Time to answer questions. Access to the teleconference will be available via investors.franklinresources.com or by dialing (+1) (877) 407-0989 in North America or (+1) (201) 389-0921 in other locations. A replay of the teleconference can also be accessed by calling (+1) (877) 660-6853 in North America or (+1) (201) 612-7415 in other locations using access code 13761569 after 2:00 p.m. Eastern Time on July 31, 2026 through August 7, 2026, or via investors.franklinresources.com. Analysts and investors are encouraged to review the Company’s recent filings with the U.S. Securities and Exchange Commission and to contact Investor Relations at [email protected] before the live teleconference for any clarifications or questions related to the earnings release or written commentary. Supplemental Non-GAAP Financial Measures As supplemental information, we are providing performance measures for "adjusted operating income," "adjusted operating margin," "adjusted net income" and "adjusted diluted earnings per share," each of which is based on methodologies other than generally accepted accounting principles ("non-GAAP measures"). Management believes these non-GAAP measures are useful indicators of our financial performance and may be helpful to investors in evaluating our relative performance against industry peers. "Adjusted operating income," "adjusted operating margin," "adjusted net income" and "adjusted diluted earnings per share" are defined below, followed by reconciliations of operating income, operating margin, net income attributable to Franklin Resources, Inc. and diluted earnings per share on a U.S. GAAP basis to these non-GAAP measures. Non-GAAP measures should not be considered in isolation from, or as substitutes for, any financial information prepared in accordance with U.S. GAAP, and may not be comparable to other similarly titled measures of other companies. Additional reconciling items may be added in the future to these non-GAAP measures if deemed appropriate. Adjusted Operating Income We define adjusted operating income as operating income adjusted to exclude the following: Elimination of operating revenues upon consolidation of investment products. Acquisition-related items: Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company. Impact on compensation and benefits expense from gains and losses on investments related to deferred compensation plans, which is offset in investment and other income (losses), net. Impact on compensation and benefits expense related to minority interests in certain subsidiaries, which is offset in net income (loss) attributable to redeemable noncontrolling interests. Charges related to significant regulatory settlements. Adjusted Operating Margin We calculate adjusted operating margin as adjusted operating income divided by adjusted operating revenues. We define adjusted operating revenues as operating revenues adjusted to exclude the following: Elimination of operating revenues upon consolidation of investment products. Acquisition-related performance-based investment management fees which are passed through as compensation and benefits expense. Sales and distribution fees and a portion of investment management fees allocated to cover sales, distribution and marketing expenses paid to the financial advisers and other intermediaries who sell our funds on our behalf. Adjusted Net Income and Adjusted Diluted Earnings Per Share We define adjusted net income as net income attributable to Franklin Resources, Inc. adjusted to exclude the following: Activities of CIPs. Acquisition-related items: Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company. Net gains or losses on investments related to deferred compensation plans which are not offset by compensation and benefits expense. Net compensation and benefits expense related to minority interests in certain subsidiaries not offset by net income (loss) attributable to redeemable noncontrolling interests. Unrealized investment gains and losses. Charges related to significant regulatory settlements. Net income tax expense of the above adjustments based on the respective blended rates applicable to the adjustments. We define adjusted diluted earnings per share as diluted earnings per share adjusted to exclude the per share impacts of the adjustments applied to net income in calculating adjusted net income. In calculating our non-GAAP measures, we adjust for the impact of CIPs because it is not considered reflective of our underlying results of operations. Charges related to significant regulatory settlements are excluded because they are not considered reflective of our underlying results of operations and relate to matters that are non-recurring in nature. Acquisition-related items and special termination benefits are excluded to facilitate comparability to other asset management firms. We adjust for compensation and benefits expense related to funded deferred compensation plans because it is partially offset in other income (expense), net. We adjust for compensation and benefits expense and net income (loss) attributable to redeemable noncontrolling interests to reflect the economics of certain profits interest arrangements. Sales and distribution fees and a portion of investment management fees generally cover sales, distribution and marketing expenses and, therefore, are excluded from adjusted operating revenues. In addition, when calculating adjusted net income and adjusted diluted earnings per share we exclude unrealized investment gains and losses included in investment and other income (losses) because the related investments are generally expected to be held long term. The calculations of adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share are as follows: Notes Net income represents net income attributable to Franklin Resources, Inc. "Adjusted net income," "adjusted diluted earnings per share," "adjusted operating income" and "adjusted operating margin" are based on methodologies other than generally accepted accounting principles. See "Supplemental Non-GAAP Financial Measures" for definitions and reconciliations of these measures. Average AUM is calculated as the average of the month-end AUM for the trailing four months. Includes our direct investments in CIPs of $1.2 billion, approximately $380 million of employee-owned and other third-party investments made through partnerships, approximately $434 million of investments that are subject to long-term repurchase agreements and other net financing arrangements, and approximately $409 million of cash and investments related to deferred compensation plans. Beginning in fiscal year 2026, non-fee generating uncalled capital commitments, which were previously included in net market change, distributions, and other, are reflected in long-term inflows in the period the capital is committed. Net market change, distributions and other includes appreciation (depreciation), distributions to investors that represent return on investments and return of capital, and foreign exchange revaluation. Effective in fiscal year 2026, Cayman-domiciled money market fund assets are included in United States reflecting the underlying investor base. This change resulted in an 11% reduction of AUM in the Americas, excluding U.S. Effective January 1, 2026, Asia-Pacific includes India. Prior periods have been revised to reflect the current presentation. Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity. To learn more, visit franklintempleton.com and follow us on LinkedIn. Franklin Resources, Inc. [NYSE: BEN] Forward-Looking Statements Some of the statements herein may include forward-looking statements that reflect our current views with respect to future events, financial performance and market conditions. Such statements are provided under the "safe harbor" protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and generally can be identified by words or phrases written in the future tense and/or preceded by words such as "anticipate," "believe," "could," "depends," "estimate," "expect," "intend," "likely," "may," "plan," "potential," "seek," "should," "will," "would," or other similar words or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements, including market and volatility risks, investment performance and reputational risks, global operational risks, competition and distribution risks, third-party risks, technology and security risks, human capital risks, cash management risks, and legal and regulatory risks. While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other possible future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. These and other risks, uncertainties and other important factors are described in more detail in our recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and our subsequent Quarterly Reports on Form 10-Q. If a circumstance occurs after the date of this press release that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we undertake no obligation to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, to reflect any change in assumptions, beliefs or expectations, or any change in events, conditions or circumstances upon which any forward-looking statement is based, unless required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730236235/en/ Contacts Franklin Resources, Inc.Investor Relations: Selene Oh, (650) 312-4091, [email protected] Media Relations: Jeaneen Terrio, (212) 632-4005, [email protected] investors.franklinresources.com

This article first appeared on GuruFocus. Long-Term Net Inflows: $18.4 billion in the quarter, bringing fiscal year-to-date long-term net inflows to $63.3 billion. Assets Under Management (AUM): Reached a record $1.8 trillion. Adjusted Operating Income: Increased to $508.9 million, up 7% from the prior quarter and 35% from a year ago. Equity Net Flows: Returned to positive net flows of $2 billion. Global Fixed Income Net Flows: Generated $2.6 billion of net inflows. Multi-Asset Net Flows: Generated $4.7 billion of positive net flows. Alternative AUM: Reached a record $294 billion during the quarter. Alternative Fundraising: Raised $11.8 billion during the quarter, including $10.3 billion in private markets, bringing fiscal year-to-date fundraising to $33 billion. ETF AUM: Reached a record $75.6 billion with $7.1 billion of net inflows during the quarter. Retail SMA AUM: Reached a record $187.6 billion with $4.4 billion of net inflows. Canvas AUM: Grew to a record $30.3 billion with $3.7 billion of net inflows. International AUM: Reached approximately $525 billion with positive long-term net flows in every region. Digital Asset AUM: Ended the quarter at $3.2 billion, including $2.4 billion in tokenized funds and approximately $600 million in crypto ETF. Capital Returned to Shareholders: Returned $521.5 million, including $348.1 million in share repurchases. Warning! GuruFocus has detected 9 Warning Signs with BEN. Is BEN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Franklin Resources Inc (NYSE:BEN) delivered another quarter of positive long-term net inflows, with $18.4 billion in the quarter and $63.3 billion fiscal year-to-date, marking positive flows across every asset class and geography. Assets under management reached a record $1.8 trillion, with record AUM in key growth areas including alternatives ($294 billion), ETFs ($75.6 billion), retail SMAs ($187.6 billion), and Canvas ($30.3 billion). Private markets fundraising exceeded the full-year target early, reaching $33 billion year-to-date, with expectations to end the year at about $40 billion, driven by diversified strategies across all private market managers. The institutional pipeline of unfunded mandates hit a record $28.6 billion, increasing by more than $8 billion from the prior quarter, reflecting strong demand for integrated solutions across public and private markets. Adjusted operating income increased 7% sequentially and 35% year-over-year to $508.9 million, with margin expansion ahead of plan, expected to reach close to 30% in the fiscal fourth quarter. The company returned $521.5 million to shareholders in the quarter, including $348.1 million in share repurchases, and announced a corporate name change to Franklin Templeton, Inc. to align with its global brand. Western Asset Management continued to stabilize but did not contribute to positive flows, with the fixed income platform excluding Western delivering positive flows for the tenth consecutive quarter. The effective fee rate is expected to remain stable in the mid- to high 37s, indicating limited pricing power despite asset growth. Expenses are expected to increase by 3% to 3.5% for fiscal 2026, driven by higher markets, sales, and fundraising, with continued investments in AI and digital assets adding to costs. The company faces ongoing pressure from distribution fee increases, such as recent announcements from Merrill Lynch and Schwab, which could impact net revenues. The margin expansion to 30% is still a target, with the company expecting to reach it only by fiscal fourth quarter 2026, and full-year margins in the mid-27s, indicating the pace of improvement is gradual. The company's balance sheet remains leveraged with outstanding revolver debt, and it plans to access long-term debt markets to refinance, which could increase interest costs. Q: Jenny, you laid out very strong growth at the beginning of the year for private markets and that you've already exceeded your year-to-date target with one quarter to go. Can you unpack where you're seeing the strength and where you might be in terms of Lexington XI and the outlook for that as well?A: Jennifer Johnson (CEO): We started the year with a target of $25 billion to $30 billion for private market fundraising, but we are now at $33 billion and expect to end the year at about $40 billion. Lexington's flagship fund is on track to exceed $10 billion by September. The $10.3 billion raised this quarter was highly diversified, with Lexington contributing about 40% across four strategies (flagship, middle market, continuation vehicle, and perpetual). Every private market manager contributed, spanning secondaries, real estate, private credit, and venture, across 30 different strategies. This isn't a one-off; it's broad-based momentum, and we are even seeing a comeback in real estate, which was previously out of favor. Q: I wanted to ask you guys around fixed income strategy broadly. You've made some changes trying to bring the liquid and private pieces together given the convergence in this kind of part of the market. Can you just talk through your new go-to-market approach and how much they could accelerate growth for Franklin as a whole?A: Jennifer Johnson (CEO) & Daniel Gamba (Co-President): We believe any fixed income manager of the future must have visibility on both public and private sides. We are a $620 billion fixed income manager, with $100 billion in private markets, and we want to present a unified front to clients. We have integrated Brandywine and Putnam, and are working on integrating Western, ensuring investment independence while providing greater access to resources like AI and sector analysts. We hired an origination team for sourcing deals. Daniel Gamba added that client reaction to the Western settlement has been positive, and we are seeing upside in institutional re-engagement. We are focusing on multi-asset credit solutions, having just won a mandate from a US public pension, and are launching new products like a target date fund (Retirement Advantage Plus) that includes 2% to 8% in private real estate and credit, and an infrastructure product combining public and private markets. Q: So I wanted to expand on the $11.8 billion in fundraising. So how much of that is actually in fee paying AUM. And then also kind of like what's the average fee rate of the kind of assets you're raising across, I think you said 40 different strategies?A: Jennifer Johnson (CEO) & Matthew Nicholls (CFO): Across our private markets platform, about 80% is fee-generating. The blended fee rate is approximately 65 basis points, though it ranges between 40 basis points and over 100 basis points, plus performance fees. Q: On canvas, I'm interested if you look at the flows in the quarter relative to overall AUM, that's an enormous growth rate. You did have some white label wins. I'm curious if you can parse some of that out. But then more a big picture of what kind of growth you're expecting?A: Jennifer Johnson (CEO) & Daniel Gamba (Co-President): Since acquiring Canvas, it has grown from $2 billion to $30 billion in AUM. Its unique technology, built by tech-focused managers, allows for handling concentrated stock positions and in-kind transfers tax-efficiently. Every new RIA or wirehouse platform we sign up widens the funnel for future flows. The future is applying Canvas' tax overlay to our $187 billion SMA business and active strategies. Daniel Gamba added that we onboarded 26 new partners this quarter, bringing the total to 220, and the pipeline remains strong. The platform is a key transition tool for partners moving clients from commission-based to fee-based accounts. Q: A couple of guidance cleanup. Sorry if I missed it in the rest, but could you give the scale of the catch-up fees in management fees. And then on the expense guide, just confirming that we should add some variable expense to that based on whatever revenue growth we are assuming for 4Q?A: Matthew Nicholls (CFO): Catch-up fees were $14 million in the current quarter, and we expect about the same in the fourth quarter. For Q4 guidance: effective fee rate in the mid-to-high 37s; compensation at $850 million (assuming $50 million performance fees at 55% payout); IS&T at $165 million; occupancy at $70 million; G&A at $200 million; and a tax rate between 25% and 27%. For full-year 2026, expenses are expected to be 3% to 3.5% above FY25 (or 2% to 2.5% including performance fees). We expect to reach very close to 30% operating margin in Q4, and at least mid-27s for the full year. We expect to reach 30%+ margin later in 2027, with a full-year margin between 29% and 30%. Q: I was maybe going to follow on Patrick's question there. So maybe on the fundraising side, for the alts which is probably the most control, maybe give us a little bit of a sense for what you expect to have in the market. Are there any implications for the EFR?A: Jennifer Johnson (CEO) & Matthew Nicholls (CFO): We will provide '27 projections next quarter, but most of the same funds will be in the market next year. We are at 20% of fundraising from the wealth channel, and our goal is 20% to 30%, so we hope to grow that. We expect to end this fiscal year at about $40 billion in fundraising. Matt Nicholls added that the EFR is expected to remain stable in the mid-37s. Daniel Gamba noted that wealth channel fundraising was $3 billion in the quarter, $6.6 billion fiscal year-to-date, with 29% of sales coming internationally. We are seeing momentum in real estate debt and CP RECs, and are driving innovation with model portfolios and exploring demand for infrastructure and venture strategies. Q: So over the last year, you've rolled out a number of AI initiatives across investments, distribution, operations, including your partnership with Microsoft. So just hoping you could follow up on that. And as you look across your efforts today, where are you seeing some of the highest return on investment?A: Jennifer Johnson (CEO) & Matthew Nicholls (CFO): Our intelligence hub with Microsoft has resulted in a 25% increase in client visits/contacts and an For the complete transcript of the earnings call, please refer to the full earnings call transcript.