Franklin Resources Inc Earnings
Franklin Resources Inc., operating under the brand name Franklin Templeton, recently announced its financial results for the quarter and fiscal year ended September 30, 2025. The company showed strong financial performance marked by an increase in net income and notable growth in assets under management (AUM), reflecting its resilience in a competitive market landscape. The asset management giant, known for its comprehensive investment solutions, has successfully diversified its offerings across various asset classes, driving long-term growth.
Franklin Resources Inc Results
The financial performance of Franklin Resources for the fourth quarter and fiscal year showcases a robust upward trajectory in earnings, despite some challenges. Below is a summary of key financial metrics for the quarter and year.
| Metric | Q4 2025 | Q3 2025 | Q4 2024 | FY 2025 | FY 2024 |
|---|---|---|---|---|---|
| Net Income ($ million) | 117.6 | 92.3 | (84.7) | 524.9 | 464.8 |
| Diluted EPS ($ per share) | 0.21 | 0.15 | (0.19) | 0.91 | 0.85 |
| Adjusted Net Income ($ million) | 357.5 | 263.4 | 315.2 | 1,195.8 | 1,276.7 |
| Adjusted EPS ($ per share) | 0.67 | 0.49 | 0.59 | 2.22 | 2.39 |
Franklin Resources reported a significant improvement in net income for the quarter, with $117.6 million compared to a loss of $84.7 million in the same quarter of last year. Diluted earnings per share (EPS) also rose to $0.21, a turnaround from the loss reported in Q4 2024. The company’s fiscal year net income increased to $524.9 million from $464.8 million the previous year, signaling robust financial health.
Revenue Breakdown
The table below illustrates Franklin Resources' revenue performance across its major business segments:
| Segment | Revenue ($ billion) | QOQ Change | Comparison to Guidance |
|---|---|---|---|
| Total AUM | 1,661.2 | +49.4 | N/A |
| Long-term Inflows | 84.6 | +12% | Aligned |
| Net Outflows | 11.9 | N/A | Within Expectations |
| Institutional Pipeline | 20.4 | N/A | Robust |
| Cash Management Inflows | 7.2 | N/A | Surpassing Expectations |
Franklin Resources witnessed a $49.4 billion increase in its total assets under management, buoyed by positive market changes and strategic cash management inflows. Notably, the company experienced $84.6 billion in long-term inflows, reflecting a 12% quarter-over-quarter rise. However, long-term net outflows totaled $11.9 billion, with significant outflows from Western Asset Management. Excluding Western Asset, there were $11.4 billion in net inflows, marking the eighth consecutive quarter of positive flows.
Despite the net outflows, Franklin's institutional pipeline remains healthy, reflecting the company’s robust capability in securing future business. The cash management category showed strong performance, with net inflows of $7.2 billion, underlining the company's effective strategies in navigating changing market conditions.
Key Developments
During the fourth quarter, Franklin Resources executed several strategic initiatives to drive growth. The acquisition of Apera Asset Management bolstered the company's alternative AUM to a record $270 billion. Additionally, the firm witnessed remarkable growth in retail separately managed accounts, exchange-traded funds (ETFs), and the Canvas® investment platform, each achieving double-digit asset under management growth rates. These expansions underscore Franklin's commitment to enhancing its investment solutions across public and private markets.
The company also maintained a strong financial position with $6.7 billion in cash and investments, enhancing its capability to invest in growth avenues while managing potential risks. During the fiscal year, Franklin returned $930 million to shareholders through dividends and share repurchases, demonstrating robust capital allocation strategies.
Comments from Company Officers
Jenny Johnson, President and CEO of Franklin Resources, expressed optimism about the company's performance and strategic direction. "Franklin Templeton delivered solid fourth-quarter and fiscal year 2025 results, demonstrating continued growth and diversification across our global platform. Our balance sheet continues to provide financial flexibility," Johnson stated.
She emphasized the company's achievements in executing long-term corporate priorities, highlighting growth in net inflows and assets under management across various segments, providing a strong foundation for future performance. As Franklin enters fiscal 2026, Johnson conveyed confidence in the company's ability to capitalize on industry trends and continue creating value for clients and shareholders.
Dividends and Share Repurchases
Franklin Resources has demonstrated a commitment to returning value to shareholders. During the fiscal year, the company returned $930 million to shareholders via dividends and share repurchases. In the most recent quarter, Franklin repurchased 2.6 million shares for $67.1 million. This strategic repurchase program reflects confidence in the company's future and serves as a testament to its robust capital return policy.
Franklin Resources Inc Stock Forecast
Based on an analysis of Franklin's financial performance and strategic initiatives, the company is positioned well for continued growth. The diverse asset allocation strategy, healthy institutional pipeline, and strategic acquisitions are expected to positively influence stock performance.
Current market trends suggest that Franklin’s stock could experience further appreciation. Based on fundamental analysis, the stock price could see a high of around $30, driven by consistent positive inflows and strategic expansion in high-growth areas like alternatives and private markets. Conversely, potential market volatility and global economic conditions could pose challenges, potentially adjusting low-end expectations to around $22.
In conclusion, Franklin Resources has shown remarkable adaptability and robustness in challenging market conditions. The company’s strategic initiatives, strong financial performance, and disciplined capital management are likely to bolster its market position, offering promising prospects for investors and stakeholders. As the company navigates future challenges, its continued focus on innovation and global diversification remains key to enhancing shareholder value.
