Franklin Resources Q1 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy BEN?
Source: seekingalpha
- Earnings Beat: Franklin Resources reported a Q1 non-GAAP EPS of $0.70, surpassing expectations by $0.15, indicating strong profitability and boosting investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved revenues of $2.33 billion in Q1, reflecting a 3.6% year-over-year increase and exceeding forecasts by $370 million, demonstrating robust demand in the asset management sector.
- Increase in AUM: As of December 31, 2025, total assets under management (AUM) reached $1,684 billion, up $22.8 billion from the previous quarter, showcasing the company's success in attracting new investors and capital inflows.
- Strong Cash Position: The company's cash and cash equivalents totaled $5.1 billion, with direct investments in consolidated investment products bringing the total to $6.2 billion as of December 31, 2025, reflecting solid liquidity management and financial stability.
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Analyst Views on BEN
Wall Street analysts forecast BEN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BEN is 23.83 USD with a low forecast of 21.00 USD and a high forecast of 31.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
1 Hold
4 Sell
Moderate Sell
Current: 26.910
Low
21.00
Averages
23.83
High
31.00
Current: 26.910
Low
21.00
Averages
23.83
High
31.00
About BEN
Franklin Resources, Inc. is a global investment management company with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Through its specialist investment managers, the Company offers specialization on a global scale, bringing capabilities in equity, fixed income, alternatives and multi-asset solutions. It provides its investment management and related services to retail, institutional and high-net-worth investors in jurisdictions worldwide. Its investment products include its sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. Its funds include registered funds (including exchange-traded funds) and unregistered funds. It offers its services and products under its various distinct brand names, including, but not limited to, Alcentra, Benefit Street Partners, Brandywine Global Investment Management, Canvas, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Franklin Resources Reports 1.4% Increase in AUM to $1.71 Trillion
- AUM Growth: As of January 31, 2026, Franklin Resources reported a 1.4% increase in assets under management (AUM) to $1.71 trillion compared to $1.68 trillion at the end of December 2025, driven by market appreciation and positive long-term net inflows.
- Net Inflows Analysis: Despite experiencing approximately $1.5 billion in long-term net outflows at Western Asset Management, excluding this, Franklin's long-term net inflows were around $3 billion, indicating the resilience of its core business.
- Asset Class Performance: The company saw a 1.7% increase in equity AUM to $709.2 billion, a 0.6% rise in fixed income AUM to $440.1 billion, a 0.9% growth in alternative AUM to $276.2 billion, and a 3.3% climb in multi-asset AUM to $205.3 billion, showcasing the success of its diversified investment strategy.
- Year-over-Year Comparison: Compared to January 31, 2025, Franklin's AUM increased by 7.6%, reflecting a sustained growth momentum in asset management, even as its stock slipped 0.2% in after-hours trading on Wednesday.
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- Net Inflows: Despite experiencing approximately $1.5 billion in long-term net outflows at Western Asset Management, the firm achieved overall long-term net inflows of about $1.5 billion this month, indicating a positive market impact.
- Asset Class Distribution: As of January 31, equity assets totaled $709.2 billion, fixed income assets reached $440.1 billion, and alternative investments amounted to $276.2 billion, showcasing the stability of a diversified investment portfolio.
- Market Environment Impact: The growth in AUM this month reflects positive market performance, and while Western Asset Management faced outflows, the overall market conditions continue to positively influence Franklin Resources' business development.
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- Year-over-Year Increase: The $0.33 dividend per share remains consistent with the previous quarter but represents a 3.1% increase compared to the same quarter last year, indicating robust performance in profitability and cash flow management.
- Record Date for Shareholders: Only shareholders holding common stock at the close of business on March 31, 2026, will be eligible for this dividend, ensuring transparency and fairness in shareholder rights.
- Company Background: Since its founding in 1947, Franklin Templeton has been dedicated to providing tailored investment solutions, combining investment excellence with cutting-edge technology, which enhances its competitive position in the market.
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- Rating Overview: Franklin Resources (BEN) currently holds an average rating of Hold, indicating a cautious market sentiment regarding its future performance, which may influence investor decisions.
- Price Target: Analysts have set a mean price target of $26.91 for Franklin Resources, a level that could affect investors' buy or sell strategies regarding its stock.
- Market Reaction: The Hold rating and established price target may lead to a subdued market response to Franklin Resources' stock, potentially impacting its short-term price volatility.
- Investor Strategy: Investors considering Franklin Resources should pay close attention to its rating and price target to make more informed investment decisions, particularly in a market characterized by high uncertainty.
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- Record Long-Term Inflows: Franklin Resources achieved record long-term inflows of $118.6 billion in Q1 2026, representing a 40% increase from the previous quarter and a 22% increase year-over-year, indicating the company's ability to attract investments amid market turbulence and enhancing its competitive position in asset management.
- Growth in Assets Under Management: The company's assets under management (AUM) reached $1.68 trillion by the end of the quarter, driven by the Apera acquisition and positive net flows across various investment strategies, showcasing the success of its diversified portfolio.
- Strategic Acquisitions and Product Expansion: The completion of the Apera acquisition strengthens its position in the European direct lending market, while the launch of the AI-driven Intelligence Hub platform further solidifies its leadership in blockchain-enabled investment solutions, signaling future growth potential.
- Cost Control and Margin Outlook: The CFO indicated plans to achieve $200 million in cost savings despite flat markets, with expectations for margins to reach 30% by fiscal 2027, providing the company with stronger financial resilience in uncertain market conditions.
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- AUM Growth: As of January 31, 2026, Franklin Resources reported a 1.4% increase in assets under management (AUM) to $1.71 trillion compared to $1.68 trillion at the end of December 2025, driven by market appreciation and positive long-term net inflows.
- Net Inflows Analysis: Despite experiencing approximately $1.5 billion in long-term net outflows at Western Asset Management, excluding this, Franklin's long-term net inflows were around $3 billion, indicating the resilience of its core business.
- Asset Class Performance: The company saw a 1.7% increase in equity AUM to $709.2 billion, a 0.6% rise in fixed income AUM to $440.1 billion, a 0.9% growth in alternative AUM to $276.2 billion, and a 3.3% climb in multi-asset AUM to $205.3 billion, showcasing the success of its diversified investment strategy.
- Year-over-Year Comparison: Compared to January 31, 2025, Franklin's AUM increased by 7.6%, reflecting a sustained growth momentum in asset management, even as its stock slipped 0.2% in after-hours trading on Wednesday.
See More
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- AUM Growth: As of January 31, 2026, Franklin Resources reported preliminary assets under management (AUM) of $1.71 trillion, reflecting a growth of approximately 0.18% from $1.68 trillion at the end of December 2025.
- Net Inflows: Despite experiencing approximately $1.5 billion in long-term net outflows at Western Asset Management, the firm achieved overall long-term net inflows of about $1.5 billion this month, indicating a positive market impact.
- Asset Class Distribution: As of January 31, equity assets totaled $709.2 billion, fixed income assets reached $440.1 billion, and alternative investments amounted to $276.2 billion, showcasing the stability of a diversified investment portfolio.
- Market Environment Impact: The growth in AUM this month reflects positive market performance, and while Western Asset Management faced outflows, the overall market conditions continue to positively influence Franklin Resources' business development.
See More
Franklin Resources Announces Quarterly Cash Dividend
- Quarterly Cash Dividend: Franklin Resources, Inc. has announced a cash dividend of $0.33 per share, payable on April 10, 2026, demonstrating the company's ongoing commitment to shareholder returns.
- Year-over-Year Increase: The $0.33 dividend per share remains consistent with the previous quarter but represents a 3.1% increase compared to the same quarter last year, indicating robust performance in profitability and cash flow management.
- Record Date for Shareholders: Only shareholders holding common stock at the close of business on March 31, 2026, will be eligible for this dividend, ensuring transparency and fairness in shareholder rights.
- Company Background: Since its founding in 1947, Franklin Templeton has been dedicated to providing tailored investment solutions, combining investment excellence with cutting-edge technology, which enhances its competitive position in the market.
See More
Franklin Resources Rating Analysis
- Rating Overview: Franklin Resources (BEN) currently holds an average rating of Hold, indicating a cautious market sentiment regarding its future performance, which may influence investor decisions.
- Price Target: Analysts have set a mean price target of $26.91 for Franklin Resources, a level that could affect investors' buy or sell strategies regarding its stock.
- Market Reaction: The Hold rating and established price target may lead to a subdued market response to Franklin Resources' stock, potentially impacting its short-term price volatility.
- Investor Strategy: Investors considering Franklin Resources should pay close attention to its rating and price target to make more informed investment decisions, particularly in a market characterized by high uncertainty.
See More
Franklin Resources Reports Record Inflows and Strategic Growth in Q1 2026
- Record Long-Term Inflows: Franklin Resources achieved record long-term inflows of $118.6 billion in Q1 2026, representing a 40% increase from the previous quarter and a 22% increase year-over-year, indicating the company's ability to attract investments amid market turbulence and enhancing its competitive position in asset management.
- Growth in Assets Under Management: The company's assets under management (AUM) reached $1.68 trillion by the end of the quarter, driven by the Apera acquisition and positive net flows across various investment strategies, showcasing the success of its diversified portfolio.
- Strategic Acquisitions and Product Expansion: The completion of the Apera acquisition strengthens its position in the European direct lending market, while the launch of the AI-driven Intelligence Hub platform further solidifies its leadership in blockchain-enabled investment solutions, signaling future growth potential.
- Cost Control and Margin Outlook: The CFO indicated plans to achieve $200 million in cost savings despite flat markets, with expectations for margins to reach 30% by fiscal 2027, providing the company with stronger financial resilience in uncertain market conditions.
See More
Franklin Resources (BEN) Earnings Call Transcript
See More
