Franklin Resources posts fiscal Q1 profit beat and revenue surprise

Franklin Resources (NYSE:BEN) reported fiscal first-quarter earnings that comfortably beat Wall Street expectations, as record assets under management (AUM) and robust client activity in alternative investments offset persistent outflows at its Western Asset subsidiary.

The San Mateo, California-based investment manager, which operates as Franklin Templeton, saw its shares rise following the release of the stronger-than-projected results.

For the quarter ended Dec. 31, 2025, the company posted net income of $255.5 million, or 46 cents per share.

Excluding one-time items, adjusted earnings reached 70 cents per share, significantly higher than the 55-cent average estimate of six analysts surveyed by Zacks Investment Research.

Revenue for the period hit $2.33 billion, surpassing the $2.15 billion projected by the Street.

A primary driver of the performance was the firm’s growing footprint in private markets and alternatives.

Franklin reported $28 billion in long-term net inflows, aided by $10.8 billion in alternative fundraising and the integration of Apera Asset Management.

Total AUM reached a record $1.68 trillion, a 7% increase from the prior year, bolstered by market appreciation and strategic acquisitions.

"Our first fiscal quarter continued the momentum we built last year with strong client activity across our diversified global platform," CEO Jenny Johnson said in a statement.

While the company faces ongoing regulatory investigations and outflows at Western Asset Management, Johnson highlighted that excluding that unit, long-term net inflows totaled $34.6 billion, nearly double the year-ago quarter.