The recent earnings announcement by Franklin Resources Inc. showcases a quarter of vigorous performance and strategic advancements, reflecting the company's ongoing efforts to sustain growth and innovation within the financial sector.
Franklin Resources Inc Earnings
For the quarter ended December 31, 2025, Franklin Resources Inc. reported robust earnings, indicating a significant uptick in financial results. The company's net income stood at $255.5 million, or $0.46 per diluted share, illustrating substantial growth compared to both the preceding quarter and the same quarter of the previous year. Notably, the company witnessed a 117% increase in net income from the previous quarter's $117.6 million and a 56% rise from the $163.6 million recorded for the same period last year.
Franklin Resources Inc Results
Below is a table outlining key financial metrics which highlight improvements over the previous year and quarter:
| Financial Metric | Q4 2025 | Q3 2025 | Q4 2024 | YoY Change (%) | QoQ Change (%) |
|---|---|---|---|---|---|
| Net Income ($ millions) | 255.5 | 117.6 | 163.6 | 56 | 117 |
| Earnings Per Share ($) | 0.46 | 0.21 | 0.29 | 59 | 119 |
| Operating Income ($ millions) | 281.0 | 85.4 | 219.0 | 28 | 229 |
| Adjusted Net Income ($ millions) | 378.4 | 357.5 | 320.5 | 18 | 6 |
| Adjusted EPS ($) | 0.70 | 0.67 | 0.59 | 19 | 4 |
| Adjusted Operating Income ($ millions) | 437.3 | 472.4 | 412.8 | 6 | -7 |
Franklin Resources' earnings per share surpassed expectations, with both basic and adjusted EPS showing incremental gains quarter-over-quarter and year-over-year, reflecting enhanced profitability and operational efficiency.
Revenue Breakdown
The breakdown of revenue performance across major segments during the quarter ended December 31, 2025, is presented below:
| Segment | Revenue ($ billions) | Q4 2025 Revenue | YoY % Change |
|---|---|---|---|
| Equity | 9.0 | 34% | Up |
| Multi-asset and Alternatives | 15.0 | 50% | Up |
| ETFs, retail SMAs, Canvas | 2.5 | 10% | Up |
Segment Performance Analysis
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Equity Segment : With an acknowledgment to strong market conditions, Franklin Resources saw growth in its equity offerings. The segment constituted $9 billion in revenue, gaining traction due to an increase in client activity and investment inflows.
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Multi-asset and Alternatives Segment : This segment managed to bring in $15 billion, capturing a substantial portion of the total revenue, reflective of its 50% growth. The rise in alternatives fundraising, attracting $10.8 billion, was pivotal in this segment's performance.
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ETFs, Retail SMAs, Canvas : Contributing $2.5 billion in revenue, these strategies have proven to be increasingly popular with investors seeking diversified investment vehicles. The ETF platform achieved a new milestone with $58 billion in AUM, evidencing its continued attractiveness.
Key Developments
Several significant developments characterized the quarter, underpinning Franklin Resources' robust performance:
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Record AUM and Positive Net Flows : Total assets under management (AUM) climbed to $1,684 billion, propelled by $22.8 billion in net new inflows, emphasizing Franklin's ability to navigate and attract capital.
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Strategic Acquisitions : The acquisition of Apera Asset Management bolstered the company’s private credit platform, aligning its efforts within alternative investment channels. This move enhances Franklin's capabilities in direct lending within Europe.
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Focused Fundraising in Alternatives : Successful operations in secondary private equity and real estate have fortified Franklin's standing in alternative assets. Noteworthy is the closing of Lexington Co-Investment Partners VI with $4.6 billion in committed capital.
Comments from Company Officers
Jenny Johnson, CEO of Franklin Resources, stated, "Our first fiscal quarter continued the momentum we built last year with strong client activity across Franklin Templeton's diversified global platform. Long-term net inflows were $28.0 billion, with record assets under management." She highlighted the importance of alternative assets and Franklin's strategic positioning.
Dividends and Share Repurchases
During the quarter, Franklin Resources repurchased 1.8 million shares of its common stock at a total cost of $41.9 million. This demonstrates the company's commitment to shareholder value and indicates confidence in its market position.
Franklin Resources Inc Stock Forecast
Considering Franklin Resources' current market capitalization of approximately $11.85 billion, and the positive trends reported in earnings, lucrative asset acquisitions, and prudent cost management, outlooks for the stock appear favorable. Given the firm's strong fundamentals and historical price performance, conservative projections place the stock price at a low of $28 and a high of $35 over the next fiscal year, depending on market conditions and continued operational success.
In conclusion, Franklin Resources Inc. has made substantial strides in enhancing its operational model and delivering on growth strategies. By effectively managing client relationships and leveraging strategic acquisitions, the company positions itself well to navigate and innovate within the competitive landscape of global asset management.
