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1. Company Snapshot

1.a. Company Description

Franklin Resources, Inc.is a publicly owned asset management holding company.Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships.


It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries.The firm invests in the public equity, fixed income, and alternative markets.Franklin Resources, Inc.


was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.

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1.b. Last Insights on BEN

Breaking News: Franklin Resources, Inc. reported net income of $268.2 million or $0.49 per diluted share for Q2 2026, compared to $255.5 million or $0.46 per diluted share in the previous quarter and $151.4 million or $0.26 per diluted share in Q2 2025. The company's quarterly earnings of $0.71 per share beat the Zacks Consensus Estimate of $0.55 per share. Operating income was $323.3 million, up from $281.0 million in the previous quarter. The company's results reflect an earnings beat and higher revenues. A recommendation to buy or hold the stock comes from some analysts.

1.c. Company Highlights

2. Franklin Resources Q2 Earnings: Robust Growth, Strong Platform

Franklin Resources delivered a solid quarter with adjusted operating income climbing to $475 million, up 8.5% QoQ and 25.8% YoY, while EPS reached $0.71 against analysts’ $0.55 estimate. The firm’s P/E of 18.78 and P/B of 1.26 reflect a valuation that rewards its diversified asset base and growing fee‑earning alternatives.

Publication Date: Apr -29

📋 Highlights
  • Net Inflows Surge:: $16.9 billion in long-term net inflows, driven by diversified investment groups across public and private markets.
  • Operating Income Growth:: Adjusted operating income rose 8.5% QoQ and 25.8% YoY to $475 million, reflecting strategic execution.
  • Canvas AUM Record:: Tax-managed Canvas reached $22.9 billion AUM with $5.3 billion in positive net flows, showcasing tax optimization momentum.
  • Private Markets Expansion:: $13 billion raised in Q2, targeting $30+ billion annually, with private credit and Lexington fund contributions highlighted.
  • ETF Growth Acceleration:: AUM doubled to $62 billion in 18 months, with 49% organic flow growth in 2024 and tokenized ETFs expanding access.

Revenue & Margin Dynamics

The company’s operating margin expanded as net inflows of $16.9 billion reinforced fee income. With adjusted operating income rising 8.5% quarter‑over‑quarter, the firm maintains healthy profitability, supported by a stable fee structure across public and private markets. EPS beat signals disciplined cost management.

Asset Growth & Diversification

Franklin’s AUM topped $1.68 trillion, spanning public markets ($207 billion), alternatives ($283 billion), and the record‑setting Canvas tax‑managed product ($22.9 billion). The institutional pipeline of $20.2 billion in won but unfunded mandates underscores a robust distribution network and client demand across regions.

Private Markets Momentum

Private credit and secondaries drove $13 billion of new capital this quarter, with a projected $30 billion in fundraising for the year. Lexington’s flagship fund and disciplined underwriting continue to deliver fee‑rich exposure, while the firm’s focus on co‑invest and secondary opportunities fuels growth.

Tax‑Optimized Canvas Platform

Canvas achieved a 72% CAGR in tax alpha, growing to $23 billion in AUM—10‑fold since acquisition. Its technology‑driven flexibility attracts investors prioritizing tax efficiency, positioning Franklin as a leader in the emerging tax‑optimized asset class.

AI & Operational Efficiencies

AI initiatives target growth and throughput, producing 10% sales uplift among distribution teams and significant administrative savings. Early results demonstrate AI’s dual role in enhancing client acquisition while streamlining back‑office operations.

ETF & Digital Asset Expansion

ETF distribution reached $62 billion, double the level 18 months ago, with organic growth at 49% this year. Franklin’s tokenized ETF rollouts on Kraken and Ondo tap into a billion‑wallet ecosystem, expanding its digital asset footprint.

Capital & Dividend Outlook

With a dividend yield of 4.41% and free‑cash‑flow yield of 6.11%, the firm prioritizes shareholder returns while maintaining a negative net‑debt/EBITDA of –0.9. ROIC of 3.95% and ROE of 6.69% illustrate efficient capital deployment.

Valuation & Outlook

Guidance remains in line with previous expectations, projecting a 6.2% revenue growth next year. The EPS beat, combined with a solid valuation profile and strong fee‑earning pipeline, suggests the stock is well positioned to capture upside from continued asset‑class diversification and digital expansion.

3. NewsRoom

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Franklin Resources: Turning The Corner

May -01

Source: seekingalpha.com

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Here Are Wednesday’s Top Wall Street Analyst Research Calls: Alibaba, Boston Scientific, Brown-Forman, Charter Communications, Franklin Resources, Spotify, T-Mobile, and More

Apr -29

Source: 247wallst.com

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Franklin Resources Inc (BEN) Q2 2026 Earnings Call Highlights: Strong Inflows and Strategic Growth Amid Market Challenges

Apr -29

Source: gurufocus.com

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Franklin Resources, Inc. (BEN) Q2 2026 Earnings Call Transcript

Apr -28

Source: seekingalpha.com

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Franklin Stock Gains as Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Apr -28

Source: zacks.com

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Compared to Estimates, Franklin Resources (BEN) Q2 Earnings: A Look at Key Metrics

Apr -28

Source: zacks.com

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Franklin Resources (BEN) Beats Q2 Earnings and Revenue Estimates

Apr -28

Source: zacks.com

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Franklin Templeton's quarterly profit rises on strong inflows

Apr -28

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.86%)

6. Segments

Investment Management Fees

Expected Growth: 2.8%

Franklin Resources, Inc.'s 2.8% growth in Investment Management Fees is driven by increasing assets under management (AUM) from strong market performance and net inflows, as well as expansion into new markets and products, such as sustainable and ESG-focused offerings, and strategic acquisitions.

Sales and Distribution Fees

Expected Growth: 3.2%

Franklin Resources, Inc.'s 3.2% growth in Sales and Distribution Fees is driven by increasing assets under management, expansion into new markets, and a shift towards higher-fee products. Additionally, the company's strategic acquisitions and partnerships have enhanced its distribution capabilities, leading to higher fees. Furthermore, the trend towards passive investing and demand for sustainable investment products have also contributed to the growth.

Shareholder Servicing Fees

Expected Growth: 2.9%

Franklin Resources' 2.9% growth in Shareholder Servicing Fees is driven by increasing assets under management, expansion of distribution channels, and a rise in demand for investment products. Additionally, the company's strategic acquisitions and partnerships have enhanced its servicing capabilities, leading to higher fees. Furthermore, the trend towards passive investing and the need for cost-effective solutions have also contributed to the growth.

Other

Expected Growth: 3.1%

Franklin Resources' 3.1% growth in 'Other' segment is driven by increasing demand for alternative investment products, expansion of its wealth management business, and strategic acquisitions. Additionally, the company's focus on emerging markets and growing presence in Asia have contributed to its growth.

7. Detailed Products

Franklin Templeton Mutual Funds

A range of mutual funds that cater to different investment objectives and risk profiles

Franklin Templeton Exchange-Traded Funds (ETFs)

A suite of ETFs that track various market indices and sectors

Franklin Templeton Alternative Investments

A range of alternative investment strategies, including private equity, real assets, and hedge funds

Franklin Templeton Institutional Investments

Customized investment solutions for institutional clients, including pension funds, endowments, and foundations

Franklin Templeton Retirement Services

A range of retirement plan solutions for employers and employees

Franklin Templeton Wealth Management

Comprehensive wealth management services for high-net-worth individuals and families

8. Franklin Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Franklin Resources, Inc. operates in the financial services industry, which has a moderate threat of substitutes. While there are alternative investment options available, the company's diversified product offerings and strong brand reputation help mitigate this threat.

Bargaining Power Of Customers

Franklin Resources, Inc. has a large and diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often tailored to meet specific customer needs, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Franklin Resources, Inc. has a diverse supplier base, and the company is not heavily reliant on any single supplier. This reduces the bargaining power of suppliers and allows the company to negotiate favorable terms.

Threat Of New Entrants

The financial services industry has significant barriers to entry, including regulatory hurdles and the need for significant capital investments. This makes it difficult for new entrants to compete with established players like Franklin Resources, Inc.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Franklin Resources, Inc. must continually innovate and improve its products and services to remain competitive in this environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.63%
Debt Cost 3.95%
Equity Weight 49.37%
Equity Cost 11.22%
WACC 7.53%
Leverage 102.55%

11. Quality Control: Franklin Resources, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Invesco

A-Score: 6.4/10

Value: 7.6

Growth: 2.9

Quality: 6.7

Yield: 7.0

Momentum: 8.5

Volatility: 6.0

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SEI Investments

A-Score: 6.0/10

Value: 3.9

Growth: 5.7

Quality: 9.2

Yield: 2.0

Momentum: 5.5

Volatility: 9.7

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Affiliated Managers Group

A-Score: 5.7/10

Value: 4.2

Growth: 5.4

Quality: 7.7

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

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Franklin Resources

A-Score: 5.6/10

Value: 5.0

Growth: 2.8

Quality: 4.3

Yield: 8.0

Momentum: 5.5

Volatility: 8.0

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TPG

A-Score: 4.1/10

Value: 1.1

Growth: 1.6

Quality: 6.0

Yield: 7.0

Momentum: 3.5

Volatility: 5.7

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StepStone Group

A-Score: 4.1/10

Value: 4.2

Growth: 1.9

Quality: 2.5

Yield: 5.0

Momentum: 5.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.84$

Current Price

29.84$

Potential

-0.00%

Expected Cash-Flows