Franklin Resources beats Q1 profit estimates

Franklin Templeton

30/01/2026 13:40

Overview

Investment manager's fiscal Q1 operating revenue beat analyst expectations

Adjusted EPS for fiscal Q1 beat analyst expectations

Company repurchased 1.8 mln shares for $41.9 mln

Outlook

Company highlights strategic investments in alternative assets for future growth

Franklin Resources emphasizes disciplined expense management and strategic investments

Company sees diversified business model as well positioned for long-term industry trends

Result Drivers

POSITIVE NET FLOWS - Co reported $28 bln in long-term net inflows, driven by equity, multi-asset, alternatives strategies, and ETFs

ALTERNATIVES FUNDRAISING - Alternatives fundraising contributed $10.8 bln, including $9.5 bln in private market assets

ACQUISITIONS - Acquisition of Apera Asset Management added $6.1 bln to AUM, enhancing direct lending capabilities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Operating Revenue
Beat
$2.33 bln
$1.71 bln (3 Analysts)
Q1 Adjusted EPS
Beat
$0.70
$0.55 (8 Analysts)
Q1 EPS
$0.46
Q1 Adjusted Net Income
Beat
$378.4 mln
$295.82 mln (3 Analysts)
Q1 Net Income
$255.5 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the investment management & fund operators peer group is "buy."

Wall Street's median 12-month price target for Franklin Resources Inc is $25.50, about 1.5% below its January 29 closing price of $25.88

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw40nnpGa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)