EarningsQ3 2026 Earnings Report
MX:BEN Q3 2026 EPS Results
Actual EPS$13.08
Consensus EPS$11.95
Beat/MissBeat by +$1.13
One Year Ago EPS$8.90
MX:BEN Q3 2026 Revenue Results
Actual Revenue$43.96B
Expected Revenue$31.94B
Beat/MissBeat by +$12.02B
YoY Revenue Growth+19.08%
Earnings Announcement Details
QuarterQ3 2026
Date07/31/2026
TimeBefore Open
Conference CallFriday, July 31, 2026
MX:BEN Upcoming Earnings
Franklin Resources's next earnings date is estimated for November 3, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:BEN Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated broad-based, multi-channel growth with record AUM, robust long-term net inflows, strong private markets fundraising, expanding ETF/SMA/Canvas franchises, improving operating income and clear margin targets. The company also highlighted promising digital asset initiatives and AI-driven sales/investment enhancements. Offsetting items include ongoing integration work (notably Western Asset), modest expense growth tied to strategic investments, distribution fee pressures, and execution risks around AI and tokenization scale. On balance, the positives — multiple record metrics, sustained net inflows, and forward guidance of margin expansion — materially outweigh the manageable risks described.Company Guidance
Strong Net Long-Term Inflows
Recorded $18.4 billion in long-term net inflows for the quarter and $63.3 billion fiscal year-to-date; long-term inflows reached a record $122 billion, with positive net flows across every asset class and geography.
Record Assets Under Management
Total AUM grew to a record $1.8 trillion during the quarter, reflecting broad-based growth across public and private markets.
Robust Alternatives and Private Markets Fundraising
Alternatives AUM reached a record $294 billion (after $3 billion of realizations/distributions). The firm raised $11.8 billion across alternatives in the quarter, including $10.3 billion in private markets; fiscal year-to-date private markets fundraising stands at $33 billion, already exceeding the original full-year target and on track to end the year around $40 billion.
Institutional Pipeline Expansion
Institutional won-but-unfunded pipeline reached a record $28.6 billion, increasing by $8.0 billion from the prior quarter, demonstrating strong future organic growth opportunities.
Public Markets Momentum
Equity net flows returned to positive $2.0 billion; global fixed income generated $2.6 billion of net inflows (excluding Western Asset, fixed income delivered its 10th consecutive quarter of positive net flows at $3.5 billion); multi-asset produced $4.7 billion of positive net flows.
ETF, SMA and Canvas Growth
ETF AUM reached a record $75.6 billion with $7.1 billion of net inflows (active ETFs accounted for 61% of ETF net flows). Retail SMAs reached a record $188 billion with $4.4 billion of net inflows. Canvas AUM grew to a record $30.3 billion with $3.7 billion of net inflows and added 26 new partners this quarter (total partners 220).
Digital Asset and Tokenization Progress
Digital asset AUM totaled $3.2 billion (approximately $2.4 billion in tokenized funds and ~$600 million in crypto ETFs). Completed acquisition of 250 Digital, launched Franklin Crypto, and announced partnerships (MoonPay, Payward/Kraken) to expand tokenized distribution.
Strong Investment Performance Metrics
More than half of mutual fund and ETF AUM outperformed peers over 3, 5 and 10-year periods; nearly half of AUM rated 4 or 5 stars by Morningstar. Strategy composites outperformed benchmarks for 55%+ of AUM over 3 and 5 years and 70% over 10 years.
Improving Operating Income and Margin Progress
Adjusted operating income rose to $508.9 million, up 7% sequentially and up 35% year-over-year. Management expects to approach or reach a ~30% adjusted operating margin in fiscal Q4 and targets mid-to-high 20s for the full fiscal year, with further margin expansion expected into 2027 (guidance ~29-30% for fiscal 2027).
Shareholder Returns and Capital Management
Returned $521.5 million to shareholders this quarter, including approximately $348–350 million in share repurchases; management outlined disciplined capital allocation priorities including continued dividend growth, opportunistic buybacks, and balance sheet use to co-invest in private markets.
Private Markets Fee Profile
Approximately 80% of private markets AUM is fee-generating; blended fee rate on private markets fundraising is ~65 basis points (range ~40 bps to 100+ bps, plus performance fees).
MX:BEN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed