Franklin Templeton Inc 10-Q for FY2026 Q2

Franklin Templeton Inc (BEN)

10-Q 2026-04-28 For: 2026-03-31

Added on April 28, 2026

About this 10-Q

Franklin Templeton Inc filed this 10-Q on April 28, 2026, covering the quarter ended March 31, 2026 (FY2026 Q2).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.29B; up 8.7% from $2.11B a year earlier
Net income: $268.2M; up 77.1% from net income of $151.4M a year earlier
Diluted EPS: $0.49; up 88.5% from $0.26 a year earlier

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Delaware			13-2670991
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	BEN	New York Stock Exchange


			Page
PART I		Financial Information
	Item 1.	Financial Statements (unaudited)
		Consolidated Statements of Income	3
		Consolidated Statements of Comprehensive Income	4
		Consolidated Balance Sheets	5
		Consolidated Statements of Stockholders’ Equity	6
		Consolidated Statements of Cash Flows	8
		Notes to Consolidated Financial Statements	10
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
	Item 4.	Controls and Procedures	42

PART II		Other Information
	Item 1.	Legal Proceedings	43
	Item 1A.	Risk Factors	43
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
	Item 5.	Other Information	43
	Item 6.	Exhibits	43

Exhibit Index			44
Signatures			45


	Three Months Ended March 31,				Six Months Ended March 31,
(in millions, except per share data)	2026		2025		2026		2025
Operating Revenues
Investment management fees	$	1,819.3	$	1,673.6	$	3,667.2	$	3,472.9
Sales and distribution fees	396.6		364.9		785.3		740.4
Shareholder servicing fees	69.0		61.9		139.9		125.4
Other	10.0		11.0		29.6		24.3
Total operating revenues	2,294.9		2,111.4		4,622.0		4,363.0
Operating Expenses
Compensation and benefits	964.7		920.0		1,995.4		1,911.4
Sales, distribution and marketing	544.0		498.1		1,084.9		1,010.4
Information systems and technology	157.6		158.7		314.6		314.7
Occupancy	67.1		69.3		133.9		144.4
Amortization of intangible assets	50.6		112.5		105.7		225.1
Impairment of intangible assets	—		24.4		—		24.4
General, administrative and other	187.6		182.8		383.2		368.0
Total operating expenses	1,971.6		1,965.8		4,017.7		3,998.4
Operating Income	323.3		145.6		604.3		364.6
Other Income (Expenses)
Investment and other income, net	56.0		94.1		136.3		104.6
Interest expense	(19.9)		(20.8)		(40.3)		(43.9)
Investment and other income (losses) of consolidated investment products, net	96.5		(164.7)		221.4		(50.6)
Expenses of consolidated investment products	(10.2)		(11.5)		(24.2)		(18.8)
Other income (expenses), net	122.4		(102.9)		293.2		(8.7)
Income before taxes	445.7		42.7		897.5		355.9
Taxes on income	99.1		31.1		204.1		112.2
Net income	346.6		11.6		693.4		243.7
Less: net income (loss) attributable to
Redeemable noncontrolling interests	23.9		(158.4)		63.6		(108.8)
Nonredeemable noncontrolling interests	54.5		18.6		106.1		37.5
Net Income Attributable to Franklin Resources, Inc.	$	268.2	$	151.4	$	523.7	$	315.0

Earnings per Share
Basic	$	0.49	$	0.26	$	0.95	$	0.55
Diluted	0.49		0.26		0.95		0.55


(in millions)	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Net Income	$	346.6	$	11.6	$	693.4	$	243.7
Other Comprehensive Income (Loss)
Currency translation adjustments, net of tax	(40.8)		28.5		(41.9)		(76.6)
Net unrealized losses on defined benefit plans, net of tax	—		(3.1)		—		(2.8)

Total other comprehensive income (loss)	(40.8)		25.4		(41.9)		(79.4)
Total comprehensive income	305.8		37.0		651.5		164.3
Less: comprehensive income (loss) attributable to
Redeemable noncontrolling interests	23.9		(158.4)		63.6		(108.8)
Nonredeemable noncontrolling interests	54.5		18.6		106.1		37.5
Comprehensive Income Attributable to Franklin Resources, Inc.	$	227.4	$	176.8	$	481.8	$	235.6


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


(in millions, except share and per share data)	March 31, 2026		September 30, 2025
Assets
Cash and cash equivalents	$	2,571.5	$	3,088.1
Receivables	1,426.2		1,541.7
Investments (including $1,118.3 and $1,179.5 at fair value at March 31, 2026 and September 30, 2025)	2,569.7		2,374.0
Assets of consolidated investment products
Cash and cash equivalents	997.5		485.8
Investments, at fair value	13,810.2		12,278.8
Property and equipment, net	903.6		949.1
Goodwill	6,295.6		6,206.0
Intangible assets, net	4,091.4		4,166.0
Operating lease right-of-use assets	763.0		764.3
Other	681.1		514.5
Total Assets	$	34,109.8	$	32,368.3

Liabilities
Compensation and benefits	$	1,387.0	$	1,760.3
Accounts payable and accrued expenses	585.4		615.4


Debt	2,253.3		2,362.0
Liabilities of consolidated investment products
Accounts payable and accrued expenses	700.4		1,063.0
Debt	12,153.1		9,937.3
Deferred tax liabilities	337.2		261.6
Operating lease liabilities	987.7		1,000.6
Other	1,090.4		1,179.3
Total liabilities	19,494.5		18,179.5
Commitments and Contingencies (Note 10)
Redeemable Noncontrolling Interests	1,478.9		1,182.0
Stockholders’ Equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued	—		—
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 519,620,511 and 520,951,796 shares issued and outstanding at March 31, 2026 and September 30, 2025	52.0		52.1
Capital in excess of par	999.9		956.8
Retained earnings	11,560.9		11,516.0
Accumulated other comprehensive loss	(489.0)		(447.1)
Total Franklin Resources, Inc. stockholders’ equity	12,123.8		12,077.8
Nonredeemable noncontrolling interests	1,012.6		929.0
Total stockholders’ equity	13,136.4		13,006.8
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$	34,109.8	$	32,368.3


	Franklin Resources, Inc.											Non- redeemable Non- controlling Interests		Total Stockholders’ Equity
	Common Stock			Capital in Excess of Par Value		Retained Earnings		Accum- ulated Other Compre- hensive Loss		Stockholders’ Equity
(in millions)
for the six months ended March 31, 2026	Shares	Amount
Balance at October 1, 2025	521.0	$	52.1	$	956.8	$	11,516.0	$	(447.1)	$	12,077.8	$	929.0	$	13,006.8
Adoption of new accounting guidance						25.3				25.3				25.3
Net income						255.5				255.5		51.6		307.1
Other comprehensive loss								(1.1)		(1.1)				(1.1)
Dividends declared on common stock ($0.33 per share)						(177.6)				(177.6)				(177.6)
Repurchase of common stock	(1.8)	(0.2)		(41.7)		—				(41.9)				(41.9)
Issuance of common stock	0.8	0.1		28.8						28.9				28.9
Stock-based compensation				47.1						47.1				47.1
Net subscriptions and other												17.2		17.2
Net deconsolidation of investment products												(32.2)		(32.2)
Adjustment to fair value of redeemable noncontrolling interests						(79.1)				(79.1)				(79.1)
Balance at December 31, 2025	520.0	$	52.0	$	991.0	$	11,540.1	$	(448.2)	$	12,134.9	$	965.6	$	13,100.5
Net income						268.2				268.2		54.5		322.7
Other comprehensive loss								(40.8)		(40.8)				(40.8)
Dividends declared on common stock ($0.33 per share)						(177.5)				(177.5)				(177.5)
Repurchase of common stock	(2.3)	(0.2)		(56.9)		—				(57.1)				(57.1)
Issuance of common stock	1.9	0.2		54.7						54.9				54.9
Stock-based compensation				11.1						11.1				11.1

Net subscriptions and other												149.9		149.9
Net deconsolidation of investment products												(157.4)		(157.4)
Adjustment to fair value of redeemable noncontrolling interests						(69.9)				(69.9)				(69.9)
Balance at March 31, 2026	519.6	$	52.0	$	999.9	$	11,560.9	$	(489.0)	$	12,123.8	$	1,012.6	$	13,136.4


(in millions)	United States		Luxembourg		Asia-Pacific		Americas Excluding United States		Europe, Middle East and Africa, Excluding Luxembourg		Total
for the three months ended March 31, 2026
Investment management fees	$	1,333.6	$	246.1	$	88.6	$	62.8	$	88.2	$	1,819.3
Sales and distribution fees	266.3		111.5		8.0		10.1		0.7		396.6
Shareholder servicing fees	60.2		8.3		0.4		0.1		—		69.0
Other	9.5		—		0.4		—		0.1		10.0
Total	$	1,669.6	$	365.9	$	97.4	$	73.0	$	89.0	$	2,294.9


(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of March 31, 2026
Assets
Investments, at fair value
Sponsored funds and separate accounts	$	456.2	$	224.9	$	3.3	$	37.2	$	721.6
Investments related to long-term incentive plans	270.6		0.4		—		22.3		293.3
Other equity and debt investments	15.3		12.5		1.6		28.9		58.3
Crypto assets	6.2		4.9		—		—		11.1

Total Assets Measured at Fair Value	$	748.3	$	242.7	$	4.9	$	88.4	$	1,084.3

Liabilities
Securities sold short	$	229.1	$	—	$	—	$	—	$	229.1
Contingent consideration liabilities	—		—		29.8		—		29.8
Total Liabilities Measured at Fair Value	$	229.1	$	—	$	29.8	$	—	$	258.9


(in millions)	Fair Value Level	March 31, 2026				September 30, 2025
		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents	1	$	2,571.5	$	2,571.5	$	3,088.1	$	3,088.1
Other investments
Time deposits	2	8.3		8.3		9.2		9.2
Equity securities	3	388.0		388.0		291.4		291.4

Financial Liability
Debt	2	$	2,253.3	$	1,851.2	$	2,362.0	$	1,970.9


(in millions)
for the fiscal years ending September 30,	Amount
2026 (remainder of year)	$	291.4
2027	—
2028	—
2029	—
2030	—
Thereafter	11,861.7
Total	$	12,153.1


(shares in thousands)	Time-Based Shares	Performance- Based Shares	Total Shares	Weighted- Average Grant-Date Fair Value
for the six months ended March 31, 2026
Nonvested balance at October 1, 2025	14,959	353	15,312	$	22.81
Granted	8,658	176	8,834	22.65
Vested	(1,973)	(180)	(2,153)	26.69
Forfeited/canceled	(273)	—	(273)	18.28
Nonvested Balance at March 31, 2026	21,371	349	21,720	$	22.42


	Three Months Ended March 31,						Percent Change		Six Months Ended March 31,						Percent Change
(in millions, except per share data)	2026			2025					2026			2025
Operating revenues	$	2,294.9		$	2,111.4		9	%	$	4,622.0		$	4,363.0		6	%
Operating income	323.3			145.6			122	%	604.3			364.6			66	%
Operating margin1	14.1		%	6.9		%			13.1		%	8.4		%

Net income attributable to Franklin Resources, Inc.	$	268.2		$	151.4		77	%	$	523.7		$	315.0		66	%
Diluted earnings per share	0.49			0.26			88	%	0.95			0.55			73	%

As adjusted (non-GAAP):2
Adjusted operating income	$	474.6		$	377.2		26	%	$	911.9		$	790.0		15	%
Adjusted operating margin	27.1		%	23.4		%			26.1		%	24.0		%

Adjusted net income	$	384.5		$	254.4		51	%	$	762.9		$	574.9		33	%
Adjusted diluted earnings per share	0.71			0.47			51	%	1.41			1.06			33	%


(in millions)	March 31, 2026		September 30, 2025
Nonredeemable investments1
Investments with known liquidation periods	$	18.0	$	19.7
Investments with unknown liquidation periods	14.5		15.2

Redeemable investments2	55.9		64.0

Unfunded commitments	12.9		13.3


(in millions)	March 31, 2026		September 30, 2025
Redeemable investments1	$	82.4	$	74.4

Nonredeemable investments2

Investments with unknown liquidation periods	23.7		114.7

Unfunded commitments3	15.7		14.0


(in millions)	2026						2025
	CIPs		Minority Interests		Total		CIPs		Minority Interests		Total
for the three months ended March 31,
Balance at beginning of period	$	311.8	$	980.1	$	1,291.9	$	1,466.5	$	639.5	$	2,106.0
Net income (loss)	12.2		11.7		23.9		(167.4)		9.0		(158.4)
Net subscriptions (distributions) and other	331.3		20.2		351.5		(50.5)		5.3		(45.2)
Net deconsolidations	(258.3)		—		(258.3)		(52.5)		—		(52.5)

Adjustment to fair value	—		69.9		69.9		—		167.0		167.0
Balance at End of Period	$	397.0	$	1,081.9	$	1,478.9	$	1,196.1	$	820.8	$	2,016.9


(in billions)	March 31, 2026		March 31, 2025		Percent Change
Equity	$	669.7	$	598.1	12	%
Fixed Income	434.3		446.0		(3	%)
Alternative	282.8		251.8		12	%
Multi-Asset	207.5		175.8		18	%
Cash Management	87.8		68.9		27	%
Total	$	1,682.1	$	1,540.6	9	%


(in billions)	Average AUM 1				Percent Change		Mix of Average AUM
for the three months ended March 31,	2026		2025				2026		2025
Equity	$	699.6	$	619.7	13	%	41	%	40	%
Fixed Income	439.3		456.3		(4	%)	26	%	29	%
Alternative	277.3		250.1		11	%	16	%	16	%
Multi-Asset	205.2		176.3		16	%	12	%	11	%
Cash Management	80.2		68.1		18	%	5	%	4	%
Total	$	1,701.6	$	1,570.5	8	%	100	%	100	%


	Peer Group Comparison1								Benchmark Comparison2
	% of Mutual Fund AUM in Top Two Peer Group Quartiles								% of Strategy Composite AUM Exceeding Benchmark
as of March 31, 2026	1-Year		3-Year		5-Year		10-Year		1-Year		3-Year		5-Year		10-Year
Equity	49	%	56	%	53	%	58	%	40	%	40	%	39	%	55	%
Fixed Income	80	%	78	%	75	%	79	%	83	%	74	%	82	%	94	%
Total AUM3	65	%	56	%	66	%	57	%	51	%	55	%	57	%	71	%


	Accounting Classification1										Total
(in millions)	Cash and Cash Equivalents		Investments at Fair Value		Equity Method Investments		Other Investments		Direct Investments in CIPs
Cash and Cash Equivalents	$	2,571.5	$	—	$	—	$	—	$	—	$	2,571.5
Investments
Alternative	—		425.1		805.5		71.4		640.4		1,942.4
Equity	—		339.1		178.9		165.2		182.4		865.6
Fixed Income	—		301.4		67.6		34.7		114.4		518.1
Multi-Asset	—		52.7		3.1		125.0		117.0		297.8
Total investments	—		1,118.3		1,055.1		396.3		1,054.2		3,623.9
Total Cash and Cash Equivalents and Investments2, 3	$	2,571.5	$	1,118.3	$	1,055.1	$	396.3	$	1,054.2	$	6,195.4


Month	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 2026	401,937	$	23.92	401,937	37,895,370
February 2026	5,340	26.96		5,340	37,890,030
March 2026	1,953,516	24.26		1,953,516	35,936,514
Total	2,360,793			2,360,793


Exhibit No.						Description

3.1						Certificate of Incorporation of Registrant, as filed November 28, 1969, incorporated by reference to Exhibit (3)(i) to our Annual Report on Form 10-K for the fiscal year ended September 30, 1994 (File No. 001-09318) (the “1994 Annual Report”)

3.2						Certificate of Amendment of Certificate of Incorporation of Registrant, as filed March 1, 1985, incorporated by reference to Exhibit 3(ii) to the 1994 Annual Report

3.3						Certificate of Amendment of Certificate of Incorporation of Registrant, as filed April 1, 1987, incorporated by reference to Exhibit 3(iii) to the 1994 Annual Report

3.4						Certificate of Amendment of Certificate of Incorporation of Registrant, as filed February 2, 1994, incorporated by reference to Exhibit 3(iv) to the 1994 Annual Report

3.5						Certificate of Amendment of Certificate of Incorporation of Registrant, as filed February 4, 2005, incorporated by reference to Exhibit (3)(i)(e) to our Quarterly Report on Form 10-Q for the period ended December 31, 2004 (File No. 001-09318)

3.6						Amended and Restated Bylaws of Registrant (as adopted and effective July 8, 2025), incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on July 9, 2025 (File No. 001-09318)

10.1						Franklin Resources, Inc. 1998 Employee Stock Investment Plan (as amended and restated effective as of February 3, 2026), incorporated by reference to Appendix A to Registrant’s Definitive Proxy Statement on Schedule 14A filed on December 22, 2025 (File No. 001-09318)*

10.2						Franklin Resources, Inc. 2002 Universal Stock Incentive Plan (as amended and restated effective as of February 3, 2026), incorporated by reference to Appendix B to Registrant’s Definitive Proxy Statement on Schedule 14A filed on December 22, 2025 (File No. 001-09318)*

31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101						The following materials from Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline Extensible Business Reporting Language (iXBRL), include: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes (filed herewith)

104						Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101)


Date:	April 28, 2026	/s/ Jennifer M. Johnson
		Jennifer M. Johnson
		Chief Executive Officer (Principal Executive Officer)


Date:	April 28, 2026	/s/ Matthew Nicholls
		Matthew Nicholls
		Co-President, Chief Financial Officer and Chief Operating Officer (Principal Financial Officer)