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Franklin Resources (NYSE: BEN) lifts AUM to $1.79T and plans name change

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Franklin Resources reported third-quarter fiscal 2026 results for the quarter ended June 30, 2026. Net income attributable to the company was $171.5 million, or $0.31 per diluted share, versus $92.3 million or $0.15 a year earlier and $268.2 million or $0.49 in the prior quarter. Operating revenues were $2,358.4 million, up 14% year-over-year, and operating income was $215.8 million. Adjusted non‑GAAP results included $386.3 million of adjusted net income and $0.72 of adjusted diluted EPS, both 47% higher than a year ago. The quarter included $100.0 million of charges related to significant regulatory settlements, $77.2 million of special termination benefits and a $33.0 million impairment of intangible assets.

Assets under management reached a record $1,791.6 billion, driven by $18.4 billion of long‑term net inflows and $98.0 billion of net market change, distributions and other, partly offset by $7.0 billion of cash management outflows. During the quarter, the company returned $521.5 million to shareholders, including repurchasing 10.4 million shares for $348.1 million and paying a quarterly dividend of $0.33 per share.

The company also plans to change its corporate name to Franklin Templeton, Inc. effective August 17, 2026. The change does not affect its capital structure, domicile, outstanding shares, CUSIP, or stockholder voting and other rights, and its common stock will continue to trade on the NYSE under the symbol BEN.

Positive

  • Record AUM of $1,791.6 billion at June 30, 2026, supported by $18.4 billion in long-term net inflows and positive flows across asset classes and geographies.
  • Adjusted net income $386.3 million and adjusted diluted EPS $0.72, both up 47% year-over-year, highlighting stronger non-GAAP performance versus the prior-year quarter.

Negative

  • $100.0 million in charges related to significant regulatory settlements recorded in the quarter, representing a sizeable non-recurring cost impact on GAAP earnings.

Filing Explained

The filing confirms that the certificate amendment and restated bylaws for the name change have been filed, but the change remains scheduled to take effect on August 17, 2026; the legal step is complete while the name change itself is not yet effective.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year Governance
The company amended its charter documents, bylaws, or changed its fiscal year.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income attributable $171.5 million Quarter ended June 30, 2026
Diluted EPS 0.31 Quarter ended June 30, 2026
Adjusted net income $386.3 million Non-GAAP, quarter ended June 30, 2026
Adjusted diluted EPS 0.72 Non-GAAP, quarter ended June 30, 2026
Total AUM $1,791.6 billion Ending AUM at June 30, 2026
Long-term net flows $18.4 billion Quarter ended June 30, 2026
Capital returned to shareholders $521.5 million Quarter ended June 30, 2026, including buybacks and dividends
Regulatory settlement charge $100.0 million Charges related to significant regulatory settlements in the quarter
long-term net inflows financial
"We delivered $18.4 billion in long-term net inflows across public and private assets"
Long-term net inflows measure the amount of money that investors add to long-duration investment vehicles (like pension funds, mutual funds, and long-term bonds or ETFs) minus the money they withdraw over a set period. It matters because steady positive net inflows act like a growing stream filling a reservoir—they signal rising investor confidence, can boost managers’ fees and scale, and provide a foundation for future asset growth and stability.
adjusted operating margin financial
"Adjusted operating margin was 28.0% for the quarter ended June 30, 2026"
Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.
consolidated investment products financial
"including the Company’s direct investments in consolidated investment products (“CIPs”)"
redeemable noncontrolling interests financial
"Less: net income (loss) attributable to Redeemable noncontrolling interests"
A redeemable noncontrolling interest is a minority ownership stake in a company that the holder can force the company to buy back at a set price or under certain conditions. For investors this matters because it creates a future cash obligation and can be treated more like a liability than permanent equity, affecting a company’s reported debt, net income and valuation — think of it as a part-owner who can cash out, forcing the business to pay them.
uncalled capital commitments financial
"non-fee generating uncalled capital commitments are reflected in long-term inflows"
Operating revenues $2,358.4 million Up 14% year-over-year
Operating income $215.8 million Up 40% year-over-year
Net income attributable to Franklin Resources, Inc. $171.5 million Up 86% year-over-year
Diluted EPS $0.31 Up 107% year-over-year
Adjusted net income $386.3 million Up 47% year-over-year
Adjusted diluted EPS 0.72 Up 47% year-over-year
Ending AUM $1,791.6 billion Up 11% year-over-year

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FAQ

What were Franklin Resources (BEN) earnings for the quarter ended June 30, 2026?
Franklin Resources reported net income of $171.5 million, or $0.31 per diluted share, for the quarter ended June 30, 2026. This compares with $92.3 million, or $0.15 per diluted share, for the quarter ended June 30, 2025.

How did Franklin Resources (BEN) adjusted results perform in Q3 fiscal 2026?
Adjusted net income was $386.3 million and adjusted diluted EPS was $0.72 for the quarter. Both metrics increased 47% year-over-year from adjusted net income of $263.4 million and adjusted diluted EPS of $0.49 in the prior-year quarter.

What were Franklin Resources (BEN) assets under management at June 30, 2026?
Assets under management totaled $1,791.6 billion at June 30, 2026, which the company described as a record level. AUM rose 11% year-over-year, driven by market appreciation and $18.4 billion of long-term net inflows.

What long-term net flows did Franklin Resources (BEN) generate in Q3 fiscal 2026?
Franklin Resources generated $18.4 billion in long-term net inflows during the quarter ended June 30, 2026. Total AUM increased by $109.5 billion, including $98.0 billion from net market change, distributions and other and offset by $7.0 billion cash management outflows.

How much capital did Franklin Resources (BEN) return to shareholders in the quarter?
The company returned $521.5 million to shareholders in the quarter ended June 30, 2026. This included repurchasing 10.4 million shares for $348.1 million and paying a quarterly cash dividend of $0.33 per share.

What corporate name change did Franklin Resources (BEN) announce?
The company will change its corporate name from Franklin Resources, Inc. to Franklin Templeton, Inc. effective August 17, 2026. The change does not affect its capital structure, domicile, outstanding shares, CUSIP, or stockholder voting and other rights.

Did Franklin Resources (BEN) record any significant one-time charges in Q3 fiscal 2026?
Yes. The quarter included $100.0 million in charges related to significant regulatory settlements, $77.2 million of special termination benefits, and a $33.0 million impairment of intangible assets, all of which are excluded from the company’s adjusted non-GAAP measures.
0000038777false9/3000000387772026-07-312026-07-31

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 31, 2026

FRANKLIN RESOURCES, INC.
(Exact name of registrant as specified in its charter)

Delaware001-0931813-2670991
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
               
One Franklin Parkway, San Mateo, CA 94403
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (650) 312-2000

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.10 per shareBENNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 



Item 2.02 Results of Operations and Financial Condition.

On July 31, 2026, Franklin Resources, Inc. (the “Company”) issued a press release announcing the financial results for the Company’s third fiscal quarter ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

Effective as of August 17, 2026 (“Effective Date”), the Company filed a Certificate of Amendment of Certificate of Incorporation with the Secretary of State of the State of Delaware to change its corporate name from “Franklin Resources, Inc.” to “Franklin Templeton, Inc.” as of the Effective Date (“Name Change”), and conform its registered office address and name of registered agent in the State of Delaware. The Company also amended and restated its bylaws as of the Effective Date solely to reflect the Name Change. There were no other changes to each document. Pursuant to Delaware law, a stockholder vote is not necessary to effectuate the Name Change as it does not affect the voting or other rights of the Company’s stockholders.

The foregoing description of the Company’s Certificate of Amendment of Certificate of Incorporation and Amended and Restated Bylaws is qualified in its entirety by reference to the Certificate of Amendment and Amended and Restated Bylaws, copies of which are attached hereto as Exhibits 3.1 and 3.2, respectively, and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

On July 31, 2026, the Company issued a press release announcing the Name Change to be effectuated as of the Effective Date. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The Company also posted a third quarter earnings commentary on its internet website, available via investors.franklinresources.com.

The contents of the Company’s website referenced herein and in the exhibit are not incorporated into this Current Report on Form 8-K.
The information in these Items 2.02 and 7.01, including the exhibits hereto, (x) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and (y) shall not be incorporated by reference into any filing of the Company with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filings (unless the Company specifically states that the information or exhibits in this particular report with respect to Item 2.02 or Item 7.01, as the case may be, are incorporated by reference).

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

The exhibits listed on the Exhibit Index are incorporated herein by reference.


Exhibit Index
Exhibit No.Description
3.1 
Certificate of Amendment of Certificate of Incorporation of Registrant (effective August 17, 2026) (filed herewith)
3.2 
Amended and Restated Bylaws of Registrant (effective August 17, 2026) (filed herewith)
99.1 
Press Release dated July 31, 2026 issued by Franklin Resources, Inc. Announces Third Quarter Results
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FRANKLIN RESOURCES, INC.
Date:July 31, 2026/s/ Matthew Nicholls
Matthew Nicholls
Co-President, Chief Financial Officer and Chief Operating Officer (Principal Financial Officer)
Date:July 31, 2026
/s/ Lindsey H. Oshita
Lindsey H. Oshita
Chief Accounting Officer (Principal Accounting Officer)

3


EXHIBIT 99.1
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addressblock123114a01b66a.gif

Contact:Franklin Resources, Inc.
Investor Relations: Selene Oh (650) 312-4091, selene.oh@franklintempleton.com
Media Relations: Jeaneen Terrio (212) 632-4005, jeaneen.terrio@franklintempleton.com
investors.franklinresources.com

FOR IMMEDIATE RELEASE

Franklin Resources, Inc. Announces Third Quarter Results

San Mateo, CA, July 31, 2026 – Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income1 of $171.5 million or $0.31 per diluted share for the quarter ended June 30, 2026, as compared to $268.2 million or $0.49 per diluted share for the previous quarter, and $92.3 million or $0.15 per diluted share for the quarter ended June 30, 2025. Operating income was $215.8 million for the quarter ended June 30, 2026, as compared to $323.3 million for the previous quarter and $154.1 million for the prior year.

As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income2 was $386.3 million and adjusted diluted earnings per share2 was $0.72 for the quarter ended June 30, 2026, as compared to $384.5 million and $0.71 for the previous quarter, and $263.4 million and $0.49 for the quarter ended June 30, 2025. Adjusted operating income2 was $508.9 million for the quarter ended June 30, 2026, as compared to $474.6 million for the previous quarter and $377.8 million for the prior year.

“Our third quarter results reflect the successful execution of our strategy and the strength of Franklin Templeton's diversified global platform," said Jenny Johnson, Chief Executive Officer of Franklin Resources, Inc. "We delivered $18.4 billion in long-term net inflows across public and private assets, bringing fiscal year-to-date long-term net inflows to $63.3 billion. During the quarter, we generated positive net flows across every asset class and geography, demonstrating the breadth of our investment capabilities and the strength of our global distribution platform. Assets under management grew to a record $1.8 trillion. These results reinforce that our strategy is driving broad-based growth across the business.

"Our momentum continues to build across asset classes, investment vehicles and geographies. Alternative AUM reached a record $294.2 billion as we fundraised $11.8 billion, including $10.3 billion in private market strategies, across secondary private equity, alternative credit, real estate and venture capital. Fiscal year-to-date private markets fundraising reached $33.0 billion, exceeding our fiscal year target with one quarter still to go. Demand also remained strong across ETFs, retail SMAs and Canvas, our custom portfolio solutions platform, while our institutional won-but-unfunded pipeline grew to a record $28.6 billion. International markets reached a record approximately $525 billion in AUM.

"This activity reflects a broader shift in client demand. Investors are increasingly seeking partners that can deliver integrated solutions across public and private assets. We remain focused on executing our strategy by investing in new capabilities, deepening client relationships and expanding our platform, while maintaining a disciplined approach to capital allocation. This quarter, we returned $521.5 million to shareholders, including $348.1 million in share repurchases. Our balance sheet provides the financial flexibility to invest in future growth, pursue strategic opportunities and continue returning capital to shareholders. We believe this positions Franklin Templeton to deliver sustainable organic growth and create long-term value for our clients, shareholders and employees."

1

Quarter Ended% ChangeQuarter Ended% Change
30-Jun-2631-Mar-26Qtr. vs. Qtr.30-Jun-25Year vs. Year
Financial Results
(in millions, except per share data)
Operating revenues$2,358.4 $2,294.9 3%$2,064.0 14%
Operating income
215.8 323.3 (33%)154.1 40%
Operating margin9.2%14.1%7.5%
Net income1
$171.5 $268.2 (36%)$92.3 86%
Diluted earnings per share
0.31 0.49 (37%)0.15 107%
As adjusted (non-GAAP):2
Adjusted operating income$508.9 $474.6 7%$377.8 35%
Adjusted operating margin28.0%27.1%23.7%
Adjusted net income$386.3 $384.5 0%$263.4 47%
Adjusted diluted earnings per share0.72 0.71 1%0.49 47%
Assets Under Management
(in billions)
Ending$1,791.6 $1,682.1 7%$1,611.8 11%
Average3
1,750.0 1,701.6 3%1,565.2 12%
Long-term net flows18.4 16.9 (9.3)

Total AUM was $1,791.6 billion at June 30, 2026, up $109.5 billion during the quarter due to the positive impact of $98.0 billion of net market change, distributions, and other and $18.4 billion of long-term net inflows, inclusive of $1.1 billion of long-term net outflows at Western, partially offset by $7.0 billion of cash management net outflows. Long-term net inflows for the quarter include $4.1 billion of long-term reinvested distributions.

Cash and cash equivalents and investments were $5.4 billion and, including the Company’s direct investments in consolidated investment products (“CIPs”), were $6.5 billion4 at June 30, 2026. Total stockholders’ equity was $12.9 billion and the Company had 507.5 million shares of common stock outstanding at June 30, 2026. The Company repurchased 10.4 million shares of its common stock for a total cost of $348.1 million during the quarter ended June 30, 2026.

Corporate Name Change

The Company today announced it will change its corporate name from Franklin Resources, Inc. to Franklin Templeton, Inc., effective as of August 17, 2026 (“Name Change”). The Name Change reflects the continued evolution of Franklin Templeton as a unified global organization and alignment with the Franklin Templeton brand. This is a corporate name change only. The Name Change will not affect the Company’s corporate or capital structure, domicile, outstanding shares, CUSIP number, or the voting or other rights of its stockholders. Following the Name Change, the Company’s common stock will continue to be traded on the New York Stock Exchange under the ticker symbol “BEN”.

2

Conference Call Information

A written commentary on the results by Jenny Johnson, CEO; Daniel Gamba, Co-President and Chief Commercial Officer; and Matthew Nicholls, Co-President, CFO and COO; will be available via investors.franklinresources.com today at approximately 8:30 a.m. Eastern Time.

Ms. Johnson and Messrs. Gamba and Nicholls will also lead a live teleconference today at 10:00 a.m. Eastern Time to answer questions. Access to the teleconference will be available via investors.franklinresources.com or by dialing (+1) (877) 407-0989 in North America or (+1) (201) 389-0921 in other locations. A replay of the teleconference can also be accessed by calling (+1) (877) 660-6853 in North America or (+1) (201) 612-7415 in other locations using access code 13761569 after 2:00 p.m. Eastern Time on July 31, 2026 through August 7, 2026, or via investors.franklinresources.com.

Analysts and investors are encouraged to review the Company’s recent filings with the U.S. Securities and Exchange Commission and to contact Investor Relations at investorrelations@franklintempleton.com before the live teleconference for any clarifications or questions related to the earnings release or written commentary.
3

FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
(in millions, except per share data)
Three Months Ended
June 30,
%
Change
Nine Months Ended
June 30,
%
Change
2026202520262025
Operating Revenues
Investment management fees$1,866.2 $1,640.8 14%$5,533.4 $5,113.7 8%
Sales and distribution fees404.5 351.9 15%1,189.8 1,092.3 9%
Shareholder servicing fees74.3 59.9 24%214.2 185.3 16%
Other13.4 11.4 18%43.0 35.7 20%
Total operating revenues2,358.4 2,064.0 14%6,980.4 6,427.0 9%
Operating Expenses
Compensation and benefits958.5 901.1 6%2,953.9 2,812.5 5%
Sales, distribution and marketing555.4 480.7 16%1,640.3 1,491.1 10%
Information systems and technology160.8 162.7 (1%)475.4 477.4 0%
Occupancy71.4 69.5 3%205.3 213.9 (4%)
Amortization of intangible assets50.7 112.2 (55%)156.4 337.3 (54%)
Impairment of intangible assets
33.0 — NM33.0 24.4 35%
General, administrative and other312.8 183.7 70%696.0 551.7 26%
Total operating expenses2,142.6 1,909.9 12%6,160.3 5,908.3 4%
Operating Income215.8 154.1 40%820.1 518.7 58%
Other Income (Expenses)
Investment and other income, net131.0 23.4 460%267.3 128.0 109%
Interest expense
(23.5)(25.8)(9%)(63.8)(69.7)(8%)
Investment and other income (losses) of consolidated investment products, net54.8 35.9 53%276.2 (14.7)NM
Expenses of consolidated investment products
(7.2)(11.0)(35%)(31.4)(29.8)5%
Other income, net155.1 22.5 589%448.3 13.8 NM
Income before taxes 370.9 176.6 110%1,268.4 532.5 138%
Taxes on income115.6 59.9 93%319.7 172.1 86%
Net income 255.3 116.7 119%948.7 360.4 163%
Less: net income (loss) attributable to
Redeemable noncontrolling interests18.5 20.0 (8%)82.1 (88.8)NM
Nonredeemable noncontrolling interests65.3 4.4 NM171.4 41.9 309%
Net Income Attributable to Franklin Resources, Inc.$171.5 $92.3 86%$695.2 $407.3 71%
Earnings per Share
Basic$0.31 $0.15 107%$1.26 $0.70 80%
Diluted0.31 0.15 107%1.26 0.70 80%
Dividends Declared per Share$0.33 $0.32 3%$0.99 $0.96 3%
Average Shares Outstanding
Basic515.2 515.7 0%516.7 517.4 0%
Diluted516.0 516.5 0%517.5 518.2 0%
Operating Margin9.2%7.5%11.7%8.1%
4


FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
(in millions, except per share data)Three Months Ended%
Change
Three Months Ended
30-Jun-2631-Mar-2631-Dec-2530-Sep-2530-Jun-25
Operating Revenues
Investment management fees$1,866.2 $1,819.3 

3%$1,847.9 $1,868.1 $1,640.8 
Sales and distribution fees404.5 396.6 2%388.7 382.4 351.9 
Shareholder servicing fees74.3 69.0 8%70.9 79.2 59.9 
Other13.4 10.0 34%19.6 14.0 11.4 
Total operating revenues2,358.4 2,294.9 3%2,327.1 2,343.7 2,064.0 
Operating Expenses
Compensation and benefits958.5 964.7 (1%)1,030.7 1,005.7 901.1 
Sales, distribution and marketing555.4 544.0 2%540.9 519.8 480.7 
Information systems and technology160.8 157.6 2%157.0 166.2 162.7 
Occupancy71.4 67.1 6%66.8 72.4 69.5 
Amortization of intangible assets50.7 50.6 0%55.1 69.2 112.2 
Impairment of intangible assets
33.0 — NM— 202.2 — 
General, administrative and other312.8 187.6 67%195.6 222.8 183.7 
Total operating expenses2,142.6 1,971.6 9%2,046.1 2,258.3 1,909.9 
Operating Income
215.8 323.3 (33%)281.0 85.4 154.1 
Other Income (Expenses)
Investment and other income, net131.0 56.0 134%80.3 84.8 23.4 
Interest expense(23.5)(19.9)18%(20.4)(25.2)(25.8)
Investment and other income (losses) of consolidated investment products, net54.8 96.5 (43%)124.9 123.1 35.9 
Expenses of consolidated investment products
(7.2)(10.2)(29%)(14.0)(13.8)(11.0)
Other income, net155.1 122.4 27%170.8 168.9 22.5 
Income before taxes
370.9 445.7 (17%)451.8 254.3 176.6 
Taxes on income115.6 99.1 17%105.0 65.8 59.9 
Net income
255.3 346.6 (26%)346.8 188.5 116.7 
Less: net income attributable to
Redeemable noncontrolling interests18.5 23.9 (23%)39.7 36.1 20.0 
Nonredeemable noncontrolling interests65.3 54.5 20%51.6 34.8 4.4 
Net Income Attributable to Franklin Resources, Inc.$171.5 $268.2 (36%)$255.5 $117.6 $92.3 
Earnings per Share
Basic$0.31 $0.49 (37%)$0.46 $0.21 $0.15 
Diluted0.31 0.49 (37%)0.46 0.21 0.15 
Dividends Declared per Share$0.33 $0.33 0%$0.33 $0.32 $0.32 
Average Shares Outstanding
Basic515.2 517.5 0%517.5 514.5 515.7 
Diluted516.0 518.2 0%518.3 515.4 516.5 
Operating Margin9.2 %14.1 %12.1 %3.6 %7.5 %
5

AUM AND FLOWS
(in billions)
Three Months Ended
June 30,
Nine Months Ended
June 30,
2026 5
2025
2026 5
2025
Beginning AUM$1,682.1 $1,540.6 $1,661.2 $1,678.6 
Long-term inflows122.0 75.6 358.8 259.3 
Long-term outflows(103.6)(84.9)(295.5)(344.8)
Long-term net flows18.4 (9.3)63.3 (85.5)
Cash management net flows(7.0)2.7 3.2 5.4 
Total net flows 11.4 (6.6)66.5 (80.1)
Acquisition (Disposition)0.1 (0.2)6.2 (0.2)
Net market change, distributions and other 6
98.0 78.0 57.7 13.5 
Ending AUM$1,791.6 $1,611.8 $1,791.6 $1,611.8 
Average AUM$1,750.0 $1,565.2 $1,714.5 $1,596.4 

AUM BY ASSET CLASS
(in billions)30-Jun-2631-Mar-26% Change31-Dec-2530-Sep-2530-Jun-25
Equity
$756.9 $669.7 13%$697.2 $686.2 $656.6 
Fixed Income441.4 434.3 2%437.7 438.7 441.7 
Alternative294.2 282.8 4%273.8 263.9 258.4 
Multi-Asset218.6 207.5 5%198.8 193.9 183.2 
Cash Management80.5 87.8 (8%)76.5 78.5 71.9 
Total AUM$1,791.6 $1,682.1 7%$1,684.0 $1,661.2 $1,611.8 
Average AUM for the Three-Month Period$1,750.0 $1,701.6 3%$1,676.1 $1,633.7 $1,565.2 

AUM BY SALES REGION
(in billions)30-Jun-2631-Mar-26% Change31-Dec-2530-Sep-2530-Jun-25
United States 7
$1,267.8 $1,187.5 7%$1,195.7 $1,171.5 $1,114.9 
International
Europe, Middle East and Africa
232.3 217.4 7%212.8 201.4 193.9 
Asia-Pacific 8
191.1 180.1 6%181.6 179.5 182.6 
Americas, excl. U.S. 7
100.4 97.1 3%93.9 108.8 120.4 
Total international523.8 494.6 6%488.3 489.7 496.9 
Total$1,791.6 $1,682.1 7%$1,684.0 $1,661.2 $1,611.8 
6

AUM AND FLOWS BY ASSET CLASS

(in billions)
for the three months ended
June 30, 2026
Equity
Fixed
Income
Alternative 5
Multi-Asset
Cash
Management
Total
AUM at April 1, 2026$669.7 $434.3 $282.8 $207.5 $87.8 $1,682.1 
Long-term inflows
65.9 30.4 11.8 13.9 — 122.0 
Long-term outflows
(63.9)(27.8)(2.7)(9.2)— (103.6)
Long-term net flows2.0 2.6 9.1 4.7 — 18.4 
Cash management net flows
— — — — (7.0)(7.0)
Total net flows
2.0 2.6 9.1 4.7 (7.0)11.4 
Acquisition— — 0.1 — — 0.1 
Net market change, distributions and other 6
85.2 4.5 2.2 6.4 (0.3)98.0 
AUM at June 30, 2026$756.9 $441.4 $294.2 $218.6 $80.5 $1,791.6 

(in billions)
for the three months ended
March 31, 2026		EquityFixed
Income
Alternative 5
Multi-Asset
Cash
Management
Total
AUM at January 1, 2026$697.2 $437.7 $273.8 $198.8 $76.5 $1,684.0 
Long-term inflows
53.6 31.9 14.3 18.4 — 118.2 
Long-term outflows
(58.3)(32.2)(1.9)(8.9)— (101.3)
Long-term net flows(4.7)(0.3)12.4 9.5 — 16.9 
Cash management net flows
— — — — 11.4 11.4 
Total net flows
(4.7)(0.3)12.4 9.5 11.4 28.3 
Net market change, distributions and other 6
(22.8)(3.1)(3.4)(0.8)(0.1)(30.2)
AUM at March 31, 2026$669.7 $434.3 $282.8 $207.5 $87.8 $1,682.1 

(in billions)
for the three months ended
June 30, 2025		EquityFixed
Income
Alternative
Multi-AssetCash
Management		Total
AUM at April 1, 2025$598.1 $446.0 $251.8 $175.8 $68.9 $1,540.6 
Long-term inflows
32.0 28.2 5.6 9.8 — 75.6 
Long-term outflows
(32.6)(41.2)(3.1)(8.0)— (84.9)
Long-term net flows(0.6)(13.0)2.5 1.8 — (9.3)
Cash management net flows
— — — — 2.7 2.7 
Total net flows
(0.6)(13.0)2.5 1.8 2.7 (6.6)
Disposition— (0.1)(0.1)— — (0.2)
Net market change, distributions and other 6
59.1 8.8 4.2 5.6 0.3 78.0 
AUM at June 30, 2025$656.6 $441.7 $258.4 $183.2 $71.9 $1,611.8 

7

Supplemental Non-GAAP Financial Measures
As supplemental information, we are providing performance measures for “adjusted operating income,” “adjusted operating margin,” “adjusted net income” and “adjusted diluted earnings per share,” each of which is based on methodologies other than generally accepted accounting principles (“non-GAAP measures”). Management believes these non-GAAP measures are useful indicators of our financial performance and may be helpful to investors in evaluating our relative performance against industry peers.
“Adjusted operating income,” “adjusted operating margin,” “adjusted net income” and “adjusted diluted earnings per share” are defined below, followed by reconciliations of operating income, operating margin, net income attributable to Franklin Resources, Inc. and diluted earnings per share on a U.S. GAAP basis to these non-GAAP measures. Non-GAAP measures should not be considered in isolation from, or as substitutes for, any financial information prepared in accordance with U.S. GAAP, and may not be comparable to other similarly titled measures of other companies. Additional reconciling items may be added in the future to these non-GAAP measures if deemed appropriate.
Adjusted Operating Income
We define adjusted operating income as operating income adjusted to exclude the following:
•Elimination of operating revenues upon consolidation of investment products.
•Acquisition-related items:
◦Acquisition-related retention compensation.
◦Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities.
◦Amortization of intangible assets.
◦Impairment of intangible assets and goodwill, if any.
•Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company.
•Impact on compensation and benefits expense from gains and losses on investments related to deferred compensation plans, which is offset in investment and other income (losses), net.
•Impact on compensation and benefits expense related to minority interests in certain subsidiaries, which is offset in net income (loss) attributable to redeemable noncontrolling interests.
•Charges related to significant regulatory settlements.
Adjusted Operating Margin
We calculate adjusted operating margin as adjusted operating income divided by adjusted operating revenues. We define adjusted operating revenues as operating revenues adjusted to exclude the following:
•Elimination of operating revenues upon consolidation of investment products.
•Acquisition-related performance-based investment management fees which are passed through as compensation and benefits expense.
•Sales and distribution fees and a portion of investment management fees allocated to cover sales, distribution and marketing expenses paid to the financial advisers and other intermediaries who sell our funds on our behalf.
8

Adjusted Net Income and Adjusted Diluted Earnings Per Share
We define adjusted net income as net income attributable to Franklin Resources, Inc. adjusted to exclude the following:
•Activities of CIPs.
•Acquisition-related items:
◦Acquisition-related retention compensation.
◦Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities.
◦Amortization of intangible assets.
◦Impairment of intangible assets and goodwill, if any.
◦Interest expense for amortization of debt premium from acquisition-date fair value adjustment.
•Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company.
•Net gains or losses on investments related to deferred compensation plans which are not offset by compensation and benefits expense.
•Net compensation and benefits expense related to minority interests in certain subsidiaries not offset by net income (loss) attributable to redeemable noncontrolling interests.
•Unrealized investment gains and losses.
•Charges related to significant regulatory settlements.
•Net income tax expense of the above adjustments based on the respective blended rates applicable to the adjustments.
We define adjusted diluted earnings per share as diluted earnings per share adjusted to exclude the per share impacts of the adjustments applied to net income in calculating adjusted net income.
In calculating our non-GAAP measures, we adjust for the impact of CIPs because it is not considered reflective of our underlying results of operations. Charges related to significant regulatory settlements are excluded because they are not considered reflective of our underlying results of operations and relate to matters that are non-recurring in nature. Acquisition-related items and special termination benefits are excluded to facilitate comparability to other asset management firms. We adjust for compensation and benefits expense related to funded deferred compensation plans because it is partially offset in other income (expense), net. We adjust for compensation and benefits expense and net income (loss) attributable to redeemable noncontrolling interests to reflect the economics of certain profits interest arrangements. Sales and distribution fees and a portion of investment management fees generally cover sales, distribution and marketing expenses and, therefore, are excluded from adjusted operating revenues. In addition, when calculating adjusted net income and adjusted diluted earnings per share we exclude unrealized investment gains and losses included in investment and other income (losses) because the related investments are generally expected to be held long term.
9

The calculations of adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share are as follows:
(in millions)Three Months EndedNine Months Ended
30-Jun-2631-Mar-2630-Jun-2530-Jun-2630-Jun-25
Operating income
$215.8 $323.3 $154.1 $820.1 $518.7 
Add (subtract):
Elimination of operating revenues upon consolidation of investment products*
17.3 15.5 12.0 48.8 37.6 
Acquisition-related retention
(23.6)30.4 47.9 42.5 128.4 
Compensation and benefits expense from gains on deferred compensation, net17.8 3.8 0.1 35.2 4.6 
Other acquisition-related expenses5.9 5.2 10.5 16.9 30.6 
Amortization of intangible assets
50.7 50.6 112.2 156.4 337.3 
Impairment of intangible assets
33.0 — — 33.0 24.4 
Special termination benefits
77.2 30.2 26.9 123.4 44.7 
Compensation and benefits expense related to minority interests in certain subsidiaries14.8 15.6 14.1 44.5 41.5 
Charges related to significant regulatory settlements100.0 — — 100.0 — 
Adjusted operating income$508.9 $474.6 $377.8 $1,420.8 $1,167.8 
Total operating revenues$2,358.4 $2,294.9 $2,064.0 $6,980.4 $6,427.0 
Add (subtract):
Acquisition-related pass through performance fees
(3.7)(13.9)(2.1)(72.6)(87.4)
Sales and distribution fees
(404.5)(396.6)(351.9)(1,189.8)(1,092.3)
Allocation of investment management fees for sales, distribution and marketing expenses
(150.9)(147.4)(128.8)(450.5)(398.8)
Elimination of operating revenues upon consolidation of investment products*
17.3 15.5 12.0 48.8 37.6 
Adjusted operating revenues$1,816.6 $1,752.5 $1,593.2 $5,316.3 $4,886.1 
Operating margin
9.2 %14.1 %7.5 %11.7 %8.1 %
Adjusted operating margin
28.0 %27.1 %23.7 %26.7 %23.9 %
10

(in millions, except per share data)Three Months EndedNine Months Ended
30-Jun-2631-Mar-2630-Jun-2530-Jun-2630-Jun-25
Net income attributable to Franklin Resources, Inc.
$171.5 $268.2 $92.3 $695.2 $407.3 
Add (subtract):
Net (income) loss of consolidated investment products*
— (0.6)3.9 0.1 (0.2)
Acquisition-related retention
(23.6)30.4 47.9 42.5 128.4 
Other acquisition-related expenses5.3 10.1 13.0 22.9 38.8 
Amortization of intangible assets
50.7 50.6 112.2 156.4 337.3 
Impairment of intangible assets
33.0 — — 33.0 24.4 
Special termination benefits
77.2 30.2 26.9 123.4 44.7 
Net (gains) losses on deferred compensation plan investments not offset by compensation and benefits expense
6.2 (5.0)(2.6)4.7 (2.4)
Unrealized investment (gains) losses
(3.5)32.7 11.2 49.4 (0.2)
Interest expense for amortization of debt premium
(1.7)(4.4)(5.0)(11.1)(14.9)
Net compensation and benefits expense related to minority interests in certain subsidiaries not offset by net income attributable to redeemable noncontrolling interests
9.6 9.0 7.4 26.0 18.9 
Charges related to significant regulatory settlements100.0 — — 100.0 — 
Net income tax expense of adjustments(38.4)(36.7)(43.8)(93.3)(143.8)
Adjusted net income$386.3 $384.5 $263.4 $1,149.2 $838.3 
Diluted earnings per share
$0.31 $0.49 $0.15 $1.26 $0.70 
Adjusted diluted earnings per share
0.72 0.71 0.49 2.13 1.55 
__________________
*    The impact of CIPs is summarized as follows:
(in millions)Three Months EndedNine Months Ended
30-Jun-2631-Mar-2630-Jun-2530-Jun-2630-Jun-25
Elimination of operating revenues upon consolidation
$(17.3)$(15.5)$(12.0)$(48.8)$(37.6)
Other income (expense), net74.4 76.2 19.9 225.4 (48.4)
Less: income (loss) attributable to noncontrolling interests57.1 60.1 11.8 176.7 (86.2)
Net income (loss)$— $0.6 $(3.9)$(0.1)$0.2 
11

Notes
1.Net income represents net income attributable to Franklin Resources, Inc.
2.“Adjusted net income,” “adjusted diluted earnings per share,” “adjusted operating income” and “adjusted operating margin” are based on methodologies other than generally accepted accounting principles. See “Supplemental Non-GAAP Financial Measures” for definitions and reconciliations of these measures.
3.Average AUM is calculated as the average of the month-end AUM for the trailing four months.
4.Includes our direct investments in CIPs of $1.2 billion, approximately $380 million of employee-owned and other third-party investments made through partnerships, approximately $434 million of investments that are subject to long-term repurchase agreements and other net financing arrangements, and approximately $409 million of cash and investments related to deferred compensation plans.
5.Beginning in fiscal year 2026, non-fee generating uncalled capital commitments, which were previously included in net market change, distributions, and other, are reflected in long-term inflows in the period the capital is committed.
6.Net market change, distributions and other includes appreciation (depreciation), distributions to investors that represent return on investments and return of capital, and foreign exchange revaluation.
7.Effective in fiscal year 2026, Cayman-domiciled money market fund assets are included in United States reflecting the underlying investor base. This change resulted in an 11% reduction of AUM in the Americas, excluding U.S.
8.Effective January 1, 2026, Asia-Pacific includes India. Prior periods have been revised to reflect the current presentation.

Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.

To learn more, visit franklintempleton.com and follow us on LinkedIn.

Franklin Resources, Inc. [NYSE: BEN]
Forward-Looking Statements
Some of the statements herein may include forward-looking statements that reflect our current views with respect to future events, financial performance and market conditions. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and generally can be identified by words or phrases written in the future tense and/or preceded by words such as “anticipate,” “believe,” “could,” “depends,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “potential,” “seek,” “should,” “will,” “would,” or other similar words or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements, including market and volatility risks, investment performance and reputational risks, global operational risks, competition and distribution risks, third-party risks, technology and security risks, human capital risks, cash management risks, and legal and regulatory risks. While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other possible future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.
These and other risks, uncertainties and other important factors are described in more detail in our recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and our subsequent Quarterly Reports on Form 10-Q. If a circumstance occurs after the date of this press release that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we undertake no obligation to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, to reflect any change in assumptions, beliefs or expectations, or any change in events, conditions or circumstances upon which any forward-looking statement is based, unless required by law.

# # #
12

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