Franklin Templeton Parent Surges Past Estimates on Strong Client Flows, AUM Hits $1.68 Trillion
Franklin Resources Inc. (NYSE: BEN), the global investment manager operating as Franklin Templeton, delivered a powerful finish to its fiscal year, reporting quarterly results that handily surpassed Wall Street expectations. The firm announced revenue of $2.33 billion for the quarter ended December 31, 2025, a 38.3% increase from the prior-year period. Adjusted earnings came in at $0.70 per share, beating consensus estimates by 27.5%.
"Our first fiscal quarter continued the momentum we built last year with strong client activity across Franklin Templeton’s diversified global platform, with positive net flows in both public and private markets," said CEO Jenny Johnson in the earnings release. The results underscore the firm's success in attracting and retaining client capital amid a complex market environment.
The company's assets under management (AUM), a key metric for investment managers, surged to $1.68 trillion, a staggering 172% increase year-over-year and far exceeding analyst projections. This growth, significantly outpacing the firm's revenue increase, suggests strong fundraising efforts and favorable investment performance in the near term. Analysts note that while AUM can be volatile, the scale achieved provides a substantial foundation for future fee-based revenue.
Franklin Templeton, founded in 1947, has built a long-term track record of growth. Over the past five years, the company has achieved a compound annual revenue growth rate of 12.3%, demonstrating resilience and consistent demand for its investment products and services. This latest quarter's explosive growth, while exceptional, aligns with an accelerated trend observed over the past two years.
The strong report was met positively by the market, with BEN shares rising 1.6% in after-hours trading following the announcement.
Market Voices:
"This isn't just a beat; it's a statement," said Michael Thorne, a portfolio manager at Horizon Capital Advisors. "The AUM figure is breathtaking and shows they're capturing market share. The consistent long-term revenue growth proves this isn't a fluke."
"Let's not get carried away," countered Lisa Garret, an independent financial analyst known for her skeptical takes. "A 172% jump in AUM reeks of a one-time, lump-sum institutional mandate or a market bubble inflating values. Where's the sustainable, organic flow? I'll believe in this 'momentum' when I see it sustained for another two quarters without market tailwinds."
"The diversified platform is clearly working," observed David Chen, a senior research associate at Finley Analytics. "Positive flows in both public and private strategies indicate a well-balanced offering that appeals to clients seeking alternatives in a low-yield environment. The valuation will be the next big debate."
Note: Certain historical quarters have been excluded from long-term growth calculations as they were deemed non-representative due to outsized, non-recurring investment gains or losses.