Contact: Franklin Templeton, Inc.
Contact: Franklin Templeton, Inc. Investor Relations: Selene Oh (650) 312-4091, selene.oh@franklintempleton.com Public Relations: Jeaneen Terrio (212) 632-4005, jeaneen.terrio@franklintempleton.com investors.franklintempleton.com
FOR IMMEDIATE RELEASE Franklin Templeton, Inc. Announces Preliminary Fourth Quarter and Fiscal Year Results
– Franklin Templeton, Inc. (the “Company”) [NYSE: BEN] today announced preliminary net income 1 of $380.1 million or $0.72 per diluted share for the quarter ended September 30, 2026, as compared to net income of $171.5 million or $0.31 per diluted share for the previous quarter, and $117.6 million or $0.21 per diluted share for the quarter ended September 30, 2025. Preliminary net income 1 for the fiscal year ended September 30, 2026 was $1,075.3 million or $1.97 per diluted share, as compared to $524.9 million or $0.91 per diluted share for the prior fiscal year. Preliminary operating income was $355.8 million for the quarter ended September 30, 2026, as compared to operating income of $215.8 million for the previous quarter and $85.4 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. Preliminary adjusted net income 2 was $493.4 million and preliminary adjusted diluted earnings per share 2 was $0.94 for the quarter ended September 30, 2026, as compared to $386.3 million and $0.72 for the previous quarter, and $357.5 million and $0.67 for the quarter ended September 30, 2025. Preliminary adjusted net income 2 was $1,642.6 million and preliminary adjusted diluted earnings per share 2 was $3.07 for the fiscal year ended September 30, 2026, as compared to $1,195.8 million and $2.22 for the prior fiscal year. Preliminary adjusted operating income 2 was $598.6 million for the quarter ended September 30, 2026, as compared to $508.9 million for the previous quarter and $472.4 million for the prior year.
“Franklin Templeton delivered strong fourth quarter and fiscal year 2026 results, reflecting the momentum across our business and continued execution of our strategy,” said Jenny Johnson, Chief Executive Officer of Franklin Templeton, Inc. “We generated $20.8 billion in long-term net inflows during the fourth quarter, bringing full-year long-term net inflows to $84.1 billion, with positive net flows in every quarter this fiscal year across all regions and in both retail and institutional channels. Equity, multi-asset and alternatives each generated net inflows and reached record assets under management, demonstrating the breadth of our investment capabilities and global distribution platform. AUM increased 8% year-over-year to $1.8 trillion, and our institutional pipeline of won-but-unfunded mandates remained strong at $22.0 billion.
“Throughout the fiscal year, we made significant progress in scaling our key growth areas, achieving record AUM across alternatives, ETFs, retail SMAs, Canvas® and our international business. Alternative AUM reached $304.6 billion, with $48.7 billion in fundraising, including $43.2 billion in private markets for the fiscal year. We also saw strong growth across our investment vehicles, with ETF AUM increasing 73% to $84.6 billion, retail SMA AUM growing 19% to $196.3 billion and Canvas AUM doubling to $32.6 billion. International AUM reached approximately $525 billion, with $29.0 billion in long-term net inflows, reflecting the strength of our global distribution platform. This broad-based momentum demonstrates our ability to bring the full breadth of our investment capabilities to clients globally and highlights the progress we are making against our five-year strategic plan. 1 “We remain disciplined in managing expenses while continuing to invest in the future, including strategic acquisitions to enhance our capabilities and increasing our adjusted operating margin ahead of plan. Our balance sheet continues to provide financial flexibility with $7.4 billion 4 in cash and investments, after returning $1.2 billion to shareholders through dividends and share repurchases.
“As we enter fiscal year 2027, we see significant opportunities as our industry evolves, including growing demand for private markets, customized solutions and innovative investment vehicles. Our broad investment expertise across public and private markets, along with our global reach, positions us well to deliver integrated solutions and serve as a trusted strategic partner to our clients. We remain focused on putting our clients first, delivering strong investment outcomes and creating long-term value for clients, shareholders and employees. I want to thank our employees around the world for their dedication and contributions to another successful year.”
Total AUM was $1,795.1 billion at September 30, 2026, up $3.5 billion during the quarter due to $20.8 billion of long-term net inflows, offset by negative impact of $11.3 billion of net market change, distributions, and other and $6.0 billion of cash management net outflows. Long-term net inflows include $3.3 billion of long-term reinvested distributions. AUM increased $133.9 billion during the fiscal year due to $84.1 billion of long-term net inflows, inclusive of $11.7 billion of long-term net outflows at Western Asset Management (“WAM”), the positive impact of $46.4 billion of net market change, distributions, and other, $6.2 billion from acquisitions partially offset by the $2.8 billion of cash management net outflows. Long-term net inflows include $39.5 billion of long- term reinvested distributions.
Cash and cash equivalents and investments were $6.0 billion and, including the Company’s direct investments in consolidated investment products (“CIPs”), were $7.4 billion 4 at September 30, 2026. Total stockholders’ equity was $13.2 billion and the Company had 512.5 million shares of common stock outstanding at September 30, 2026. The Company repurchased 2.5 million shares of its common stock for a total cost of $86.1 million during the quarter ended September 30, 2026. 2
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.franklintempleton.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 11:00 a.m. Eastern Time to answer questions. Access to the teleconference will be available via investors.franklintempleton.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 13763116 after 2:00 p.m. Eastern Time on November 6, 2026 through November 13, 2026, or via investors.franklintempleton.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
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 Templeton, 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.
We define adjusted operating income as operating income adjusted to exclude the following:
◦ Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities.
• 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.
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:
• 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 Templeton, Inc. adjusted to exclude the following:
◦ Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities.
◦ 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.
• 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. 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:
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 month-end AUM for the trailing four months for quarterly periods and thirteen months for fiscal year periods.
4. Includes our direct investments in CIPs of approximately $1.3 billion, approximately $430 million of employee-owned and other third-party investments made through partnerships, approximately $605 million of investments that are subject to long-term repurchase agreements and other net financing arrangements, and approximately $407 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. Prior periods have not been revised to reflect the current presentation.
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.
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. # # #
Full text with the tables
EXHIBIT 99.1
Contact: Franklin Templeton, Inc.
Investor Relations: Selene Oh (650) 312-4091,
selene.oh@franklintempleton.com
Public Relations: Jeaneen Terrio (212) 632-4005,
jeaneen.terrio@franklintempleton.com
investors.franklintempleton.com
FOR IMMEDIATE RELEASE
Franklin Templeton, Inc. Announces Preliminary Fourth Quarter and Fiscal Year
Results
San Mateo, CA, November 6, 2026
– Franklin Templeton, Inc. (the “Company”) [NYSE: BEN] today announced
preliminary net income 1 of $380.1 million or $0.72 per diluted share for the
quarter ended September 30, 2026, as compared to net income of $171.5 million or
$0.31 per diluted share for the previous quarter, and $117.6 million or $0.21
per diluted share for the quarter ended September 30, 2025. Preliminary net
income 1 for the fiscal year ended September 30, 2026 was $1,075.3 million or
$1.97 per diluted share, as compared to $524.9 million or $0.91 per diluted
share for the prior fiscal year. Preliminary operating income was $355.8 million
for the quarter ended September 30, 2026, as compared to operating income of
$215.8 million for the previous quarter and $85.4 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. Preliminary adjusted net income 2 was $493.4
million and preliminary adjusted diluted earnings per share 2 was $0.94 for the
quarter ended September 30, 2026, as compared to $386.3 million and $0.72 for
the previous quarter, and $357.5 million and $0.67 for the quarter ended
September 30, 2025. Preliminary adjusted net income 2 was $1,642.6 million and
preliminary adjusted diluted earnings per share 2 was $3.07 for the fiscal year
ended September 30, 2026, as compared to $1,195.8 million and $2.22 for the
prior fiscal year. Preliminary adjusted operating income 2 was $598.6 million
for the quarter ended September 30, 2026, as compared to $508.9 million for the
previous quarter and $472.4 million for the prior year.
“Franklin Templeton delivered strong fourth quarter and fiscal year 2026
results, reflecting the momentum across our business and continued execution of
our strategy,” said Jenny Johnson, Chief Executive Officer of Franklin
Templeton, Inc. “We generated $20.8 billion in long-term net inflows during the
fourth quarter, bringing full-year long-term net inflows to $84.1 billion, with
positive net flows in every quarter this fiscal year across all regions and in
both retail and institutional channels. Equity, multi-asset and alternatives
each generated net inflows and reached record assets under management,
demonstrating the breadth of our investment capabilities and global distribution
platform. AUM increased 8% year-over-year to $1.8 trillion, and our
institutional pipeline of won-but-unfunded mandates remained strong at $22.0
billion.
“Throughout the fiscal year, we made significant progress in scaling our key
growth areas, achieving record AUM across alternatives, ETFs, retail SMAs,
Canvas® and our international business. Alternative AUM reached $304.6 billion,
with $48.7 billion in fundraising, including $43.2 billion in private markets
for the fiscal year. We also saw strong growth across our investment vehicles,
with ETF AUM increasing 73% to $84.6 billion, retail SMA AUM growing 19% to
$196.3 billion and Canvas AUM doubling to $32.6 billion. International AUM
reached approximately $525 billion, with $29.0 billion in long-term net inflows,
reflecting the strength of our global distribution platform. This broad-based
momentum demonstrates our ability to bring the full breadth of our investment
capabilities to clients globally and highlights the progress we are making
against our five-year strategic plan.
1
“We remain disciplined in managing expenses while continuing to invest in the
future, including strategic acquisitions to enhance our capabilities and
increasing our adjusted operating margin ahead of plan. Our balance sheet
continues to provide financial flexibility with $7.4 billion 4 in cash and
investments, after returning $1.2 billion to shareholders through dividends and
share repurchases.
“As we enter fiscal year 2027, we see significant opportunities as our industry
evolves, including growing demand for private markets, customized solutions and
innovative investment vehicles. Our broad investment expertise across public and
private markets, along with our global reach, positions us well to deliver
integrated solutions and serve as a trusted strategic partner to our clients. We
remain focused on putting our clients first, delivering strong investment
outcomes and creating long-term value for clients, shareholders and employees. I
want to thank our employees around the world for their dedication and
contributions to another successful year.”
…
… …
──────────────────────────────────────────────────────────────────────────────
% … % $ $ %
% … % %
… % %
% … % $ $ %
% … % %
% … % $ $ %
… % %
% … % $ $ %
% … % %
% … % $ $ %
% … % %
…
Total AUM was $1,795.1 billion at September 30, 2026, up $3.5 billion during the
quarter due to $20.8 billion of long-term net inflows, offset by negative impact
of $11.3 billion of net market change, distributions, and other and $6.0 billion
of cash management net outflows. Long-term net inflows include $3.3 billion of
long-term reinvested distributions. AUM increased $133.9 billion during the
fiscal year due to $84.1 billion of long-term net inflows, inclusive of $11.7
billion of long-term net outflows at Western Asset Management (“WAM”), the
positive impact of $46.4 billion of net market change, distributions, and other,
$6.2 billion from acquisitions partially offset by the $2.8 billion of cash
management net outflows. Long-term net inflows include $39.5 billion of long-
term reinvested distributions.
Cash and cash equivalents and investments were $6.0 billion and, including the
Company’s direct investments in consolidated investment products (“CIPs”), were
$7.4 billion 4 at September 30, 2026. Total stockholders’ equity was $13.2
billion and the Company had 512.5 million shares of common stock outstanding at
September 30, 2026. The Company repurchased 2.5 million shares of its common
stock for a total cost of $86.1 million during the quarter ended September 30,
2026.
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.franklintempleton.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 11:00 a.m. Eastern Time to answer questions. Access to the
teleconference will be available via investors.franklintempleton.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 13763116 after 2:00 p.m. Eastern Time on November 6, 2026 through
November 13, 2026, or via investors.franklintempleton.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
…
… …
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… … … %
… … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … 4 % $ … $ 6… 7 %
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… … … … … 2… 9 %
… … … … … 4… 7 %
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… … … … … 2… (3 …
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— … … … … 2… (… …
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… … … … … 8… 1 %
… … … % … 6… 95 %
… … … … … 2… 64 %
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$ … $ … … % $ … $ 5… 1… %
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4
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… $ 1… $ 1… 4 % $ 1… $ 1… $ 1,…
…
…
… 4… 4… 0 % 3… 3… 38…
…
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… 7… 7… 1 % 6… 7… 79…
…
… 1… 1… (… %) 1… 1… 14…
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…
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… 7… 7… 1 % 6… 6… 72…
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… 2… 3… (… %) 1… 1… 22…
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… 2… 2… (3 %) 1… 2… 2,…
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… 3… 2… 65 % 3… 2… 85…
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… 8… 1… (… %) 5… 8… 84…
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… -… -… 10 % -… -… -1…
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… 7… 1… (… %) 9… 1… 65…
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Operating Margin 14.6 % 9.2 % 14.1 % 12.1 % 3.6 %
5
AUM AND FLOWS
Three
Mont… Twel…
Ended Mont…
(in Sept… Ended
bil… 30, Sept…
202… 2025 20265 2025 30,
──────────────────────────────────────────────────────────────────────────────
Beg… $ 1,79… $ 1,61… $ 1,66… $ 1,6…
AUM
Lon… 114.7 84.6 473.5 343…
inf…
Lon… -93.9 -96.5 -389… -44…
out…
Lon…
net 20.8 -11.9 84.1 -97…
flo…
Cash
man… -6.0 7.2 -2.8 12.6
net
flo…
Tot…
net 14.8 -4.7 81.3 -84…
flo…
Acq… — — 6.2 -0.2
(di…
Net
mar…
cha… -11.3 54.1 46.4 67.6
dis…
and
oth…
End… $ 1,79… $ 1,66… $ 1,79… $ 1,6…
AUM
Ave… $ 1,80… $ 1,63… $ 1,73… $ 1,6…
AUM
AUM BY ASSET CLASS
(in %
bil… 30-… 30-… Cha… 31-… 31-… 30-…
──────────────────────────────────────────────────────────────────────────────
Eq… $ 763… $ 756… 1 % $ 669… $ 697… $ 686…
Fi… 427… 441… (3 %) 434… 437… 438…
In…
Al… 304… 294… 4 % 282… 273… 263…
Mu… 223… 218… 2 % 207… 198… 193…
Ca… 75.6 80.5 (6 %) 87.8 76.5 78.5
Ma…
To… $ 1,7… $ 1,7… 0 % $ 1,6… $ 1,6… $ 1,6…
AUM
Av…
AUM
for $ 1,8… $ 1,7… 3 % $ 1,7… $ 1,6… $ 1,6…
the
Th…
Pe…
AUM BY SALES REGION
(in %
bil… 30-… 30-… Cha… 31-… 31-… 30-…
──────────────────────────────────────────────────────────────────────────────
Un… $ 1,2… $ 1,2… 0 % $ 1,1… $ 1,1… $ 1,1…
St…
In…
Eu…
Mi…
Ea… 226… 232… (3 %) 217… 212… 201…
and
Af…
As… 191… 191… 0 % 180… 181… 179…
Am…
ex… 105… 100… 5 % 97.1 93.9 108…
U.…
To… 522… 523… 0 % 494… 488… 489…
in…
To… $ 1,7… $ 1,7… 0 % $ 1,6… $ 1,6… $ 1,6…
6
AUM AND FLOWS BY ASSET CLASS
(…
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A…
at
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1, Fi… Cash
2… Eq… 75… In… 44… Al… 29… Mu… 21… Man… 80… Tot… 1,…
──────────────────────────────────────────────────────────────────────────────
L… 56… 28… 11… 18… — 11…
i…
L… -5… -2… -2… -1… — -9…
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d…
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2… Eq… 66… In… 43… Al… 28… Mu… 20… Man… 87… Tot… 1,…
──────────────────────────────────────────────────────────────────────────────
L… 65… 30… 11… 13… — 12…
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o…
L…
n… 2.0 2.6 9.1 4.7 — 18…
f…
C…
m… — — — — -7… -7…
n…
f…
T…
n… 2.0 2.6 9.1 4.7 -7… 11…
f…
A… — — 0.1 — — 0.1
N…
m…
c… 85… 4.5 2.2 6.4 -0… 98…
d…
a…
o…
A…
at
J… $ 75… $ 44… $ 29… $ 21… $ 80… $ 1,…
3…
2…
(…
b…
f…
t…
t…
m…
e…
S…
3…
2…
A…
at
J…
1, Fi… Cash
2… Eq… 65… In… 44… Al… 25… Mu… 18… Man… 71… Tot… 1,…
──────────────────────────────────────────────────────────────────────────────
L… 32… 33… 5.7 12… — 84…
i…
L… -3… -4… -2… -8… — -9…
o…
L…
n… -6… -1… 3.2 4.4 — -1…
f…
C…
m… — — — — 7.2 7.2
n…
f…
T…
n… -6… -1… 3.2 4.4 7.2 -4…
f…
N…
m…
c… 36… 9.6 2.3 6.3 -0… 54…
d…
a…
o…
A…
at
S… $ 68… $ 43… $ 26… $ 19… $ 78… $ 1,…
3…
2…
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 Templeton, 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 Templeton,
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. 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:
Three Twe…
(in Mont… Mon…
mil… Ended End…
30-… 30-J… 30-… 30-… 30-…
──────────────────────────────────────────────────────────────────────────────
Ope… $ 355.8 $ 215.8 $ 85.4 $ 1,17… $ 604…
inc…
Add
(su…
Eli…
of
ope…
rev…
upon 19.4 17.3 13.1 68.2 50.7
con…
of
inv…
pro…
Acq… 32.6 -23.6 34.0 75.1 162…
ret…
Com…
and
ben…
exp…
from 6.1 17.8 18.8 41.3 23.4
gai…
on
def…
com…
net
Oth…
acq… 46.4 5.9 10.8 63.3 41.4
exp…
Amo…
of 42.0 50.7 69.2 198.4 406…
int…
ass…
Imp…
of — 33.0 202.2 33.0 226…
int…
ass…
Spe…
ter… 81.1 77.2 25.0 204.5 69.7
ben…
Com…
and
ben…
exp…
rel…
to 15.2 14.8 13.9 59.7 55.4
min…
int…
in
cer…
sub…
Cha…
rel…
to — 100.0 — 100.0 —
sig…
reg…
set…
Adj…
ope… $ 598.6 $ 508.9 $ 472.4 $ 2,01… $ 1,6…
inc…
Tot…
ope… $ 2,43… $ 2,35… $ 2,34… $ 9,41… $ 8,7…
rev…
Add
(su…
Acq…
pass
thr… -9.6 -3.7 -22.0 -82.2 -10…
per…
fees
Sal…
and -403… -404… -382… -1,5… -1,…
dis…
fees
All…
of
inv…
man…
fees
for -156… -150… -137… -606… -53…
sal…
dis…
and
mar…
exp…
Eli…
of
ope…
rev…
upon 19.4 17.3 13.1 68.2 50.7
con…
of
inv…
pro…
Adj…
ope… $ 1,88… $ 1,81… $ 1,81… $ 7,20… $ 6,7…
rev…
Operating margin 14.6 % 9.2 % 3.6 % 12.5 % 6.9 %
Adjusted operating 31.8 % 28.0 % 26.0 % 28.0 % 24.5 %
margin
10
(in
mil…
exc…
per Three Twe…
sha… Mont… Mon…
dat… Ended End…
30-… 30-J… 30-… 30-… 30-…
──────────────────────────────────────────────────────────────────────────────
Net
inc…
att…
to $ 380.1 $ 171.5 $ 117.6 $ 1,07… $ 524…
Fra…
Tem…
Inc.
Add
(su…
Net
(in…
loss
of -1.5 — 7.8 -1.4 7.6
con…
inv…
pro…
Acq… 32.6 -23.6 34.0 75.1 162…
ret…
Oth…
acq… 46.0 5.3 22.8 68.9 61.6
exp…
Amo…
of 42.0 50.7 69.2 198.4 406…
int…
ass…
Imp…
of — 33.0 202.2 33.0 226…
int…
ass…
Spe…
ter… 81.1 77.2 25.0 204.5 69.7
ben…
Net
(ga…
los…
on
def…
com…
plan
inv… -0.7 6.2 -0.9 4.0 -3.3
not
off…
by
com…
and
ben…
exp…
Unr…
inv… -39.0 -3.5 -57.5 10.4 -57…
(ga…
los…
Int…
exp…
for
amo… -1.7 -1.7 -5.0 -12.8 -19…
of
debt
pre…
Net
com…
and
ben…
exp…
rel…
to
min…
int…
in
cer… 9.2 9.6 7.5 35.2 26.4
sub…
not
off…
by
net
inc…
att…
to
red…
non…
int…
Cha…
rel…
to — 100.0 — 100.0 —
sig…
reg…
set…
Net
inc…
tax -54.7 -38.4 -65.2 -148… -20…
exp…
of
adj…
Adj…
net $ 493.4 $ 386.3 $ 357.5 $ 1,64… $ 1,1…
inc…
Dil…
ear… $ 0.72 $ 0.31 $ 0.21 $ 1.97 $ 0.91
per
sha…
Adj…
dil…
ear… 0.94 0.72 0.67 3.07 2.22
per
sha…
__________________
* The impact of CIPs is summarized as follows:
Three Twe…
(in Mont… Mon…
mil… Ended End…
30-… 30-J… 30-… 30-… 30-…
──────────────────────────────────────────────────────────────────────────────
Eli…
of
ope… $ -19.4 $ -17.3 $ -13.1 $ -68.2 $ -50…
rev…
upon
con…
Oth…
inc… 169.6 74.4 59.4 395.0 11.0
net
Les…
inc…
(lo…
att… 148.7 57.1 54.1 325.4 -32…
to
non…
int…
Net
inc… $ 1.5 $ — $ -7.8 $ 1.4 $ -7.6
(lo…
11
Notes
1. Net income represents net income attributable to Franklin Templeton, 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 month-end AUM for the trailing
four months for quarterly periods and thirteen months for fiscal year periods.
4. Includes our direct investments in CIPs of approximately $1.3 billion,
approximately $430 million of employee-owned and other third-party investments
made through partnerships, approximately $605 million of investments that are
subject to long-term repurchase agreements and other net financing arrangements,
and approximately $407 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. Prior periods have not been revised to reflect the current
presentation.
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 Templeton, Inc. [NYSE: BEN]
12
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.
# # #
13