BEN · Franklin Resources, Inc.

Franklin Resources delivered strong Q2 fiscal 2026 results with GAAP operating income rising 15% quarter-over-quarter to $323.3 million and 122% year-over-year to surpass prior year significantly, driven by 9% higher operating revenues of $2.29 billion, primarily from investment management fees up 9% YoY. Operating margin expanded to 14.1% from 12.1% QoQ and 6.9% YoY, reflecting disciplined expense management as total operating expenses remained flat YoY at $1.97 billion despite higher compensation and sales costs. Net income attributable to the company increased 5% QoQ and 77% YoY to $268.2 million, with diluted EPS at $0.49. Adjusted non-GAAP metrics showed even stronger performance, with adjusted operating income up 9% QoQ to $474.6 million and adjusted EPS at $0.71, up 1% QoQ and 51% YoY. AUM ended at $1,682.1 billion, flat QoQ but up 9% YoY, impacted by $30.2 billion negative market changes and distributions offset by $16.9 billion long-term net inflows and $11.4 billion cash management inflows. CEO Jenny Johnson highlighted $17 billion long-term net inflows, $14.3 billion in alternatives fundraising including $13.2 billion private markets, and record ETF and Canvas AUM with strong multi-asset flows. The company repurchased 2.3 million shares for $57.1 million and declared a $0.33 dividend per share, signaling confidence in capital return amid positive flows and competitive investment performance. A written commentary and conference call were posted on investors.franklinresources.com.