Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Q2 2026 Earnings Presentation
25 slides from Franklin Resources's earnings presentation, Apr 28, 2026
Slide 1: Franklin Resources, Inc. Second Quarter 2026 Results
Franklin Resources, Inc. Second Quarter 2026 Results April 28, 2026 | Investor Presentation
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Statements and Non-GAAP Financial Information This commentary contains forward-looking statements that involve a number of known and unknown risks, uncertainties and other important factors. This commentary also contains non-GAAP financial measures. For the reconciliations from US GA
Slide 3: Second Quarter 2026 Business Highlights
Second Quarter 2026 Business Highlights • AUM of $1.68 trillion comprised of investment capabilities across public and private markets • Long-term inflows were $118.2 billion, and excluding reinvested distributions, increased 28% from prior quarter and 38% from the prior year quarter – Gross sales i
Slide 4: Second Quarter 2026 Financial Summary
Second Quarter 2026 Financial Summary1 Key metrics (in US$ millions, except AUM in billions and per share data) Q2 2026 Q1 2026 Q2 2025 2 Ending AUM $1,682.1 $1,684.0 $1,540.6 Average AUM2 1,701.6 1,676.1 1,570.5 Adj. revenue 1,752.5 1,747.2 1,610.2 Investment management revenues 1,586.6 1,580.1 1,4
Slide 5: Second Quarter 2026 AUM and Investment Performance
Second Quarter 2026 AUM and Investment Performance
Slide 6: Diversified AUM and Adjusted Operating Revenue
Diversified AUM and Adjusted Operating Revenue Diversified by Asset Class, Client Type, and Region Q2 Adjusted Operating Revenue by AUM of $1.68 trillion as of March 31, 2026 Investment Group As of March 31, 2026 Cash 5% HNW 3% All other Americas 6% Multi-Asset 10% APAC 10% 16%1 12% 5% Alternative I
Slide 7: Investment Performance
Investment Performance Percentage of AUM Above Peer Median and Benchmark1 As of March 31, 2026 71% 65% 66% 56% 57% 57% 55% 51% 1-year 3-year 5-year 10-year Mutual Funds and ETFs vs. Peers Strategy Composites vs. Benchmark • Mutual Funds and ETFs: Over half of mutual funds and ETFs AUM outperformed p
Slide 8: AUM and Flows
AUM and Flows1 (In US$ billions, for the three months ended) Total AUM: $1.68 trillion2 118.6 118.2 3.2 86.8 28.9 75.6 84.6 3.3 3.0 3.9 34.6 21.0 7.4 7.8 11.4 16.9 28.0 (9.3) (11.9) (26.2) (84.9) (96.5) (90.6) (101.3) (113.0) Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Long-term Long-term Long-term net Ex-We
Slide 9: AUM and Flows
AUM and Flows (In US$ billions, for the three months ended) Equity: $670 billion Fixed Income: $434 billion 61.1 53.6 38.9 33.6 33.5 31.9 32.0 32.9 28.2 19.8 26.5 10.6 2.8 3.5 2.6 3.6 (0.6) (2.4) (0.3) (5.4) (6.9) (4.7) (12.6) (13.0) (32.6) (32.2) (39.8) (30.5) (35.9) (44.3) (41.3) (41.2) (46.2) (58
Slide 10: AUM and Flows
AUM and Flows (In US$ billions, for the three months ended) Alternative: $283 billion Multi-Asset: $207 billion 18.4 14.3 13.2 12.9 12.4 10.8 9.8 9.5 8.5 5.7 12.4 3.3 4.4 4.0 5.6 1.8 6.4 6.6 2.5 3.2 (2.1) (2.5) (1.9) (3.1) (4.2) (8.0) (8.0) (8.9) (9.6) (9.2) 1 1 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Ma
Slide 11: Second Quarter 2026 Financial Results
Second Quarter 2026 Financial Results
Slide 12: Financial Results
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted Operating Revenue and Effective Fee Rate2 Adjusted Operating Expenses 38.3 37.5 37.5 37.4 37.8 $1,342.6 $1,309.9 $1,277.9 $1,233.0 $1,215.4 $1,815.0 $1,747.2 $1,752.5 $1,610.2 $1,593.2 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Mar-25 Jun-25
Slide 13: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) US GAAP Mar-25 Jun-25 Sep-252 Dec-25 Mar-26 US GAAP Mar-25 Jun-25 Sep-252 Dec-25 Mar-26 Operating 145.6 154.1 85.4 281.0 323.3 Net Income 151.4 92.3 117.6 255.5 268.2 Income Operating 6.9% 7.5% 3
Slide 14: Illustrative 2026 Adjusted Operating Expense Bridge
Illustrative 2026 Adjusted Operating Expense Bridge1 (Non-GAAP in US$ billions) $4.82 $4.85 $0.08 $0.09 $4.93 $4.65 $0.02 $0.03 $0.06 $0.20 2 FY24 FY25 Cost Expenses Fund- Apera Strategic Sales & Incentive FY26 Actual Actual Savings with Savings related Investments Fundraising Comp Guidance • Contin
Slide 15: Capital Management
Capital Management Dividends and Share Repurchases Allocation of Cash and Investments1 Senior Notes3 (In US$ millions, for the trailing twelve months ended) (In US$ billions, as of March 31, 2026) (In US$ millions, as of March 31, 2026) $6.2 $275.6 $276.4 $323.5 $219.7 $240.3 $3.9 $850.0 $0.5 $550.0
Slide 16: Appendix
Appendix
Slide 17: AUM and Flows
AUM and Flows1 (In US$ billions) Mar 31, Dec 31, Mar 31, 2026 2025 % Change 2025 % Change Beginning AUM $1,684.0 $1,661.2 1.4% $1,575.7 6.9% Long-term inflows 118.2 118.6 (0.3%) 86.8 36.2% Long-term outflows (101.3) (90.6) 11.8% (113.0) (10.4%) Long-term net flows 16.9 28.0 (39.6%) (26.2) NM Cash ma
Slide 18: Alternative AUM Roll Forward
Alternative AUM Roll Forward (In US$ billions) Three Months Ended March 31, 2026 Private Markets1 Liquid & Other Total Beginning Balance $254.7 19.1 $273.8 Fundraising2 13.2 1.1 14.3 Outflows (1.1) (0.8) (1.9) Net Flows 12.1 0.3 12.4 Realizations & distributions3 (4.5) (0.1) (4.6) Net market change,
Slide 19: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Revenues1 Mar-26 Mar-26 Adjusted vs. Adjusted vs. Mar-26 Mar-26 Dec-25 Dec-25 Mar-25 Mar-25 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,718.5
Slide 20: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Mar-26 Mar-26 Expenses1 Adjusted vs. Adjusted vs. Mar-26 Mar-26 Dec-25 Dec-25 Mar-25 Mar-25 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 964.7 (91.7) 87
Slide 21: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Other Income (Expense), Net1 Mar-26 Mar-26 Adjusted vs. Adjusted vs. Mar-26 Mar-26 Dec-25 Dec-25 Mar-25 Mar-25 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other
Slide 22: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended March 31, 2026 Consolidated Sales, Special Unrealized Tax Expense US GAAP Acquisition- Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination Investment of Basis Related Plan and
Slide 23: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended December 31, 2025 Unrealized Consolidated Sales, Special Tax Expense US GAAP Acquisition- Investment Deferred Comp Non-GAAP (in US$ millions except per share data) Investment Distribution and Termination of Basis Related (Gains
Slide 24: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended March 31, 2025 Sales, Consolidated Special Unrealized Deferred Tax Expense US GAAP distribution Acquisition- Non-GAAP (in US$ millions except per share data) Investment Termination investment Comp Plan of Basis and related Basi
Slide 25: Illustrative 2026 Adjusted Operating Expense Bridge Assumptions
Illustrative 2026 Adjusted Operating Expense Bridge Assumptions • Assumes all expenses not specifically identified in the graph remain unchanged in aggregate. All estimates assume no market changes after March 31, 2026. Excludes performance fee incentive compensation and performance fee related thir