Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Franklin Templeton — Q4 2026 Earnings Presentation
36 slides from Franklin Resources's earnings presentation, Nov 6, 2026
Slide 1: Preliminary Fourth Quarter and Fiscal Year 2026 Results
Franklin Templeton, Inc. Preliminary Fourth Quarter and Fiscal Year 2026 Results November 6, 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: Table of Contents
Table of Contents Contents Page(s) FY26 Business Highlights 4–5 Q4’26 Financial Highlights 6 FY26 Financial Highlights 7 Q4’26 and FY26 AUM and Investment Performance 8–13 Q4’26 and FY26 Financial Results 14–18 • FY27 Expense and Margin Outlook 17 5-Year Plan: Year 2 Progress Report 19–24 Appendix 2
Slide 4: Fiscal Year 2026 Business Highlights
Fiscal Year 2026 Business Highlights • AUM of $1.80 trillion, an increase of 8.1% from the prior year – Diversified across asset class, client type, region, and investment group, both public and private • Long-term inflows totaled $473.5 billion, an increase of 37.7% from the prior year • Strong lon
Slide 5: Fiscal Year 2026 Business Highlights
Fiscal Year 2026 Business Highlights • Strong growth across vehicles including net inflows in mutual funds, private funds, ETFs, retail SMAs and Canvas® – Record net inflows in private funds, ETFs, Retail SMAs and Canvas® in the year • ETF AUM increased 73% to $84.6 billion with net inflows of $8.4
Slide 6: Fourth Quarter 2026 Financial Highlights
Fourth Quarter 2026 Financial Highlights1 Key metrics (in US$ millions, except AUM in billions and per share data) % Change Q4 2026 Q3 2026 Q4 2025 vs. Q3 2026 vs. Q4 2025 2 Ending AUM $1,795.1 $1,791.6 $1,661.2 0.2% 8.1% 2 Average AUM 1,801.8 1,750.0 1,633.7 3.0% 10.3% Adj. revenue 1,884.5 1,816.6
Slide 7: Fiscal Year 2026 Financial Highlights
Fiscal Year 2026 Financial Highlights1 Key metrics (in US$ millions, except AUM in billions and per share data) % Change FY 2026 FY 2025 FY 2024 vs. FY 2025 2 Ending AUM $1,795.1 $1,661.2 $1,678.6 8.1% 2 Average AUM 1,735.4 1,606.7 1,565.8 8.0% Adj. revenue 7,200.8 6,701.1 6,564.8 7.5% Investment ma
Slide 8: Fourth Quarter and Fiscal Year 2026 AUM and Investment Performance
Fourth Quarter and Fiscal Year 2026 AUM and Investment Performance 8
Slide 9: Diversified AUM and Adjusted Operating Revenue
Diversified AUM and Adjusted Operating Revenue Diversified by Asset Class, Client Type and Region Q4’26 Adjusted Operating Revenue by AUM of $1.80 trillion as of September 30, 2026 Investment Group Quarter ended September 30, 2026 Cash 4% HNW 3% All other Americas 6% 7% Multi-Asset 12% APAC 10% 4% 1
Slide 10: Investment Performance
Investment Performance Percentage of AUM Above Peer Median and Benchmark1 As of September 30, 2026 72% 59% 58% 52% 55% 55% 50% 47% 1-year 3-year 5-year 10-year Mutual Funds and ETFs vs. Peers Strategy Composites vs. Benchmark • Mutual Funds and ETFs: 50% or more of mutual funds and ETFs AUM outperfo
Slide 11: AUM and Flows
AUM and Flows1 (In US$ billions, for the three months ended) Total AUM: $1.80 trillion2 473.5 39.5 118.6 118.2 122.0 114.7 343.9 3.2 4.1 3.3 30.4 84.6 28.9 75.6 3.0 3.9 28.0 84.1 16.9 18.4 20.8 (9.3) (11.9) (97.4) (84.9) (90.6) (96.5) (93.9) (101.3) (103.6) (389.4) (441.3) Jun-25 Sep-25 Dec-25 Mar-2
Slide 12: AUM and Flows
AUM and Flows (In US$ billions, for the three months ended) Equity: $764 billion Fixed Income: $428 billion 236.7 65.9 159.7 61.1 56.1 53.6 124.4 114.7 32.9 33.6 33.5 31.9 30.4 28.6 19.8 4.0 21.1 2.0 2.6 (0.4) (0.3) (0.6) (6.9) (4.7) (2.4) (0.7) (12.6) (32.2) (27.8) (29.2) (39.8) (41.3) (35.9) (52.1
Slide 13: AUM and Flows
AUM and Flows (In US$ billions, for the three months ended) Alternative: $305 billion Multi-Asset: $224 billion 48.7 63.7 18.4 18.2 46.3 14.3 12.4 13.2 13.9 10.8 11.8 11.8 23.2 37.6 5.7 12.4 26.1 6.6 9.1 9.5 9.5 7.9 3.2 12.9 4.4 4.0 4.7 12.8 (2.5) (1.9) (2.7) (2.3) (4.2) (10.3) (11.1) (8.0) (9.2) (8
Slide 14: Fourth Quarter and Fiscal Year 2026 Financial Results
Fourth Quarter and Fiscal Year 2026 Financial Results 14
Slide 15: Financial Results
Financial Results1 (Non-GAAP in US$ millions except EFR) Adjusted Operating Revenue and Effective Fee Rate2 Adjusted Operating Expenses 37.5 37.4 37.8 37.9 37.5 37.5 37.6 7,200.8 1,342.6 5,060.9 5,181.4 6,701.1 1,309.9 1,277.9 1,307.7 1,285.9 1,815.0 1,816.6 1,884.5 1,747.2 1,752.5 Sep-25 Dec-25 Mar
Slide 16: Financial Results
Financial Results1 (GAAP and non-GAAP in US$ millions except per share data, for the three and twelve months ended) US GAAP Sep-252 Dec-25 Mar-26 Jun-263 Sep-26 FY252 FY263 US GAAP Sep-252 Dec-25 Mar-26 Jun-263 Sep-26 FY252 FY263 Operating Net 85.4 281.0 323.3 215.8 355.8 604.1 1,175.9 117.6 255.5 2
Slide 17: 2026 Adjusted Operating Expense Bridge and 2027 Outlook
2026 Adjusted Operating Expense Bridge1 and 2027 Outlook (Non-GAAP in US$ billions) Adjusted Operating 26.1% 24.5% 28.0% ~30% Margin $4.85 $0.21 $0.06 $0.07 $0.11 $5.0 $5.1 $4.82 $4.64 $0.03 $0.03 $0.06 FY24 2 FY25 Cost Expenses Fund- Apera Strategic Sales & Variable Comp Formulaic FY26 FY27 Actual
Slide 18: Capital Management
Capital Management Dividends and Share Repurchases Allocation of Cash and Investments1 Senior Notes3 (In US$ millions, for the trailing twelve months ended) (In US$ billions, as of September 30, 2026) (In US$ millions, as of September 30, 2026) $850 $533.2 $7.4 $750 $514.2 $240.3 $276.4 $323.5 $550
Slide 19: 5-Year Plan Year 2 Progress Report
5-Year Plan Year 2 Progress Report 19
Slide 20: 5-year Plan Status
5-year Plan Status Year 2 Progress Report Key Growth Area Rationale Franklin Templeton’s Positioning • One of the largest managers of alternative Alternative AUM Alternatives AUM and $305B assets $100B revenue projected to grow at $250B 15.0 10% and 9% CAGR • Meaningful AUM in key alternative 6% 27%
Slide 21: 5-year Plan Status (Cont'd)
5-year Plan Status (Cont’d) Year 2 Progress Report Key Growth Area Rationale Franklin Templeton’s Positioning Customization, direct • Offer a broad range of over 200 unique high- Retail SMA AUM quality SMA strategies (In $B) ownership and tax efficiency driving investors to SMAs • Focus on key areas
Slide 22: 5-year Plan Status (Cont'd)
5-year Plan Status (Cont’d) Year 2 Progress Report Key Growth Area Rationale Franklin Templeton’s Positioning Active ETFs have emerged as • Achieved 91% of goal in 2 years ETF AUM $93 (In $B) a mainstream product • Three suites: Fundamental active $37B AUM, $85 • Active ETFs represent ~11% of System
Slide 23: 5-year Plan Status (Cont'd)
5-year Plan Status (Cont’d) Year 2 Progress Report Key Growth Area Rationale Franklin Templeton’s Positioning Private Wealth Mgmt is an • Focused on further accelerating the growth of Private Wealth Management attractive business model due our private wealth management business (Fiduciary Trust Inte
Slide 24: Raising The Bar On Goals That Are Ahead Of Plan
Raising The Bar On Goals That Are Ahead Of Plan Original 5 Year New FY29 Areas FY24 Baseline At Year 2 (FY29) Targets1 Targets1 Alts Fundraise across $15B $66B $100B $150B Private Markets Alts Fundraise from - 22% 20-30% Wealth Channel Scale ETFs AUM $31B $85B $93B $200B Scale Canvas® AUM $10B $33B
Slide 25: Appendix
Appendix FRANKLIN ‘kat’> TEMPLETON 25
Slide 26: AUM and Flows
AUM and Flows1 (In US$ billions) Twelve Months Ended Three Months Ended September 30, Sept 30, 2026 Jun 30, 2026 % Change 2026 2025 % Change Beginning AUM $1,791.6 $1,682.1 6.5% $1,661.2 $1,678.6 (1.0%) Long-term inflows 114.7 122.0 (6.0%) 473.5 343.9 37.7% Long-term outflows (93.9) (103.6) (9.4%) (
Slide 27: Alternative AUM Roll Forward
Alternative AUM Roll Forward (In US$ billions) Three Months and Fiscal Year Ended September 30, 2026 Three Months Ended September 30, 2026 Fiscal Year Ended September 30, 2026 Private Liquid & Private Liquid & Markets 1 Other Total Markets 1 Other Total Beginning Balance $274.1 $20.1 $294.2 $244.4 $
Slide 28: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Sep-26 Sep-26 Adjusted vs. Adjusted vs. Sep-26 Sep-26 Jun-26 Jun-26 Sep-25 Sep-25 1 Revenues US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment management fees, ex. 1,841.
Slide 29: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Sep-26 Sep-26 Adjusted vs. Adjusted vs. Sep-26 Sep-26 Jun-26 Jun-26 Sep-25 Sep-25 1 Expenses US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Compensation & benefits 1,009.5 (141.1
Slide 30: Financial Results
Financial Results (GAAP and non-GAAP in US$ millions except per share data, for the three months ended) Sep-26 Sep-26 Adjusted vs. Adjusted vs. Other Income (Expense), Sep-26 Sep-26 Jun-26 Jun-26 Sep-25 Sep-25 Net1 US GAAP Adjustments Adjusted Adjusted Adjusted Adjusted Adjusted Investment and other
Slide 31: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended September 30, 2026 Sales, Unrealized Consolidated Special Deferred Tax Expense US GAAP Distribution Acquisition- Investment Non-GAAP (in US$ millions except per share data) Investment Termination Comp Plan of Basis and Related
Slide 32: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended June 30, 2026 Sales, Unrealized Consolidated Special Deferred Tax Expense US GAAP Distribution Acquisition- Investment Regulatory Non-GAAP (in US$ millions except per share data) Investment Termination Comp Plan of Basis and Re
Slide 33: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Three months ended September 30, 2025 Sales, Unrealized Consolidated Special Deferred Tax Expense US GAAP Distribution Acquisition- Investment Non-GAAP (in US$ millions except per share data) Investment Termination Comp Plan of Basis and Related
Slide 34: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Twelve months ended September 30, 2026 Sales, Unrealized Consolidated Special Deferred Tax Expense US GAAP Distribution Acquisition- Investment Regulatory Non-GAAP (in US$ millions except per share data) Investment Termination Comp Plan of Basis
Slide 35: Reconciliation of US GAAP results to Non-GAAP Results
Reconciliation of US GAAP results to Non-GAAP Results Twelve months ended September 30, 2025 Sales, Unrealized Consolidated Special Deferred Tax Expense US GAAP Distribution Acquisition- Investment Non-GAAP (in US$ millions except per share data) Investment Termination Comp Plan of Basis and Related
Slide 36: 2026 Adjusted Operating Expense Bridge
2026 Adjusted Operating Expense Bridge Notes • Excludes performance fee incentive compensation and performance fee-related third-party expenses • Cost Savings – Reflects previously announced incremental FY26 expense savings initiatives related to integrations and ongoing corporate efficiencies • Fun