The adjusted EPS beat and strong organic flow momentum (record AUM, $18.4B long-term inflows) support the bull case, but the GAAP miss driven by $100M in regulatory charges and $33M in impairments creates headline risk. Watch for further details on the regulatory settlement and whether the buyback pace accelerates. The name change is cosmetic and should not move the stock.
Price Chart
Executive Summary
Franklin Resources reported Q3 fiscal 2026 GAAP EPS of $0.31, down 37% sequentially from $0.49, and adjusted EPS of $0.72, roughly flat sequentially. Revenue grew 14% YoY to $2.36B, driven by record AUM of $1.79T and $18.4B in long-term net inflows. However, GAAP operating income fell 33% QoQ due to $100M in regulatory settlement charges and $33M in intangible impairment. The company also announced a corporate name change to Franklin Templeton, Inc. effective August 17, 2026. The combination of declining GAAP earnings, large one-time charges, and a purely cosmetic name change makes this a mixed filing — strong organic flow momentum is offset by elevated costs and regulatory overhang.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $0.31 vs $0.49 prior quarter and $0.15 year-ago; adjusted diluted EPS of $0.72 vs $0.71 prior quarter and $0.49 year-ago
- Operating revenues of $2.36B, up 14% YoY and 3% QoQ
- Record AUM of $1.79T, up 7% QoQ and 11% YoY
- Long-term net inflows of $18.4B in the quarter, with positive flows across every asset class and geography
- GAAP operating income of $215.8M, down 33% QoQ; adjusted operating income of $508.9M, up 7% QoQ
- Included $100M in charges related to significant regulatory settlements and $33M in impairment of intangible assets
- Company repurchased 10.4M shares for $348.1M during the quarter
- Corporate name change from Franklin Resources, Inc. to Franklin Templeton, Inc. effective August 17, 2026
Financial Impact
GAAP EPS of $0.31 vs consensus $0.66 (miss); adjusted EPS of $0.72 vs consensus $0.66 (beat). Revenue of $2.36B vs consensus $2.31B (beat).
Risk Factors
- $100M regulatory settlement charge signals unresolved legal/regulatory exposure
- GAAP operating margin compressed to 9.2% from 14.1% QoQ due to one-time charges
- Western Asset Management continued net outflows ($1.1B in the quarter)
- Cash management net outflows of $7.0B
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000038777-26-000215 |
| Exhibit: exhibit326302026.htm | 0000038777-26-000215 |
| Exhibit: exhibit316302026.htm | 0000038777-26-000215 |
| Document: ben-20260731.htm | 0000038777-26-000215 |
| Document: 0000038777-26-000215-index-headers.html | 0000038777-26-000215 |
| Document: 0000038777-26-000215-index.html | 0000038777-26-000215 |
| Document: 0000038777-26-000215.txt | 0000038777-26-000215 |
| 8-K Data (Synthetic) | 0000038777-26-000215 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 7w ago | 13F-HR | $33.86 $33.65 | ▼ −0.62% | ▲ +1.13% | $32.81 (−3.10%) |
Aug 10, 2026 7w ago | 8-K | $33.36 $34.12 | ▲ +2.28% | ▲ +3.34% | $32.81 (−1.65%) |
Aug 5, 2026 8w ago | 424B5 | $34.92 $33.01 | ▼ −5.47% | ▼ −4.87% | $32.81 (−6.04%) |
Jul 31, 2026 9w ago | 8-K | $33.86 $34.65 | ▲ +2.33% | ▼ −0.65% | $32.81 (−3.10%) |
Jul 23, 2026 10w ago | 8-K | $32.29 $33.97 | ▲ +5.20% | ▲ +1.89% | $32.81 (+1.61%) |
Jun 11, 2026 16w ago | Institutional Cluster | $31.81 $33.68 | ▼ −5.88% | ▼ −3.99% | $32.81 (−3.14%) |
Jun 5, 2026 17w ago | 8-K | $31.33 $34.44 | ▲ +9.93% | ▲ +8.06% | $32.81 (+4.72%) |
US Market Status
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