Global investment management firm Franklin Resources (NYSE: BEN) reported revenue ahead of Wall Street’s expectations in calendar Q3 2026 (fiscal Q4 2026), with revenue up 3.9% year on year to $2.43 billion. Its non-GAAP profit of $0.94 per share was 21.9% above analysts’ consensus estimates.
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Franklin Resources (BEN) Q3 CY2026 highlights:
- Assets under management $1.8 trillion vs analysts' consensus estimates of $1.79 trillion (8.1% year-on-year growth, in line)
- Revenue $2.43 billion vs S&P analyst consensus of $2.42 billion (3.9% year-on-year growth, 0.6% beat)
- Pre-tax profit $634 million (26% margin)
- Adjusted EPS $0.94 vs S&P analyst consensus of $0.77 (21.9% beat)
- Market capitalization $16.37 billion
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones sustain growth for years. Franklin Resources’s revenue grew at a sluggish 2.2% compounded annual growth rate over the last five years, falling short of our benchmarks.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Franklin Resources’s annualized revenue growth of 5.4% over the last two years is above its five-year trend, which is encouraging. 
This quarter, Franklin Resources reported modest year-on-year revenue growth of 3.9% but beat Wall Street’s consensus estimates by 0.6%.
Assets under management
Assets under management, or AUM, encompass all client funds under a firm’s investment management umbrella. The recurring fee structure on these assets provides consistent revenue generation, offering financial stability even during periods of poor investment returns, though sustained underperformance can impact future asset flows.
Franklin Resources’s AUM grew at an annual rate of 2.7% over the last five years, well below the broader financials industry and in line with its total revenue growth. Over the last two years, AUM growth accelerated to 4% annually. Fundraising or short-term investment performance was a net detractor to the company over this shorter period since assets grew more slowly than total revenue. Asset growth can be erratic and seasonal, so it carries less weight in assessing business quality.
In Q3, Franklin Resources’s AUM was $1.8 trillion, meeting analysts’ consensus estimates. That was 8.1% higher than the same quarter last year.
Key takeaways from Franklin Resources’s Q3 results
Franklin Resources delivered a solid quarter, with EPS topping analysts’ consensus estimates. Shares rose 3.8% to $33.42 immediately after the results.
Franklin Resources had a solid quarter, but an investment decision calls for a broader view of its valuation and business quality, alongside the latest results. For more on those factors, read our full research report here (it’s free).
