Global investment management firm Franklin Resources (NYSE: BEN) beat Wall Street’s revenue expectations in Q1 CY2026, with sales up 42.5% year on year to $2.29 billion. Its non-GAAP profit of $0.71 per share was 28.6% above analysts’ consensus estimates.
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Franklin Resources (BEN) Q1 CY2026 Highlights:
- Assets Under Management: $1.68 trillion vs analyst estimates of $1.65 trillion (9.2% year-on-year growth, 2% beat)
- Revenue: $2.29 billion vs analyst estimates of $1.71 billion (42.5% year-on-year growth, 34.6% beat)
- Pre-tax Profit: $445.7 million (19.4% margin)
- Adjusted EPS: $0.71 vs analyst estimates of $0.55 (28.6% beat)
- Market Capitalization: $14.36 billion
“Franklin Templeton delivered another strong quarter, with $17 billion in long-term net inflows across public and private markets, reflecting the strength of our diversified global platform,” said Jenny Johnson, CEO of Franklin Resources, Inc.
Company Overview
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Franklin Resources’s 8.1% annualized revenue growth over the last five years was decent. Its growth was slightly above the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Franklin Resources’s annualized revenue growth of 8.4% over the last two years aligns with its five-year trend, suggesting its demand was stable. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Franklin Resources reported magnificent year-on-year revenue growth of 42.5%, and its $2.29 billion of revenue beat Wall Street’s estimates by 34.6%.
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Assets Under Management (AUM)
Assets Under Management (AUM) is the cornerstone of a financial firm's investment division, representing all client capital under its stewardship. Management fees on this AUM create reliable, recurring revenue that maintains stability even when investment performance struggles, though prolonged poor returns can eventually affect asset retention and growth.
Franklin Resources’s AUM has grown at an annual rate of 5.7% over the last five years, worse than the broader financials industry and slower than its total revenue. When analyzing Franklin Resources’s AUM over the last two years, we can paint a similar picture as it recorded 6% annual growth. Fundraising or short-term investment performance were net detractors to the company over this shorter period since assets grew slower than total revenue. Keep in mind that asset growth can be erratic and seasonal, so we don't rely on it too heavily for our business quality analysis.
Franklin Resources’s AUM punched in at $1.68 trillion this quarter, beating analysts’ expectations by 2%. This print was 9.2% higher than the same quarter last year.
Key Takeaways from Franklin Resources’s Q1 Results
It was good to see Franklin Resources beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock remained flat at $27.45 immediately after reporting.
Big picture, is Franklin Resources a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
