Franklin Resources Q3 FY2026: adjusted EPS $0.72 beats, record $1.8 trillion AUM
Franklin Resources' fiscal third quarter splits into two stories: record assets of $1,791.6 billion and $18.4 billion of long-term net inflows, but GAAP net income of $171.5 million, down 36.1% from the prior quarter. The gap is mostly charges — $100.0 million tied to regulatory settlements and $77.2 million of special termination benefits — which the company adds back, turning $0.31 of GAAP EPS into $0.72 adjusted.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $0.31, down 36.7% from $0.49 last quarter, while adjusted EPS of $0.72 came in above the $0.6781 consensus. The $0.41 gap is the excluded items: $100.0 million of regulatory settlement charges, $77.2 million of special termination benefits, $50.7 million of intangible amortization and $33.0 million of intangible impairment. Both figures are real — the money leaving on settlements and severance is genuine, it just is not recurring at this size.
Revenue of $2.36 billion rose 14.3% from $2.06 billion a year ago and 2.8% from last quarter, with investment management fees of $1.87 billion doing 79.1% of the work. The growth is broad: sales and distribution fees of $404.5 million rose 15.0% and shareholder servicing fees of $74.3 million rose 24.0% year over year. This is the cleanest line in the report.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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