Franklin Templeton Posts Preliminary Net Income of $380.1 Million in Fiscal Fourth Quarter
Key Facts
Franklin Templeton said on November 6, 2026, that it posted preliminary net income of $380.1 million, or $0.72 per diluted share, in the fiscal fourth quarter ended September 30. That compares with net income of $117.6 million, or $0.21 per share, in the same quarter of the previous fiscal year. The company said adjusted net income was $493.4 million, or $0.94 per diluted share, compared with $357.5 million and $0.67, respectively, a year earlier. The difference reflects two separate measures of profitability: $0.72 is earnings per share under accounting standards, while $0.94 represents adjusted earnings. The results announcement came alongside higher revenue, lower operating expenses and an increase in assets under management during the year.
Total operating revenue rose 3.9% year over year to $2.43 billion, topping Zacks’ estimate of $2.36 billion. The company attributed quarterly revenue growth mainly to investment management fees and sales and distribution fees. Investment management fees were $1.95 billion, up 4.1% from the comparable period. Sales and distribution fees rose 5.6% to $403.9 million. For fiscal 2026, operating revenue increased 7.3% to $9.42 billion, compared with $8.77 billion in the previous fiscal year. The figures place quarterly revenue growth within a broader annual expansion in the company’s operating activity.
Operating expenses, by contrast, fell 7.9% to $2.08 billion, according to Zacks. The report attributed the decline mainly to lower amortization of intangible assets and the absence of impairment charges that affected the comparable period. This was partly offset by higher costs in other expense categories. Operating income was $355.8 million in the quarter, compared with $85.4 million a year earlier, according to company data. The operating margin also rose to 14.6% from 3.6% in the year-earlier quarter. The improvement in income and margin coincided with revenue growth and a decline in total operating expenses.
Assets under management were $1.7951 trillion on September 30, up $3.5 billion for the quarter, and rose 8% year over year to $1.8 trillion. The company said long-term net flows totaled $20.8 billion during the quarter. But the impact of market movements, distributions and other factors reduced assets under management by $11.3 billion, while cash management recorded net outflows of $6 billion. For the fiscal year, long-term net flows totaled $84.1 billion. The company said flows were positive in every quarter of the year, across regions and retail and institutional channels, while Chief Executive Officer Jenny Johnson said equities, multi-asset and alternative investments recorded inflows and reached record assets under management.
In alternative investments, assets under management totaled $304.6 billion, and fundraising during the fiscal year reached $48.7 billion, including $43.2 billion in private markets. International assets under management were about $525 billion, with long-term net flows of $29 billion during the year. The company also said the value of unfunded institutional mandates it had won was $22 billion. It reported $7.4 billion in cash and investments, including direct investments in unified investment products, after returning $1.2 billion to shareholders through distributions and share repurchases during the fiscal year. As it entered fiscal 2027, the company said it sees opportunities tied to growing demand for private markets, customized solutions and innovative investment vehicles. It had scheduled its live earnings call for November 6 at 11:00 a.m. Eastern Time.