Franklin Templeton’s Adjusted Earnings Rise to $0.94 a Share in Fourth Quarter
Key Facts
Franklin Templeton reported preliminary results for the fiscal quarter ended September 30, 2026, with net income of $380.1 million and diluted earnings of $0.72 a share. In the same quarter a year earlier, net income was $117.6 million and diluted earnings per share were $0.21. On an adjusted basis, net income was $493.4 million and diluted earnings per share were $0.94, compared with $357.5 million and $0.67 in the year-earlier period. The $0.72 and $0.94 figures represent different measures: the first is reported earnings and the second adjusted earnings. The results show year-over-year growth in reported and adjusted net income, alongside higher operating revenues and assets under management.
Operating revenues were $2,434.9 million for the quarter, up 4% from $2,343.7 million a year earlier. Operating income rose to $355.8 million, compared with $85.4 million in the quarter ended September 30, 2025. The operating margin was 14.6%, versus 3.6% in the year-earlier period. The figures put revenue growth alongside a larger increase in operating income and a wider margin. Chief Executive Jenny Johnson also said the company generated $20.8 billion in long-term net flows during the quarter.
The company ended the fiscal year with $84.1 billion in long-term net flows, Johnson said. Assets under management reached $1,795.1 billion on September 30, 2026, up 8% year over year, while the quarterly average was $1,801.8 billion. Assets under management increased by $133.9 billion during the fiscal year. The company attributed the increase to $84.1 billion in long-term flows, a positive $46.4 billion impact from markets, distributions and other factors, and $6.2 billion from acquisitions. The reported annual increase was thus divided among flows, market factors and acquisitions.
The company said equities, multi-asset and alternative investments recorded net inflows, with assets under management in each reaching record levels. Assets under management in alternative investments reached $304.6 billion. Exchange-traded fund assets also rose 73% during the fiscal year to $84.6 billion. Retail SMA assets grew 19% to $196.3 billion. For the full fiscal year, net income was $1,075.3 million and diluted earnings per share were $1.97, compared with $524.9 million and $0.91 in the previous fiscal year.
Franklin Templeton repurchased 2.5 million shares during the quarter at a total cost of $86.1 million. Johnson said institutional mandates won by the company but not yet funded remained strong, valued at $22.0 billion. She added that the company sees opportunities as it enters fiscal 2027 amid an evolving industry. She linked those opportunities to rising demand for private markets, customized solutions and innovative investment tools. The comments outline the areas management said it is focusing on in the new fiscal year, alongside the flows and assets it reported for the year ended.