BEN US S&P 500Russell 1000 Earnings call
Franklin Resources (BEN) · Q2 2026 results and valuation
Share price: $36.30 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026
Net income down 36.1% on the previous quarter. Tone in line with last period.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−36.1%
Net income vs Q1 2026
Outlook given
Net income 171.5M vs 268.2M
Revenue +2.8%
Against the same quarter last year (Q2 2025) it is +85.8%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Unchanged
Language tone vs last period
Language: typical — about as upbeat as in Q1 2026.
3 · What stood out
Key theme
The company noted that revenue share programs are the nature of the business, contributing to a "positive long term" outlook for the company.
Valuation
Is Franklin Resources undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.0% growth a year (3-year revenue growth), the model's fair value is $12.20 a share — the stock trades 198% above it. Today's price assumes 16.8% growth a year.
Current price
$36.30
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+16.8% for 10 yrs
Fair value / share
$12.20
Buy below
$9.15
Price vs fair value
Overvalued 198%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
At the beginning of the year, Franklin Resources had a target of $25 billion to $30 billion as far as the raise in private markets, As you kind of pointed…
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Figure
Long term inflows reached a record $122 billion and assets under management grew to a record $1.8 trillion Each of Franklin Resources' key…
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Typical — about as upbeat as in Q1 2026.
Sentences that drove the tone
“Private markets remain 1 of the industry's most compelling long term growth opportunities, and we believe Franklin Templeton is uniquely positioned as a leading partner in this space.”
“That strategy continues to gain momentum with record AUM across our ETF retail SMA, and Canvas businesses.”
“We believe expanding access to private markets will be 1 of the industry's most significant long term growth opportunities, and Franklin Templeton's long standing adviser relationships position us well to...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.36B | 2.29B | +2.8% | 2.06B | +14.3% |
| Operating income | 215.8M | 323.3M | −33.3% | 154.1M | +40.0% |
| Net income | 171.5M | 268.2M | −36.1% | 92.3M | +85.8% |
| EPS | 0.31 | 0.49 | −36.7% | 0.15 | +106.7% |
| P/E today 22.4 | 22.6 | 18.0 | +4.6 | 45.9 | −23.3 |
Topics
Most discussed now
- New You even have large RIAs starting to talk about wanting to have some sort of share.
- Increasingly, clients are turning to it not just as an asset manager, but as a trusted partner that combines investment...
- These investments are creating multiple sources of organic growth and positioning us well for the future.
- All 3 of the kind of private credit managers, that are under BSP contribute to that as well as venture.
Faded since Q1 2026
- Dropped As client expectations continue to evolve, more asset owners seek multifaceted partnerships with fewer firms that can deliver across…
- Fading There were over 30 vehicles that contributed, so it was a very diverse and strong quarter, and Franklin Resources felt very...
- Fading As part of Franklin Resources, Inc., Franklin Resources thinks it will see demand from institutional clients interested in investing in…
- Fading People like real estate because it is a good source of income and an inflation hedge, and Franklin Resources is seeing...
Latest announcements
Official filings, newest first.
- New financial obligation; Other events · SEC 8-K
- Results of operations; Articles or bylaws amended; Regulation FD disclosure · SEC 8-K
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K