Franklin Templeton Reports Strong Q4 2026 Results Driven by Alternatives and ETF Growth
Franklin Templeton (BEN) delivered a robust fourth quarter for fiscal year 2026, reporting adjusted operating revenue of $7.2 billion, a 7.5% increase year-over-year. The company's total Assets Under Management (AUM) reached $1.8 trillion, bolstered by $84.1 billion in long-term net inflows and significant market appreciation. Growth was particularly pronounced in high-margin segments, with ETF AUM surging 73% and Alternative AUM reaching $305 billion. Profitability saw a substantial boost as adjusted operating margins expanded by 350 basis points to 28%, driven by revenue growth outpacing expenses by a 3-to-1 ratio. Adjusted diluted EPS rose 38.3% to $3.07. Despite these gains, the company faced headwinds from $11.7 billion in net outflows at Western Asset Management and recorded a $100 million regulatory settlement charge that impacted GAAP operating income.
Tickers: $BEN
Topics: assets under management earnings report operating margin revenue growth