FRANKLIN RESOURCES INC recently released its 10-Q report. Franklin Resources is a publicly owned asset manager that operates through subsidiaries serving individuals, institutions, pension plans, trusts, and partnerships. Its businesses offer equity, fixed income, balanced, multi-asset, alternative, and cash management products, and the company is based in San Mateo, California.
In Item 2, Management’s Discussion and Analysis, Franklin said its second fiscal quarter was marked by weaker equity and bond markets, with the S&P 500 down 4.3%, the MSCI World Index down 3.5%, and the Bloomberg Global Aggregate Index down 1.1% for the quarter. The company reported total assets under management of $1,682.1 billion at March 31, 2026, up 1% from September 30, 2025 and up 9% from March 31, 2025. Monthly average AUM for the quarter rose 8% year over year to $1,701.6 billion, while six-month average AUM increased 5% to $1,689.6 billion.
For the three months ended March 31, operating revenues increased 9% to $2.2949 billion from $2.1114 billion a year earlier. Operating income more than doubled to $323.3 million from $145.6 million, and operating margin widened to 14.1% from 6.9%. Net income attributable to Franklin Resources rose 77% to $268.2 million, and diluted earnings per share increased to $0.49 from $0.26. On an adjusted basis, operating income was $474.6 million, adjusted net income was $384.5 million, and adjusted diluted EPS was $0.71.
For the six months ended March 31, operating revenues were $4.6220 billion, up 6% from $4.3630 billion. Operating income climbed 66% to $604.3 million, with operating margin at 13.1% versus 8.4% a year earlier. Net income attributable to Franklin Resources increased 66% to $523.7 million, and diluted EPS rose to $0.95 from $0.55. Adjusted operating income was $911.9 million, adjusted net income was $762.9 million, and adjusted diluted EPS was $1.41.
AUM at March 31, 2026 was led by equity at $669.7 billion, fixed income at $434.3 billion, alternatives at $282.8 billion, multi-asset at $207.5 billion, and cash management at $87.8 billion. Compared with a year earlier, equity AUM rose 12%, alternatives rose 12%, multi-asset rose 18%, and cash management rose 27%, while fixed income fell 3%.
During the quarter, long-term inflows were $118.2 billion and long-term outflows were $101.3 billion, producing long-term net inflows of $16.9 billion. Cash management added another $11.4 billion of net inflows. Those gains were offset by $30.2 billion of net market change, distributions, and other items, leaving total AUM down $1.9 billion from the start of the quarter. For the six-month period, total net flows were $55.1 billion, including $44.9 billion of long-term net inflows and $10.2 billion of cash management net inflows.
Franklin also said it acquired Apera Asset Management on October 1, 2025, adding $6.1 billion to AUM in the six-month period. Today the company's shares have moved 1.12% to a price of $27.12. Check out the company's full 10-Q submission here.
