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Favorable Markets, Higher AUM Balance to Aid Franklin's Q3 Earnings
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Key Takeaways
BEN's fiscal Q3 EPS is estimated to be 66 cents, suggesting a 34.7% year-over-year increase.
Revenues are projected to rise 9.7% y/y, supported by higher AUM and favorable markets.
Franklin's AUM is expected to reach $1.8 trillion, aided by long-term net inflows.
Franklin Resources Inc. (BEN - Free Report) is scheduled to report third-quarter fiscal 2026 results (ended June 30) on July 31, 2026, before market open. BEN’s quarterly earnings and revenues are anticipated to have increased from the year-ago reported levels.
In the last reported quarter, Franklin's earnings surpassed the Zacks Consensus Estimate. The company's results benefited from higher revenues. However, lower assets under management (AUM) and higher expenses acted as headwinds.
BEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 19%.
The Zacks Consensus Estimate for BEN’s earnings of 66 cents per share has remained unchanged over the past seven days. The figure indicates a rise of 34.7% from the year-ago quarter’s actual.
The consensus estimate for sales is pegged at $2.27 billion, suggesting a year-over-year rise of 9.7%.
Key Factors & Estimates for BEN in Q3
In the April-June quarter, the S&P 500 Index advanced 14.5%, reflecting a strong recovery in market performance. The equity markets benefited from improved investor sentiment despite geopolitical uncertainty and elevated inflation rates. The fixed-income market performance remained relatively resilient. As a result, Franklin's performance for the quarter ended in June is likely to have benefited from strong equity market gains, while the resilience in fixed-income markets probably provided additional support.
Amid the favorable market conditions, BEN is likely to have continued to record net inflows in the fiscal third quarter. Per the monthly metrics data published by Franklin, its preliminary total AUM as of June 30, 2026, was $1.79 trillion compared with $1.78 trillion as of May 31, 2026. The June-end AUM increase reflected long-term net inflows of $9 billion, partially offset by the net impact of markets, distributions and other.
Additionally, while the private markets continued to face headwinds from a muted exit environment and cautious institutional capital deployment, improving deal activity and favorable market performance are likely to have supported AUM growth in the fiscal third quarter. The Zacks Consensus Estimate for the fiscal third-quarter AUM is pegged at $1.8 trillion, indicating a 6.2% rise from the prior quarter’s actual.
The Zacks Consensus Estimate for investment management fees is pegged at $1.8 billion, indicating a sequential decline of 2.4%.
The consensus estimate for sales and distribution fees of $411.7 million indicates a 3.8% rise from the prior-quarter reported figure.
The consensus estimate for shareholder servicing fees of $67.4 million suggests a 2.4% decline from the prior-quarter actual.
The Zacks Consensus Estimate for other revenues is pegged at $11.1 million, implying a 10.5% sequential growth.
What Our Model Predicts for BEN
Our proven model predicts an earnings beat for BEN this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Franklin has an Earnings ESP of +1.14%.
T. Rowe Price Group, Inc. (TROW - Free Report) is scheduled to announce second-quarter 2026 numbers on July 31.
Over the past seven days, the Zacks Consensus Estimate for TROW’s quarterly earnings has been unchanged at $2.52. The figure implies a rise of 12.5% from the prior-year quarter’s actual.
Apollo Global Management (APO - Free Report) is slated to report second-quarter 2026 results on Aug. 4.
Over the past week, the Zacks Consensus Estimate for APO’s quarterly earnings has been revised downward to $2.18. The figure implies a rise of 13.5% from the prior-year quarter’s reported number.
View the Zacks #1 Rank List
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Favorable Markets, Higher AUM Balance to Aid Franklin's Q3 Earnings
Key Takeaways
Franklin Resources Inc. (BEN - Free Report) is scheduled to report third-quarter fiscal 2026 results (ended June 30) on July 31, 2026, before market open. BEN’s quarterly earnings and revenues are anticipated to have increased from the year-ago reported levels.
In the last reported quarter, Franklin's earnings surpassed the Zacks Consensus Estimate. The company's results benefited from higher revenues. However, lower assets under management (AUM) and higher expenses acted as headwinds.
BEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 19%.
Franklin Resources, Inc. Price and EPS Surprise
Franklin Resources, Inc. price-eps-surprise | Franklin Resources, Inc. Quote
Franklin’s Q3 Earnings & Sales Estimates
The Zacks Consensus Estimate for BEN’s earnings of 66 cents per share has remained unchanged over the past seven days. The figure indicates a rise of 34.7% from the year-ago quarter’s actual.
The consensus estimate for sales is pegged at $2.27 billion, suggesting a year-over-year rise of 9.7%.
Key Factors & Estimates for BEN in Q3
In the April-June quarter, the S&P 500 Index advanced 14.5%, reflecting a strong recovery in market performance. The equity markets benefited from improved investor sentiment despite geopolitical uncertainty and elevated inflation rates. The fixed-income market performance remained relatively resilient. As a result, Franklin's performance for the quarter ended in June is likely to have benefited from strong equity market gains, while the resilience in fixed-income markets probably provided additional support.
Amid the favorable market conditions, BEN is likely to have continued to record net inflows in the fiscal third quarter. Per the monthly metrics data published by Franklin, its preliminary total AUM as of June 30, 2026, was $1.79 trillion compared with $1.78 trillion as of May 31, 2026. The June-end AUM increase reflected long-term net inflows of $9 billion, partially offset by the net impact of markets, distributions and other.
Additionally, while the private markets continued to face headwinds from a muted exit environment and cautious institutional capital deployment, improving deal activity and favorable market performance are likely to have supported AUM growth in the fiscal third quarter. The Zacks Consensus Estimate for the fiscal third-quarter AUM is pegged at $1.8 trillion, indicating a 6.2% rise from the prior quarter’s actual.
The Zacks Consensus Estimate for investment management fees is pegged at $1.8 billion, indicating a sequential decline of 2.4%.
The consensus estimate for sales and distribution fees of $411.7 million indicates a 3.8% rise from the prior-quarter reported figure.
The consensus estimate for shareholder servicing fees of $67.4 million suggests a 2.4% decline from the prior-quarter actual.
The Zacks Consensus Estimate for other revenues is pegged at $11.1 million, implying a 10.5% sequential growth.
What Our Model Predicts for BEN
Our proven model predicts an earnings beat for BEN this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Franklin has an Earnings ESP of +1.14%.
Zacks Rank: BEN currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Dates & Expectations of BEN’s Peers
T. Rowe Price Group, Inc. (TROW - Free Report) is scheduled to announce second-quarter 2026 numbers on July 31.
Over the past seven days, the Zacks Consensus Estimate for TROW’s quarterly earnings has been unchanged at $2.52. The figure implies a rise of 12.5% from the prior-year quarter’s actual.
Apollo Global Management (APO - Free Report) is slated to report second-quarter 2026 results on Aug. 4.
Over the past week, the Zacks Consensus Estimate for APO’s quarterly earnings has been revised downward to $2.18. The figure implies a rise of 13.5% from the prior-year quarter’s reported number.