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Franklin Q4 Earnings on the Deck: What's in Store for the Stock?

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Key Takeaways

  • BEN is set to report Q4'26 results on Nov. 6, with EPS likely to be 78 cents, suggesting a y/y rise of 16.4%.
  • BEN's AUM reached $1.79 trillion in September, supported by $21 billion in long-term net inflows.
  • BEN's sales and distribution fees are expected to rise 3.9% sequentially to $420.2 million.

Franklin Templeton, Inc. (BEN - Free Report) is scheduled to report fourth-quarter fiscal 2026 results (ended Sept. 30) on Nov. 06, 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 operating revenues and record assets under management (AUM). However, elevated operating expenses acted as a headwind.

BEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 20.8%.

Franklin Templeton Inc Price and EPS Surprise

Franklin’s Q4 Earnings & Sales Estimates

The Zacks Consensus Estimate for BEN’s earnings of 78 cents per share has remained unchanged over the past seven days. The figure indicates a rise of 16.4% from the year-ago quarter’s actual.

The consensus estimate for sales is pegged at $2.36 billion, suggesting a year-over-year rise of nearly 1%.

Major Developments for Franklin

In September 2026, Franklin’s real estate investment arm, Clarion Partners, agreed to acquire a majority stake in Stoneshield Capital, a European real estate platform focused on living and student housing, digital infrastructure, hospitality and critical infrastructure. The transaction will add $9 billion in AUM, taking Clarion's European AUM to $13 billion and total AUM to $82 billion, while pushing Franklin's overall alternative AUM above $300 billion. The deal is expected to expand BEN's European alternatives platform, broaden its investment offerings and support fee-earning AUM growth.

Key Factors & Estimates for BEN in Q4

In the July-September quarter, the S&P 500 Index advanced approximately 2%, reflecting continued gains in equity markets. The equity markets benefited from strong corporate earnings, enthusiasm surrounding artificial intelligence (AI) investments and resilient investor sentiment, despite geopolitical tensions and renewed inflation concerns. In contrast, the fixed-income market faced considerable pressure during the quarter. As a result, Franklin's performance for the quarter ended in September is likely to have benefited from positive equity market gains.

Amid the relatively favorable market conditions, BEN is likely to have continued to record net inflows in the fiscal fourth quarter. Per the monthly metrics data published by Franklin, its preliminary total AUM as of Sept. 30, 2026, was $1.79 trillion compared with $1.74 trillion as of Aug. 31, 2026. The September-end AUM increase reflected long-term net inflows of $21 billion, partially offset by the net impact of markets, distributions and other.

Additionally, while private markets continued to face headwinds from a muted exit environment and cautious institutional capital deployment, improving deal activity, strong infrastructure investment and continued fundraising momentum are likely to have supported AUM growth in the fiscal fourth quarter. The Zacks Consensus Estimate for the fiscal fourth-quarter AUM is pegged at $1.8 trillion, indicating a marginal 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 nearly 1%.

The consensus estimate for sales and distribution fees of $420.2 million indicates a 3.9% rise from the prior-quarter reported figure.

The consensus estimate for shareholder servicing fees of $77.4 million suggests a 4.1% rise from the prior-quarter actual.

The Zacks Consensus Estimate for other revenues is pegged at $11.8 million, implying a 12.2% sequential decline.

What Our Model Predicts for BEN

Our proven model does not conclusively predict an earnings beat for BEN this time around. This is because the company does not have the right combination of the two key elements: a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Franklin has an Earnings ESP of -0.65%.

Zacks Rank: BEN currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of BEN’s Peers

T. Rowe Price Group, Inc. (TROW - Free Report) reported third-quarter 2026 adjusted earnings per share of $2.86, which surpassed the Zacks Consensus Estimate of $2.58. Further, the bottom line increased 1.8% year over year.

TROW’s results benefited from higher investment advisory fees, increased average assets under management and strong capital allocation-based income. However, substantial net client outflows and higher adjusted operating expenses were headwinds.

Ares Management Corporation’s (ARES - Free Report) third-quarter 2026 after-tax realized income per share of $1.26 surpassed the Zacks Consensus Estimate by 0.8%. The bottom line increased from $1.19 in the prior-year quarter.

ARES’ results reflected growth from higher management fees and fee-related earnings. A higher assets under management balance was another positive. However, the upside was partly offset by lower incentive fees.

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