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Franklin Templeton Lifts 2029 Targets: What's Driving Its Optimism?
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Key Takeaways
Franklin Templeton raises its FY29 adjusted operating margin target to 35% from 30%.
Private markets fundraising target climbs to $150B, while ETF AUM target more than doubles to $200B.
Margin expansion, expense discipline and customized investment solutions are likely to boost profitability.
Franklin Templeton, Inc. (BEN - Free Report) is positioning itself for sustained growth through aggressive expansion in private markets, exchange-traded funds (ETFs) and customized investment solutions. The company has raised its fiscal 2029 targets, reflecting confidence in its growth initiatives and improving operational efficiency.
BEN targets to achieve a 35% adjusted operating margin by the fourth quarter of fiscal 2029, up from the previous 30% target, highlighting its focus on strengthening profitability.
Factors Behind BEN’s Raised Outlook
A key growth driver is the company's expanding private markets franchise. Franklin Templeton increased its cumulative private markets fundraising target through fiscal 2029 to $150 billion from $100 billion. It has already raised nearly $66 billion since fiscal 2024, including $43.2 billion in fiscal 2026. With alternative assets under management (AUM) reaching $304.6 billion as of Sept. 30, 2026, increasing exposure to private credit, real estate and other alternative strategies should support recurring fee revenues, diversify its business mix and strengthen earnings stability.
The company's ETF and customized investment businesses also offer significant expansion opportunities. Franklin Templeton more than doubled its fiscal 2029 ETF AUM target to $200 billion from $93 billion, and raised its Canvas AUM target to $100 billion from $50 billion. ETF AUM surged 73% year over year to $84.6 billion in fiscal 2026, while Canvas AUM doubled to $32.6 billion. Rising demand for cost-efficient investment products, active ETFs and personalized portfolio solutions should support asset gathering and expand BEN's distribution reach.
Franklin Templeton's emphasis on expense discipline and operational simplification could strengthen profitability. The company's adjusted operating margin expanded 350 basis points year over year to 28% in fiscal 2026, supported by 23% growth in adjusted operating income. Management expects an adjusted operating margin of 30% in fiscal 2027, potentially achieving its original five-year goal two years ahead of schedule. Continued investments in technology, business integration and operational efficiencies could generate additional operating leverage.
Nevertheless, market volatility, persistent fee pressures and competition from low-cost investment products could constrain revenue growth. Fundraising fluctuations in private markets and continued outflows in certain traditional investment strategies also pose execution risks.
Despite these challenges, Franklin Templeton's diversified investment capabilities, expanding alternatives platform and focus on margin improvement provide a favorable foundation for long-term growth. Successful execution of its ambitious 2029 targets could strengthen BEN's earnings outlook and support sustainable shareholder value creation.
BEN Peers’ Long-Term Outlook
Among its peers, BlackRock (BLK - Free Report) outlined ambitious long-term growth targets, aiming to generate more than $35 billion in annual revenues by 2030, alongside $400 billion in cumulative private markets fundraising between 2025 and 2030. BLK also targets an adjusted operating margin of at least 45% through the cycle, reflecting its focus on scaling operations and improving profitability.
Meanwhile, Affiliated Managers Group (AMG - Free Report) targets long-term annual economic earnings per share growth of 15-20%. AMG also expects cumulative free cash flow over the next five to seven years to approximate its current market capitalization, underscoring its emphasis on earnings growth, cash generation and disciplined capital allocation.
BEN Price Performance & Zacks Rank
The company’s shares have gained 13.7% in the past six months compared with the industry’s 3.6% rise.
View the Zacks #1 Rank List
Image: Bigstock
Franklin Templeton Lifts 2029 Targets: What's Driving Its Optimism?
Key Takeaways
Franklin Templeton, Inc. (BEN - Free Report) is positioning itself for sustained growth through aggressive expansion in private markets, exchange-traded funds (ETFs) and customized investment solutions. The company has raised its fiscal 2029 targets, reflecting confidence in its growth initiatives and improving operational efficiency.
BEN targets to achieve a 35% adjusted operating margin by the fourth quarter of fiscal 2029, up from the previous 30% target, highlighting its focus on strengthening profitability.
Factors Behind BEN’s Raised Outlook
A key growth driver is the company's expanding private markets franchise. Franklin Templeton increased its cumulative private markets fundraising target through fiscal 2029 to $150 billion from $100 billion. It has already raised nearly $66 billion since fiscal 2024, including $43.2 billion in fiscal 2026. With alternative assets under management (AUM) reaching $304.6 billion as of Sept. 30, 2026, increasing exposure to private credit, real estate and other alternative strategies should support recurring fee revenues, diversify its business mix and strengthen earnings stability.
The company's ETF and customized investment businesses also offer significant expansion opportunities. Franklin Templeton more than doubled its fiscal 2029 ETF AUM target to $200 billion from $93 billion, and raised its Canvas AUM target to $100 billion from $50 billion. ETF AUM surged 73% year over year to $84.6 billion in fiscal 2026, while Canvas AUM doubled to $32.6 billion. Rising demand for cost-efficient investment products, active ETFs and personalized portfolio solutions should support asset gathering and expand BEN's distribution reach.
Franklin Templeton's emphasis on expense discipline and operational simplification could strengthen profitability. The company's adjusted operating margin expanded 350 basis points year over year to 28% in fiscal 2026, supported by 23% growth in adjusted operating income. Management expects an adjusted operating margin of 30% in fiscal 2027, potentially achieving its original five-year goal two years ahead of schedule. Continued investments in technology, business integration and operational efficiencies could generate additional operating leverage.
Nevertheless, market volatility, persistent fee pressures and competition from low-cost investment products could constrain revenue growth. Fundraising fluctuations in private markets and continued outflows in certain traditional investment strategies also pose execution risks.
Despite these challenges, Franklin Templeton's diversified investment capabilities, expanding alternatives platform and focus on margin improvement provide a favorable foundation for long-term growth. Successful execution of its ambitious 2029 targets could strengthen BEN's earnings outlook and support sustainable shareholder value creation.
BEN Peers’ Long-Term Outlook
Among its peers, BlackRock (BLK - Free Report) outlined ambitious long-term growth targets, aiming to generate more than $35 billion in annual revenues by 2030, alongside $400 billion in cumulative private markets fundraising between 2025 and 2030. BLK also targets an adjusted operating margin of at least 45% through the cycle, reflecting its focus on scaling operations and improving profitability.
Meanwhile, Affiliated Managers Group (AMG - Free Report) targets long-term annual economic earnings per share growth of 15-20%. AMG also expects cumulative free cash flow over the next five to seven years to approximate its current market capitalization, underscoring its emphasis on earnings growth, cash generation and disciplined capital allocation.
BEN Price Performance & Zacks Rank
The company’s shares have gained 13.7% in the past six months compared with the industry’s 3.6% rise.
Image Source: Zacks Investment Research
BEN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.