Global investment management firm Franklin Resources NYSE:BEN announced better-than-expected revenue in Q2 CY2026, with sales up 14.3% year on year to $2.36 billion. Its non-GAAP profit of $0.72 per share was 8.3% above analysts’ consensus estimates.
Franklin Resources (BEN) Q2 CY2026 Highlights:
- Revenue: $2.36 billion vs analyst estimates of $2.31 billion (14.3% year-on-year growth, 1.9% beat)
- Pre-tax Profit: $370.9 million (15.7% margin)
- Adjusted EPS: $0.72 vs analyst estimates of $0.66 (8.3% beat)
- Market Capitalization: $17.24 billion
Company Overview
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources NYSE:BEN is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Franklin Resources’s 3.2% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the financials sector and is a tough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Franklin Resources’s annualized revenue growth of 6.3% over the last two years is above its five-year trend, which is encouraging.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Franklin Resources reported year-on-year revenue growth of 14.3%, and its $2.36 billion of revenue exceeded Wall Street’s estimates by 1.9%.
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Key Takeaways from Franklin Resources’s Q2 Results
It was good to see Franklin Resources beat analysts’ EPS expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. Investors were likely hoping for more, and shares traded down 1.2% to $32.76 immediately following the results.
Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. .