Franklin Resources, Inc.

Q2 FY26Capital Markets

Franklin Resources, Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹31

Market cap₹16.2K Cr

P/E24.2

Published29 May 2026

What the Q2 FY26 call signalled

3 of 5 strong

RevenueRank 3

MarginRank 3

CapexYes

FundraiseYes

Order bookYes

The short version

- Expected to surpass $30 billion annual fundraising in alternative assets, above prior $25-$30 billion target (Page 4). - Franklin Resources expects flat to slightly above flat expenses through fiscal years 2024 and 2025, with a 1.5% increase projected by 2025.

From Franklin Resources, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 3

Expected to surpass $30 billion annual fundraising in alternative assets, above prior $25-$30 billion target (Page 4).
Positive momentum across multiple investment groups driving diversified long-term net flows of $16.9 billion this quarter and $118 billion fiscal year-to-date (Page 3).
Investment management fee revenue expected to grow at least 6% year-over-year, outpacing a 1.5% increase in expenses, leading to margin expansion and 30%+ margins by 2027 (Page 6).
Organic growth and fundraising remain strong, including consistent $200 million monthly inflows into Evergreen strategies (Page 10).
Growth driven by private credit, secondary private equity, real estate, and venture funds, with expanding global distribution and product innovation such as tax-managed strategies and tokenized products (Pages 3, 5, 13).
Institutional demand anticipated to rise with launch of Franklin Crypto and crypto venture initiatives (Page 13).
Positive net flows expected to continue globally with strong momentum in EMEA and APAC markets (Page 3).

Profitability & Margins

Franklin Resources expects flat to slightly above flat expenses through fiscal years 2024 and 2025, with a 1.5% increase projected by 2025.
Investment management fee revenue is anticipated to grow at least 4 times the expense increase rate, implying about a 6% year-over-year revenue growth.
Margin expansion is forecasted, with the fiscal fourth quarter margin expected in the high-29% range and full-year margin in 2027 anticipated around 27%, on track to surpass 30% margins later in 2027.
Performance-related compensation expenses may increase with stronger performance, contributing modestly to expense growth.
Continued organic growth and higher sales/fundraising support positive operating earnings trajectory.
Overall, strong revenue growth is expected to outpace expense increases, resulting in improved operating earnings and EPS.

See what Franklin Resources, Inc. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Increased capital allocated to organic growth initiatives, with capital and co-invest balance sheet allocation rising to $2.9 billion from $2.8 billion last quarter, expected to reach close to $3 billion by year-end.
Continued investment in technology, including AI adoption, with a dedicated centralized AI team focusing on both revenue growth and cost efficiency.
Partnership with Microsoft to build an AI-driven Intelligent Hub for distribution, enhancing salesperson effectiveness.
Investment in expanding private market and alternative asset capabilities, including distribution partnerships and bolt-on acquisitions, especially overseas.
Opportunistic share repurchases as part of capital management.
No specific mention of large standalone capital expenditure projects; focus is on strategic growth, M&A, AI and technology investments to drive long-term value.

Fundraising & Capital Structure

Franklin Templeton raised $14.3 billion in alternatives this quarter, including $13.2 billion in private market assets diversified across alternative credit, secondary private equity, real estate, and venture funds.
Fiscal year-to-date private markets fundraising reached $22.7 billion, already matching full-year 2025 levels, positioning to exceed the $25-$30 billion annual target.
Private credit remains a focus, with $96 billion AUM and strong fundraising contributions from both U.S. and European middle-market strategies.
Private markets evergreen products (secondary private equity, real estate equity and debt, private credit) are gaining traction, with about $1 billion positive net flows in each of the last two quarters.
Continued fundraising activity expected in credit (including CLOs, opportunity funds, real estate debt), secondaries, and venture groups.
Active M&A and partnership activities focused on distribution and alternative assets internationally, potentially supporting future equity growth avenues.

See what Franklin Resources, Inc. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

Institutional pipeline of won but unfunded mandates remains strong at $20.2 billion, consistent with the prior quarter.
Lexington's flagship fund is actively fundraising with expected first close/update towards the end of 2026.
Evergreen strategies continue to raise about $200 million per month, showing ongoing strong demand.
Alternative assets fundraising remains robust with $14.3 billion raised this quarter, including $13.2 billion in private market assets.
Positive momentum across over 30 alternative vehicles contributing to fundraising.
Continued strong demand for secondary private equity and private real estate products.
No specific detailed backlog numbers provided beyond mandate pipeline and fundraisings in progress.

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Frequently Asked Questions

What were Franklin Resources, Inc. Q2 FY26 results?

What is Franklin Resources, Inc. share price analysis?

Franklin Resources, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 24.2 with a market cap of $16,218. Investors should review the full earnings analysis for detailed insights.

Is Franklin Resources, Inc. planning capital expenditure?

- Increased capital allocated to organic growth initiatives, with capital and co-invest balance sheet allocation rising to $2.9 billion from $2.8 billion last quarter, expected to reach close to $3 billion by year-end.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.