FRANKLIN RESOURCES INC (BEN) · Material Event (8-K) SEC Filing

EX-99.1 4 exhibit991q3fy26.htm EX-99.1 DocumentEXHIBIT 99.1 Contact Franklin Resources, Inc. Investor Relations Selene Oh (650) 312-4091, selene.oh franklintempleton.com Media Relations Jeaneen Terrio (212) 632-4005, jeaneen.terrio franklintempleton.com investors.franklinresources.com FOR IMMEDIATE RELEASEFranklin Resources, Inc. Announces Third Quarter ResultsSan Mateo, CA, July 31, 2026 Franklin Resources, Inc. (the Company ) NYSE BEN today announced net income1 of $171.5 million or $0.31 per diluted share for the quarter ended June 30, 2026, as compared to $268.2 million or $0.49 per diluted share for the previous quarter, and $92.3 million or $0.15 per diluted share for the quarter ended June 30, 2025. Operating income was $215.8 million for the quarter ended June 30, 2026, as compared to $323.3 million for the previous quarter and $154.1 million for the prior year.As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income2 was $386.3 million and adjusted diluted earnings per share2 was $0.72 for the quarter ended June 30, 2026, as compared to $384.5 million and $0.71 for the previous quarter, and $263.4 million and $0.49 for the quarter ended June 30, 2025. Adjusted operating income2 was $508.9 million for the quarter ended June 30, 2026, as compared to $474.6 million for the previous quarter and $377.8 million for the prior year. Our third quarter results reflect the successful execution of our strategy and the strength of Franklin Templeton's diversified global platform, said Jenny Johnson, Chief Executive Officer of Franklin Resources, Inc. We delivered $18.4 billion in long-term net inflows across public and private assets, bringing fiscal year-to-date long-term net inflows to $63.3 billion. During the quarter, we generated positive net flows across every asset class and geography, demonstrating the breadth of our investment capabilities and the strength of our global distribution platform. Assets under management grew to a record $1.8 trillion. These results reinforce that our strategy is driving broad-based growth across the business. Our momentum continues to build across asset classes, investment vehicles and geographies. Alternative AUM reached a record $294.2 billion as we fundraised $11.8 billion, including $10.3 billion in private market strategies, across secondary private equity, alternative credit, real estate and venture capital. Fiscal year-to-date private markets fundraising reached $33.0 billion, exceeding our fiscal year target with one quarter still to go. Demand also remained strong across ETFs, retail SMAs and Canvas, our custom portfolio solutions platform, while our institutional won-but-unfunded pipeline grew to a record $28.6 billion. International markets reached a record approximately $525 billion in AUM. This activity reflects a broader shift in client demand. Investors are increasingly seeking partners that can deliver integrated solutions across public and private assets. We remain focused on executing our strategy by investing in new capabilities, deepening client relationships and expanding our platform, while maintaining a disciplined approach to capital allocation. This quarter, we returned $521.5 million to shareholders, including $348.1 million in share repurchases. Our balance sheet provides the financial flexibility to invest in future growth, pursue strategic opportunities and continue returning capital to shareholders. We believe this positions Franklin Templeton to deliver sustainable organic growth and create long-term value for our clients, shareholders and employees. 1 Quarter Ended % Change Quarter Ended % Change 30-Jun-26 31-Mar-26 Qtr. vs. Qtr. 30-Jun-25 Year vs. Year Financial Results (in millions, except per share data) Operating revenues $ 2,358.4 $ 2,294.9 3 % $ 2,064.0 14 % Operating income 215.8 323.3 (33 %) 154.1 40 % Operating margin 9.2 % 14.1 % 7.5 % Net income1 $ 171.5 $ 268.2 (36 %) $ 92.3 86 % Diluted earnings per share 0.31 0.49 (37 %) 0.15 107 % As adjusted (non-GAAP) 2 Adjusted operating income $ 508.9 $ 474.6 7 % $ 377.8 35 % Adjusted operating margin 28.0 % 27.1 % 23.7 % Adjusted net income $ 386.3 $ 384.5 0 % $ 263.4 47 % Adjusted diluted earnings per share 0.72 0.71 1 % 0.49 47 % Assets Under Management (in billions) Ending $ 1,791.6 $ 1,682.1 7 % $ 1,611.8 11 % Average3 1,750.0 1,701.6 3 % 1,565.2 12 % Long-term net flows 18.4 16.9 (9.3) Total AUM was $1,791.6 billion at June 30, 2026, up $109.5 billion during the quarter due to the positive impact of $98.0 billion of net market change, distributions, and other and $18.4 billion of long-term net inflows, inclusive of $1.1 billion of long-term net outflows at Western, partially offset by $7.0 billion of cash management net outflows. Long-term net inflows for the quarter include $4.1 billion of long-term reinvested distributions.Cash and cash equivalents and investments were $5.4 billion and, including the Company s direct investments in consolidated investment products ( CIPs ), were $6.5 billion4 at June 30, 2026. Total stockholders equity was $12.9 billion and the Company had 507.5 million shares of common stock outstanding at June 30, 2026. The Company repurchased 10.4 million shares of its common stock for a total cost of $348.1 million during the quarter ended June 30, 2026.Corporate Name ChangeThe Company today announced it will change its corporate name from Franklin Resources, Inc. to Franklin Templeton, Inc., effective as of August 17, 2026 ( Name Change ). The Name Change reflects the continued evolution of Franklin Templeton as a unified global organization and alignment with the Franklin Templeton brand. This is a corporate name change only. The Name Change will not affect the Company s corporate or capital structure, domicile, outstanding shares, CUSIP number, or the voting or other rights of its stockholders. Following the Name Change, the Company s common stock will continue to be traded on the New York Stock Exchange under the ticker symbol BEN .2Conference Call InformationA written commentary on the results by Jenny Johnson, CEO Daniel Gamba, Co-President and Chief Commercial Officer and Matthew Nicholls, Co-President, CFO and COO will be available via investors.franklinresources.com today at approximately 8 30 a.m. Eastern Time.Ms. Johnson and Messrs. Gamba and Nicholls will also lead a live teleconference today at 10 00 a.m. Eastern Time to answer questions. Access to the teleconference will be available via investors.franklinresources.com or by dialing (+1) (877) 407-0989 in North America or (+1) (201) 389-0921 in other locations. A replay of the teleconference can also be accessed by calling (+1) (877) 660-6853 in North America or (+1) (201) 612-7415 in other locations using access code 13761569 after 2 00 p.m. Eastern Time on July 31, 2026 through August 7, 2026, or via investors.franklinresources.com.Analysts and investors are encouraged to review the Company s recent filings with the U.S. Securities and Exchange Commission and to contact Investor Relations at investorrelations franklintempleton.com before the live teleconference for any clarifications or questions related to the earnings release or written commentary.3 FRANKLIN RESOURCES, INC.CONSOLIDATED STATEMENTS OF INCOMEUnaudited (in millions, except per share data) Three Months Ended June 30, %Change Nine Months Ended June 30, %Change 2026 2025 2026 2025 Operating Revenues Investment management fees $ 1,866.2 $ 1,640.8 14 % $ 5,533.4 $ 5,113.7 8 % Sales and distribution fees 404.5 351.9 15 % 1,189.8 1,092.3 9 % Shareholder servicing fees 74.3 59.9 24 % 214.2 185.3 16 % Other 13.4 11.4 18 % 43.0 35.7 20 % Total operating revenues 2,358.4 2,064.0 14 % 6,980.4 6,427.0 9 % Operating Expenses Compensation and benefits 958.5 901.1 6 % 2,953.9 2,812.5 5 % Sales, distribution and marketing 555.4 480.7 16 % 1,640.3 1,491.1 10 % Information systems and technology 160.8 162.7 (1 %) 475.4 477.4 0 % Occupancy 71.4 69.5 3 % 205.3 213.9 (4 %) Amortization of intangible assets 50.7 112.2 (55 %) 156.4 337.3 (54 %) Impairment of intangible assets 33.0 NM 33.0 24.4 35 % General, administrative and other 312.8 183.7 70 % 696.0 551.7 26 % Total operating expenses 2,142.6 1,909.9 12 % 6,160.3 5,908.3 4 % Operating Income 215.8 154.1 40 % 820.1 518.7 58 % Other Income (Expenses) Investment and other income, net 131.0 23.4 460 % 267.3 128.0 109 % Interest expense (23.5) (25.8) (9 %) (63.8) (69.7) (8 %) Investment and other income (losses) of consolidated investment products, net 54.8 35.9 53 % 276.2 (14.7) NM Expenses of consolidated investment products (7.2) (11.0) (35 %) (31.4) (29.8) 5 % Other income, net 155.1 22.5 589 % 448.3 13.8 NM Income before taxes 370.9 176.6 110 % 1,268.4 532.5 138 % Taxes on income 115.6 59.9 93 % 319.7 172.1 86 % Net income 255.3 116.7 119 % 948.7 360.4 163 % Less net income (loss) attributable to Redeemable noncontrolling interests 18.5 20.0 (8 %) 82.1 (88.8) NM Nonredeemable noncontrolling interests 65.3 4.4 NM 171.4 41.9 309 % Net Income Attributable to Franklin Resources, Inc. $ 171.5 $ 92.3 86 % $ 695.2 $ 407.3 71 % Earnings per Share Basic $ 0.31 $ 0.15 107 % $ 1.26 $ 0.70 80 % Diluted 0.31 0.15 107 % 1.26 0.70 80 % Dividends Declared per Share $ 0.33 $ 0.32 3 % $ 0.99 $ 0.96 3 % Average Shares Outstanding Basic 515.2 515.7 0 % 516.7 517.4 0 % Diluted 516.0 516.5 0 % 517.5 518.2 0 % Operating Margin 9.2 % 7.5 % 11.7 % 8.1 % 4 FRANKLIN RESOURCES, INC.CONSOLIDATED STATEMENTS OF INCOMEUnaudited (in millions, except per share data) Three Months Ended % Change Three Months Ended 30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 30-Jun-25 Operating Revenues Investment management fees $ 1,866.2 $ 1,819.3 3 % $ 1,847.9 $ 1,868.1 $ 1,640.8 Sales and distribution fees 404.5 396.6 2 % 388.7 382.4 351.9 Shareholder servicing fees 74.3 69.0 8 % 70.9 79.2 59.9 Other 13.4 10.0 34 % 19.6 14.0 11.4 Total operating revenues 2,358.4 2,294.9 3 % 2,327.1 2,343.7 2,064.0 Operating Expenses Compensation and benefits 958.5 964.7 (1 %) 1,030.7 1,005.7 901.1 Sales, distribution and marketing 555.4 544.0 2 % 540.9 519.8 480.7 Information systems and technology 160.8 157.6 2 % 157.0 166.2 162.7 Occupancy 71.4 67.1 6 % 66.8 72.4 69.5 Amortization of intangible assets 50.7 50.6 0 % 55.1 69.2 112.2 Impairment of intangible assets 33.0 NM 202.2 General, administrative and other 312.8 187.6 67 % 195.6 222.8 183.7 Total operating expenses 2,142.6 1,971.6 9 % 2,046.1 2,258.3 1,909.9 Operating Income 215.8 323.3 (33 %) 281.0 85.4 154.1 Other Income (Expenses) Investment and other income, net 131.0 56.0 134 % 80.3 84.8 23.4 Interest expense (23.5) (19.9) 18 % (20.4) (25.2) (25.8) Investment and other income (losses) of consolidated investment products, net 54.8 96.5 (43 %) 124.9 123.1 35.9 Expenses of consolidated investment products (7.2) (10.2) (29 %) (14.0) (13.8) (11.0) Other income, net 155.1 122.4 27 % 170.8 168.9 22.5 Income before taxes 370.9 445.7 (17 %) 451.8 254.3 176.6 Taxes on income 115.6 99.1 17 % 105.0 65.8 59.9 Net income 255.3 346.6 (26 %) 346.8 188.5 116.7 Less net income attributable to Redeemable noncontrolling interests 18.5 23.9 (23 %) 39.7 36.1 20.0 Nonredeemable noncontrolling interests 65.3 54.5 20 % 51.6 34.8 4.4 Net Income Attributable to Franklin Resources, Inc. $ 171.5 $ 268.2 (36 %) $ 255.5 $ 117.6 $ 92.3 Earnings per Share Basic $ 0.31 $ 0.49 (37 %) $ 0.46 $ 0.21 $ 0.15 Diluted 0.31 0.49 (37 %) 0.46 0.21 0.15 Dividends Declared per Share $ 0.33 $ 0.33 0% $ 0.33 $ 0.32 $ 0.32 Average Shares Outstanding Basic 515.2 517.5 0 % 517.5 514.5 515.7 Diluted 516.0 518.2 0 % 518.3 515.4 516.5 Operating Margin 9.2 % 14.1 % 12.1 % 3.6 % 7.5 % 5AUM AND FLOWS (in billions) Three Months Ended June 30, Nine Months Ended June 30, 2026 5 2025 2026 5 2025 Beginning AUM $ 1,682.1 $ 1,540.6 $ 1,661.2 $ 1,678.6 Long-term inflows 122.0 75.6 358.8 259.3 Long-term outflows (103.6) (84.9) (295.5) (344.8) Long-term net flows 18.4 (9.3) 63.3 (85.5) Cash management net flows (7.0) 2.7 3.2 5.4 Total net flows 11.4 (6.6) 66.5 (80.1) Acquisition (Disposition) 0.1 (0.2) 6.2 (0.2) Net market change, distributions and other 6 98.0 78.0 57.7 13.5 Ending AUM $ 1,791.6 $ 1,611.8 $ 1,791.6 $ 1,611.8 Average AUM $ 1,750.0 $ 1,565.2 $ 1,714.5 $ 1,596.4 AUM BY ASSET CLASS (in billions) 30-Jun-26 31-Mar-26 % Change 31-Dec-25 30-Sep-25 30-Jun-25 Equity $ 756.9 $ 669.7 13 % $ 697.2 $ 686.2 $ 656.6 Fixed Income 441.4 434.3 2 % 437.7 438.7 441.7 Alternative 294.2 282.8 4 % 273.8 263.9 258.4 Multi-Asset 218.6 207.5 5 % 198.8 193.9 183.2 Cash Management 80.5 87.8 (8 %) 76.5 78.5 71.9 Total AUM $ 1,791.6 $ 1,682.1 7 % $ 1,684.0 $ 1,661.2 $ 1,611.8 Average AUM for the Three-Month Period $ 1,750.0 $ 1,701.6 3 % $ 1,676.1 $ 1,633.7 $ 1,565.2 AUM BY SALES REGION (in billions) 30-Jun-26 31-Mar-26 % Change 31-Dec-25 30-Sep-25 30-Jun-25 United States 7 $ 1,267.8 $ 1,187.5 7 % $ 1,195.7 $ 1,171.5 $ 1,114.9 International Europe, Middle East and Africa 232.3 217.4 7 % 212.8 201.4 193.9 Asia-Pacific 8 191.1 180.1 6 % 181.6 179.5 182.6 Americas, excl. U.S. 7 100.4 97.1 3 % 93.9 108.8 120.4 Total international 523.8 494.6 6 % 488.3 489.7 496.9 Total $ 1,791.6 $ 1,682.1 7 % $ 1,684.0 $ 1,661.2 $ 1,611.8 6AUM AND FLOWS BY ASSET CLASS (in billions) for the three months ended June 30, 2026 Equity FixedIncome Alternative 5 Multi-Asset CashManagement Total AUM at April 1, 2026 $ 669.7 $ 434.3 $ 282.8 $ 207.5 $ 87.8 $ 1,682.1 Long-term inflows 65.9 30.4 11.8 13.9 122.0 Long-term outflows (63.9) (27.8) (2.7) (9.2) (103.6) Long-term net flows 2.0 2.6 9.1 4.7 18.4 Cash management net flows (7.0) (7.0) Total net flows 2.0 2.6 9.1 4.7 (7.0) 11.4 Acquisition 0.1 0.1 Net market change, distributions and other 6 85.2 4.5 2.2 6.4 (0.3) 98.0 AUM at June 30, 2026 $ 756.9 $ 441.4 $ 294.2 $ 218.6 $ 80.5 $ 1,791.6 (in billions) for the three months ended March 31, 2026 Equity FixedIncome Alternative 5 Multi-Asset CashManagement Total AUM at January 1, 2026 $ 697.2 $ 437.7 $ 273.8 $ 198.8 $ 76.5 $ 1,684.0 Long-term inflows 53.6 31.9 14.3 18.4 118.2 Long-term outflows (58.3) (32.2) (1.9) (8.9) (101.3) Long-term net flows (4.7) (0.3) 12.4 9.5 16.9 Cash management net flows 11.4 11.4 Total net flows (4.7) (0.3) 12.4 9.5 11.4 28.3 Net market change, distributions and other 6 (22.8) (3.1) (3.4) (0.8) (0.1) (30.2) AUM at March 31, 2026 $ 669.7 $ 434.3 $ 282.8 $ 207.5 $ 87.8 $ 1,682.1 (in billions) for the three months ended June 30, 2025 Equity FixedIncome Alternative Multi-Asset CashManagement Total AUM at April 1, 2025 $ 598.1 $ 446.0 $ 251.8 $ 175.8 $ 68.9 $ 1,540.6 Long-term inflows 32.0 28.2 5.6 9.8 75.6 Long-term outflows (32.6) (41.2) (3.1) (8.0) (84.9) Long-term net flows (0.6) (13.0) 2.5 1.8 (9.3) Cash management net flows 2.7 2.7 Total net flows (0.6) (13.0) 2.5 1.8 2.7 (6.6) Disposition (0.1) (0.1) (0.2) Net market change, distributions and other 6 59.1 8.8 4.2 5.6 0.3 78.0 AUM at June 30, 2025 $ 656.6 $ 441.7 $ 258.4 $ 183.2 $ 71.9 $ 1,611.8 7Supplemental Non-GAAP Financial MeasuresAs supplemental information, we are providing performance measures for adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share, each of which is based on methodologies other than generally accepted accounting principles ( non-GAAP measures ). Management believes these non-GAAP measures are useful indicators of our financial performance and may be helpful to investors in evaluating our relative performance against industry peers. Adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share are defined below, followed by reconciliations of operating income, operating margin, net income attributable to Franklin Resources, Inc. and diluted earnings per share on a U.S. GAAP basis to these non-GAAP measures. Non-GAAP measures should not be considered in isolation from, or as substitutes for, any financial information prepared in accordance with U.S. GAAP, and may not be comparable to other similarly titled measures of other companies. Additional reconciling items may be added in the future to these non-GAAP measures if deemed appropriate.Adjusted Operating IncomeWe define adjusted operating income as operating income adjusted to exclude the following Elimination of operating revenues upon consolidation of investment products. Acquisition-related items Acquisition-related retention compensation. Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities. Amortization of intangible assets. Impairment of intangible assets and goodwill, if any. Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company. Impact on compensation and benefits expense from gains and losses on investments related to deferred compensation plans, which is offset in investment and other income (losses), net. Impact on compensation and benefits expense related to minority interests in certain subsidiaries, which is offset in net income (loss) attributable to redeemable noncontrolling interests. Charges related to significant regulatory settlements.Adjusted Operating MarginWe calculate adjusted operating margin as adjusted operating income divided by adjusted operating revenues. We define adjusted operating revenues as operating revenues adjusted to exclude the following Elimination of operating revenues upon consolidation of investment products. Acquisition-related performance-based investment management fees which are passed through as compensation and benefits expense. Sales and distribution fees and a portion of investment management fees allocated to cover sales, distribution and marketing expenses paid to the financial advisers and other intermediaries who sell our funds on our behalf. 8Adjusted Net Income and Adjusted Diluted Earnings Per ShareWe define adjusted net income as net income attributable to Franklin Resources, Inc. adjusted to exclude the following Activities of CIPs. Acquisition-related items Acquisition-related retention compensation. Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities. Amortization of intangible assets. Impairment of intangible assets and goodwill, if any. Interest expense for amortization of debt premium from acquisition-date fair value adjustment. Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company. Net gains or losses on investments related to deferred compensation plans which are not offset by compensation and benefits expense. Net compensation and benefits expense related to minority interests in certain subsidiaries not offset by net income (loss) attributable to redeemable noncontrolling interests. Unrealized investment gains and losses. Charges related to significant regulatory settlements. Net income tax expense of the above adjustments based on the respective blended rates applicable to the adjustments.We define adjusted diluted earnings per share as diluted earnings per share adjusted to exclude the per share impacts of the adjustments applied to net income in calculating adjusted net income.In calculating our non-GAAP measures, we adjust for the impact of CIPs because it is not considered reflective of our underlying results of operations. Charges related to significant regulatory settlements are excluded because they are not considered reflective of our underlying results of operations and relate to matters that are non-recurring in nature. Acquisition-related items and special termination benefits are excluded to facilitate comparability to other asset management firms. We adjust for compensation and benefits expense related to funded deferred compensation plans because it is partially offset in other income (expense), net. We adjust for compensation and benefits expense and net income (loss) attributable to redeemable noncontrolling interests to reflect the economics of certain profits interest arrangements. Sales and distribution fees and a portion of investment management fees generally cover sales, distribution and marketing expenses and, therefore, are excluded from adjusted operating revenues. In addition, when calculating adjusted net income and adjusted diluted earnings per share we exclude unrealized investment gains and losses included in investment and other income (losses) because the related investments are generally expected to be held long term.9The calculations of adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share are as follows (in millions) Three Months Ended Nine Months Ended 30-Jun-26 31-Mar-26 30-Jun-25 30-Jun-26 30-Jun-25 Operating income $ 215.8 $ 323.3 $ 154.1 $ 820.1 $ 518.7 Add (subtract) Elimination of operating revenues upon consolidation of investment products* 17.3 15.5 12.0 48.8 37.6 Acquisition-related retention (23.6) 30.4 47.9 42.5 128.4 Compensation and benefits expense from gains on deferred compensation, net 17.8 3.8 0.1 35.2 4.6 Other acquisition-related expenses 5.9 5.2 10.5 16.9 30.6 Amortization of intangible assets 50.7 50.6 112.2 156.4 337.3 Impairment of intangible assets 33.0 33.0 24.4 Special termination benefits 77.2 30.2 26.9 123.4 44.7 Compensation and benefits expense related to minority interests in certain subsidiaries 14.8 15.6 14.1 44.5 41.5 Charges related to significant regulatory settlements 100.0 100.0 Adjusted operating income $ 508.9 $ 474.6 $ 377.8 $ 1,420.8 $ 1,167.8 Total operating revenues $ 2,358.4 $ 2,294.9 $ 2,064.0 $ 6,980.4 $ 6,427.0 Add (subtract) Acquisition-related pass through performance fees (3.7) (13.9) (2.1) (72.6) (87.4) Sales and distribution fees (404.5) (396.6) (351.9) (1,189.8) (1,092.3) Allocation of investment management fees for sales, distribution and marketing expenses (150.9) (147.4) (128.8) (450.5) (398.8) Elimination of operating revenues upon consolidation of investment products* 17.3 15.5 12.0 48.8 37.6 Adjusted operating revenues $ 1,816.6 $ 1,752.5 $ 1,593.2 $ 5,316.3 $ 4,886.1 Operating margin 9.2 % 14.1 % 7.5 % 11.7 % 8.1 % Adjusted operating margin 28.0 % 27.1 % 23.7 % 26.7 % 23.9 % 10 (in millions, except per share data) Three Months Ended Nine Months Ended 30-Jun-26 31-Mar-26 30-Jun-25 30-Jun-26 30-Jun-25 Net income attributable to Franklin Resources, Inc. $ 171.5 $ 268.2 $ 92.3 $ 695.2 $ 407.3 Add (subtract) Net (income) loss of consolidated investment products* (0.6) 3.9 0.1 (0.2) Acquisition-related retention (23.6) 30.4 47.9 42.5 128.4 Other acquisition-related expenses 5.3 10.1 13.0 22.9 38.8 Amortization of intangible assets 50.7 50.6 112.2 156.4 337.3 Impairment of intangible assets 33.0 33.0 24.4 Special termination benefits 77.2 30.2 26.9 123.4 44.7 Net (gains) losses on deferred compensation plan investments not offset by compensation and benefits expense 6.2 (5.0) (2.6) 4.7 (2.4) Unrealized investment (gains) losses (3.5) 32.7 11.2 49.4 (0.2) Interest expense for amortization of debt premium (1.7) (4.4) (5.0) (11.1) (14.9) Net compensation and benefits expense related to minority interests in certain subsidiaries not offset by net income attributable to redeemable noncontrolling interests 9.6 9.0 7.4 26.0 18.9 Charges related to significant regulatory settlements 100.0 100.0 Net income tax expense of adjustments (38.4) (36.7) (43.8) (93.3) (143.8) Adjusted net income $ 386.3 $ 384.5 $ 263.4 $ 1,149.2 $ 838.3 Diluted earnings per share $ 0.31 $ 0.49 $ 0.15 $ 1.26 $ 0.70 Adjusted diluted earnings per share 0.72 0.71 0.49 2.13 1.55 __________________* The impact of CIPs is summarized as follows (in millions) Three Months Ended Nine Months Ended 30-Jun-26 31-Mar-26 30-Jun-25 30-Jun-26 30-Jun-25 Elimination of operating revenues upon consolidation $ (17.3) $ (15.5) $ (12.0) $ (48.8) $ (37.6) Other income (expense), net 74.4 76.2 19.9 225.4 (48.4) Less income (loss) attributable to noncontrolling interests 57.1 60.1 11.8 176.7 (86.2) Net income (loss) $ $ 0.6 $ (3.9) $ (0.1) $ 0.2 11Notes1.Net income represents net income attributable to Franklin Resources, Inc.2. Adjusted net income, adjusted diluted earnings per share, adjusted operating income and adjusted operating margin are based on methodologies other than generally accepted accounting principles. See Supplemental Non-GAAP Financial Measures for definitions and reconciliations of these measures.3.Average AUM is calculated as the average of the month-end AUM for the trailing four months.4.Includes our direct investments in CIPs of $1.2 billion, approximately $380 million of employee-owned and other third-party investments made through partnerships, approximately $434 million of investments that are subject to long-term repurchase agreements and other net financing arrangements, and approximately $409 million of cash and investments related to deferred compensation plans.5.Beginning in fiscal year 2026, non-fee generating uncalled capital commitments, which were previously included in net market change, distributions, and other, are reflected in long-term inflows in the period the capital is committed.6.Net market change, distributions and other includes appreciation (depreciation), distributions to investors that represent return on investments and return of capital, and foreign exchange revaluation.7.Effective in fiscal year 2026, Cayman-domiciled money market fund assets are included in United States reflecting the underlying investor base. This change resulted in an 11% reduction of AUM in the Americas, excluding U.S.8.Effective January 1, 2026, Asia-Pacific includes India. Prior periods have been revised to reflect the current presentation.Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation providing the tools and resources to navigate change and capture opportunity.To learn more, visit franklintempleton.com and follow us on LinkedIn.Franklin Resources, Inc. NYSE BEN Forward-Looking Statements Some of the statements herein may include forward-looking statements that reflect our current views with respect to future events, financial performance and market conditions. Such statements are provided under the safe harbor protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and generally can be identified by words or phrases written in the future tense and or preceded by words such as anticipate, believe, could, depends, estimate, expect, intend, likely, may, plan, potential, seek, should, will, would, or other similar words or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements, including market and volatility risks, investment performance and reputational risks, global operational risks, competition and distribution risks, third-party risks, technology and security risks, human capital risks, cash management risks, and legal and regulatory risks. While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other possible future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.These and other risks, uncertainties and other important factors are described in more detail in our recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and our subsequent Quarterly Reports on Form 10-Q. If a circumstance occurs after the date of this press release that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we undertake no obligation to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, to reflect any change in assumptions, beliefs or expectations, or any change in events, conditions or circumstances upon which any forward-looking statement is based, unless required by law.# # #12