Revenue grew 8.9% year-over-year to $2.4B in Q3 FY2026, driven entirely by fee income, but a $1.1B provision for credit losses led to a net income of only $171.5M and an efficiency ratio of 45.0%.
Franklin Resources, Inc. (BEN) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Net Interest Income | -89M | -94.9M | -97.2M | -123.7M | -98.2M | -76.6M | -33.4M | 8.6M | 30.2M | 23.4M | -13.4M | -28.8M | -38.3M | -39.4M | -24.2M | -26.4M | -3.6M | 28.15M | 84.67M | 110.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | 24.13% | 2.37% | 21.42% | -25.97% | -28.2% | -129.34% | -488.37% | -71.52% | 29.06% | 274.63% | 53.47% | 24.8% | 2.79% | -62.81% | 8.33% | -633.33% | -112.79% | -66.76% | -23.15% | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Interest Margin % | -0.25% | -0.29% | -0.3% | -0.41% | -0.35% | -0.32% | -0.15% | 0.06% | 0.21% | 0.13% | -0.08% | -0.18% | -0.23% | -0.26% | -0.16% | -0.19% | -0.03% | 0.3% | 0.92% | 1.11% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 8.8M | 0 | 31M | 76.5M | 74.9M | 36.5M | 10.8M | 9.1M | 7.5M | 12.5M | 11M | 12.9M | 31.92M | 100.43M | 133.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 89M | 94.9M | 97.2M | 123.7M | 98.2M | 85.4M | 33.4M | 22.4M | 46.3M | 51.5M | 49.9M | 39.6M | 47.4M | 46.9M | 36.7M | 37.4M | 16.5M | 3.77M | 15.76M | 23.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 2.93B | 1.63B | 1.59B | 1.38B | 1.33B | 1.34B | 1.03B | 938.2M | 882.1M | 1.28B | 1.31B | 1.41B | 1.42B | 1.34B | 1.22B | 1.19B | 2.27B | 1.35B | 1.92B | 2.14B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 520.2M |
| Non-Interest Income | 9.32B | 8.77B | 8.48B | 7.85B | 8.28B | 8.42B | 5.57B | 5.64B | 6.13B | 6.32B | 6.58B | 7.94B | 8.48B | 7.98B | 7.09B | 7.13B | 5.84B | 4.16B | 5.93B | 6.07B | 5.05B | 4.31B | 3.44B | 2.63B | 2.52B | 2.35B | 2.34B | 2.26B | 2.58B | 2.16B | 1.52B |
| Non-Interest Income % | 100.96% | 101.09% | 101.16% | 101.6% | 101.2% | 100.92% | 100.6% | 99.85% | 99.51% | 99.63% | 100.2% | 100.36% | 100.45% | 100.5% | 100.34% | 100.37% | 100.06% | 99.33% | 98.59% | 98.22% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Net Revenue | 9.24B | 8.68B | 8.38B | 7.73B | 8.18B | 8.34B | 5.53B | 5.65B | 6.16B | 6.34B | 6.57B | 7.91B | 8.44B | 7.94B | 7.06B | 7.1B | 5.84B | 4.19B | 6.02B | 6.18B | 5.05B | 4.31B | 3.44B | 2.63B | 2.52B | 2.35B | 2.34B | 2.26B | 2.58B | 2.16B | 1.52B |
| Revenue Growth % | 8.09% | 3.52% | 8.48% | -5.52% | -1.95% | 50.73% | -2.02% | -8.3% | -2.88% | -3.46% | -16.96% | -6.33% | 6.37% | 12.37% | -0.54% | 21.69% | 39.29% | -30.35% | -2.68% | 22.41% | 17.18% | 25.36% | 30.62% | 4.33% | 7.14% | 0.63% | 3.43% | -12.21% | 19.14% | 42.37% | 20.8% |
| Non-Interest Expense | 5.4B | 6.44B | 6.38B | 5.25B | 5.08B | 5.12B | 3.45B | 3.24B | 3.25B | 2.79B | 2.89B | 3.47B | 3.8B | 3.68B | 3.33B | 3.25B | 1.61B | 1.64B | 2B | 1.98B | 3.42B | 3.02B | 2.51B | 1.98B | 1.94B | 1.84B | 1.68B | 1.72B | 1.94B | 1.57B | 582.16M |
| Efficiency Ratio | 58.48% | 74.26% | 76.17% | 67.92% | 62.06% | 61.41% | 62.44% | 57.41% | 52.74% | 44.07% | 44.02% | 43.85% | 45.03% | 46.35% | 47.14% | 45.74% | 27.61% | 39.13% | 33.18% | 31.99% | 67.66% | 70.11% | 72.93% | 75.38% | 76.79% | 78.26% | 71.65% | 76.17% | 75.09% | 72.66% | 38.31% |
| Operating Income | 905.5M | 604.1M | 407.6M | 1.1B | 1.77B | 1.88B | 1.05B | 1.47B | 2.03B | 2.26B | 2.37B | 3.03B | 3.22B | 2.92B | 2.52B | 2.66B | 1.96B | 1.2B | 2.1B | 2.07B | 1.63B | 1.29B | 930.83M | 648.08M | 585.5M | 512M | 663.44M | 539.11M | 642.1M | 591.46M | 417.11M |
| Operating Margin % | 9.8% | 6.96% | 4.86% | 14.27% | 21.69% | 22.48% | 18.96% | 25.98% | 32.93% | 35.71% | 36.02% | 38.28% | 38.15% | 36.8% | 35.6% | 37.45% | 33.56% | 28.7% | 34.89% | 33.44% | 32.34% | 29.89% | 27.07% | 24.62% | 23.21% | 21.74% | 28.35% | 23.83% | 24.91% | 27.34% | 27.45% |
| Operating Income Growth % | - | 48.21% | -63.02% | -37.86% | -5.39% | 78.76% | -28.5% | -27.67% | -10.43% | -4.29% | -21.86% | -6.01% | 10.27% | 16.15% | -5.44% | 35.79% | 62.87% | -42.71% | 1.52% | 26.58% | 26.78% | 38.41% | 43.63% | 10.69% | 14.36% | -22.83% | 23.06% | -16.04% | 8.56% | 41.8% | 13.3% |
| Pretax Income | 1.52B | 786.8M | 823.2M | 1.34B | 1.73B | 2.44B | 1.02B | 1.65B | 2.22B | 2.55B | 2.5B | 3.03B | 3.41B | 3.03B | 2.68B | 2.62B | 2.07B | 1.29B | 2.24B | 2.47B | 1.84B | 1.42B | 993.87M | 700.2M | 578.27M | 637.79M | 739.59M | 574.08M | 676.28M | 615.71M | 456.23M |
| Pretax Margin % | 16.49% | 9.07% | 9.82% | 17.32% | 21.15% | 29.31% | 18.4% | 29.18% | 35.97% | 40.2% | 38.06% | 38.29% | 40.38% | 38.13% | 37.91% | 36.95% | 35.46% | 30.75% | 37.17% | 39.88% | 36.34% | 32.97% | 28.91% | 26.6% | 22.92% | 27.08% | 31.6% | 25.37% | 26.24% | 28.46% | 30.03% |
| Income Tax | 469.3M | 237.9M | 215.3M | 312.3M | 396.2M | 349.6M | 230.8M | 442.3M | 1.47B | 759.4M | 742.1M | 923.7M | 997.9M | 855.9M | 762.7M | 803.4M | 618.3M | 384.31M | 648.38M | 692.36M | 568M | 363.22M | 291.98M | 197.37M | 145.55M | 153.07M | 177.5M | 147.37M | 175.83M | 181.65M | 141.5M |
| Effective Tax Rate % | 30.82% | 30.24% | 26.15% | 23.34% | 22.91% | 14.3% | 22.67% | 26.84% | 66.47% | 29.79% | 29.69% | 30.5% | 29.27% | 28.28% | 28.48% | 30.62% | 29.87% | 29.82% | 28.99% | 28.08% | 30.94% | 25.56% | 29.38% | 28.19% | 25.17% | 24% | 24% | 25.67% | 26% | 29.5% | 31.02% |
| Net Income | 891.2M | 524.9M | 464.8M | 882.8M | 1.29B | 1.83B | 798.9M | 1.2B | 764.4M | 1.7B | 1.73B | 2.04B | 2.38B | 2.15B | 1.93B | 1.92B | 1.45B | 896.78M | 1.59B | 1.77B | 1.27B | 1.06B | 706.66M | 502.83M | 432.72M | 484.72M | 562.09M | 426.71M | 500.45M | 434.06M | 314.73M |
| Net Margin % | 9.65% | 6.05% | 5.55% | 11.43% | 15.8% | 21.96% | 14.44% | 21.17% | 12.41% | 26.76% | 26.29% | 25.73% | 28.24% | 27.09% | 27.34% | 27.08% | 24.77% | 21.4% | 26.4% | 28.68% | 25.1% | 24.54% | 20.55% | 19.1% | 17.15% | 20.58% | 24.02% | 18.86% | 19.42% | 20.07% | 20.71% |
| Net Income Growth % | 176.26% | 12.93% | -47.35% | -31.67% | -29.45% | 129.22% | -33.19% | 56.42% | -54.95% | -1.74% | -15.16% | -14.64% | 10.89% | 11.33% | 0.41% | 33.06% | 61.21% | -43.54% | -10.42% | 39.87% | 19.85% | 49.67% | 40.54% | 16.2% | -10.73% | -13.76% | 31.73% | -14.73% | 15.29% | 37.92% | 17.02% |
| Net Income (Continuing) | 1.05B | 548.9M | 607.9M | 1.03B | 1.33B | 2.09B | 787.1M | 1.21B | 742.7M | 1.79B | 1.76B | 2.1B | 2.41B | 2.17B | 1.92B | 1.82B | 1.45B | 904.29M | 1.59B | 1.77B | 1.27B | 1.06B | 701.88M | 502.83M | 432.7M | 484.72M | 562.09M | 426.71M | 500.45M | 434.06M | 314.73M |
| EPS (Diluted) | 1.73 | 0.91 | 0.85 | 1.72 | 2.53 | 3.57 | 1.59 | 2.35 | 1.42 | 3.01 | 2.94 | 3.29 | 3.79 | 3.37 | 2.98 | 2.87 | 2.11 | 1.29 | 2.22 | 2.34 | 1.62 | 1.35 | 0.92 | 0.66 | 0.55 | 0.64 | 0.76 | 0.56 | 0.66 | 0.57 | 0.42 |
| EPS Growth % | 188.46% | 7.06% | -50.58% | -32.02% | -29.13% | 124.53% | -32.34% | 65.49% | -52.82% | 2.38% | -10.64% | -13.19% | 12.46% | 13.09% | 3.83% | 36.02% | 63.57% | -41.89% | -5.13% | 44.44% | 20% | 46.74% | 39.39% | 20% | -14.06% | -15.79% | 35.71% | -15.15% | 15.79% | 35.71% | 16.67% |
| EPS (Basic) | - | 0.91 | 0.85 | 1.72 | 2.53 | 3.58 | 1.59 | 2.35 | 1.42 | 3.01 | 2.94 | 3.29 | 3.79 | 3.37 | 2.99 | 2.89 | 2.12 | 1.30 | 2.24 | 2.37 | 1.66 | 1.41 | 0.95 | 0.66 | 0.55 | 0.64 | 0.76 | 0.56 | 0.66 | 0.57 | 0.42 |
| Diluted Shares Outstanding | 516M | 515.4M | 510.3M | 490.8M | 489.3M | 490.6M | 491.9M | 504.3M | 538M | 559.1M | 583.8M | 614.9M | 625.2M | 634.1M | 643.2M | 666.25M | 682.06M | 694.36M | 714.84M | 756.35M | 782.45M | 781.5M | 770.91M | 765.73M | 786.05M | 761.34M | 739.59M | 758.05M | 758.26M | 761.51M | 750.65M |
Quick answers to the most common questions about buying BEN stock.
For fiscal year 2025, Franklin Resources, Inc. (BEN) reported total revenue of $8.68B. This represents a 471.0% increase compared to $1.52B in 1996.
Franklin Resources, Inc. (BEN) is profitable, generating $524.9M in net income for the fiscal year ending 2025 with a net profit margin of 6.1%.
Franklin Resources, Inc. (BEN) reported an operating income of $604.1M, resulting in an operating profit margin of 7.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Franklin Resources, Inc. (BEN) generated $7.05B in gross profit for the year, representing a gross profit margin of 81.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Fee compression and integration risks
Metrics are mathematically derived from official filings.
Negative NII Persists
Franklin Resources reported negative net interest income of $23.5 million in Q3 FY2026, reflecting a persistent drag from funding costs, as per the latest quarterly data.
Net interest income has remained negative for all ten quarters shown, hovering around -$20 million to -$28 million. This suggests that the firm's interest expense on debt and other liabilities consistently exceeds interest income on its cash and investments. While the magnitude is small relative to total revenue, it indicates a structural cost that may persist given the firm's leverage and low-yield environment.
Efficiency Ratio Volatile
Franklin's efficiency ratio swung from 38.7% in Q2 FY2026 to 45.0% in Q3, reflecting expense management challenges despite revenue growth, as reported in financial statements.
The efficiency ratio improved dramatically in Q2 FY2026 to 38.7%, the lowest in the period, but rebounded to 45.0% in Q3. This volatility suggests that operating expenses are not scaling linearly with revenue, possibly due to variable compensation or integration costs. The improvement in Q2 may have been driven by one-time gains or cost controls, but the subsequent rise indicates that sustainable efficiency gains remain elusive.
Provision Expense Elevated
Provision for credit losses surged to $1.1 billion in Q3 FY2026, up from $408 million in Q1, according to the latest income statement data.
The provision expense jumped from around $400 million in the prior quarters to $1.1 billion in Q2 and Q3 FY2026, a significant increase that directly pressured net income. This may reflect a change in the credit environment or a one-time charge related to the Putnam acquisition. Investors should monitor whether this elevated provisioning level is a new normal or a temporary adjustment, as it materially impacts earnings quality.
Fee Income Dominates
Non-interest income constitutes 100% of total revenue, with investment management fees driving the top line, as per the latest quarterly disclosures.
The fee percentage of 100% underscores that Franklin is a pure asset manager, with no meaningful interest income. This makes the firm highly sensitive to market performance and net flows. The $18.4 billion in long-term net inflows reported by management suggests organic growth, but the fee rate compression across the industry may limit revenue growth even as AUM expands.
Q2 FY2026 Earnings Spike
Q2 FY2026 saw net income of $346.6 million, the highest in the period, with EPS of $0.52, a 100% growth from the prior year, based on reported figures.
The sharp increase in net income in Q2 FY2026, despite a provision expense of $1.1 billion, suggests a significant non-operating gain or tax benefit. This quarter stands out as an inflection point, but the subsequent decline in Q3 to $171.5 million indicates that the Q2 performance was not sustainable. The volatility in earnings highlights the lumpy nature of performance fees and investment gains.
Earnings Quality Questioned
Despite strong inflows, Franklin's operating margin of 6.9% and negative NII raise concerns about earnings quality, as per the latest financial data.
The reported operating margin of 6.9% is far below peers like T. Rowe Price (29.9%) and Affiliated Managers (31.8%), suggesting that Franklin's cost structure is heavy relative to its revenue. The negative net interest income and elevated provision expenses further cloud the underlying profitability. While the firm is generating positive net income, the reliance on non-operating items and the compressed operating margin may indicate that core operations are not as robust as headline numbers suggest.