Franklin Q4 Earnings Surpass Estimates, AUM Rises Sequentially

Core Insights - Franklin Resources Inc. reported fourth-quarter fiscal 2025 adjusted earnings of 67 cents per share, exceeding the Zacks Consensus Estimate of 57 cents per share and improving from 59 cents in the prior year [1][9] - The company's results were driven by higher revenues, improved assets under management (AUM), and lower expenses [1][11] Financial Performance - For fiscal 2025, total operating revenues increased by 3.4% year over year to $8.77 billion, surpassing the Zacks Consensus Estimate of $8.55 billion [3] - In the fourth quarter, total operating revenues rose by 5.9% year over year to $2.34 billion, exceeding the Zacks Consensus Estimate of $2.12 billion [3][9] - Investment management fees increased by 5.8% year over year to $1.87 billion, while sales and distribution fees rose by 3.9% to $382.4 million [4] - Total operating expenses decreased by 4.4% year over year to $2.26 billion, attributed to reductions in various costs [5] Assets Under Management - As of September 30, 2025, total AUM was $1.66 trillion, reflecting a sequential increase of 3.1% [6] - The average AUM for the quarter was $1.63 trillion, up 4.3% sequentially [6] Capital Position - As of September 30, 2025, cash and cash equivalents and investments totaled $6.7 billion, with total stockholders' equity at $13.0 billion [7] Shareholder Actions - In the reported quarter, the company repurchased 2.6 million shares for $67.1 million [10]