Franklin Resources, Inc. reported a total revenue of $8.77 billion for the fiscal year ending September 30, 2025, marking a 3% increase from $8.48 billion in the previous year. However, the company's operating income saw a significant rise of 48%, reaching $604.1 million compared to $407.6 million in 2024. The net income attributable to Franklin increased by 13% to $524.9 million, with diluted earnings per share rising to $0.91 from $0.85. Despite these positive trends, the company experienced a 1% decline in total assets under management (AUM), which stood at $1.66 trillion, down from $1.68 trillion in the prior year.
The fiscal year also saw Franklin's AUM by asset class shift, with equity assets increasing by 9% to $686.2 billion, while fixed income assets decreased by 21% to $438.7 billion. The company attributed the overall decline in AUM to $97.4 billion in long-term net outflows, particularly from Western Asset Management, which accounted for $141.9 billion of the outflows. In contrast, cash management AUM saw a notable increase of 23%, reaching $78.5 billion. The company also reported a decrease in its workforce, with employee headcount dropping to approximately 9,800 from 10,200 in the previous year.
Strategically, Franklin completed the acquisition of Apera Asset Management on October 1, 2025, for a cash consideration of €65.2 million, with potential additional payments based on revenue targets. This acquisition aligns with Franklin's ongoing strategy to enhance its investment management capabilities and expand its product offerings. The company also continued to focus on integrating its recent acquisition of Putnam, which was finalized in January 2024, and reported that the integration process is ongoing.
Looking ahead, Franklin's management expressed a cautious outlook, emphasizing the need to navigate a complex and evolving regulatory environment while maintaining a focus on investment performance and client service. The company plans to continue investing in technology and personnel to support its growth objectives. However, uncertainties in the global economy and potential market volatility remain key risks that could impact future performance. The company is committed to managing these risks while striving to enhance shareholder value through strategic investments and operational efficiencies.
About FRANKLIN RESOURCES INC
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