Franklin Q4 Earnings Coming Up: Here's What to Expect From the Stock

Franklin Resources Inc. BEN is scheduled to report fourth-quarter fiscal 2025 results (ended Sept. 30) on Nov. 7, before market open. BEN’s quarterly earnings and revenues are anticipated to have declined from the year-ago reported levels.

In the last reported quarter, Franklin’s earnings surpassed the Zacks Consensus Estimate. The company’s results benefited from improved assets under management (AUM). However, lower revenues and higher expenses acted as a spoilsport.

BEN’s earnings beat the consensus estimate in two of the trailing four quarters, missed once and matched on one occasion, the average earnings surprise being 2.93%.

Franklin Resources, Inc. Price and EPS Surprise

Franklin Resources, Inc. price-eps-surprise | Franklin Resources, Inc. Quote

Franklin’s Q4 Earnings & Sales Estimates

The Zacks Consensus Estimate for BEN’s earnings of 57 cents has remained unchanged over the past seven days. The figure indicates a decline of 3.4% from the year-ago quarter’s actual.

The consensus estimate for sales is pegged at $2.12 billion, suggesting a year-over-year decline of 3.9%.

Key Factors & Estimates for BEN in Q4

In the July–September quarter, the S&P 500 Index advanced nearly 8%, reflecting strong equity market performance. The fixed-income markets also witnessed positive flow trends, supported by solid returns across funds. Also, equity markets' performance improved during the quarter. Consequently, Franklin’s performance for the September-end quarter is likely to have benefited from robust equity market returns and steady fixed-income inflows.

Amid the challenging operating environment, BEN is likely to have continued to record net outflows in the fiscal fourth quarter. Per the monthly metrics data published by Franklin, its preliminary total AUM as of Sept. 30, 2025, was $1.66 trillion compared with the $1.64 trillion reported as of Aug. 31, 2025. The September-end AUM reflected the positive impacts of markets, partially offset by long-term net outflows of $11 billion. The Zacks Consensus Estimate for the fiscal fourth-quarter AUM is pegged at $1.67 trillion, indicating a 3.6% rise from the prior quarter’s actual. Our estimate for the metric is pegged at $1.69 trillion.

The Zacks Consensus Estimate for investment management fee is pegged at $1.69 billion, indicating a sequential rise of 2.9%. Our estimate for the metric is pegged at $1.62 billion.

The consensus estimate for sales and distribution fees of $359.3 million indicates a 2.1% rise from the prior quarter’s reported figure. We estimate the metric to be $336.3 million.

The consensus estimate for shareholder servicing fees of $64.4 million suggests a 7.5% rise from the prior quarter’s actual.

The Zacks Consensus Estimate for other revenues is pegged at $11.4 million, calling for a marginal rise on a sequential basis. Our estimate for shareholder servicing fees and other revenues is pegged at $65.6 million and $12.8 million, respectively.

What Our Model Predicts for BEN

Per our proven model, the chances of BEN beating estimates this time are low. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Franklin has an Earnings ESP of -0.57%.

Zacks Rank: BEN currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of BEN’s Peers

Invesco’s IVZ third-quarter 2025 adjusted earnings of 61 cents per share hugely surpassed the Zacks Consensus Estimate of 45 cents. The bottom line increased 38.6% from the prior-year quarter.

The results have been primarily aided by an increase in adjusted revenues. Moreover, growth in the assets under management balance to record levels supported results to an extent. However, an increase in adjusted operating expenses was a headwind for IVZ.

SEI Investments Co.’s SEIC third-quarter 2025 earnings per share of $1.30 beat the Zacks Consensus Estimate of $1.25. Moreover, the bottom line reflected a rise of 9.2% from the prior-year quarter.

SEIC’s results were aided by higher revenues and a rise in assets under management. However, higher expenses acted as a spoilsport.

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This article originally published on Zacks Investment Research (zacks.com).

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