Franklin Resources reports FY2026 growth, raises long-term targets

Transcript intelligence

What changed

Management raised its FY2029 private-markets AUM target to $150bn and Canvas AUM target to $100bn, according to the call analysis. The transcript also highlighted acquisitions intended to broaden alternative-credit and real-assets capabilities.

Guidance delta

Management maintained guidance sentiment. The call analysis cites an adjusted operating-margin target of approximately 30% for FY2027 and 35% for FY2029; it also describes fee rates as stable.

Key takeaways

• Fiscal 2026 AUM was $1.8tn, with $84.1bn in net inflows and 5.3% organic growth, as reported in the transcript analysis.
• Adjusted operating margin expanded to 28%; management's targets are approximately 30% for FY2027 and 35% for FY2029.
• Alternatives AUM reached a record $305bn; the FY2029 private-markets target was raised to $150bn.
• Canvas AUM was near $33bn, with a new FY2029 target of $100bn; active ETF AUM was $37.2bn.

Management priorities

• Grow private markets, including alternative credit, real estate, and venture strategies.
• Scale Canvas, active ETFs, and retail SMAs through global distribution.
• Develop integrated institutional relationships through the One Franklin Templeton approach.
• Continue AI and tokenization initiatives and use acquisitions to add capabilities.