Franklin Resources boosts growth with $16.9B inflows, strong alternatives, and rising margins.

Franklin Resources has reversed years of outflows by diversifying its portfolio and attracting strong inflows, especially in alternatives, which contributed a record $14.3 billion in fiscal Q2 2026. The firm now manages about $1.7 trillion across equities, fixed income, and alternatives. Operating margins are improving, with targets above 30% by 2027, supported by cost discipline and cautious assumptions. Risks remain from potential missteps in mergers and acquisitions, but dividend hikes and strategic bolt-on deals help mitigate these concerns. Upcoming catalysts include fundraising efforts and margin updates.