FRANKLIN RESOURCES INC

Franklin Resources' wholly-owned subsidiary, Western Asset Management Company, LLC, has resolved investigations by both the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). The DOJ has closed its investigation into Western Asset, taking no further action. Western Asset reached a settlement with the SEC, agreeing to pay a civil penalty of $100 million into a Fair Fund for investors, without admitting wrongdoing. The company stated this was a business decision to avoid prolonged litigation and focus on clients.

FRANKLIN RESOURCES INC reported a significant increase in its Q1 net income attributable to the company, rising 77.1% to $268.2M, with basic EPS up 88.5% to $0.49. Total operating revenues for the quarter grew 8.7% to $2,294.9M. For the six months ended March 31, 2026, net income attributable to the company increased 66.2% to $523.7M. The company also provided updates on legal proceedings, noting the DOJ is prepared to resolve its investigation into Western Asset Management without criminal charges against WAM, while the SEC investigation remains ongoing.

Franklin Resources, Inc. reported strong second fiscal quarter results for March 31, 2026, with GAAP net income increasing 77% year-over-year to $268.2 million and diluted EPS rising 88% to $0.49. The company achieved $16.9 billion in long-term net inflows, including $14.3 billion in alternative fundraising, reflecting strength across its diversified global platform. Adjusted net income grew 51% year-over-year to $384.5 million, with adjusted diluted EPS at $0.71.