BEN · 8-K · 20261106PR000287
Operating Margin Drivers
FRANKLIN TEMPLETON INC · 2026-11-06 · Importance 68 · Surprise 64 · No source text
Fiscal 2026 operating income increased 95% to $1,175.9 million and operating margin rose to 12.5% from 6.9%; fourth-quarter operating income was $355.8 million, up 317% year over year, with margin at 14.6% versus 3.6%. Adjusted operating income increased 23% for fiscal 2026 to $2,019.4 million, and adjusted operating margin expanded to 28.0% from 24.5%. Fourth-quarter adjusted operating margin was 31.8%, up from 26.0% a year earlier, while the company reported $204.5 million of fiscal-year special termination benefits and $198.4 million of intangible amortization adjustments.
Key facts
- Quarterly operating income for the quarter ended September 30, 2026 was $355.8 million, up 317% year over year. source
- Fiscal 2026 operating income was $1,175.9 million, up 95% year over year. source
- Quarterly operating margin was 14.6% in the quarter ended September 30, 2026, compared with 3.6% in the prior-year quarter. source
- Quarterly adjusted operating income was $598.6 million, up 27% year over year. source
- Fiscal 2026 adjusted operating income was $2,019.4 million, up 23% year over year. source
- Quarterly adjusted operating margin was 31.8%, compared with 26.0% in the prior-year quarter. source
- Fiscal 2026 adjusted operating margin was 28.0%, compared with 24.5% in fiscal 2025. source
- Franklin Templeton said adjusted operating margin increased ahead of plan. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +23.5% | Fiscal 2026 operating income was $1,175.9 million, up 95% year over year. |
| operating_income | positive | realized | +15.6% | Fiscal 2026 adjusted operating income was $2,019.4 million, up 23% year over year. |
| operating_income | positive | realized | +11.1% | Quarterly operating income for the quarter ended September 30, 2026 was $355.8 million, up 317% year over year. |
| margin | positive | realized | +11.0% | Quarterly operating margin was 14.6% in the quarter ended September 30, 2026, compared with 3.6% in the prior-year quarter. |
| margin | positive | realized | +5.8% | Quarterly adjusted operating margin was 31.8%, compared with 26.0% in the prior-year quarter. |
| operating_income | positive | realized | +5.2% | Quarterly adjusted operating income was $598.6 million, up 27% year over year. |
| margin | positive | realized | +3.5% | Fiscal 2026 adjusted operating margin was 28.0%, compared with 24.5% in fiscal 2025. |