BEN · 10-K · 2026A · Full report

Income Tax Rate Changes

FRANKLIN TEMPLETON INC · 2026-11-09 · Importance 46 · Surprise 56

The effective income tax rate declined to 21.0% in fiscal 2026 from 30.2% in fiscal 2025, a decrease of 9.2 percentage points. The decline was primarily due to reduced foreign earnings, increased net income attributable to noncontrolling interests and release of a valuation allowance on capital-loss carryforwards. The company concluded the One Big Beautiful Bill Act signed July 4, 2025 had no material impact on its consolidated financial statements.

Key facts

• Franklin's effective income tax rate was 21.0% in fiscal year 2026, compared with 30.2% in fiscal year 2025; the decrease primarily reflected reduced foreign earnings, increased net income attributable to noncontrolling interests and release of a valuation allowance on capital loss carryforwards. source
• The One Big Beautiful Bill Act was signed into law on July 4, 2025; Franklin concluded it had no material impact on its consolidated financial statements. source