AcquisitionsJul 31, 2026, 04:28 PM
Federated Hermes Acquires FCP; Q2 EPS $1.38, Revenue $502.8M
AI Summary
Federated Hermes, Inc. reported strong financial results for the second quarter of 2026, alongside a significant acquisition. The company completed the acquisition of an 80% interest in FCP Fund Manager, L.P. for $216.0 million in cash and $23.1 million in Class B common stock, with potential contingent payments up to $82.0 million. This acquisition aligns with Federated Hermes' strategy to expand its private markets and alternatives capabilities in the U.S. For the quarter, net income attributable to Federated Hermes, Inc. increased to $104.3 million, and earnings per share rose to $1.38, driven by a 18.3% increase in total revenue to $502.8 million.
Key Highlights
- Acquired 80% interest in FCP Fund Manager, L.P. for $216.0M cash and $23.1M stock.
- Potential contingent consideration for FCP acquisition up to $82.0M.
- Q2 2026 Net Income attributable to Federated Hermes, Inc. was $104.3M, up from $91.0M YoY.
- Q2 2026 Earnings Per Share (basic and diluted) was $1.38, up from $1.16 YoY.
- Q2 2026 Total Revenue was $502.8M, up from $424.8M YoY.
- Cash Dividends Per Share for Q2 2026 were $0.38, up from $0.34 YoY.
- Goodwill increased to $1,081.1M at June 30, 2026, from $852.1M at Dec 31, 2025.
- Fee Waivers totaled $110.2M for Q2 2026, with $82.1M related to money market funds.
Price Impact
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