| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 502.78 | 5.0% | 18.4% |
| Total Income | 502.78 | 5.0% | 18.4% |
| Expenditure | 369.90 | 4.9% | 20.2% |
| PBT | 144.03 | 11.0% | 10.1% |
| Net Profit | 104.32 | 8.2% | 14.6% |
| OPM | 26.43% | 0.05pp | 1.13pp |
| NPM | 20.75% | 0.63pp | 0.67pp |
| EPS | 1.38 | 8.7% | 19.0% |
Federated Hermes Reports Record Assets Under Management and Q2 2026 Earnings
31 Jul 2026 · 31 Jul, 2:36 am
Summary
Federated Hermes announced record assets under management of $911.6 billion for the second quarter of 2026, alongside a 19% year-over-year increase in earnings per diluted share to $1.38. Net income rose to $104.3 million from $91.0 million in the prior year's second quarter, with revenue growing 18% to $502.8 million. Management highlighted achievements in equity assets, MDT suite sales, new ETF launches, and the acquisition of FCP Fund Manager, L.P. as key drivers of performance.
Key Highlights
- 1
Federated Hermes reported record total assets under management reaching $911.6 billion at the end of Q2 2026.
- 2
Equity assets also reached a record high of $109.6 billion in the second quarter of 2026.
- 3
Earnings per diluted share for Q2 2026 were $1.38, an increase from $1.16 in the same quarter last year.
- 4
Net income for Q2 2026 was $104.3 million, up from $91.0 million in Q2 2025.
- 5
Total managed assets increased by 8% to $911.6 billion compared to June 30, 2025.
- 6
Revenue increased by 18% to $502.8 million in Q2 2026 compared to Q2 2025, driven by higher average assets and the FCP acquisition.
- 7
The company declared a dividend of $0.38 per share for Q2 2026.
Management Comments
J. Christopher Donahue
In addition to reaching record high equity assets in the second quarter, we achieved record gross sales across the range of our MDT suite of quantitative investment solutions, reaching all-time highs in MDT institutional separate accounts and SMAs (separately managed accounts). We also saw net positive MDT sales for the 14th consecutive quarter. We continued to broaden our investment offerings by launching two new exchange-traded funds (ETFs) and introducing our first fund designed for use by participants in the blockchain ecosystem. We also expanded our private markets business by acquiring a majority interest in U.S. real estate manager FCP Fund Manager, L.P.
Informational and educational content only. Not investment advice.