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Earnings analysis · 10-Q

FHI earnings analysis

Filed May 1, 2026 · Our reading of the company's report

The latest report

Federated Hermes reported strong Q1 2026 earnings, with revenue of $478.96 million and EPS of $1.27, exceeding estimates of $475.09 million and $1.19, respectively. The company's managed assets grew to $907.1 billion,…

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Federated Hermes reported strong Q1 2026 earnings, with revenue of $478.96 million and EPS of $1.27, exceeding estimates of $475.09 million and $1.19, respectively. The company's managed assets grew to $907.1 billion, driven by significant increases in both equity and money market funds despite a slight decrease in performance fees.

Read the original on SEC.gov

Reported figures

Earnings per share
$1.27
Segment
Investment Management

What stood out

  • Revenue Growth

    Revenue increased by $55.4 million year-over-year, totaling $478.96 million for Q1 2026.

  • EPS Exceeds Expectations

    EPS was reported at $1.27, surpassing the estimate of $1.19 and showing a year-over-year increase.

  • Strong Managed Assets

    Total managed assets rose to $907.1 billion, an 8% increase from the prior year.

  • Growth in Equity Funds

    Equity fund assets increased by 26% year-over-year, driven by market appreciation.

  • Improvement in Cash Flow

    Operating cash flow improved to $28.8 million for the quarter, up from $14.3 million in Q1 2025.

  • Share Repurchases**

    During Q1 2026, management repurchased 1.19 million shares at an average price of $55.39.

What to watch

  • Decreased Performance Fees

    Performance fees decreased by $4.1 million year-over-year, impacting overall revenue.

  • Increased Operating Expenses

    Total operating expenses rose by $60.9 million, driven by higher distribution and compensation costs.

  • Rising Interest Rate Environment

    Changes in the interest rate landscape could adversely affect asset flows and revenue.

Management's outlook

No explicit numeric guidance provided, outlook discussed qualitatively.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.