Federated Hermes Inc

Latest Results (19.05.2026):

Federated Hermes, Inc. reported Q1 2026 results: diluted EPS of $1.27 and net income of $96.4 million for Q1 2026. Revenue was $478.96 million (up 13% year-over-year), while total managed assets reached a record $907.1 billion. The firm also announced a quarterly dividend increase and continued share repurchases. This summary covers Federated Hermes, Inc.’s Q1 2026 results as presented in the company’s report.

Earnings

Q1 2026 diluted EPS was $1.27 (vs. $1.25 in Q1 2025). Net income attributable to the company was $96.4 million, down 5% from $101.1 million in Q1 2025 (Q4 2025 net income was $107.0 million).

Revenue & Profitability

Total revenue for Q1 2026 was $478.96 million, up $55.4 million or 13% year-over-year, driven primarily by higher average money market and equity assets. Operating income was $126.33 million; operating expenses rose 21% to $352.63 million, driven by higher distribution costs, increased compensation and the prior-year VAT refund benefit.

Assets Under Management (AUM)

Total managed assets were a record $907.1 billion at March 31, 2026, up $67.3 billion (8%) year-over-year. Total average managed assets for Q1 2026 were $915.6 billion, up 9% versus Q1 2025.

Record Asset Categories

Money market assets reached a record $684.7 billion. Equity assets were also a record $100.8 billion (up 25% YoY). Fixed-income was $99.8 billion and alternatives/private markets were $19.0 billion.

Flows, Sales and Product Highlights

The company reported record gross sales and positive net flows in equity offerings, strong demand for MDT separate-account strategies, and continued investor demand for money market and ultrashort income products. Top-selling equity and fixed-income funds were named in the report (MDT Mid Cap Growth, MDT Large Cap Growth, Ultrashort Bond, Total Return Bond ETF, etc.).

Capital Return to Shareholders

The board declared a quarterly dividend of $0.38 per share (an 11.8% increase from the prior quarter). During Q1 2026 the company repurchased 1,191,300 shares for $66.0 million.

Other notable items

Revenue mix for Q1 2026: 54% from money market assets, 45% from long-term assets (30% equity, 10% fixed-income, 5% alternatives/multi-asset), and 1% from other sources. The company will host an earnings call on May 1, 2026 as noted in the release.