Federated Hermes (NYSE:FHI) Announces Earnings Results, Beats Expectations By $0.07 EPS

Federated Hermes (NYSE:FHI) released its earnings results on Thursday. The company reported $1.27 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.07, Zacks reports. Federated Hermes had a net margin of 21.47% and a return on equity of 34.18%. The company had revenue of $478.96 million during the quarter, compared to analysts’ expectations of $475.22 million. During the same period last year, the business earned $1.25 EPS. Federated Hermes’s revenue for the quarter was up 13.1% on a year-over-year basis.

Here are the key takeaways from Federated Hermes’ conference call:

• The board declared a quarterly dividend of $0.38 per share (up from $0.34), payable May 15, 2026.
• Total managed assets reached $907 billion in Q1 2026, led by record money market assets of $685 billion and record equity assets of $101 billion.
• Federated acquired a majority interest in FCP Fund Manager to expand its U.S. real estate footprint and has bolstered private markets (including Rivington Energy), with alternatives/private market AUM of $19 billion.
• Strong 2025 financial performance — EPS rose 59% to $5.13, net income was $403 million, revenue grew 10%, and net equity sales approached $5 billion, reflecting improved profitability and sales momentum.
• Shareholders approved an amendment to the stock incentive plan to reserve an additional 5 million Class B shares, which could be dilutive to existing shareholders.

Federated Hermes Stock Performance

Shares of FHI stock traded down $3.91 during trading hours on Friday, hitting $54.18. The company’s stock had a trading volume of 1,600,789 shares, compared to its average volume of 823,488. The company has a 50 day moving average of $56.63 and a 200 day moving average of $53.44. The stock has a market cap of $4.12 billion, a PE ratio of 10.54, a price-to-earnings-growth ratio of 2.03 and a beta of 0.67. The company has a current ratio of 2.75, a quick ratio of 2.30 and a debt-to-equity ratio of 0.29. Federated Hermes has a 12-month low of $41.04 and a 12-month high of $59.05.

Federated Hermes Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 8th will be issued a $0.38 dividend. This is an increase from Federated Hermes’s previous quarterly dividend of $0.34. The ex-dividend date of this dividend is Friday, May 8th. This represents a $1.52 annualized dividend and a dividend yield of 2.8%. Federated Hermes’s payout ratio is currently 26.46%.

Trending Headlines about Federated Hermes

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Record assets under management — Federated Hermes reported record total AUM of $907.1 billion (money market and equity inflows drove gains), supporting fee revenue growth and demonstrating scale that should help future fee income. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Positive Sentiment: Q1 beat on EPS and revenue — Q1 EPS of $1.27 topped consensus (~$1.20) and revenue of $479M beat expectations; revenue was up ~13% year-over-year, indicating healthy top-line momentum. Federated Hermes (FHI) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Dividend increased — Board raised the quarterly dividend ~11.8% to $0.38/share (annualized yield ~2.7%), signaling confidence in cash flow and returning capital to shareholders. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Neutral Sentiment: Earnings call and prepared remarks — Management commentary and the conference call transcript provide more detail on flow dynamics, product performance and strategic priorities; these are useful for assessing sustainability of fee growth. Federated Hermes, Inc. (FHI) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Prepared remarks available — The shareholder/analyst prepared remarks give additional color on sources of growth and capital allocation but don’t materially change the headline results. Federated Hermes, Inc. (FHI) Shareholder/Analyst Call Prepared Remarks Transcript
• Negative Sentiment: Rising expenses and margin pressure — Analysts and reports note higher operating expenses that weighed on net income (Q1 net income fell vs. prior year, partly influenced by a prior-year VAT refund). That margin pressure appears to be the main reason investors are selling despite revenue/AUM strength. Federated Hermes Q1 Earnings Beat Estimates, AUM Reaches Record Level

Insider Activity at Federated Hermes

In other news, VP Paul A. Uhlman sold 72,392 shares of the company’s stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $56.23, for a total value of $4,070,602.16. Following the sale, the vice president directly owned 263,987 shares of the company’s stock, valued at $14,843,989.01. This represents a 21.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 4.20% of the stock is owned by company insiders.

Institutional Trading of Federated Hermes

Several large investors have recently made changes to their positions in the business. Advyzon Investment Management LLC boosted its holdings in shares of Federated Hermes by 6.0% in the 4th quarter. Advyzon Investment Management LLC now owns 4,594 shares of the company’s stock valued at $239,000 after acquiring an additional 259 shares during the last quarter. CIBC Private Wealth Group LLC boosted its holdings in shares of Federated Hermes by 119.7% in the 4th quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company’s stock valued at $38,000 after acquiring an additional 401 shares during the last quarter. Kestra Private Wealth Services LLC boosted its holdings in shares of Federated Hermes by 4.5% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 9,830 shares of the company’s stock valued at $510,000 after acquiring an additional 424 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Federated Hermes by 6.1% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 7,603 shares of the company’s stock valued at $395,000 after acquiring an additional 434 shares during the last quarter. Finally, State of Wyoming boosted its holdings in shares of Federated Hermes by 6.2% in the 2nd quarter. State of Wyoming now owns 7,532 shares of the company’s stock valued at $334,000 after acquiring an additional 438 shares during the last quarter. 75.94% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

FHI has been the subject of several research reports. TD Cowen reiterated a “hold” rating on shares of Federated Hermes in a research note on Thursday, April 9th. Weiss Ratings reissued a “buy (b)” rating on shares of Federated Hermes in a research report on Tuesday, April 21st. Wall Street Zen lowered Federated Hermes from a “buy” rating to a “hold” rating in a research note on Saturday. Argus upgraded Federated Hermes to a “hold” rating in a research note on Monday, February 2nd. Finally, Royal Bank Of Canada restated a “sector perform” rating and issued a $56.00 target price on shares of Federated Hermes in a research note on Tuesday, April 21st. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Federated Hermes currently has a consensus rating of “Hold” and an average target price of $55.25.

About Federated Hermes

Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.

In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.