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

Key Points

• EPS beat: Federated Hermes reported quarterly EPS of $1.27, beating the $1.20 consensus by $0.07 while revenue was $478.96M (below the $488.73M estimate) but up 13.1% year‑over‑year; ROE was 34.25% with a 22.4% net margin.
• Total managed assets reached $907 billion, driven by record money market assets of $685 billion and record equity assets of $101 billion, and the firm expanded its private markets footprint (alternatives AUM about $19 billion) including a majority stake in FCP Fund Manager.
• The board raised the quarterly dividend to $0.38 and shareholders approved reserving an additional 5 million Class B shares (potentially dilutive), while the stock traded near $58.11 and analysts show a consensus "Hold" with a $55.25 target.

Federated Hermes (NYSE:FHI - Get Free Report) posted its quarterly 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 return on equity of 34.25% and a net margin of 22.40%.The company had revenue of $478.96 million for the quarter, compared to analysts' expectations of $488.73 million. During the same period in the previous year, the firm earned $1.25 EPS. The firm's revenue was up 13.1% compared to the same quarter last year.

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 Price Performance

Shares of NYSE FHI traded up $1.75 during midday trading on Thursday, reaching $58.11. 661,624 shares of the stock traded hands, compared to its average volume of 749,921. The company's 50 day moving average is $56.57 and its 200 day moving average is $53.41. Federated Hermes has a one year low of $40.24 and a one year high of $59.05. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.75 and a quick ratio of 2.30. The stock has a market capitalization of $4.41 billion, a PE ratio of 11.30, a P/E/G ratio of 1.98 and a beta of 0.67.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on FHI shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Federated Hermes in a research report on Tuesday, April 21st. JPMorgan Chase & Co. lowered shares of Federated Hermes from a "neutral" rating to an "underweight" rating and upped their target price for the stock from $55.00 to $56.00 in a research report on Thursday, April 16th. Argus raised shares of Federated Hermes to a "hold" rating in a research note on Monday, February 2nd. Wall Street Zen upgraded shares of Federated Hermes from a "hold" rating to a "buy" rating in a report on Saturday, April 4th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $56.00 price target 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $55.25.

Insiders Place Their Bets

In related news, VP Paul A. Uhlman sold 72,392 shares of the business'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 owned 263,987 shares in the company, valued at approximately $14,843,989.01. The trade was a 21.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 4.20% of the company's stock.

Institutional Trading of Federated Hermes

Large investors have recently made changes to their positions in the business. Jones Financial Companies Lllp lifted its holdings in shares of Federated Hermes by 236.0% in the 1st quarter. Jones Financial Companies Lllp now owns 8,890 shares of the company's stock valued at $362,000 after acquiring an additional 6,244 shares during the last quarter. United Services Automobile Association purchased a new stake in Federated Hermes during the first quarter valued at approximately $220,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Federated Hermes by 11.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,613 shares of the company's stock valued at $9,769,000 after purchasing an additional 24,960 shares during the last quarter. American Century Companies Inc. lifted its stake in shares of Federated Hermes by 1.9% in the 2nd quarter. American Century Companies Inc. now owns 33,246 shares of the company's stock valued at $1,474,000 after purchasing an additional 614 shares during the last quarter. Finally, Prudential Financial Inc. boosted its holdings in shares of Federated Hermes by 4.9% in the 2nd quarter. Prudential Financial Inc. now owns 11,744 shares of the company's stock worth $497,000 after purchasing an additional 547 shares during the period. 75.94% of the stock is currently owned by institutional investors.

Federated Hermes Company Profile

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.