Federated Hermes (FHI) Q2 2026 earnings summary

Executive summary

• Achieved record assets under management (AUM) of $911.6 billion as of June 30, 2026, up 8% year-over-year, driven by equity, money market, and private market growth, and the FCP Fund Manager acquisition.

• Equity assets reached $109.6 billion, up 23% year-over-year and 9% sequentially, with strong MDT strategy sales.

• Fixed income assets totaled $100.5 billion, up 2% year-over-year and 1% sequentially.

• Alternative/private markets assets rose to $21.6 billion, up 4% year-over-year, aided by the FCP acquisition.

• Money market assets were $676.9 billion, up 7% year-over-year but down 1% sequentially.

Financial highlights

• Q2 2026 revenue was $502.8 million, up 18% year-over-year and 5% quarter-over-quarter, driven by higher equity and money market assets and the FCP acquisition.

• Net income for Q2 2026 was $104.3 million, up 15% from Q2 2025; diluted EPS was $1.38, a 19% increase year-over-year.

• Operating expenses rose 20% year-over-year, mainly due to higher distribution, compensation, and FCP acquisition-related costs.

• Cash and investments at Q2 end were $480.7 million, with long-term debt at $348.5 million.

• Dividend per share for Q2 2026 was $0.38, up from $0.34 in Q2 2025.

Outlook and guidance

• Management expects continued positive net sales in MDT strategies and ongoing expansion in private markets and new product launches.

• $296 million planned over the next three years for technology initiatives and global expansion.

• Expense normalization expected as one-time FCP acquisition costs subside; ongoing comp and professional fees to normalize.