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

Federated Hermes (NYSE:FHI) posted its earnings results on Thursday. The company reported $1.27 EPS for the quarter, topping the consensus estimate 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 business had revenue of $478.96 million during the quarter, compared to analysts’ expectations of $475.22 million. During the same period in the previous year, the business earned $1.25 earnings per share. The firm’s revenue 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 Trading Down 3.0%

FHI traded down $1.74 during midday trading on Friday, reaching $56.36. 274,814 shares of the company’s stock traded hands, compared to its average volume of 743,502. The firm has a fifty day moving average of $56.63 and a two-hundred day moving average of $53.44. The stock has a market capitalization of $4.28 billion, a price-to-earnings ratio of 10.96, a P/E/G ratio of 1.97 and a beta of 0.67. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.75 and a quick ratio of 2.30. Federated Hermes has a 52 week low of $41.04 and a 52 week high of $59.05.

Federated Hermes Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 8th will be given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Friday, May 8th. This is a positive change from Federated Hermes’s previous quarterly dividend of $0.34. Federated Hermes’s dividend payout ratio is currently 26.46%.

Wall Street Analysts Forecast Growth

FHI has been the subject of a number of research reports. Weiss Ratings reiterated a “buy (b)” rating on shares of Federated Hermes in a report on Tuesday, April 21st. JPMorgan Chase & Co. cut Federated Hermes from a “neutral” rating to an “underweight” rating and upped their price objective for the stock from $55.00 to $56.00 in a report on Thursday, April 16th. TD Cowen restated a “hold” rating on shares of Federated Hermes in a report on Thursday, April 9th. Royal Bank Of Canada restated a “sector perform” rating and set a $56.00 target price on shares of Federated Hermes in a report on Tuesday, April 21st. Finally, Wall Street Zen upgraded Federated Hermes from a “hold” rating to a “buy” rating in a report on Saturday, April 4th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Federated Hermes presently has a consensus rating of “Hold” and a consensus target price of $55.25.

Insider Buying and Selling

In other Federated Hermes news, VP Paul A. Uhlman sold 72,392 shares of the company’s stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $56.23, for a total transaction of $4,070,602.16. Following the completion of the transaction, the vice president 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 document filed with the SEC, which is available at the SEC website. 4.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of FHI. Advyzon Investment Management LLC grew its stake in shares of Federated Hermes by 6.0% during the fourth quarter. Advyzon Investment Management LLC now owns 4,594 shares of the company’s stock valued at $239,000 after buying an additional 259 shares during the last quarter. CIBC Private Wealth Group LLC grew its stake in shares of Federated Hermes by 119.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company’s stock valued at $38,000 after buying an additional 401 shares during the last quarter. Kestra Private Wealth Services LLC grew its stake in shares of Federated Hermes by 4.5% during the third quarter. Kestra Private Wealth Services LLC now owns 9,830 shares of the company’s stock valued at $510,000 after buying an additional 424 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its stake in shares of Federated Hermes by 6.1% during the third quarter. Mercer Global Advisors Inc. ADV now owns 7,603 shares of the company’s stock valued at $395,000 after buying an additional 434 shares during the last quarter. Finally, State of Wyoming grew its stake in shares of Federated Hermes by 6.2% during the second quarter. State of Wyoming now owns 7,532 shares of the company’s stock valued at $334,000 after buying an additional 438 shares during the last quarter. Institutional investors own 75.94% of the company’s stock.

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.