Federated Hermes reported third quarter 2026 results that exceeded analyst expectations on both the top and bottom lines. The firm reached a significant milestone with record equity assets of $110.5 billion, while total managed assets rose 2% year-over-year to $884.4 billion despite a sequential dip in money market balances.
Key Highlights
- Earnings Beat: Diluted EPS reached $1.50, surpassing the $1.42 estimate and increasing 12% from $1.34 in the same period last year.
- Record Equity Assets: Equity assets grew 17% year-over-year to a record $110.5 billion, driven by positive net sales across quantitative investment solutions.
- Revenue Growth: Total revenue climbed 8% to $507.3 million, primarily attributed to higher average equity assets and the acquisition of FCP in the second quarter.
- Asset Composition: Long-term assets now account for 50% of revenue, while money market assets contributed 49% as total money market balances ended the quarter at $649.9 billion.
- Capital Allocation: The board declared a $0.38 dividend and the company repurchased 992,312 shares for $57.4 million during the quarter.