Federated Hermes posts diluted earnings of $1.50 per share in third quarter
Key Facts
Federated Hermes reported diluted earnings of $1.50 per share in the third quarter of 2026, compared with $1.34 in the same period a year earlier, according to a company statement published via PR Newswire. Net income was $111.9 million, versus $104.1 million in the third quarter of 2025. The results came as total assets under management reached $884.4 billion on September 30. The company also said equity assets under management hit a record $110.5 billion. The board also declared a cash dividend of $0.38 per share.
The quarterly comparison reflects a decline in total assets under management from the record at the end of the second quarter, when they stood at $911.6 billion on June 30, up 8% from June 2025 and $4.5 billion from the end of March. September-end assets were therefore below June’s level, while equity assets continued to rise to a new record. Equity assets were $109.6 billion at the end of June, up 23% year over year and 9% from the end of March. They reached $110.5 billion at the end of September, according to the third-quarter results statement. The figures highlight the different movements in total assets and the equity component between the two periods.
In the second quarter, the company’s revenue rose 18% year over year, driven mainly by higher average assets in equities and money markets, along with a $13.9 million contribution from the FCP acquisition to revenue for that quarter, according to the company’s filing with the U.S. Securities and Exchange Commission. Money market assets accounted for 50% of second-quarter revenue, while long-term assets represented 48%, and other sources made up 2%. Long-term assets were divided among equities at 30%, fixed income at 10%, and alternative, private and multi-asset classes at 8%. These figures provide context on the revenue sources the company disclosed in the previous quarter, without establishing the reasons for the third-quarter result on their own.
Chief Executive J. Christopher Donahue said in the second-quarter statement that the company recorded record gross sales within its quantitative MDT solutions, while positive net sales continued for the fourteenth consecutive quarter. The company cited this performance in its commentary on results and flows in its investment solutions. The third-quarter statement included in the evidence here does not provide comparable detail on the sources of earnings growth or movements in flows. The most notable September asset figure remains a new record for equities, despite total assets under management falling from their June peak. The company declared the $0.38-per-share cash dividend alongside its results.
The company’s FHI shares closed at $56.78 on October 28, 2026, up 0.83% during the session, according to Google Finance data. The close came ahead of the results announcement, scheduled for after the market close on October 29, according to the schedule announced by Federated Hermes. The company scheduled a call for investors and analysts on October 30 at 9 a.m. Eastern time to discuss the results. The call is expected to allow management to present performance details and address questions from investors and analysts. The evidence provided did not include a session high for October 28.