| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 85 | 11.1x | 17.8x | Top tier | |
Growth | 58 | 15.0% | 7.1% | Around median | |
Quality | 98 | — | — | Top tier | |
Safety | 68 | — | — | Top tier | |
Capital Return | 51 | 2.35% | 2.12% | Around median | |
Momentum | 78 | 19.1% | 2.9% | Top tier | |
Sentiment | 39 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Federated Hermes operates in asset management across money markets, equities, fixed income, private markets, alternatives, and multi-asset strategies, generating revenue primarily from asset management fees and related services. The company ended Q2 FY2026 with record assets under management of $912 billion, including $500 billion in money market funds, $110 billion in equities, just over $100 billion in fixed income, and $21.6 billion in private markets and alternatives; this shows that money markets remain the largest driver of the asset base, while equities and private markets provide additional sources of growth.
In Q2 FY2026, revenue reached $502.8 million, up 5% sequentially from $479.0 million in Q1 FY2026. Net income was $104.3 million and earnings per share were $1.38, compared with $96.4 million and earnings per share of $1.27 in the previous quarter, equivalent to a net income margin of approximately 20.7%. On a trailing-twelve-month basis in FY2026, the company recorded revenue of $1.9 billion, net income of $411.9 million, and earnings per share of approximately $5.72, compared with revenue of $1.8 billion, net income of $403.3 million, and earnings per share of $5.13 in FY2025.
Q2 FY2026 revenue growth came from several specific sources: the acquisition of an 80% stake in FCP Fund Manager LP added approximately $14 million, growth in equity assets added $7.6 million, and one additional business day added $5.1 million. This was offset by an $8.4 million decline in money market revenue due to lower average assets, while acquisition costs and professional expenses increased the operating burden during the quarter.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $60, within a range of $57 to $65, compared with a 52-week range of $46.66 to $67.20; the average target is approximately 10.7% below the top of the annual range, while the highest target also remains below it. The “Neutral” consensus rating supports a balanced view of the valuation, and the data do not provide a valid price-to-earnings ratio that can be used to assess whether the stock is inexpensive or highly valued, despite trailing-twelve-month earnings reaching approximately $5.72 per share.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Money markets remain the largest component of Federated Hermes' business, with assets of $665 billion out of a total of approximately $899 billion in late July 2026. Money market fund assets reached $500 billion at the end of Q2 FY2026, up approximately $32 billion, or 7%, year over year. However, lower average money market assets reduced quarterly revenue by $8.4 million, demonstrating revenue's sensitivity to balance levels rather than period-end size alone.
MDT equity and market-neutral strategies generated record gross sales of $6 billion and net sales exceeding $3.5 billion in Q2 FY2026. Additionally, 6 of 9 MDT fund strategies ranked in the top performance quartile of their Morningstar categories over the three years ended at the close of the quarter. Among the institutional wins not yet funded, the company expected $1.6 billion in additions to MDT strategies, making them a key driver of flow diversification away from money markets.
In April 2026, Federated Hermes completed the purchase of an 80% stake in FCP Fund Manager LP, adding $3.2 billion in managed U.S. multifamily residential real estate assets. The transaction added approximately $14 million to Q2 FY2026 revenue, divided between $9 million in the investment advisory category and $5 million in other service fees. In contrast, expenses included $6.5 million in nonrecurring compensation and $3.2 million in professional services related to the transaction, in addition to a $3 million increase in intangible asset amortization.
Equity assets ended Q2 FY2026 at a record $110 billion after increasing sequentially by $8.8 billion, or 9%, but this increase primarily reflected market value gains. The equity category recorded net redemptions of $1.1 billion, including an expected $3 billion redemption from a global equity sub-advisory mandate. In contrast, 35 equity fund and separate-account strategies generated net sales, and MDT net sales exceeded $3.5 billion, revealing a clear divergence among strategies.
The company launched Money Market Management Digital Treasury Fund with a non-tokenized reserve share class designed for institutions and stablecoin issuers seeking investments that comply with reserve requirements. It is also working on an on-chain share class whose official books and records are maintained through blockchain infrastructure under a digital transfer agency model. Federated Hermes participated in initiatives with BNY Goldman and Archex, but described these efforts during the July 31, 2026 call as early-stage, with clients focusing more on information than transaction execution.
The stock carries a Neutral consensus, with an average price target of $60, a low target of $57, and a high target of $65. The average target lies within the 52-week range of $46.66–$67.20, while the highest target remains below the top of that range. The data do not provide a valid price-to-earnings ratio, so FHI's valuation here is based on the target range and trailing-twelve-month earnings of approximately $5.72 per share rather than an unavailable earnings multiple.
