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Federated Hermes, Inc. Reports Strong Third Quarter 2026 Earnings

Federated Hermes, Inc. (NYSE: FHI), renowned as a global powerhouse in active investing, has unveiled its promising financial results for the third quarter of 2026. The company reported an earnings per diluted share (EPS) of $1.50, indicating a solid increase from $1.34 in the same quarter last year. This improvement translates to a net income rise to $111.9 million, a noteworthy escalation from $104.1 million recorded in Q3 2025.

The firm’s total managed assets showcased remarkable growth, reaching $884.4 billion as of September 30, 2026. This reflects an increase of $13.2 billion, or 2%, compared to $871.2 billion at the same time the previous year; however, it marks a decline of $27.2 billion, or 3%, from $911.6 billion as of June 30, 2026. For Q3 2026, the average managed assets were reported at $897.7 billion, a significant jump of $38.2 billion, or 4%, from $859.5 billion in Q3 2025, despite a slight decline of $12.3 billion, or 1%, from $910.0 billion in Q2 2026.

In his remarks regarding the quarter's performance, J. Christopher Donahue, President and CEO of Federated Hermes, noted the positive net equity sales that the firm generated, particularly within their structured quantitative investment solutions. The company's equity assets soared to a record $110.5 billion, an increase of $15.8 billion, or 17%, compared to the previous year, and a slight increase of $0.9 billion, or 1%, from Q2 2026.

The board of directors has declared a quarterly dividend of $0.38 per share, which is set to be payable on November 13, 2026, to shareholders recorded as of November 6, 2026. This decision reflects the company’s commitment to delivering shareholder value and consistent returns.

Moreover, during Q3 2026, Federated Hermes leveraged its capital by purchasing 992,312 shares of its Class B common stock at a total cost of $57.4 million, showing confidence in its own stock performance.

Additionally, the demand for alternative strategies continues to surge, exemplified by the record heights achieved in assets within the firm's alternative/private markets. The total assets in this sector reached $21.7 billion, demonstrating an increase of $2.7 billion, or 14%, from $19.0 billion in Q3 2025 and maintaining status against the previous quarter.

The company’s financial performance and strategic moves in Q3 display its robust position within the investment sector, consistently appealing to institutional clients and intermediaries worldwide. In his concluding thoughts, Donahue expressed optimism about the company's trajectory, aiming to capitalize on investment trends while enhancing their offerings in equity, fixed-income, multi-asset, and liquidity management strategies.

Upcoming Earnings Call

Federated Hermes will hold an earnings conference call at 9 a.m. Eastern on Friday, October 30, 2026. Interested investors can access the call by dialing 888-506-0062 domestically or 973-528-0011 internationally. An online listening option is also available on their official website, through the Investor Relations section, along with a subsequent replay service. This proactive approach reflects the firm's transparency and commitment to keeping stakeholders informed.

About Federated Hermes

Federated Hermes stands as a pivotal entity in active investment management with assets exceeding $884.4 billion. The firm caters to a diverse clientele, including corporations, governmental entities, and financial institutions, by providing a wide array of investment solutions that span across multiple asset classes. Headquartered in Pittsburgh, Federated Hermes operates through offices in significant financial hubs, ensuring a global outreach and enriching experience for its stakeholders.