Track market-moving stories before they get noisy

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $911.6 billion in AUM as of June 30, 2026.

FHI is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.18; value investors should take notice.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.25 to $5.50 per share. FHI boasts an average earnings surprise of +14.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, FHI should be on investors' short list.

Key Takeaways Federated Hermes is partnering with Conduit to offer tokenized fund shares to APAC investors.The company's money market AUM reached $676.9 billion, accounting for nearly 74.2% of total AUM.Tokenization could broaden distribution and support AUM and fee-revenue growth as digital adoption expands. Federated Hermes, Inc. (FHI - Free Report) is expanding its presence in the Asia-Pacific (APAC) region through a strategic alliance with Singapore-based Conduit Digital Holdings, a subsidiary of Conduit Group. Under the agreement, a regulated tokenized fund structure will be established in APAC, through which a Conduit-managed fund will invest in FHI’s Short-Term U.S. Prime Fund. Shares of the Conduit-managed fund will then be tokenized and offered to institutional and wholesale investors across the region.

The initiative gives FHI another channel to distribute its money market capabilities while tapping into the growing institutional adoption of blockchain-based financial infrastructure. Importantly, the latest move is FHI’s first digital-assets initiative in APAC, adding a new dimension to its regional growth strategy.

The alliance builds on FHI’s established APAC footprint. The company has maintained a presence in APAC since 2010, with offices in Singapore, Tokyo and Sydney, and plans to open a Hong Kong office to deepen relationships with private banks, family offices, wealth intermediaries and institutional investors. Adding regulated tokenization infrastructure to this footprint could help FHI broaden access to institutional investors and expand its reach across the region.

The Conduit partnership also complements FHI’s broader efforts to bring money market products into the digital-asset ecosystem. In June 2026, the company launched its first GENIUS Act-aligned money market fund in the United States to support stablecoin reserves, with potential for tokenization. Earlier, in October 2025, FHI partnered with UK-based Archax to provide tokenized access to three UCITS money market funds, marking its first non-U.S. digital-assets initiative. The latest alliance therefore represents a further step in FHI’s strategy to integrate its money market capabilities with emerging digital-finance infrastructure.

FHI’s strong money market franchise provides a solid foundation for these initiatives. Its money market assets increased at a five-year compound annual growth rate of 10.2% through 2025 and reached $676.9 billion as of June 30, 2026, up 7% year over year. It accounted for nearly 74.2% of total assets under management (AUM). This sizable asset base gives FHI significant scope to use tokenization to expand distribution as digital investment products gain wider institutional acceptance.

Beyond expanding distribution, tokenization could enhance the utility of FHI’s money market products. Tokenized fund shares could support faster settlement, facilitate collateral management and enable integration with digital treasury and AI-based treasury management systems. As digital-finance infrastructure develops, these capabilities could make money market funds more relevant to institutional workflows and potentially support demand for FHI’s products.

Overall, the Conduit alliance strengthens FHI’s broader APAC expansion and digital-assets strategy rather than serving as an immediate earnings catalyst. Its established regional presence, strong money market franchise and growing tokenization capabilities could broaden distribution and create new avenues for AUM and fee-revenue growth. However, adoption, regulatory developments and institutional demand will determine the pace and financial impact of these initiatives.

How Other Asset Managers Are Expanding Into Tokenized FinanceSimilar to FHI, its peers, Franklin Templeton Inc. (BEN - Free Report) and BlackRock (BLK - Free Report) , are expanding their presence in tokenized assets and blockchain-based financial products.

Franklin Templeton is deepening its focus on tokenized financial products. In June 2026, Franklin Templeton partnered with MoonPay to expand distribution of its tokenized money market funds and facilitate stablecoin-to-fund access for eligible institutions. Its tokenized fund offerings and broader digital-asset initiatives could broaden distribution, attract institutional flows and create new growth opportunities beyond traditional asset management.

BlackRock is also expanding its digital-asset capabilities. In August 2026, BlackRock launched tokenized share classes for select European Institutional Cash Series money market funds through Kinexys, J.P. Morgan’s blockchain and tokenization platform. Earlier, in November 2025, it partnered with Binance to allow its tokenized BUIDL money market fund to serve as collateral for crypto trading, enhancing its utility and institutional appeal.

FHI’s Price Performance & Zacks RankOver the past six months, shares of Federated Hermes have gained 10.5% compared with the industry’s growth of 10%.

Image Source: Zacks Investment Research

The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Federated Hermes (FHI - Free Report) is headquartered in Pittsburgh, and is in the Finance sector. The stock has seen a price change of 23.7% since the start of the year. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 2.36%. In comparison, the Financial - Investment Management industry's yield is 2.39%, while the S&P 500's yield is 1.34%.

Looking at dividend growth, the company's current annualized dividend of $1.52 is up 14.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 28%, meaning it paid out 28% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, FHI expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.50 per share, with earnings expected to increase 10.44% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that FHI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).

Federated Hermes (FHI - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for Federated Hermes basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Federated Hermes imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Federated HermesFor the fiscal year ending December 2026, this one of the nation's largest managers of money market funds is expected to earn $5.50 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Federated Hermes. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.8%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Federated Hermes to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Here are three stocks with buy rank and strong value characteristics for investors to consider today, August 24:

ZIM Integrated Shipping Services (ZIM - Free Report) : This company that provides shipping containers and related services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 143.5% over the last 60 days.

ZIM Integrated Shipping has a price-to-earnings ratio (P/E) of 8.97, compared with 14.80 for the industry. The company possesses a Value Score  of A.

Federated Hermes, Inc. (FHI - Free Report) : This publicly owned investment manager carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days.

Federated Hermes has a price-to-earnings ratio (P/E) of 11.59, compared with 14.50 for industry. The company possesses a Value Score of B.

Envista Holdings Corporation (NVST - Free Report) : This company that designs, produces, markets, and distributes dental products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.8% over the last 60 days.

Envista has a price-to-earnings ratio (P/E) of 17.78, compared with 39.00 for the industry. The company possesses a Value Score of B.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Value score and how it is calculated here.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.

FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.78; value investors should take notice.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.29 to $5.43 per share. FHI boasts an average earnings surprise of +14.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, FHI should be on investors' short list.

Federated Hermes NYSE: FHI ended the second quarter with record assets under management of $912 billion, supported by growth in equities and private markets, while money market assets declined modestly from the prior quarter, executives said during the company’s analyst call.

President and CEO Chris Donahue said equity assets reached a record $110 billion at quarter-end, rising $8.8 billion, or 9%, from the first quarter, primarily reflecting market appreciation. Gross equity sales totaled $9.1 billion, near the prior quarter’s record level, while net redemptions were $1.1 billion. That figure included an expected $3 billion global equity sub-advisory redemption previously discussed by the company.

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Equity and Fixed-Income Activity Equity sales were led by Federated Hermes’ MDT fundamental quantitative strategies. MDT equity and market-neutral strategies generated a record $6 billion in gross sales and more than $3.5 billion in net sales during the quarter. Across the company’s equity platform, 35 equity fund and separately managed account strategies posted net sales, including $2.7 billion from MDT offerings, excluding market-neutral strategies, and $470 million from Strategic Value.

At the end of the quarter, 54% of the company’s equity funds outperformed their Morningstar peer groups over three years, while 30% ranked in the top quartile of their categories. Through July 24, combined equity funds and separately managed accounts had $61 million in net sales for the third quarter to date.

Fixed-income assets ended the second quarter at slightly more than $100 billion, up $689 million. Market appreciation added roughly $1 billion, partly offset by net redemptions and exchanges. The company cited net sales in 26 fixed-income funds and separately managed accounts, led by Core Plus and Core Aggregate SMAs, ultrashort bond funds and the Conservative Muni Micro Short Fund.

Donahue said the firm believes its fixed-income product range and investment management capabilities position it for positive flows. He noted increased interest in shorter-duration offerings such as ultrashort and conservative micro-short strategies. Through July 24, fixed-income funds and SMAs had generated $362 million of net sales in the third quarter.

Private Markets Expansion and Pipeline Alternative private-market assets increased $2.6 billion during the quarter to $21.6 billion. The increase included $3.2 billion in U.S. multifamily real estate assets added through the early-April completion of Federated Hermes’ acquisition of an 80% interest in FCP Fund Manager, L.P.

The company said its MDT market-neutral fund and ETF recorded $150 million in net sales. Federated Hermes is also raising capital for the sixth vintage of its global private equity co-investment fund, which had closed on $300 million to date. The company said its first four private equity co-investment funds raised between $400 million and $600 million each, while the fifth raised $500 million.

At the beginning of the third quarter, the company had about $3.4 billion of net institutional wins yet to fund into funds and separate accounts. The expected inflows include approximately $1.7 billion in equity strategies, $1.3 billion in private-market strategies and $300 million in fixed income. Private-market commitments include expected additions in direct lending, private equity and trade finance.

Money Market Assets and Digital Initiatives Total money market assets declined $7.9 billion, or about 1%, in the second quarter. Money market fund assets fell $2.9 billion from the first quarter to $500 billion, though they remained nearly $32 billion, or 7%, above the year-earlier level. Money market separate-account assets declined about $5 billion, which Donahue said was consistent with seasonal patterns among large state pools managed by the company.

The company estimated its money market mutual fund market share, including sub-advised funds, at about 6.7% at quarter-end, compared with 6.9% in the first quarter. Donahue said market-share movements can reflect a variety of factors, including client activity, retail yield programs, large capital-markets transactions and investors moving into ultrashort strategies.

Chief Investment Officer for Money Markets Debbie Cunningham said the first half saw volatility tied to large IPO and long-term debt transactions, including activity involving Amazon, Alphabet, Anthropic and SpaceX. She said money market funds remain attractive in a short-end rate environment of roughly 3.5% to 4.5% and that the company expects money market funds, separate accounts and pools to continue gathering assets.

Federated Hermes also discussed early-stage digital asset efforts. It recently launched the Money Market Management Digital Treasury Fund, designed to support traditional and on-chain distribution. The fund’s initial reserve shares class is non-tokenized and intended for institutional investors and stablecoin issuers seeking investments aligned with stablecoin reserve requirements. The company is also developing an on-chain share class using blockchain infrastructure for its official books and records.

Revenue, Expenses and Outlook Chief Financial Officer Tom Donahue said second-quarter revenue increased $23.8 million, or 5%, from the first quarter. The FCP acquisition contributed approximately $14 million of revenue, while equity asset growth added $7.6 million and the additional calendar day added $5.1 million. Lower average money market assets reduced revenue by $8.4 million.

Operating expenses rose $17.3 million, or 5%, sequentially, driven largely by FCP acquisition costs, including $6.5 million in nonrecurring acquisition-related compensation and $3.2 million in higher professional service fees. Advertising and promotional costs increased $3.2 million, while intangible asset amortization rose $3 million, primarily because of the acquisition.

Donahue said some acquisition-related costs should decline in the next quarter, including the one-time compensation expense and professional service fees. Federated Hermes ended the quarter with $481 million in cash investments, or $416 million excluding the portion attributable to non-controlling interests. The company estimated its tax rate would range from 25% to 28% for 2026.

About Federated Hermes (NYSE:FHI)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Federated Hermes topped Q2 earnings estimates as revenues rose 18% year over year.FHI reached a record $911.6B in assets under management, driven by growth across asset classes.Federated Hermes acquired a majority stake in FCP Fund Manager, boosting revenue and private market assets. Federated Hermes, Inc.’s (FHI - Free Report) second-quarter 2026 earnings per share of $1.38 topped the Zacks Consensus Estimate of $1.19. The bottom line grew 19% from the year-ago quarter.

Higher net investment advisory fees, net administrative service fees, and net other service fees, along with record assets under management (AUM), drove the quarterly performance. The acquisition of a majority stake in U.S. real estate manager FCP Fund Manager, L.P. during the quarter enhanced revenues, strengthened FHI's private markets capabilities, and increased alternative assets under management. However, the rise in operating expenses remained a headwind.

Net income was $104.3 million in the second quarter, up 14.6% from the year-ago quarter.

FHI’s Revenues Increase, Expenses RiseTotal revenues increased 18% year over year to $502.8 million. The top line surpassed the Zacks Consensus Estimate by 1.7%. The acquisition of FCP Fund Manager contributed $13.9 million to the company's revenues during the quarter.

Quarterly net investment advisory fees rose 17% year over year to $337.7 million.

Net other service fees grew 54% year over year to $54.9 million. Net administrative service fees rose 8% to $110.1 million.

In the second quarter, Federated Hermes derived 50% of its revenues from money-market assets, 48% from long-term assets (30% from equity, 10% from fixed income, and 8% from alternative/private markets and multi-asset), and 2% from sources other than managed assets.

Total operating expenses increased 20% year over year to $369.9 million. The rise was primarily due to higher distribution, compensation, professional service, and other expenses, including acquisition-related costs associated with the FCP Fund Manager, L.P. transaction.

FHI recorded a net non-operating income of $11.1 million, down 19% year over year, mainly due to lower interest and dividend income.

Federated Hermes’ Balance Sheet PositionAs of June 30, 2026, cash and other investments and total long-term debt were $480.7 million and $348.5 million, respectively. Cash and other investments and total long-term debt were $645.4 million and $348.4 million, respectively, as of March 31, 2026.

FHI’s Asset Position ImprovesAs of June 30, 2026, total managed assets were at a record level of $911.6 billion, up 7.8% year over year.

Money-market assets totaled $676.9 billion, rising 6.7% year over year, while fixed-income assets increased 1.8% to $100.5 billion.

Equity assets of $109.6 billion increased 23.1% from the prior-year quarter, while alternative/private market assets increased 4.4% to $21.6 billion, primarily reflecting $3.2 billion of assets acquired through the FCP transaction.

Average managed assets totaled $910 billion, up 8.7% year over year.

Federated Hermes’ Capital Distribution UpdateThe company repurchased 1,119,805 shares of its class B common stock in the reported quarter for $58.9 million.

Federated Hermes also declared a quarterly dividend of 38 cents per share, to be paid out on Aug. 14, 2026, to shareholders of record as of Aug. 7, 2026.

Our Viewpoint on FHIFederated Hermes continues to deliver strong performance, driven by rising AUM and robust revenue growth, supported by higher equity and money market assets. The company has further strengthened its growth prospects by expanding its investment offerings with the launch of two new exchange-traded funds (ETFs) and its first blockchain ecosystem-focused fund, while enhancing its private markets franchise through the FCP acquisition. Although acquisition-related costs and elevated operating expenses may weigh on near-term profitability, healthy asset growth, increasing equity assets, and a diversified product portfolio position FHI well for sustained long-term growth.

Currently, FHI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Asset ManagersSEI Investments Co.’s (SEIC - Free Report) second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.

SEIC’s results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.

BOK Financial Corporation's (BOKF - Free Report) second-quarter 2026 adjusted earnings of $2.59 per share surpassed the Zacks Consensus Estimate of $2.56. The bottom line jumped 18.3% from the prior-year quarter.

BOKF’s results benefited from higher NII and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.

Total assets under management reach a record $911.6 billion Equity assets reach a record $109.6 billion Q2 2026 earnings per diluted share of $1.38 Board declares $0.38 per share dividend , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.38 for Q2 2026, compared to $1.16 for the same quarter last year, on net income of $104.3 million for Q2 2026, compared to $91.0 million for Q2 2025.

Federated Hermes' total managed assets were a record $911.6 billion at June 30, 2026, up $65.9 billion or 8% from $845.7 billion at June 30, 2025 and up $4.5 billion from $907.1 billion at March 31, 2026. Total average managed assets for Q2 2026 were $910.0 billion, up $72.7 billion or 9% from $837.3 billion for Q2 2025 and down $5.6 billion or 1% from $915.6 billion for Q1 2026.

"In addition to reaching record high equity assets in the second quarter, we achieved record gross sales across the range of our MDT suite of quantitative investment solutions, reaching all-time highs in MDT institutional separate accounts and SMAs (separately managed accounts). We also saw net positive MDT sales for the 14th consecutive quarter," said J. Christopher Donahue, president and chief executive officer.

"We continued to broaden our investment offerings by launching two new exchange-traded funds (ETFs) and introducing our first fund designed for use by participants in the blockchain ecosystem. We also expanded our private markets business by acquiring a majority interest in U.S. real estate manager FCP Fund Manager, L.P.," he said.

Federated Hermes' board of directors declared a dividend of $0.38 per share. The dividend is payable on Aug 14, 2026 to shareholders of record as of Aug 7, 2026. During Q2 2026, Federated Hermes purchased 1,119,805 shares of Federated Hermes class B common stock for $58.9 million.

Equity assets were a record $109.6 billion at June 30, 2026, up $20.6 billion or 23% from $89.0 billion at June 30, 2025 and up $8.8 billion or 9% from $100.8 billion at March 31, 2026. Top-selling equity funds during Q2 2026 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT US Equity Fund, Federated Hermes MDT All Cap Core Fund and Federated Hermes MDT Small Cap Core Fund.

Fixed-income assets were $100.5 billion at June 30, 2026, up $1.8 billion or 2% from $98.7 billion at June 30, 2025 and up $0.7 billion or 1% from $99.8 billion at March 31, 2026. Top-selling fixed-income funds during Q2 2026 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Conservative Municipal Microshort Fund, Federated Hermes Adjustable Rate Fund and Federated Hermes Conservative Microshort Fund.

Alternative/private markets assets were $21.6 billion at June 30, 2026, up $0.9 billion or 4% from $20.7 billion at June 30, 2025 and up $2.6 billion or 14% from $19.0 billion at March 31, 2026. The increase was primarily due to $3.2 billion of assets acquired through the FCP Fund Manager, L.P. (FCP) transaction.

Money market assets were $676.9 billion at June 30, 2026, up $42.5 billion or 7% from $634.4 billion at June 30, 2025 and down $7.8 billion or 1% from $684.7 billion at March 31, 2026. Money market fund assets were $499.9 billion at June 30, 2026, up $31.9 billion or 7% from $468.0 billion at June 30, 2025 and down $2.9 billion or 1% from $502.8 billion at March 31, 2026.

Financial Summary

Q2 2026 vs. Q2 2025

Revenue increased $77.9 million or 18% primarily due to an increase from higher average equity and money market assets as well as due to the FCP acquisition in Q2 2026 ($13.9 million).

During Q2 2026, Federated Hermes derived 50% of its revenue from money market assets, 48% from long-term assets (30% from equity, 10% from fixed-income, and 8% from alternative/private markets and multi-asset) and 2% from sources other than managed assets.

Operating expenses increased $62.1 million or 20% primarily due to a $22.4 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $16.7 million increase in compensation and related expense, including $6.5 million of FCP-acquisition-related expenses, a $9.2 million increase in other expense primarily due to fluctuations in foreign currency exchange rates, and a $7.0 million increase in professional service fees including $4.7 million of FCP-acquisition-related expenses. Intangible asset related expenses increased $2.9 million, including $3.0 million of amortization of intangible assets associated with the FCP acquisition.

Nonoperating income (expenses), net for Q2 2026 decreased $2.6 million or 19% primarily due to a decrease in interest and dividend income.

Q2 2026 vs. Q1 2026

Revenue increased $23.8 million or 5% primarily due to the FCP acquisition in Q2 2026 ($13.9 million) and higher average equity assets.

Operating expenses increased $17.3 million or 5% primarily due to a $7.4 million increase in compensation and related expense including $6.5 million of FCP-acquisition-related expenses and a $4.3 million increase in professional service fees primarily due to the increase of FCP-acquisition-related expenses of $3.2 million. Intangible asset related expenses increased $3.0 million due to the amortization of intangible assets associated with the FCP acquisition.

Nonoperating income (expenses), net increased $7.7 million primarily due to a larger increase in the market value of investments in Q2 2026 as compared to the increase in the market value of the investments in Q1 2026.

YTD 2026 vs. YTD 2025

Revenue increased $133.3 million or 16% primarily due to an increase from higher average money market and equity assets and due to the FCP acquisition in Q2 2026 ($13.9 million).

For the first half of 2026, Federated Hermes derived 52% of its revenue from money market assets, 47% from long-term assets (30% from equity, 10% from fixed-income, and 7% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.

Operating expenses increased $123.0 million or 21% primarily due to a $49.0 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $27.5 million increase in compensation and related expense primarily due to higher incentive compensation and $6.5 million of FCP-acquisition-related expenses, a $27.4 million increase in other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. and fluctuations in foreign currency exchange rates, and a $9.8 million increase in professional service fees primarily due to $6.2 million in FCP-acquisition-related expenses and costs related to global technology projects. Intangible asset related expenses increased $3.1 million due primarily to $3.0 million related to the amortization of intangible assets associated with the FCP acquisition.

Nonoperating income (expenses), net decreased $3.4 million primarily due to a decrease in interest and dividend income.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, July 31, 2026. Investors are invited to listen to the earnings teleconference by calling 877-545-0523 (domestic) or 973-528-0016 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on July 31, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 54241. The online replay will be available via FederatedHermes.com/us for one year.

About Federated Hermes

Federated Hermes, Inc. is a global leader in active investment management, with $911.6 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,200 employees in London, New York, Boston and offices worldwide.

Federated Hermes ranks in the top 5% of equity fund managers, the top 8% of money market fund managers and the top 11% of fixed-income fund managers2 in the industry. Federated Hermes also ranks as the 9th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.

###

1) As of June 30, 2026.
2) Morningstar, June 30, 2026. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli Q1 2026.
Federated Securities Corp. is distributor of the Federated Hermes funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, Hermes GPE LLP, and Federated Hermes FCP Manager, LLC, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.

Cautionary statements
Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, investment offerings, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may," and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes' control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Quarter Ended

%
Change
Q2 2025
to Q2
2026

Quarter Ended

%
Change
Q1 2026
to Q2
2026

June 30, 2026

June 30, 2025

March 31, 2026

Revenue

Investment advisory fees, net

$       337,721

$       287,435

17 %

$       319,408

6 %

Administrative service fees, net—affiliates

110,117

101,657

8

110,285

0

Other service fees, net

54,938

35,752

54

49,264

12

Total Revenue

502,776

424,844

18

478,957

5

Operating Expenses

Compensation and related

161,528

144,872

11

154,119

5

Distribution

121,766

99,399

23

125,745

(3)

Systems and communications

25,950

23,481

11

26,463

(2)

Professional service fees

25,610

18,628

37

21,336

20

Office and occupancy

9,836

9,910

(1)

10,062

(2)

Advertising and promotional

7,329

6,146

19

4,098

79

Intangible asset related

6,384

3,503

82

3,422

87

Travel and related

4,558

4,117

11

3,850

18

Other

6,934

(2,296)

402

3,531

96

Total Operating Expenses

369,895

307,760

20

352,626

5

Operating Income

132,881

117,084

13

126,331

5

Nonoperating Income (Expenses)

Investment income (loss), net

14,330

16,947

(15)

6,653

115

Debt expense

(3,159)

(3,170)

0

(3,185)

(1)

Other, net

(22)

(35)

(37)

(30)

(27)

Total Nonoperating Income (Expenses), net

11,149

13,742

(19)

3,438

224

Income before income taxes

144,030

130,826

10

129,769

11

Income tax provision

37,216

34,135

9

33,823

10

Net income including the noncontrolling interests in subsidiaries

106,814

96,691

10

95,946

11

Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries

2,496

5,691

(56)

(432)

NM

Net Income

$       104,318

$         91,000

15 %

$         96,378

8 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share1

Basic and diluted

$            1.38

$            1.16

19 %

$           1.27

9 %

Weighted-Average Shares Outstanding

Basic

71,944

75,064

72,648

Diluted

71,947

75,072

72,650

Dividends Declared Per Share

$            0.38

$            0.34

$           0.34

1)

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $4.8 million, $4.1 million and $4.4 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended June 30, 2026, June 30, 2025 and March 31, 2026, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Six Months Ended

June 30, 2026

June 30, 2025

% Change

Revenue

Investment advisory fees, net

$        657,129

$         574,895

14 %

Administrative service fees, net—affiliates

220,402

202,766

9

Other service fees, net

104,202

70,723

47

Total Revenue

981,733

848,384

16

Operating Expenses

Compensation and related

315,647

288,143

10

Distribution

247,510

198,484

25

Systems and communications

52,413

47,707

10

Professional service fees

46,946

37,176

26

Office and occupancy

19,898

19,862

0

Advertising and promotional

11,427

10,722

7

Intangible asset related

9,805

6,699

46

Travel and related

8,408

7,670

10

Other

10,467

(16,935)

162

Total Operating Expenses

722,521

599,528

21

Operating Income

259,212

248,856

4

Nonoperating Income (Expenses)

Investment income (loss), net

20,984

24,422

(14)

Debt expense

(6,344)

(6,349)

0

Other, net

(53)

(62)

(15)

Total Nonoperating Income (Expenses), net

14,587

18,011

(19)

Income before income taxes

273,799

266,867

3

Income tax provision

71,039

66,300

7

Net income including the noncontrolling interests in subsidiaries

202,760

200,567

1

Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries

2,064

8,433

(76)

Net Income

$        200,696

$         192,134

4 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share1

Basic and diluted

$            2.65

$             2.40

10 %

Weighted-Average Shares Outstanding

Basic

72,294

76,296

Diluted

72,297

76,300

Dividends Declared Per Share

$            0.72

$             0.65

1)

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $9.1 million and $8.7 million available to unvested restricted Federated Hermes shareholders for the six months ended June 30, 2026 and June 30, 2025, respectively, was excluded from the computation of earnings per share.

 Unaudited Condensed Consolidated Balance Sheets

(in thousands)

June 30, 2026

Dec. 31, 2025

Assets

  Cash and other investments

$          480,710

$          724,297

  Other current assets

179,795

139,495

  Intangible assets, net, including goodwill

1,502,875

1,183,612

  Other long-term assets

166,774

181,933

  Total Assets

$        2,330,154

$        2,229,337

Liabilities, Redeemable Noncontrolling Interests and Equity

  Current liabilities

$          254,800

$          314,141

  Long-term debt

348,499

348,369

  Other long-term liabilities

330,001

303,350

  Redeemable noncontrolling interests

144,164

66,529

Equity excluding treasury stock

2,226,526

2,070,162

Treasury stock

(973,836)

(873,214)

  Total Liabilities, Redeemable Noncontrolling Interests and Equity

$        2,330,154

$        2,229,337

Unaudited Changes in Long-Term Assets - By Asset Class

(in millions)

Quarter Ended

Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Equity

Beginning assets

$      100,832

$       97,898

$       80,913

$       97,898

$       79,423

Sales1

9,062

9,091

7,961

18,153

15,373

Redemptions1

(10,202)

(6,878)

(6,180)

(17,080)

(12,173)

Net sales (redemptions)1

(1,140)

2,213

1,781

1,073

3,200

Net exchanges

134

(139)

0

(5)

(114)

Impact of foreign exchange2

(37)

(287)

1,023

(324)

1,777

Market gains and (losses)3

9,801

1,147

5,277

10,948

4,708

Ending assets

$      109,590

$      100,832

$       88,994

$      109,590

$       88,994

Fixed Income

Beginning assets

$       99,798

$      100,127

$       99,486

$      100,127

$       98,059

Sales1

7,687

5,927

5,267

13,614

11,211

Redemptions1

(7,864)

(6,349)

(7,652)

(14,213)

(13,940)

Net sales (redemptions)1

(177)

(422)

(2,385)

(599)

(2,729)

Net exchanges

(153)

148

5

(5)

106

Impact of foreign exchange2

(12)

(40)

208

(52)

293

Market gains and (losses)3

1,031

(15)

1,373

1,016

2,958

Ending assets

$      100,487

$       99,798

$       98,687

$      100,487

$       98,687

Alternative/Private Markets

Beginning assets

$       18,991

$       19,101

$       19,426

$       19,101

$       18,864

Sales1

650

629

782

1,279

1,867

Redemptions1

(1,002)

(547)

(551)

(1,549)

(1,575)

Net sales (redemptions)1

(352)

82

231

(270)

292

Net exchanges

8

0

(1)

8

0

Acquisitions/(dispositions)

3,237

0

109

3,237

109

Impact of foreign exchange2

26

(275)

1,091

(249)

1,623

Market gains and (losses)3

(263)

83

(118)

(180)

(150)

Ending assets

$       21,647

$       18,991

$       20,738

$       21,647

$       20,738

Multi-asset

Beginning assets

$         2,778

$         2,854

$         2,826

$         2,854

$         2,883

Sales1

41

58

44

99

107

Redemptions1

(102)

(94)

(137)

(196)

(242)

Net sales (redemptions)1

(61)

(36)

(93)

(97)

(135)

Net exchanges

0

1

(2)

1

0

Market gains and (losses)3

222

(41)

125

181

108

Ending assets

$         2,939

$         2,778

$         2,856

$         2,939

$         2,856

Total Long-term Assets

Beginning assets

$      222,399

$      219,980

$      202,651

$      219,980

$      199,229

Sales1

17,440

15,705

14,054

33,145

28,558

Redemptions1

(19,170)

(13,868)

(14,520)

(33,038)

(27,930)

Net sales (redemptions)1

(1,730)

1,837

(466)

107

628

Net exchanges

(11)

10

2

(1)

(8)

Acquisitions/(dispositions)

3,237

0

109

3,237

109

Impact of foreign exchange2

(23)

(602)

2,322

(625)

3,693

Market gains and (losses)3

10,791

1,174

6,657

11,965

7,624

Ending assets

$      234,663

$      222,399

$      211,275

$      234,663

$      211,275

1)

For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.

3)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type

(in millions)

Quarter Ended

June 30, 2026

Equity

Fixed Income

Alternative / Private
Markets

Multi-asset

Total

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds.

Separate
Accounts1

Beginning assets

$   55,188

$   45,644

$   45,921

$   53,877

$  12,339

$   6,652

$   2,774

$       4

$ 116,222

$  106,177

Sales

5,443

3,619

3,867

3,820

576

74

41

0

9,927

7,513

Redemptions

(4,080)

(6,122)

(3,994)

(3,870)

(661)

(341)

(102)

0

(8,837)

(10,333)

Net sales (redemptions)

1,363

(2,503)

(127)

(50)

(85)

(267)

(61)

0

1,090

(2,820)

Net exchanges

144

(10)

(153)

0

8

0

0

0

(1)

(10)

Acquisitions/(dispositions)

0

0

0

0

2,788

449

0

0

2,788

449

Impact of foreign exchange2

(68)

31

(3)

(9)

12

14

0

0

(59)

36

Market gains and (losses)3

7,442

2,359

551

480

(144)

(119)

222

0

8,071

2,720

Ending assets

$   64,069

$   45,521

$   46,189

$   54,298

$  14,918

$   6,729

$   2,935

$       4

$ 128,111

$  106,552

Six Months Ended

June 30, 2026

Equity

Fixed Income

Alternative / Private
Markets

Multi-asset

Total

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Beginning assets

$   54,988

$   42,910

$   45,973

$   54,154

$  12,085

$   7,016

$   2,850

$       4

$ 115,896

$  104,084

Sales

11,298

6,855

7,852

5,762

1,185

94

99

0

20,434

12,711

Redemptions

(8,641)

(8,439)

(7,987)

(6,226)

(979)

(570)

(196)

0

(17,803)

(15,235)

Net sales (redemptions)

2,657

(1,584)

(135)

(464)

206

(476)

(97)

0

2,631

(2,524)

Net exchanges

(25)

20

(5)

0

8

0

1

0

(21)

20

Acquisition/(dispositions)

0

0

0

0

2,788

449

0

0

2,788

449

Impact of foreign exchange2

(226)

(98)

(29)

(23)

(147)

(102)

0

0

(402)

(223)

Market gains and (losses)3

6,675

4,273

385

631

(22)

(158)

181

0

7,219

4,746

Ending assets

$   64,069

$   45,521

$   46,189

$   54,298

$  14,918

$   6,729

$   2,935

$       4

$ 128,111

$  106,552

1)

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

3)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Offering Type

(in millions)

Quarter Ended

Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Total Fund Assets

Beginning assets

$       116,222

$      115,896

$      104,289

$      115,896

$      103,567

Sales

9,927

10,507

8,753

20,434

18,032

Redemptions

(8,837)

(8,966)

(9,166)

(17,803)

(17,929)

Net sales (redemptions)

1,090

1,541

(413)

2,631

103

Net exchanges

(1)

(20)

3

(21)

3

Acquisitions/(dispositions)

2,788

0

109

2,788

109

Impact of foreign exchange1

(59)

(343)

1,313

(402)

1,998

Market gains and (losses)2

8,071

(852)

5,108

7,219

4,629

Ending assets

$       128,111

$      116,222

$      110,409

$      128,111

$      110,409

Total Separate Account Assets3

Beginning assets

$       106,177

$      104,084

$       98,362

$      104,084

$       95,662

Sales4

7,513

5,198

5,301

12,711

10,526

Redemptions4

(10,333)

(4,902)

(5,354)

(15,235)

(10,001)

Net sales (redemptions)4

(2,820)

296

(53)

(2,524)

525

Net exchanges

(10)

30

(1)

20

(11)

Acquisitions/(dispositions)

449

0

0

449

0

Impact of foreign exchange1

36

(259)

1,009

(223)

1,695

Market gains and (losses)2

2,720

2,026

1,549

4,746

2,995

Ending assets

$       106,552

$      106,177

$      100,866

$      106,552

$      100,866

Total Long-term Assets3

Beginning assets

$       222,399

$      219,980

$      202,651

$      219,980

$      199,229

Sales4

17,440

15,705

14,054

33,145

28,558

Redemptions4

(19,170)

(13,868)

(14,520)

(33,038)

(27,930)

Net sales (redemptions)4

(1,730)

1,837

(466)

107

628

Net exchanges

(11)

10

2

(1)

(8)

Acquisitions/(dispositions)

3,237

0

109

3,237

109

Impact of foreign exchange1

(23)

(602)

2,322

(625)

3,693

Market gains and (losses)2

10,791

1,174

6,657

11,965

7,624

Ending assets

$       234,663

$      222,399

$      211,275

$      234,663

$      211,275

1)

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

2)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

3)

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings.

4)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Unaudited Managed Assets

(in millions)

June 30, 2026

March 31, 2026

Dec. 31, 2025

Sept. 30, 2025

June 30, 2025

By Asset Class

Equity1

$       109,590

$       100,832

$        97,898

$        94,656

$        88,994

Fixed-Income

100,487

99,798

100,127

101,813

98,687

Alternative / Private Markets

21,647

18,991

19,101

19,024

20,738

Multi-Asset1

2,939

2,778

2,854

2,940

2,856

Total Long-Term Assets

234,663

222,399

219,980

218,433

211,275

Money Market

676,897

684,748

682,604

652,767

634,400

Total Managed Assets

$       911,560

$       907,147

$       902,584

$       871,200

$       845,675

By Offering Type

Funds:

Equity

$        64,069

$        55,188

$        54,988

$        54,110

$        49,359

Fixed-Income

46,189

45,921

45,973

46,478

45,415

Alternative / Private Markets

14,918

12,339

12,085

11,814

12,905

Multi-Asset

2,935

2,774

2,850

2,813

2,730

Total Long-Term Assets

128,111

116,222

115,896

115,215

110,409

Money Market

499,927

502,775

508,403

492,701

468,044

Total Fund Assets

$       628,038

$       618,997

$       624,299

$       607,916

$       578,453

Separate Accounts:

Equity1

$        45,521

$        45,644

$        42,910

$        40,546

$        39,635

Fixed-Income

54,298

53,877

54,154

55,335

53,272

Alternative / Private Markets

6,729

6,652

7,016

7,210

7,833

Multi-Asset1

4

4

4

127

126

Total Long-Term Assets

106,552

106,177

104,084

103,218

100,866

Money Market

176,970

181,973

174,201

160,066

166,356

Total Separate Account Assets

$       283,522

$       288,150

$       278,285

$       263,284

$       267,222

Total Managed Assets

$       911,560

$       907,147

$       902,584

$       871,200

$       845,675

1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

Unaudited Average Managed Assets

Quarter Ended

(in millions)

June 30, 2026

March 31, 2026

Dec. 31, 2025

Sept. 30, 2025

June 30, 2025

By Asset Class

Equity1

$       107,031

$       102,037

$        96,404

$        92,436

$        83,564

Fixed-Income

100,041

100,996

100,855

99,206

98,365

Alternative / Private Markets

22,359

19,232

18,971

19,862

20,053

Multi-Asset1

2,898

2,859

2,836

2,895

2,779

Total Long-Term Assets

232,329

225,124

219,066

214,399

204,761

Money Market

677,685

690,450

654,635

645,092

632,543

Total Avg. Managed Assets

$       910,014

$       915,574

$       873,701

$       859,491

$       837,304

By Offering Type

Funds:

Equity

$        60,933

$        56,987

$        55,101

$        51,828

$        45,965

Fixed-Income

45,827

46,096

46,116

45,743

44,972

Alternative / Private Markets

15,253

12,254

11,871

12,347

12,370

Multi-Asset

2,893

2,855

2,833

2,770

2,654

Total Long-Term Assets

124,906

118,192

115,921

112,688

105,961

Money Market

498,338

507,752

493,355

482,237

462,683

Total Avg. Fund Assets

$       623,244

$       625,944

$       609,276

$       594,925

$       568,644

Separate Accounts:

Equity1

$        46,098

$        45,050

$        41,303

$        40,608

$        37,599

Fixed-Income

54,214

54,900

54,739

53,463

53,393

Alternative / Private Markets

7,106

6,978

7,100

7,515

7,683

Multi-Asset1

5

4

3

125

125

Total Long-Term Assets

107,423

106,932

103,145

101,711

98,800

Money Market

179,347

182,698

161,280

162,855

169,860

Total Avg. Separate Account Assets

$       286,770

$       289,630

$       264,425

$       264,566

$       268,660

Total Avg. Managed Assets

$       910,014

$       915,574

$       873,701

$       859,491

$       837,304

1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

Unaudited Average Managed Assets

Six Months Ended

(in millions)

June 30, 2026

June 30, 2025

By Asset Class

Equity1

$               104,534

$                 82,834

Fixed-Income

100,519

98,862

Alternative / Private Markets

20,796

19,533

Multi-Asset1

2,878

2,840

Total Long-Term Assets

228,727

204,069

Money Market

684,067

636,185

Total Avg. Managed Assets

$               912,794

$               840,254

By Offering Type

Funds:

Equity

$                58,960

$                 45,612

Fixed-Income

45,962

45,344

Alternative / Private Markets

13,754

11,990

Multi-Asset

2,873

2,714

Total Long-Term Assets

121,549

105,660

Money Market

503,045

463,205

Total Avg. Fund Assets

$               624,594

$               568,865

Separate Accounts:

Equity1

$                45,574

$                 37,222

Fixed-Income

54,557

53,518

Alternative / Private Markets

7,042

7,543

Multi-Asset1

5

126

Total Long-Term Assets

107,178

98,409

Money Market

181,022

172,980

Total Avg. Separate Account Assets

$               288,200

$               271,389

Total Avg. Managed Assets

$               912,794

$               840,254

1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

SOURCE Federated Hermes, Inc.

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Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.

FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.55; value investors should take notice.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.14 to $5.24 per share. FHI boasts an average earnings surprise of +14%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, FHI should be on investors' short list.

Posted by Defense World Staff on Jul 28th, 2026

Dimensional Fund Advisors LP cut its stake in shares of Federated Hermes, Inc. (NYSE:FHI – Free Report) by 2.6% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 2,248,200 shares of the company’s stock after selling 60,583 shares during the quarter. Dimensional Fund Advisors LP owned about 2.96% of Federated Hermes worth $127,494,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the company. Parallel Advisors LLC lifted its stake in Federated Hermes by 15.6% in the 1st quarter. Parallel Advisors LLC now owns 15,090 shares of the company’s stock valued at $856,000 after buying an additional 2,033 shares in the last quarter. Advisors Preferred LLC raised its position in shares of Federated Hermes by 75.0% in the first quarter. Advisors Preferred LLC now owns 8,823 shares of the company’s stock valued at $500,000 after buying an additional 3,781 shares during the last quarter. Sanctuary Advisors LLC acquired a new position in shares of Federated Hermes in the first quarter valued at approximately $778,000. State of Michigan Retirement System lifted its stake in shares of Federated Hermes by 1.7% during the first quarter. State of Michigan Retirement System now owns 17,776 shares of the company’s stock valued at $1,008,000 after buying an additional 300 shares during the period. Finally, Principal Financial Group Inc. lifted its stake in shares of Federated Hermes by 3.9% during the first quarter. Principal Financial Group Inc. now owns 162,941 shares of the company’s stock valued at $9,240,000 after buying an additional 6,045 shares during the period. 75.94% of the stock is owned by hedge funds and other institutional investors.

Federated Hermes Price Performance Shares of Federated Hermes stock opened at $59.11 on Tuesday. Federated Hermes, Inc. has a twelve month low of $46.66 and a twelve month high of $60.77. The stock has a market capitalization of $4.49 billion, a P/E ratio of 11.46, a PEG ratio of 1.56 and a beta of 0.65. The company has a current ratio of 3.28, a quick ratio of 2.73 and a debt-to-equity ratio of 0.29. The business’s fifty day moving average price is $57.27 and its 200 day moving average price is $56.07.

Federated Hermes (NYSE:FHI – Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.20 by $0.07. Federated Hermes had a return on equity of 33.90% and a net margin of 21.47%.The business had revenue of $478.96 million during the quarter, compared to analysts’ expectations of $475.22 million. During the same quarter in the previous year, the business earned $1.25 EPS. The company’s revenue for the quarter was up 13.1% on a year-over-year basis. As a group, research analysts anticipate that Federated Hermes, Inc. will post 5.24 earnings per share for the current year.

Federated Hermes Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 8th were paid a $0.38 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.6%. This is a boost from Federated Hermes’s previous quarterly dividend of $0.34. Federated Hermes’s payout ratio is 29.46%.

Insider Activity In other news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $57.34, for a total value of $513,193.00. Following the completion of the sale, the chief executive officer owned 151,276 shares in the company, valued at approximately $8,674,165.84. This trade represents a 5.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Bryan M. Burke sold 4,000 shares of the firm’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $54.20, for a total value of $216,800.00. Following the sale, the vice president owned 74,921 shares in the company, valued at approximately $4,060,718.20. The trade was a 5.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 4.20% of the company’s stock.

Wall Street Analyst Weigh In Several research firms have commented on FHI. Royal Bank Of Canada lifted their target price on shares of Federated Hermes from $54.00 to $57.00 and gave the stock a “sector perform” rating in a research note on Thursday, July 2nd. JPMorgan Chase & Co. reduced their price target on Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a research note on Monday, May 4th. Weiss Ratings restated a “buy (b)” rating on shares of Federated Hermes in a report on Friday, July 17th. Evercore reiterated an “outperform” rating and set a $59.00 target price on shares of Federated Hermes in a research report on Monday, June 8th. Finally, TD Cowen decreased their price target on Federated Hermes from $58.00 to $54.00 and set a “hold” rating on the stock in a research note on Monday, May 4th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Federated Hermes presently has an average rating of “Hold” and a consensus price target of $55.75.

Get Our Latest Research Report on Federated Hermes

Federated Hermes Profile (Free Report)

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.

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Wall Street expects a year-over-year increase in earnings on higher revenues when Federated Hermes (FHI - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis one of the nation's largest managers of money market funds is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +2.6%.

Revenues are expected to be $494.1 million, up 16.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.09% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Federated Hermes?For Federated Hermes, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Federated Hermes will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Federated Hermes would post earnings of $1.2 per share when it actually produced earnings of $1.27, delivering a surprise of +5.83%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Federated Hermes doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

, /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, will report financial and operating results for the quarter ended June 30, 2026, after the market closes on Thursday, July 30, 2026. A conference call for investors and analysts will be held at 9 a.m. Eastern on Friday, July 31, 2026. President and Chief Executive Officer J. Christopher Donahue and Chief Financial Officer Thomas R. Donahue will host the call.

Investors interested in listening to the conference call should dial 877-545-0523 (domestic) or 973-528-0016 (international) or visit FederatedHermes.com/us for real-time internet access. To listen online, go to the About section of the website to register and join the call.

A telephone replay of the call will begin at approximately 12:30 p.m. Eastern on July 31, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter the access code 54241. The online replay will be available via FederatedHermes.com/us for one year.

Federated Hermes, Inc. is a global leader in active investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.

###

SOURCE Federated Hermes, Inc.

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Pittsburgh, Federated Hermes (FHI - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 7.97%. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 2.7%. In comparison, the Financial - Investment Management industry's yield is 2.57%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $1.52 is up 14.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

FHI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.09 per share, representing a year-over-year earnings growth rate of 2.21%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Federated Hermes strategically expands ETF lineup to meet client interests and objectives in a wide range of market conditions Federated Hermes Ultrashort Bond ETF aims to deliver attractive income while maintaining a conservative risk profile , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today introduced Federated Hermes Ultrashort Bond ETF (CBOE: FUSD), designed for investors seeking higher yields in an uncertain interest rate environment.

Federated Hermes Ultrashort Bond ETF pursues its objective of providing total return consistent with current income by investing primarily in a diversified portfolio of investment-grade debt securities. The ETF seeks to offer a competitive and attractive yield while minimizing interest rate risk by limiting its effective duration to one year or less.

The portfolio management team – led by Nicholas Tripodes, CFA, senior portfolio manager and head of the Low Duration Multisector Group; Daniel Mastalski, CFA, portfolio manager; and Bradley Payne, portfolio manager – actively adjusts positioning as market conditions evolve, drawing on the collective insights of Federated Hermes' fixed income leadership and sector specialists. Portfolio construction is guided by the firm's established fixed-income framework, which emphasizes sector allocation, security selection and interest-rate positioning, seeking diversified sources of alpha rather than reliance on any single market factor. Federated Hermes manages $42.9 billion in short-duration fixed-income assets as of March 31, 2026.

"We offer a comprehensive suite of investment solutions across the full investment horizon to help meet the evolving needs of our clients," said Paul A. Uhlman, president and chief executive officer of the Federated Advisory Companies. "Through active allocation across high‑quality, short‑term fixed-income sectors, Federated Hermes Ultrashort Bond ETF offers a disciplined step beyond traditional cash alternatives while avoiding long‑duration risk."

"With more than 55 years of fixed-income investing experience, Federated Hermes is known for disciplined credit research, management stability and a repeatable investment process," said Brandon Clark, ETF business director at Federated Hermes. "Federated Hermes Ultrashort Bond ETF reflects that long history of short-duration fixed-income strategies with the outperformance potential, tactical flexibility, tax efficiency, transparency, liquidity and ease of use of active ETFs."

Federated Hermes offers actively managed ETFs designed to pursue growth, diversification or income generation for strategic or tactical needs. As of May 31, 2026, Federated Hermes manages more than $2.6 billion in ETF assets.

Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.

# # #

Investors should carefully consider the ETF's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us at 1-800-341-7400 or visit FederatedHermes.com/us. Please carefully read the summary prospectus or the prospectus before investing.

Past performance is no guarantee of future results.

ETFs are subject to risks and fluctuate in value.

Diversification does not assure a profit nor protect against loss.

Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.

Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. In addition, fixed-income investors should be aware of other risks such as credit risk, inflation risk, call risk and liquidity risk.

The fund is a new fund that recently commenced operations. New funds have limited operating histories for investors to evaluate and new funds may not attract sufficient assets to achieve investment and trading efficiencies.

ETFs are generally more tax efficient than traditional mutual funds due to their structure. When investors redeem shares, ETFs can do so in-kind, meaning they exchange shares for underlying assets without triggering capital gains taxes for remaining investors. ETFs often distribute fewer capital gains to investors compared to mutual funds, leading to lower tax liabilities.

ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. NAVs are calculated using prices as of the end of regular trading on the New York Stock Exchange (normally 4:00 PM Eastern Time). Recent information, including information about the fund's NAV, market price, premiums and discounts, and bid-ask spreads, is included on the fund's website at FederatedHermes.com/us.

The fund is not a "money market" mutual fund. Some money market mutual funds attempt to maintain a stable net asset value through compliance with relevant Securities and Exchange Commission (SEC) rules. The fund is not governed by those rules, and its shares will fluctuate in value.

Alpha is a measure of excess return.

The yield curve is a graph showing the comparative yields of securities in a particular class according to maturity.  Securities on the long end of the yield curve have longer maturities.

There is no guarantee that active ETFs will outperform passive ETFs and they may underperform. Active ETFs typically have higher fees than passive ETFs, which can reduce performance.

Federated Securities Corp.is Distributor of the Federated Hermes Funds.

SOURCE Federated Hermes, Inc.

Key Takeaways Federated Hermes hit an all-time high of $59.68 and outperformed BLK, ARES and the industry YTD.FHI's AUM grew at a 7.8% CAGR over the five years ended 2025, aided by strategic acquisitions.FHI maintains strong liquidity and continues to support dividends and share repurchases. Shares of Federated Hermes, Inc. (FHI - Free Report) have touched its all-time high of $59.68 during yesterday’s trading session before closing at $59.29.

The FHI stock has gained 13.9% year to date, significantly outperforming the industry, which has lost 7.4% over the same period. FHI has also outperformed its close peers, BlackRock, Inc. (BLK - Free Report) and Ares Management Corporation (ARES - Free Report) . BlackRock and Ares Management shares have lost 1.2% and 20.6%, respectively, year to date.

Price Performance
Image Source: Zacks Investment Research

Let’s now take a closer look at the factors supporting FHI’s momentum.

Major Factors at Play for Federated HermesInorganic Growth Efforts Continue to Drive AUM: Federated Hermes has been strengthening its private markets and investment capabilities through strategic acquisitions over the years. In April 2026, the company acquired an 80% stake in FCP Fund Manager, L.P., a U.S.-based real estate investment manager. The transaction expanded its private markets and alternatives platform in the United States while complementing its U.K. real estate operations.

Earlier, in April 2025, Federated Hermes acquired a majority stake in Rivington Energy Management Limited, strengthening its infrastructure platform and private markets offering. Further, the acquisition of C.W. Henderson and Associates, Inc. in 2022 strengthened its separately managed account business.

Through these acquisitions, Federated Hermes continues to expand its presence across asset classes and geographic markets. Its inorganic growth initiatives have supported steady growth in assets under management (AUM), which increased at a 7.8% compound annual growth rate (CAGR) over the five years ended 2025, with the momentum continuing in the first quarter of 2026. These efforts are expected to support long-term AUM growth and enhance the company's revenue-generating capabilities.

Strength in Money Market Business: Federated Hermes continues to benefit from its strong position in the money market space. The company's money market assets expanded at a 10.2% CAGR over the five years ended 2025, with the momentum continuing in the first quarter of 2026.

The U.S. asset-management industry has continued to benefit from robust demand for money market products and cash-management solutions so far in 2026. Investors have maintained significant cash balances in money market funds to capture attractive short-term yields and preserve liquidity, providing a favorable backdrop for asset managers like FHI with sizable money market franchises.

Given this favorable industry backdrop, management expects money market strategies to remain attractive, as fund yields continue to compare favorably with direct market instruments and bank deposit rates. As such, continued growth in the money market AUM is likely to support overall asset growth and enhance the company's ability to offer a broader range of solutions to clients.

Strong Liquidity Supports Shareholder Returns: Federated Hermes maintains a solid liquidity position, providing financial flexibility and supporting its capital distribution activities. As of March 31, 2026, the company had cash and other investments of $645.4 million, exceeding its long-term debt of $348.4 million. Further, it had no outstanding borrowings under its $350 million unsecured revolving credit facility.

As such, the company's healthy liquidity position continues to support its shareholder-friendly initiatives. In July 2025, Federated Hermes authorized its 18th share repurchase program, allowing it to buyback up to an additional 5 million shares of common stock. As of March 31, 2026, 4.6 million shares remained available under its existing repurchase authorizations. Apart from share buybacks, the company has consistently paid dividends since its initial public offering in 1998. In April 2026, it increased its quarterly dividend by 11.8% to 38 cents per share, reflecting an annualized dividend growth rate of 6.6%. FHI currently offers a dividend yield of 2.6%, while its peers, BlackRock and Ares Management, have dividend yields of 2.2% and 4.2%, respectively.

Dividend Yield
Image Source: Zacks Investment Research

A Few Concerns Persist for Federated HermesMounting Expenses: Federated Hermes has been witnessing a steady increase in operating expenses. Although the metric declined in 2021, operating expenses recorded a five-year (ended 2025) CAGR of 4.5%, primarily driven by intangible asset-related costs.

Further, expense growth continued in the first quarter of 2026, due to higher distribution costs associated with increased average money market fund assets and elevated incentive compensation. With additional FCP acquisition-related costs expected in the second quarter of 2026, expense pressures are likely to persist in the near term.

Expense Growth Trend
Image Source: Zacks Investment Research

Dependence on Investment Advisory Fees: Net investment advisory fees account for a substantial portion of FHI's revenues. As of March 31, 2026, these fees comprised 66.7% of total revenues. As such, the company's financial performance remains closely tied to the level of managed assets.

Significant fluctuations in the fair value of securities held by the funds and other products advised by Federated Hermes, or elevated client redemptions, could adversely affect AUM levels. This, in turn, may hurt investment advisory fees, posing a headwind to the company's revenue growth and profitability.

FHI’s Bullish Analyst ExpectationsEarnings estimates for Federated Hermes have moved upward for 2026 over the past month, while estimates for 2027 have remained unchanged. The anticipated estimates imply growth of 2.4% and 10.8% for 2026 and 2027, respectively, reflecting analysts’ confidence in the company’s earnings trajectory.

Estimates Revision Trend
Image Source: Zacks Investment Research

Attractive Valuation for FHI StockFHI stock appears inexpensive relative to the industry. The company's forward 12-month price-to-earnings (P/E) multiple of 11.1X is below the industry's 13.9X.

Price-to-Earnings F12M
Image Source: Zacks Investment Research

Meanwhile, BlackRock holds a P/E ratio of 18.7X, while Ares Management’s P/E ratio stands at 19.1X.

How to Approach FHI Stock NowFHI's inorganic growth efforts, strength in the money market business and healthy liquidity position are expected to support its financial performance. The company is expected to continue rewarding shareholders through dividends and share repurchases.

Moreover, strong earnings growth estimates and FHI’s attractive valuation looks encouraging.

However, mounting expenses, driven by higher distribution costs and acquisition-related expenses, are likely to hurt the company's profitability in the near term. Its significant dependence on investment advisory fees remains a concern. Ongoing uncertainty in the private credit market amid weaker investor sentiment and rising redemption requests across the sector could weigh on fundraising activity and its AUM growth.

Hence, investors should not rush to buy the FHI stock now; instead, they should keep the stock on their radars and wait for a more attractive entry point. Those who already own the stock can continue to hold it, given its solid fundamentals.

At present, FHI carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 

Total assets under management reach a record $907.1 billion Money market assets reach a record $684.7 billion Equity assets reach a record $100.8 billion Q1 2026 earnings per diluted share of $1.27 Quarterly dividend increased by 11.8% from previous quarter to $0.38 per share , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.27 for Q1 2026, compared to $1.25 for the same quarter last year, on net income of $96.4 million for Q1 2026, compared to $101.1 million for Q1 2025. Federated Hermes' Q1 2025 results included a $12.9 million decrease in other operating expense, or $0.15 per diluted share, resulting from a value-added tax (VAT) refund received as part of amended VAT filings in the U.K.

Federated Hermes' total managed assets were a record $907.1 billion at March 31, 2026, up $67.3 billion or 8% from $839.8 billion at March 31, 2025 and up $4.5 billion from $902.6 billion at Dec. 31, 2025. Total average managed assets for Q1 2026 were $915.6 billion, up $72.4 billion or 9% from $843.2 billion for Q1 2025 and up $41.9 billion or 5% from $873.7 billion for Q4 2025.

"In the first quarter, we saw record gross sales and positive net flows in our equity offerings as we continued momentum from the previous year, with investor interest in a range of our offering types," said J. Christopher Donahue, president and chief executive officer. "Separate accounts reached new record assets on overall demand for our MDT suite of quantitative investment solutions, led by our MDT All Cap Core and MDT Mid Cap Growth offerings. Investors with interest in capital preservation and liquidity continued to rely on our money market offerings and—for those interested in moving further out the yield curve in the pursuit of higher yields than money market products—our ultrashort funds."

Federated Hermes' board of directors declared a dividend of $0.38 per share, which was an increase of $0.04 or 11.8% from the previous quarter. The dividend is payable on May 15, 2026 to shareholders of record as of May 8, 2026. During Q1 2026, Federated Hermes purchased 1,191,300 shares of Federated Hermes class B common stock for $66.0 million.

Equity assets were a record $100.8 billion at March 31, 2026, up $19.9 billion or 25% from $80.9 billion at March 31, 2025 and up $2.9 billion or 3% from $97.9 billion at Dec. 31, 2025. Top-selling equity funds during Q1 2026 on a net basis were Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT All Cap Core Fund, Federated Hermes MDT US Equity Fund and Federated Hermes MDT Small Cap Core Fund.

Fixed-income assets were $99.8 billion at March 31, 2026, up $0.3 billion from $99.5 billion at March 31, 2025 and down $0.3 billion from $100.1 billion at Dec. 31, 2025. Top-selling fixed-income funds during Q1 2026 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Municipal Ultrashort Fund, Federated Hermes Government Ultrashort Fund and Federated Hermes Short-Term Income Fund.

Alternative/private markets assets were $19.0 billion at March 31, 2026, down $0.4 billion or 2% from $19.4 billion at March 31, 2025 and down $0.1 billion or 1% from $19.1 billion at Dec. 31, 2025.

Money market assets were a record $684.7 billion at March 31, 2026, up $47.6 billion or 7% from $637.1 billion at March 31, 2025 and up $2.1 billion from $682.6 billion at Dec. 31, 2025. Money market fund assets were $502.8 billion at March 31, 2026, up $37.9 billion or 8% from $464.9 billion at March 31, 2025 and down $5.6 billion or 1% from $508.4 billion at Dec. 31, 2025.

Financial Summary

Q1 2026 vs. Q1 2025

Revenue increased $55.4 million or 13% primarily due to an increase in revenue due to higher average money market and equity assets. This increase was partially offset by a decrease in performance fees and carried interest of $5.6 million, which includes a decrease of $1.0 million in carried interest from consolidated carried interest vehicles, which is largely offset in compensation expense.

During Q1 2026, Federated Hermes derived 54% of its revenue from money market assets, 45% from long-term assets (30% from equity, 10% from fixed-income, and 5% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.

Operating expenses increased $60.9 million or 21% primarily due to a $26.7 million increase in distribution expenses resulting primarily from higher average money market fund assets, an $18.2 million increase in other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. and fluctuations in foreign currency exchange rates, and a $10.8 million increase in compensation and related expense primarily due to higher incentive compensation.

Nonoperating income (expenses), net for Q1 2026 decreased $0.8 million due primarily to lower net gains on securities.

Q1 2026 vs. Q4 2025

Revenue decreased $3.9 million or 1% primarily due to a $10.5 million decrease in revenue resulting from two fewer days in Q1 2026 and a decrease in development fees of $8.6 million. These decreases were partially offset by an increase in revenue due to higher average money market and equity assets.

Operating expenses increased $5.4 million or 2% primarily due to a $9.1 million increase in compensation and related expense  primarily from higher stock-based compensation expense, partially offset by a $3.4 million decrease in Other expense primarily due to lower charitable contributions.

Nonoperating income (expenses), net decreased $1.3 million due primarily to lower net gains on securities .

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, May 1, 2026. Investors are invited to listen to the earnings teleconference by calling 888-506-0062 (domestic) or 973-528-0011 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on May 1, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 53870. The online replay will be available via FederatedHermes.com/us for one year.

About Federated Hermes

Federated Hermes, Inc. is a global leader in active investment management, with $907.1 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide.

Federated Hermes ranks in the top 5% of equity fund managers, the top 8% of money market fund managers and the top 11% of fixed-income fund managers2 in the industry. Federated Hermes also ranks as the 10th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.

###

1) As of March 31, 2026.
2) Morningstar, March 31, 2026. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli,Q4 2025.
Federated Securities Corp. is distributor of the Federated Hermes funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, and Hermes GPE LLP, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.

Cautionary statements

Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may," and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes' control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Quarter Ended

%
Change
Q1 2025
to Q1
2026

Quarter Ended

%
Change
Q4 2025
to Q1
2026

March 31, 2026

March 31, 2025

Dec. 31, 2025

Revenue

Investment advisory fees, net

$        319,408

$        287,460

11 %

$       313,975

2 %

Administrative service fees, net—affiliates

110,285

101,109

9

109,759

0

Other service fees, net

49,264

34,971

41

59,099

(17)

Total Revenue

478,957

423,540

13

482,833

(1)

Operating Expenses

Compensation and related

154,119

143,270

8

144,981

6

Distribution

125,745

99,085

27

122,339

3

Systems and communications

26,463

24,226

9

24,719

7

Professional service fees

21,336

18,548

15

23,399

(9)

Office and occupancy

10,062

9,952

1

9,704

4

Advertising and promotional

4,098

4,576

(10)

7,001

(41)

Travel and related

3,850

3,553

8

4,677

(18)

Intangible asset related

3,422

3,196

7

3,475

(2)

Other

3,531

(14,638)

(124)

6,964

(49)

Total Operating Expenses

352,626

291,768

21

347,259

2

Operating Income

126,331

131,772

(4)

135,574

(7)

Nonoperating Income (Expenses)

Investment income (loss), net

6,653

7,475

(11)

7,886

(16)

Debt expense

(3,185)

(3,179)

0

(3,201)

0

Other, net

(30)

(27)

(11)

73

(141)

Total Nonoperating Income (Expenses), net

3,438

4,269

(19)

4,758

(28)

Income before income taxes

129,769

136,041

(5)

140,332

(8)

Income tax provision

33,823

32,165

5

32,899

3

Net income including the noncontrolling interests in subsidiaries

95,946

103,876

(8)

107,433

(11)

Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries

(432)

2,742

(116)

394

(210)

Net Income

$         96,378

$        101,134

(5) %

$        107,039

(10) %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share1

Basic and diluted

$            1.27

$            1.25

2 %

$            1.39

(9) %

Weighted-Average Shares Outstanding

Basic

72,648

77,541

73,795

Diluted

72,650

77,542

73,795

Dividends Declared Per Share

$            0.34

$            0.31

$            0.34

1)

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $4.4 million, $4.5 million and $4.8 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended March 31, 2026, March 31, 2025 and Dec. 31, 2025, respectively, was excluded from the computation of earnings per share.

 Unaudited Condensed Consolidated Balance Sheets

(in thousands)

March 31, 2026

Dec. 31, 2025

Assets

  Cash and other investments

$          645,417

$           724,297

  Other current assets

143,153

139,495

  Intangible assets, net, including goodwill

1,173,986

1,183,612

  Other long-term assets

181,251

181,933

  Total Assets

$        2,143,807

$         2,229,337

Liabilities, Redeemable Noncontrolling Interests and Equity

  Current liabilities

$          240,680

$           314,141

  Long-term debt

348,434

348,369

  Other long-term liabilities

291,853

303,350

  Redeemable noncontrolling interests

58,520

66,529

Equity excluding treasury stock

2,133,825

2,070,162

Treasury stock

(929,505)

(873,214)

  Total Liabilities, Redeemable Noncontrolling Interests and Equity

$        2,143,807

$         2,229,337

Unaudited Changes in Long-Term Assets - By Asset Class

(in millions)

Quarter Ended

March 31, 2026

Dec. 31, 2025

March 31, 2025

Equity

Beginning assets

$        97,898

$        94,656

$        79,423

Sales1

9,091

8,949

7,412

Redemptions1

(6,878)

(7,431)

(5,993)

Net sales (redemptions)1

2,213

1,518

1,419

Net exchanges

(139)

139

(114)

Impact of foreign exchange2

(287)

107

754

Market gains and (losses)3

1,147

1,478

(569)

Ending assets

$       100,832

$        97,898

$        80,913

Fixed Income

Beginning assets

$       100,127

$       101,813

$        98,059

Sales1

5,927

5,891

5,944

Redemptions1

(6,349)

(8,687)

(6,288)

Net sales (redemptions)1

(422)

(2,796)

(344)

Net exchanges

148

15

101

Impact of foreign exchange2

(40)

6

85

Market gains and (losses)3

(15)

1,089

1,585

Ending assets

$        99,798

$       100,127

$        99,486

Alternative/Private Markets

Beginning assets

$        19,101

$        19,024

$        18,864

Sales1

629

724

1,085

Redemptions1

(547)

(592)

(1,024)

Net sales (redemptions)1

82

132

61

Net exchanges

0

0

1

Impact of foreign exchange2

(275)

35

532

Market gains and (losses)3

83

(90)

(32)

Ending assets

$        18,991

$        19,101

$        19,426

Multi-asset

Beginning assets

$         2,854

$         2,940

$         2,883

Sales1

58

59

63

Redemptions1

(94)

(92)

(105)

Net sales (redemptions)1

(36)

(33)

(42)

Net exchanges

1

(121)

2

Market gains and (losses)3

(41)

68

(17)

Ending assets

$         2,778

$         2,854

$         2,826

Total Long-term Assets

Beginning assets

$       219,980

$       218,433

$       199,229

Sales1

15,705

15,623

14,504

Redemptions1

(13,868)

(16,802)

(13,410)

Net sales (redemptions)1

1,837

(1,179)

1,094

Net exchanges

10

33

(10)

Impact of foreign exchange2

(602)

148

1,371

Market gains and (losses)3

1,174

2,545

967

Ending assets

$       222,399

$       219,980

$       202,651

1)

For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.

3)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type

(in millions)

Quarter Ended

March 31, 2026

Equity

Fixed Income

Alternative / Private
Markets

Multi-asset

Total

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds.

Separate
Accounts1

Beginning assets

$   54,988

$   42,910

$   45,973

$   54,154

$  12,085

$   7,016

$    2,850

$       4

$ 115,896

$  104,084

Sales

5,855

3,236

3,985

1,942

609

20

58

0

10,507

5,198

Redemptions

(4,561)

(2,317)

(3,993)

(2,356)

(318)

(229)

(94)

0

(8,966)

(4,902)

Net sales (redemptions)

1,294

919

(8)

(414)

291

(209)

(36)

0

1,541

296

Net exchanges

(169)

30

148

0

0

0

1

0

(20)

30

Impact of foreign exchange2

(158)

(129)

(26)

(14)

(159)

(116)

0

0

(343)

(259)

Market gains and (losses)3

(767)

1,914

(166)

151

122

(39)

(41)

0

(852)

2,026

Ending assets

$   55,188

$   45,644

$   45,921

$   53,877

$  12,339

$   6,652

$    2,774

$       4

$ 116,222

$  106,177

1)

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

3)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Offering Type

(in millions)

Quarter Ended

March 31, 2026

Dec. 31, 2025

March 31, 2025

Total Fund Assets

Beginning assets

$       115,896

$       115,215

$       103,567

Sales

10,507

10,419

9,279

Redemptions

(8,966)

(10,835)

(8,763)

Net sales (redemptions)

1,541

(416)

516

Net exchanges

(20)

33

0

Impact of foreign exchange1

(343)

34

685

Market gains and (losses)2

(852)

1,030

(479)

Ending assets

$       116,222

$       115,896

$       104,289

Total Separate Account Assets3

Beginning assets

$       104,084

$       103,218

$        95,662

Sales4

5,198

5,204

5,225

Redemptions4

(4,902)

(5,967)

(4,647)

Net sales (redemptions)4

296

(763)

578

Net exchanges

30

0

(10)

Impact of foreign exchange1

(259)

114

686

Market gains and (losses)2

2,026

1,515

1,446

Ending assets

$       106,177

$       104,084

$        98,362

Total Long-term Assets3

Beginning assets

$       219,980

$       218,433

$       199,229

Sales4

15,705

15,623

14,504

Redemptions4

(13,868)

(16,802)

(13,410)

Net sales (redemptions)4

1,837

(1,179)

1,094

Net exchanges

10

33

(10)

Impact of foreign exchange1

(602)

148

1,371

Market gains and (losses)2

1,174

2,545

967

Ending assets

$       222,399

$       219,980

$       202,651

1)

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

2)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

3)

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings.

4)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Unaudited Managed Assets

(in millions)

March 31, 2026

Dec. 31, 2025

Sept. 30, 2025

June 30, 2025

March 31, 2025

By Asset Class

Equity

$       100,832

$         97,898

$         94,656

$         88,994

$         80,913

Fixed-Income

99,798

100,127

101,813

98,687

99,486

Alternative / Private Markets

18,991

19,101

19,024

20,738

19,426

Multi-Asset

2,778

2,854

2,940

2,856

2,826

Total Long-Term Assets

222,399

219,980

218,433

211,275

202,651

Money Market

684,748

682,604

652,767

634,400

637,122

Total Managed Assets

$       907,147

$       902,584

$       871,200

$       845,675

$       839,773

By Offering Type

Funds:

Equity

$         55,188

$         54,988

$         54,110

$         49,359

$         43,910

Fixed-Income

45,921

45,973

46,478

45,415

45,800

Alternative / Private Markets

12,339

12,085

11,814

12,905

11,879

Multi-Asset

2,774

2,850

2,813

2,730

2,700

Total Long-Term Assets

116,222

115,896

115,215

110,409

104,289

Money Market

502,775

508,403

492,701

468,044

464,912

Total Fund Assets

$       618,997

$       624,299

$       607,916

$       578,453

$       569,201

Separate Accounts:

Equity

$         45,644

$         42,910

$         40,546

$         39,635

$         37,003

Fixed-Income

53,877

54,154

55,335

53,272

53,686

Alternative / Private Markets

6,652

7,016

7,210

7,833

7,547

Multi-Asset

4

4

127

126

126

Total Long-Term Assets

106,177

104,084

103,218

100,866

98,362

Money Market

181,973

174,201

160,066

166,356

172,210

Total Separate Account Assets

$       288,150

$       278,285

$       263,284

$       267,222

$       270,572

Total Managed Assets

$       907,147

$       902,584

$       871,200

$       845,675

$       839,773

Unaudited Average Managed Assets

Quarter Ended

(in millions)

March 31, 2026

Dec. 31, 2025

Sept. 30, 2025

June 30, 2025

March 31, 2025

By Asset Class

Equity

$       102,037

$         96,404

$         92,436

$         83,564

$         82,105

Fixed-Income

100,996

100,855

99,206

98,365

99,360

Alternative / Private Markets

19,232

18,971

19,862

20,053

19,012

Multi-Asset

2,859

2,836

2,895

2,779

2,900

Total Long-Term Assets

225,124

219,066

214,399

204,761

203,377

Money Market

690,450

654,635

645,092

632,543

639,827

Total Avg. Managed Assets

$       915,574

$       873,701

$       859,491

$       837,304

$       843,204

By Offering Type

Funds:

Equity

$         56,987

$         55,101

$         51,828

$         45,965

$         45,260

Fixed-Income

46,096

46,116

45,743

44,972

45,715

Alternative / Private Markets

12,254

11,871

12,347

12,370

11,610

Multi-Asset

2,855

2,833

2,770

2,654

2,774

Total Long-Term Assets

118,192

115,921

112,688

105,961

105,359

Money Market

507,752

493,355

482,237

462,683

463,727

Total Avg. Fund Assets

$       625,944

$       609,276

$       594,925

$       568,644

$       569,086

Separate Accounts:

Equity1

$         45,050

$         41,303

$         40,608

$         37,599

$         36,845

Fixed-Income

54,900

54,739

53,463

53,393

53,645

Alternative / Private Markets

6,978

7,100

7,515

7,683

7,402

Multi-Asset1

4

3

125

125

126

Total Long-Term Assets

106,932

103,145

101,711

98,800

98,018

Money Market

182,698

161,280

162,855

169,860

176,100

Total Avg. Separate Account Assets

$       289,630

$       264,425

$       264,566

$       268,660

$       274,118

Total Avg. Managed Assets

$       915,574

$       873,701

$       859,491

$       837,304

$       843,204

1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

SOURCE Federated Hermes, Inc.

Federated Hermes (FHI - Free Report) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.97%. A quarter ago, it was expected that this one of the nation's largest managers of money market funds would post earnings of $1.2 per share when it actually produced earnings of $1.39, delivering a surprise of +15.83%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Federated Hermes, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $478.96 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.17%. This compares to year-ago revenues of $423.54 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Federated Hermes shares have added about 8.2% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for Federated Hermes?While Federated Hermes has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Federated Hermes was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $484.37 million in revenues for the coming quarter and $5.08 on $1.95 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Affiliated Managers Group (AMG - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 1.

This asset manager is expected to post quarterly earnings of $8.10 per share in its upcoming report, which represents a year-over-year change of +55.8%. The consensus EPS estimate for the quarter has been revised 0% lower over the last 30 days to the current level.

Affiliated Managers Group's revenues are expected to be $543.02 million, up 9.4% from the year-ago quarter.

Federated Hermes, Inc. (FHI) Q1 2026 Earnings Call Transcript

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Pittsburgh, Federated Hermes (FHI - Free Report) is a Finance stock that has seen a price change of 4.36% so far this year. The one of the nation's largest managers of money market funds is currently shelling out a dividend of $0.34 per share, with a dividend yield of 2.5%. This compares to the Financial - Investment Management industry's yield of 2.61% and the S&P 500's yield of 1.43%.

Looking at dividend growth, the company's current annualized dividend of $1.36 is up 2.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, FHI expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.08 per share, which represents a year-over-year growth rate of 2.01%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

, /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced that monthly fund composition and performance data for Federated Hermes Premier Municipal Income Fund (NYSE: FMN) as of April 30, 2026, is now available in the Products section of FederatedHermes.com/us. To order hard copies of this data or to be placed on a mailing list, call 800-245-0242 x5587538, email [email protected] or write to Federated Hermes, 1001 Liberty Avenue, Floor 23, Pittsburgh, PA 15222.

Federated Hermes, Inc. (NYSE: FHI) is a global leader in active, responsible investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.

###

SOURCE Federated Hermes, Inc.

My 'Buy' rating for Federated Hermes (FHI) remains intact, after assessing the stock's future growth and diversification potential. FHI hired Kevin Barr from BNY to head its digital asset arm; this business's outlook is positive with expectations of a rising institutional adoption rate for tokenized money market funds. Internal promotions in equities and fixed income ensure leadership continuity and support the firm's push for a more balanced asset mix.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Federated Hermes (FHI - Free Report) is headquartered in Pittsburgh, and is in the Finance sector. The stock has seen a price change of 5.26% since the start of the year. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 2.77%. In comparison, the Financial - Investment Management industry's yield is 2.92%, while the S&P 500's yield is 1.42%.

Looking at dividend growth, the company's current annualized dividend of $1.52 is up 14.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for FHI for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.10 per share, representing a year-over-year earnings growth rate of 2.41%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Federated Hermes Money Market Management Digital Treasury Fund is structured to meet reserve and liquidity requirements supporting collateral management for payment-stablecoin issuers Builds on 50-year legacy of money market innovation , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today introduced Federated Hermes Money Market Management Digital Treasury Fund–Reserve Shares (NASDAQ: OFFXX).

Federated Hermes Money Market Management Digital Treasury Fund seeks to provide current income consistent with stability of principal by investing in a portfolio of US dollar cash and US Treasury investments that mature within 93 days and overnight repurchase agreements fully collateralized by US Treasury securities. In pursuing its investment objective and implementing its investment strategies, the fund intends to comply with Rule 2a-7 under the Investment Company Act of 1940.

The fund is Federated Hermes' first product designed to satisfy the requirements for eligible reserve assets that payment-stablecoin issuers are required to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, which was passed in July 2025. The Act provides a regulatory framework for stablecoins, a type of digital asset, to be backed by high-quality liquid assets on a 1:1 basis. While the fund itself does not employ blockchain technology with respect to the Reserve Shares, fund shares are expected to be used primarily by participants in the broader blockchain ecosystem. Reserve Shares of the fund may be purchased and held by individuals, payment-stablecoin issuers, and institutional investors directly or through intermediaries, including intermediaries that use blockchain technology to maintain a record of share ownership for their customers. In the future, the fund may seek to employ blockchain technology to maintain a record of share ownership with respect to the Reserve Shares or additional share classes.

For more than 50 years, Federated Hermes has been a leader in money market innovation, launching the first fund to include "money market" in its name in 1974. Drawing on that experience, the fund is managed by Susan Hill, CFA, senior portfolio manager and head of government liquidity group, and John Wyda, CFA, senior portfolio manager and senior investment analyst. The firm manages a record $684.7 billion in money market assets as of March 31, 2026.

"Liquidity management is a core business of Federated Hermes and we offer one of the largest menus of targeted solutions," said Paul A. Uhlman, president and chief executive officer of the Federated Advisory Companies. "Federated Hermes is proud to advance strategic initiatives that bring together the strength of money market investments and our management expertise. As the industry continues to explore the digital space and tokenized money market offerings, we continue to vet opportunities that employ the efficiency and transparency of blockchain technology."

Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $907.1 billion in assets under management as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.

# # #

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress. Government money market funds are not required to adopt a liquidity fee framework.

Since the fund's principal investment strategy limits its investments to eligible reserve assets in which payment stablecoin issuers are permitted to maintain under the GENIUS Act, the fund's yield may be lower than other money market funds that are permitted to invest in a wider universe of investments.

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us at 1-800-341-7400 or visit FederatedHermes.com/us. Please carefully read the summary prospectus or the prospectus before investing.

Federated Securities Corp. is Distributor of the Federated Hermes mutual funds.

SOURCE Federated Hermes, Inc.

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Pittsburgh, Federated Hermes (FHI - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 10.72%. The one of the nation's largest managers of money market funds is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.64%. This compares to the Financial - Investment Management industry's yield of 2.67% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $1.52 is up 14.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, FHI expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.10 per share, with earnings expected to increase 2.41% from the year ago period.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).