The strong EPS beat and record AUM, particularly in equity strategies, signal continued momentum in MDT quantitative solutions and separate accounts. Watch the earnings call for expense trajectory and FCP integration updates. The 16% EPS beat vs consensus should drive positive near-term price action.
Price Chart
Executive Summary
Federated Hermes reported Q2 2026 EPS of $1.38, beating consensus of $1.19 by 16%, on revenue of $502.8M (+18% YoY). Record total AUM of $911.6B and equity AUM of $109.6B drove results, with the FCP Fund Manager acquisition contributing $13.9M in revenue. Operating expenses grew 20% YoY, partly from acquisition-related costs, but operating income still rose 13%.
Key Financial Metrics
Key Facts
- Q2 2026 EPS $1.38 vs $1.16 YoY, beat consensus of $1.19 by 16%
- Total revenue $502.8M, up 18% YoY from $424.8M
- Record total AUM $911.6B, up 8% YoY; equity AUM record $109.6B, up 23% YoY
- FCP Fund Manager acquisition added $13.9M to revenue in Q2
- Share repurchases of 1,119,805 shares for $58.9M during the quarter
- Dividend declared $0.38 per share, unchanged from prior quarter
Financial Impact
EPS beat of $0.19 (16%) vs consensus; revenue beat of ~$18.3M (3.8%) vs implied consensus of $484.5M (Q1 level); revenue growth of 18% YoY
Risk Factors
- Operating expense growth (20% YoY) outpacing revenue growth (18%), pressuring margins
- Market volatility could reduce AUM and fee revenue
- Integration of FCP acquisition may incur additional costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001056288-26-000024 |
| Document: fhi-20260730.htm | 0001056288-26-000024 |
| Document: 0001056288-26-000024-index-headers.html | 0001056288-26-000024 |
| Document: 0001056288-26-000024-index.html | 0001056288-26-000024 |
| Document: 0001056288-26-000024.txt | 0001056288-26-000024 |
| 8-K Data (Synthetic) | 0001056288-26-000024 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 10w ago | 13F-HR | $63.00 | awaiting T+60 | — | $56.55 (−10.24%) |
Jul 30, 2026 12w ago | 8-K | $59.96 $56.93 | ▼ −5.05% | ▼ −7.51% | $56.55 (−5.69%) |
Jul 30, 2026 12w ago | Press Release | $59.96 $56.93 | ▼ −5.05% | ▼ −7.51% | $56.55 (−5.69%) |
Jun 23, 2026 17w ago | 144 | $56.38 $56.36 | ▼ −0.04% | ▼ −2.87% | $56.55 (+0.30%) |
Mar 5, 2026 33w ago | Insider Cluster | $56.48 $55.89 | ▼ −1.05% | ▼ −12.35% | $56.55 (+0.12%) |
Mar 5, 2026 33w ago | Insider Cluster | $56.48 $55.89 | ▼ −1.05% | ▼ −12.35% | $56.55 (+0.12%) |
US Market Status
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