The EPS and revenue beat, combined with 18% operating income growth and record equity AUM, signal strong operational momentum. However, the sequential decline in total AUM (down 3%) and money market outflows warrant monitoring on the Oct 30 earnings call for any guidance on asset flows and fee rate trends.
Price Chart
Executive Summary
Federated Hermes reported Q3 2026 EPS of $1.50, above the $1.44 consensus, on revenue of $507.3M, slightly above the $504.0M consensus. Revenue grew 8% YoY driven by higher average equity assets and the FCP acquisition, while operating income rose 18% YoY. Total managed assets declined 3% sequentially to $884.4B, driven by a $27B drop in money market assets, partially offset by record equity assets of $110.5B.
Key Financial Metrics
Key Facts
- Q3 2026 EPS of $1.50, up 12% from $1.34 in Q3 2025 and above the $1.44 consensus
- Q3 2026 revenue of $507.3M, up 8% from $469.4M in Q3 2025 and above the $504.0M consensus
- Net income of $111.9M, up 7% from $104.1M in Q3 2025
- Total managed assets of $884.4B at Sept 30, 2026, down 3% from $911.6B at June 30, 2026
- Equity assets reached a record $110.5B, up 17% YoY
- Money market assets declined 4% sequentially to $649.9B
- Operating income rose 18% YoY to $153.3M, with operating expenses up only 4%
- Board declared $0.38 per share dividend, payable Nov 13, 2026
- Company repurchased 992,312 shares for $57.4M during Q3 2026
Financial Impact
EPS beat consensus by 4.2% ($1.50 vs $1.44); revenue beat by 0.7% ($507.3M vs $504.0M)
Segment Breakdown
| Segment |
|---|
| Equity |
| Fixed-Income |
| Alternative/Private Markets |
| Money Market |
Risk Factors
- Sequential decline in total managed assets of 3% due to money market outflows and market depreciation
- Nonoperating income swung to a loss of $1.2M from a gain of $10.9M in Q3 2025, driven by lower investment values
- Fixed-income assets declined 2% YoY, continuing a trend of modest erosion
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001056288-26-000028 |
| Document: fhi-20261029.htm | 0001056288-26-000028 |
| Document: 0001056288-26-000028-index-headers.html | 0001056288-26-000028 |
| Document: 0001056288-26-000028-index.html | 0001056288-26-000028 |
| Document: 0001056288-26-000028.txt | 0001056288-26-000028 |
| 8-K Data (Synthetic) | 0001056288-26-000028 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Oct 29, 2026 3d ago | Press Release | $57.54 | awaiting T+60 | awaiting T+60 | $58.48 (+1.63%) |
Aug 12, 2026 11w ago | 13F-HR | $63.00 | awaiting T+60 | awaiting T+60 | $58.48 (−7.17%) |
Jul 30, 2026 13w ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Jul 30, 2026 13w ago | Press Release | $59.96 $56.93 | ▼ −5.05% | ▼ −7.51% | $58.48 (−2.47%) |
Jun 23, 2026 18w ago | 144 | $56.38 $56.36 | ▼ −0.04% | ▼ −2.87% | $58.48 (+3.72%) |
Mar 5, 2026 34w ago | Insider Cluster | $56.48 $55.89 | ▼ −1.05% | ▼ −12.35% | $58.48 (+3.54%) |
Mar 5, 2026 34w ago | Insider Cluster | $56.48 $55.89 | ▼ −1.05% | ▼ −12.35% | $58.48 (+3.54%) |
US Market Status
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