Federated Hermes Q2 revenue beats on higher average equity and money market assets

Federated Hermes

30/07/2026 21:30

Overview
U.S. asset manager's Q2 revenue rose 18% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose 19% yr/yr to $1.38
Company repurchased 1.1 mln shares for $58.9 mln in Q2

Outlook
Company did not provide specific guidance for future quarters or the full year in the press release

Result Drivers
ASSET GROWTH - Co said higher average equity and money market assets drove revenue growth in Q2
FCP ACQUISITION - Acquisition of FCP Fund Manager, L.P. contributed to revenue and alternative/private markets asset growth
MDT SALES - Record gross sales and net positive sales for MDT quantitative investment solutions supported results, per CEO J. Christopher Donahue

Company press release: ID:nPn6kk28ca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$502.78 mln
$485.62 mln (4 Analysts)
Q2 EPS
 
$1.38
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Federated Hermes Inc is $55.50, about 7.6% below its July 29 closing price of $60.08
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
July 28 - Asset manager Invesco's quarterly profit rises on strong inflows, higher fees 
July 30 - Affiliated Managers Group Q2 adjusted EBITDA beats
July 30 - Virtus Investment Partners Q2 profit misses estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)