FHI · Federated Hermes, Inc.

Federated Hermes reported record assets under management of $907.1 billion as of March 31, 2026, driven by strong inflows into money market and equity products. Revenue increased 13% year-over-year to $479.0 million, primarily due to higher average money market and equity assets, partially offset by a $5.6 million decline in performance fees and carried interest. Operating expenses rose 21% to $352.6 million, largely from higher distribution expenses tied to money market fund assets and a $18.2 million increase in other expense, which included the absence of a prior-year VAT refund. Net income decreased 5% to $96.4 million, while diluted EPS edged up 2% to $1.27 due to share repurchases. The board declared a quarterly dividend of $0.38 per share, an 11.8% increase from the prior quarter. Management highlighted record gross sales and positive net flows in equity offerings, particularly in MDT quantitative strategies, and continued demand for money market and ultrashort funds. The company repurchased 1.19 million shares for $66.0 million during the quarter.