Federated Hermes Q2 2026: Record AUM of $911.6B, Revenue Beats Consensus by 3.5%

summarizeSummary

Federated Hermes reported Q2 2026 results above analyst forecasts, with record AUM of $911.6 billion and a 19% year-over-year revenue increase, while also closing the FCP acquisition and renewing its credit facility.

check_boxKey Events · Earnings and Guidance · FHI

• Q2 Revenue and Earnings Beat

  Revenue of $502.78M exceeded the $485.62M consensus by 3.5%, with net income of $104.3M ($1.38 EPS) up from $91.0M a year ago.

• Record AUM of $911.6 Billion

  Total managed assets reached $911.6B, up 8% year-over-year, driven by market appreciation, net sales in equity funds, and the FCP acquisition.

• FCP Acquisition Closed

  Completed the acquisition of an 80% interest in FCP, a real estate investment manager, for $216M cash and $23.1M in stock, with up to $82M in contingent consideration.

• New $350M Revolving Credit Facility

  Entered into a new five-year, $350M unsecured revolving credit facility with an additional $225M accordion feature, replacing the prior facility.

auto_awesomeAnalysis · FHI · Finance

Driven by higher average equity and money market assets, Federated Hermes delivered Q2 revenue of $502.78M, topping the $485.62M consensus by 3.5%. Net income climbed to $104.3M, or $1.38 per share, from $91.0M a year ago. Record assets under management of $911.6B reflect both market appreciation and the FCP acquisition. The company also closed the FCP deal, adding real estate capabilities, and entered a new $350M credit facility. Share repurchases continued, with 2.3M shares bought for $124.9M in the first half. A legal overhang persists from the Hermes Infrastructure Fund II litigation, where plaintiffs seek approximately £87M (around $115M) in damages, though management believes the claims are without merit.