Federated Hermes, Inc. (FHI) Earnings Call Transcripts
Federated Hermes, Inc.'s Latest Earnings Call - Q1 FY2026
In Q1 2026, Federated Hermes, Inc. reported total revenue of $389.1 million, reflecting a slight decrease of 1% quarter-over-quarter. Earnings per share (EPS) were impacted by transaction-related costs from the recent acquisition of FCP Fund Manager LP, which is expected to contribute approximately $12 million in revenue for Q2. The firm maintained a strong asset base with record assets under management (AUM) of $907 billion, driven by robust equity and money market strategies, although guidance indicates potential net redemptions in equity strategies going forward.
Reported metrics
| Metric | Value |
|---|---|
| Total Revenue | $389.1 million (miss) |
| EPS | $0.45 (null) |
| Assets Under Management | $907 billion (positive) |
| Equity Assets | $101 billion (positive) |
| Fixed Income Assets | $99.7 billion (negative) |
| Net Redemptions (Fixed Income) | $422 million (negative) |
Guidance from management
For Q2, management expects net redemptions in equity strategies of about $1.4 billion and fixed income net sales of approximately $1.1 billion. The firm anticipates FCP will add about $12 million in revenue but also increase operating expenses by $11 million.
What management said
Wow, for 10 years, that's a long time. That's visionary, which I'm generally not. And to add to what Chris was saying, I mean, if you build it, they will come, that's sort of the attitude now with that historically as sort of a premise success has followed. So I don't know, maybe probably less than 25% of retail customers. But I think from an institutional customer standpoint, you're looking at something that maybe i...
And I suppose this one more, Ken. And that is that, remember, the basic product is nearly liquidity of [indiscernible] However, all the fancy stuff works. That's [indiscernible]. And the next thing is if they don't have fundamental trust in the whole thing, then it doesn't work. So you got to work on those 2 things. in addition to all of the toys that are being created.
What analysts pressed on
Analysts expressed concerns regarding the potential $3 billion in global equity redemptions and the impact of the FCP acquisition on EPS. Additionally, there were questions about the future demand for digital money market funds and the overall growth trajectory of money market assets.
Main topics on the call
- Record Assets Under Management — Federated Hermes ended Q1 with record AUM of $907 billion, up from previous quarters, driven by strong equity and money market strategies. CEO Chris Donahue stated, "Equity assets closed Q1 at a record high of $101 billi...
- Equity Sales Performance — Equity sales reached a record high of $9.1 billion in Q1, with net sales of $2.2 billion. The MDT strategies were particularly strong, contributing $5.8 billion in gross sales, as noted by Donahue: "MDT equity and market...
- Fixed Income Challenges — Fixed income assets decreased by $329 million from year-end, with net redemptions of $422 million in Q1. Management highlighted that "41% of our fixed income funds were beating peers," but the segment still faces challen...
- Acquisition Impact — The acquisition of FCP Fund Manager LP is expected to add approximately $12 million in revenue for Q2 but will also incur $11 million in operating expenses. CFO Tom Donahue mentioned, "For Q2, we expect that FCP will add...
Read the full Federated Hermes, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Federated Hermes, Inc.
Federated Hermes, Inc. (FHI) is a publicly listed company in the Capital Markets industry, within the Financials sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 43 calls on record spanning January 31, 2020 to July 31, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 43 Federated Hermes, Inc. earnings call transcripts on record, spanning January 31, 2020 to July 31, 2026. Based on this history, Federated Hermes, Inc. reports quarterly. The most recent call on file is dated July 31, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- FHI
- Exchange
- NYSE
- Country
- US
- Sector
- Financials
- Industry
- Capital Markets
- Calls on record
- 43
- First call
- January 31, 2020
- Most recent
- July 31, 2026
- Reporting cadence
- quarterly