Federated Hermes Reports Strong Q2 2025 Earnings

Federated Hermes, Inc. ( (FHI) ) has released its Q2 earnings. Here is a breakdown of the information Federated Hermes, Inc. presented to its investors.

Federated Hermes, Inc. is a global leader in active investment management, providing a wide range of investment solutions including equity, fixed-income, alternative/private markets, and liquidity management strategies to institutions and intermediaries worldwide. Headquartered in Pittsburgh, the company manages assets for corporations, government entities, insurance companies, and more.

In its latest earnings report for the second quarter of 2025, Federated Hermes announced a record $845.7 billion in assets under management. The company reported earnings per diluted share of $1.16, a significant increase from $0.20 in the same quarter last year. The board has declared a dividend of $0.34 per share and authorized a new share repurchase program.

Key financial highlights include a 6% increase in revenue, primarily driven by higher average money market and equity assets. Operating expenses decreased by 15% due to lower intangible asset-related expenses. The company’s MDT strategies saw significant growth, reaching $23.2 billion, up $6.4 billion from the previous quarter. Additionally, equity and fixed-income assets experienced notable increases.

Federated Hermes continues to see strong demand for its investment strategies, particularly in MDT equity and alternative quantitative investment solutions. The company is strategically introducing complementary offerings to its popular investment strategies, with ETFs and collective investment trusts leading in net sales.

Looking ahead, Federated Hermes remains focused on expanding its investment offerings and maintaining its position as a leader in active investment management. The management is optimistic about the continued interest in their diverse range of investment solutions, aiming to capitalize on market opportunities and investor demand.