Federated Hermes reported higher earnings for the third quarter of 2026, with diluted earnings per share rising to $1.50 from $1.34 a year earlier and net income increasing to $111.9 million from $104.1 million. The asset manager also reported record equity assets and continued demand for alternative strategies, while total managed assets were lower than in the prior quarter.
The board declared a quarterly dividend of 38 cents per share. Federated Hermes also repurchased shares during the quarter.
Key details
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Earnings increased year over year: Third-quarter diluted EPS was $1.50, up about 12% from $1.34 in Q3 2025. Net income rose about 7% to $111.9 million from $104.1 million.
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Total managed assets were $884.4 billion at Sept. 30. That was up $13.2 billion, or 2%, from a year earlier, but down $27.2 billion, or 3%, from June 30. Average managed assets for the quarter were $897.7 billion, up 4% year over year and down 1% from the second quarter.
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Equity assets reached a record $110.5 billion. They increased 17% from a year earlier and 1% from the previous quarter. The company reported positive net equity sales, including across its MDT quantitative investment strategies. Its top-selling equity funds included MDT Large Cap Growth Fund, MDT Small Cap Core ETF and U.S. Strategic Dividend ETF.
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Alternative and private-markets assets also set a record, reaching $21.7 billion. That was up 14% year over year and slightly higher than at the end of the second quarter. The company cited continued demand for alternative strategies, including MDT Market Neutral offerings.
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Fixed-income assets totaled $99.4 billion, down 2% from a year earlier and 1% from the prior quarter. Top-selling products included Sterling Cash Plus Fund, Municipal Ultrashort Fund and Total Return Bond ETF.
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Money-market assets were $649.9 billion, down $2.9 billion from a year earlier and $27.0 billion from the second quarter. Money-market fund assets were $486.3 billion, down 1% year over year and 3% sequentially.
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The dividend is 38 cents per share, payable Nov. 13 to shareholders of record on Nov. 6.
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Federated Hermes repurchased 992,312 shares of its Class B common stock for $57.4 million during the quarter.
Plain-English implications
The quarter showed stronger earnings and growth in equity and alternative assets, alongside a sequential decline in total managed assets, largely reflected in lower money-market assets. The dividend and share repurchases returned capital to shareholders during the quarter.