AI-extracted from the 10-Q filed 2026-07-31 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Total revenue rose to $502.8M in Q2 2026 from $424.8M a year earlier, driven by a $33.5M increase in equity revenue, a $26.2M increase in money market revenue and $13.9M from the FCP acquisition.
Biggest Revenue Drivers
Investment Advisory$337.7M
Advisory fees rose with average managed assets of $910.0 billion, up 9% year over year
Administrative Services$110.1M
Fees are generally calculated as a percentage of average net assets of managed portfolios
Biggest Revenue Drivers
Total revenue: $502.8M
Investment Advisory$337.7M
Advisory fees rose with average managed assets of $910.0 billion, up 9% year over year
Within Investment Advisory
Performance fees, including carried interest$1.4M
Recorded at a point in time within the investment advisory performance obligation
Administrative Services$110.1M
Fees are generally calculated as a percentage of average net assets of managed portfolios
Distribution$39.0M
Shareholder and distribution servicing fees tied to average fund assets
Other$15.9M
Includes stewardship, real estate development and renewable energy project development services
Largest Expense Items
Compensation and Related$161.5M+$16.7M YoY
FCP-acquisition-related compensation ($6.5M) and a $5.0M increase in regular compensation, including FCP compensation
Distribution$121.8M+$22.4M YoY
Primarily due to higher average money market fund assets
Systems and Communications$26.0M
Ongoing technology and communications costs
Professional Service Fees$25.6M+$7.0M YoY
Primarily fees of $4.7M incurred as a result of the FCP acquisition
Margins: Operating income rose to $132.9M from $117.1M as revenue growth of $77.9M outpaced the $62.1M increase in operating expenses; the six-month ratio of revenue to average managed assets improved to 0.21% from 0.20% on higher equity assets and money market asset mix.
Watch Items from the Filing
Money market assets generated 50% of revenue in the quarter (53% a year ago), with Government Obligations Fund at 16% and Prime Cash Obligations Fund at 10%.
Approximately 10% of total revenue came from one intermediary, Edward Jones, up from 9% a year earlier.
Fee Waivers totaled $110.2M in the quarter, of which $82.1M related to money market funds, versus $105.7M and $78.2M a year ago.
Aberdeen City Council litigation seeks approximately £87 million (about $115 million) of alleged diminished value in the Ventus Portfolio, plus direct claims of about $44 million.
FCP acquisition added $231.7M of goodwill and $102.8M of intangibles, with up to $82.0M of contingent consideration; long-term equity separate account net redemptions were $2.8 billion in the quarter.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Bartolacci Joseph CReporting ownerGrant or award · May 1, 2026
Hanlon KarenReporting ownerGrant or award · May 1, 2026
Jones Marie MilieReporting ownerGrant or award · May 1, 2026
Zierden Theodore W IIIVice PresidentGrant or award · Mar 5, 2026
About FEDERATED HERMES, INC. (FHI): stock profile, AI score and financials
FEDERATED HERMES, INC. (FHI) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores FHI at 68.6/100 on a composite quality score built from its SEC filings, placing it at rank #297 of 2,925 stocks — the top 25% of the AI-ranked universe. FHI scores in the top quartile across balance sheet strength (95.3), profitability (80.2). Areas of concern include earnings quality (26.4), which score below median versus the broader universe. Shareholder dilution risk is elevated at 43.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), FEDERATED HERMES, INC. reports quarterly revenue of $502.8M, net income of $104.3M, an operating margin of 26.4%. Top institutional holders of FHI by reported 13-F value include BlackRock, FMR, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. FHI trades on the NYSE exchange and files with the SEC under CIK 1056288. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate FHI daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for FEDERATED HERMES, INC. directly from SEC EDGAR.