Federated Hermes reported first-quarter 2026 earnings per diluted share of $1.27, up from $1.25 a year earlier, even as net income slipped to $96.4 million from $101.1 million.
Assets under management hit a record $907.1 billion at March 31, up $67.3 billion, or 8%, from $839.8 billion a year earlier and up $4.5 billion from $902.6 billion at the end of 2025. Average managed assets rose to $915.6 billion, compared with $843.2 billion in the prior-year quarter and $873.7 billion in the fourth quarter.
Money market assets also reached a record, climbing to $684.7 billion from $637.1 billion a year ago and $682.6 billion in the previous quarter. Money market fund assets were $502.8 billion, up from $464.9 billion a year earlier but down from $508.4 billion at year-end.
Equity assets increased to a record $100.8 billion from $80.9 billion a year ago and $97.9 billion in the prior quarter. Fixed-income assets were $99.8 billion, essentially flat versus $99.5 billion a year earlier and down slightly from $100.1 billion at Dec. 31. Alternative/private markets assets eased to $19.0 billion from $19.4 billion a year ago and $19.1 billion in the prior quarter.
Revenue rose $55.4 million, or 13%, from the first quarter of 2025, driven mainly by higher average money market and equity assets. Operating expenses increased $60.9 million, or 21%, led by a $26.7 million jump in distribution expenses, an $18.2 million rise in other expense, and a $10.8 million increase in compensation and related expense.
Compared with the fourth quarter, revenue fell $3.9 million, or 1%, while operating expenses increased $5.4 million, or 2%.
The board raised the quarterly dividend to $0.38 per share from $0.34, an increase of $0.04, or 11.8%. During the quarter, the company bought back 1.19 million shares for $66.0 million. The market has reacted to these announcements by moving the company's shares -1.08% to a price of $55.86. If you want to know more, read the company's complete 8-K report here.
