Federated Hermes, Inc. reports third quarter 2026 earnings

Federated Hermes, Inc. reports third quarter 2026 earnings PITTSBURGH, Oct. 29, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.50 for Q3 2026, compared to EPS of $1.34 for the same quarter last year, on net income of $111.9 million for Q3 2026, compared to net income of $104.1 million for Q3 2025.

Federated Hermes' total managed assets were $884.4 billion at Sept. 30, 2026, up $13.2 billion or 2% from $871.2 billion at Sept. 30, 2025 and down $27.2 billion or 3% from $911.6 billion at June 30, 2026. Total average managed assets for Q3 2026 were $897.7 billion, up $38.2 billion or 4% from $859.5 billion for Q3 2025 and down $12.3 billion or 1% from $910.0 billion for Q2 2026.

"Federated Hermes generated positive net equity sales in the third quarter of 2026, including across our MDT suite of quantitative investment solutions. Assets in MDT institutional separate accounts and MDT subadvised accounts, as well as total equity assets, reached record highs," said J. Christopher Donahue, president and chief executive officer. "We also continued to see demand for our alternative strategies, including our MDT Market Neutral offerings, with alternative/private markets fund assets reaching record highs."

Federated Hermes' board of directors declared a dividend of $0.38 per share. The dividend is payable on Nov. 13, 2026 to shareholders of record as of Nov. 6, 2026. During Q3 2026, Federated Hermes purchased 992,312 shares of Federated Hermes class B common stock for $57.4 million.

Equity assets were a record $110.5 billion at Sept. 30, 2026, up $15.8 billion or 17% from $94.7 billion at Sept. 30, 2025 and up $0.9 billion or 1% from $109.6 billion at June 30, 2026. Top-selling equity funds during Q3 2026 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Small Cap Core ETF, Federated Hermes MDT All Cap Core Fund, Federated Hermes MDT Large Cap Value Fund and Federated Hermes U.S. Strategic Dividend ETF.

Fixed-income assets were $99.4 billion at Sept. 30, 2026, down $2.4 billion or 2% from $101.8 billion at Sept. 30, 2025 and down $1.1 billion or 1% from $100.5 billion at June 30, 2026. Top-selling fixed-income funds during Q3 2026 on a net basis were Federated Hermes Sterling Cash Plus Fund, Federated Hermes Municipal Ultrashort Fund, Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF and Federated Hermes Conservative Municipal Microshort Fund.

Alternative/private markets assets were $21.7 billion at Sept. 30, 2026, up $2.7 billion or 14% from $19.0 billion at Sept. 30, 2025 and up $0.1 billion from $21.6 billion at June 30, 2026.

Money market assets were $649.9 billion at Sept. 30, 2026, down $2.9 billion from $652.8 billion at Sept. 30, 2025 and down $27.0 billion or 4% from $676.9 billion at June 30, 2026. Money market fund assets were $486.3 billion at Sept. 30, 2026, down $6.4 billion or 1% from $492.7 billion at Sept. 30, 2025 and down $13.6 billion or 3% from $499.9 billion at June 30, 2026.

Financial Summary

Q3 2026 vs. Q3 2025

Revenue increased $37.9 million or 8% primarily due to an increase from higher average equity assets and the Q2 2026 acquisition of FCP Fund Manager, L.P., now operating as Federated Hermes FCP Manager, LLC (FCP).

During Q3 2026, Federated Hermes derived 50% of its revenue from long-term assets (32% from equity, 10% from fixed-income and 8% from alternative/private markets and multi-asset), 49% from money market assets and 1% from sources other than managed assets.

Operating expenses increased $14.0 million or 4% primarily due to an $8.5 million increase in distribution expenses resulting primarily from higher average money market fund assets and a $7.1 million increase in compensation and related expense primarily due to the acquisition of FCP.

Nonoperating income (expenses), net for Q3 2026 decreased $12.1 million primarily due to a decrease in the market value of investments in Q3 2026 as compared to an increase in the market value of investments in Q3 2025 and a decrease in interest and dividend income.

Q3 2026 vs. Q2 2026

Revenue increased $4.6 million or 1% primarily due to higher average equity assets.

Operating expenses decreased $15.9 million or 4% primarily due to a $9.8 million decrease in compensation and related expense and a $6.1 million decrease in professional service fees expense primarily due to $6.5 million and $4.6 million, respectively, of FCP acquisition-related expenses in Q2 2026.

Nonoperating income (expenses), net decreased $12.4 million primarily due to a decrease in the market value of investments in Q3 2026 as compared to an increase in the market value of investments in Q2 2026.

YTD 2026 vs. YTD 2025

Revenue increased $171.2 million or 13% primarily due to an increase from higher average equity assets and money market assets and the acquisition of FCP in Q2 2026.

For the first nine months of 2026, Federated Hermes derived 51% of its revenue from money market assets, 48% from long-term assets (31% from equity, 10% from fixed-income, and 7% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.

Operating expenses increased $137.0 million or 15% primarily due to a $57.5 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $34.6 million increase in compensation and related expense primarily due to compensation related to the acquisition of FCP and higher incentive compensation, an increase of $25.2 million in other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. and fluctuations in foreign currency exchange rates and a $9.0 million increase in professional service fees primarily due to FCP acquisition-related expenses and an increase in global project costs.

Nonoperating income (expenses), net decreased $15.5 million primarily due to the deconsolidation of two Federated Hermes Funds.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, Oct. 30, 2026. Investors are invited to listen to the earnings teleconference by calling 888-506-0062 (domestic) or 973-528-0011 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com and select links for Investor Relations and Earnings call and webcast. A replay will be available at approximately 12:30 p.m. Eastern on Oct. 30, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 54652. The online replay will be available via FederatedHermes.com for three months.

About Federated Hermes

Federated Hermes, Inc. is a global leader in active investment management, with $884.4 billion in assets under management 1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,100 employees in London, New York, Boston and offices worldwide.

Federated Hermes ranks in the top 5% of equity fund managers, the top 9% of money market fund managers and the top 11% of fixed-income fund managers 2 in the industry. Federated Hermes also ranks as the 9th-largest manager of model-delivered separately managed accounts 3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com.

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1) As of Sept. 30, 2026.

2) Morningstar, Sept. 30, 2026. Based on U.S. fund flows rankings.

3) Money Management Institute/Cerulli Q2 2026.

Federated Securities Corp. is distributor of the Federated Hermes funds.

Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, Hermes GPE LLP, and Federated Hermes FCP Manager, LLC, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.

Cautionary statements

Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, investment offerings, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may," and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes' control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Quarter Ended

Change

Q3 2025

to Q3

2026

Quarter Ended

Change

Q2 2026

to Q3

2026

Sept. 30, 2026

Sept. 30, 2025

June 30, 2026

Revenue

Investment advisory fees, net

$ 346,791

$ 310,366

12 %

$ 337,721

3 %

Administrative service fees, net—affiliates

110,492

107,234

110,117

Other service fees, net

50,046

51,846

(3)

54,938

(9)

Total Revenue

507,329

469,446

502,776

Operating Expenses

Compensation and related

151,706

144,563

161,528

(6)

Distribution

122,038

113,569

121,766

Systems and communications

26,156

26,023

25,950

Professional service fees

19,510

20,239

(4)

25,610

(24)

Office and occupancy

9,522

10,129

(6)

9,836

(3)

Advertising and promotional

5,548

5,264

7,329

(24)

Intangible asset related

4,924

3,556

6,384

(23)

Travel and related

4,782

4,665

4,558

Other

9,836

11,986

(18)

6,934

Total Operating Expenses

354,022

339,994

369,895

(4)

Operating Income

153,307

129,452

132,881

Nonoperating Income (Expenses)

Investment income (loss), net

1,951

14,105

(86)

14,330

(86)

Debt expense

(3,165)

(3,182)

(1)

(3,159)

Other, net

(27)

(48)

(44)

(22)

Total Nonoperating Income (Expenses), net

(1,241)

10,875

(111)

11,149

(111)

Income before income taxes

152,066

140,327

144,030

Income tax provision

41,187

34,232

37,216

Net income including the noncontrolling interests

in subsidiaries

110,879

106,095

106,814

Less: Net income (loss) attributable to the

noncontrolling interests in subsidiaries

(1,006)

1,969

(151)

2,496

(140)

Net Income

$ 111,885

$ 104,126

7 %

$ 104,318

7 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share 1

Basic and diluted

$ 1.50

$ 1.34

12 %

$ 1.38

9 %

Weighted-Average Shares Outstanding

Basic

70,996

74,057

71,944

Diluted

70,997

74,057

71,947

Dividends Declared Per Share

$ 0.38

$ 0.34

$ 0.38

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $5.1 million, $4.7 million and $4.8 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Sept. 30, 2026, Sept. 30, 2025 and June 30, 2026, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Nine Months Ended

Sept. 30, 2026

Sept. 30, 2025

% Change

Revenue

Investment advisory fees, net

$ 1,003,920

$ 885,261

13 %

Administrative service fees, net—affiliates

330,894

310,000

Other service fees, net

154,248

122,569

Total Revenue

1,489,062

1,317,830

Operating Expenses

Compensation and related

467,353

432,705

Distribution

369,548

312,052

Systems and communications

78,570

73,730

Professional service fees

66,456

57,415

Office and occupancy

29,419

29,991

(2)

Advertising and promotional

16,975

15,985

Intangible asset related

14,730

10,255

Travel and related

13,190

12,335

Other

20,302

(4,946)

Total Operating Expenses

1,076,543

939,522

Operating Income

412,519

378,308

Nonoperating Income (Expenses)

Investment income (loss), net

22,935

38,527

(40)

Debt expense

(9,509)

(9,531)

Other, net

(80)

(110)

(27)

Total Nonoperating Income (Expenses), net

13,346

28,886

(54)

Income before income taxes

425,865

407,194

Income tax provision

112,226

100,532

Net income including the noncontrolling interests in subsidiaries

313,639

306,662

Less: Net income (loss) attributable to the noncontrolling interests in

subsidiaries

1,058

10,402

(90)

Net Income

$ 312,581

$ 296,260

6 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share 1

Basic and diluted

$ 4.15

$ 3.75

11 %

Weighted-Average Shares Outstanding

Basic

71,856

75,541

Diluted

71,858

75,544

Dividends Declared Per Share

$ 1.10

$ 0.99

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $14.2 million and $13.3 million available to unvested restricted Federated Hermes shareholders for the nine months ended Sept. 30, 2026 and Sept. 30, 2025, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Sept. 30, 2026

Dec. 31, 2025

Assets

Cash and other investments

$ 580,271

$ 724,297

Other current assets

162,327

139,495

Intangible assets, net, including goodwill

1,499,333

1,183,612

Other long-term assets

225,146

181,933

Total Assets

$ 2,467,077

$ 2,229,337

Liabilities, Redeemable Noncontrolling Interests and Equity

Current liabilities

$ 299,649

$ 314,141

Long-term debt

348,565

348,369

Other long-term liabilities

356,000

303,350

Redeemable noncontrolling interests

171,943

66,529

Equity excluding treasury stock

2,322,714

2,070,162

Treasury stock

(1,031,794)

(873,214)

Total Liabilities, Redeemable Noncontrolling Interests and Equity

$ 2,467,077

$ 2,229,337

Unaudited Changes in Long-Term Assets - By Asset Class

(in millions)

Quarter Ended

Nine Months Ended

Sept. 30, 2026

June 30, 2026

Sept. 30, 2025

Sept. 30, 2026

Sept. 30, 2025

Equity

Beginning assets

$ 109,590

$ 100,832

$ 88,994

$ 97,898

$ 79,423

Sales 1

8,527

9,062

6,845

26,680

22,218

Redemptions 1

(6,624)

(10,202)

(6,975)

(23,704)

(19,148)

Net sales (redemptions) 1

1,903

(1,140)

(130)

2,976

3,070

Net exchanges

134

154

(4)

Impact of foreign exchange 2

(81)

(37)

(85)

(405)

1,692

Market gains and (losses) 3

(874)

9,801

5,723

10,074

10,431

Ending assets

$ 110,539

$ 109,590

$ 94,656

$ 110,539

$ 94,656

Fixed Income

Beginning assets

$ 100,487

$ 99,798

$ 98,687

$ 100,127

$ 98,059

Sales 1

7,085

7,687

7,545

20,699

18,756

Redemptions 1

(6,385)

(7,864)

(5,887)

(20,598)

(19,827)

Net sales (redemptions) 1

700

(177)

1,658

101

(1,071)

Net exchanges

(7)

(153)

(134)

(12)

(28)

Impact of foreign exchange 2

(20)

(12)

(22)

(72)

271

Market gains and (losses) 3

(1,761)

1,031

1,624

(745)

4,582

Ending assets

$ 99,399

$ 100,487

$ 101,813

$ 99,399

$ 101,813

Alternative/Private Markets

Beginning assets

$ 21,647

$ 18,991

$ 20,738

$ 19,101

$ 18,864

Sales 1

562

650

670

1,841

2,537

Redemptions 1

(701)

(1,002)

(2,291)

(2,250)

(3,866)

Net sales (redemptions) 1

(139)

(352)

(1,621)

(409)

(1,329)

Net exchanges

Acquisitions/(dispositions)

3,237

109

Impact of foreign exchange 2

(11)

(341)

(260)

1,282

Market gains and (losses) 3

236

(263)

248

Ending assets

$ 21,734

$ 21,647

$ 19,024

$ 21,734

$ 19,024

Multi-asset

Beginning assets

$ 2,939

$ 2,778

$ 2,856

$ 2,854

$ 2,883

Sales 1

144

152

Redemptions 1

(85)

(102)

(92)

(281)

(334)

Net sales (redemptions) 1

(40)

(61)

(47)

(137)

(182)

Net exchanges

(3)

Market gains and (losses) 3

(44)

222

134

137

242

Ending assets

$ 2,855

$ 2,939

$ 2,940

$ 2,855

$ 2,940

Total Long-term Assets

Beginning assets

$ 234,663

$ 222,399

$ 211,275

$ 219,980

$ 199,229

Sales 1

16,219

17,440

15,105

49,364

43,663

Redemptions 1

(13,795)

(19,170)

(15,245)

(46,833)

(43,175)

Net sales (redemptions) 1

2,424

(1,730)

(140)

2,531

488

Net exchanges

(5)

(11)

(6)

Acquisitions/(dispositions)

3,237

109

Impact of foreign exchange 2

(112)

(23)

(448)

(737)

3,245

Market gains and (losses) 3

(2,443)

10,791

7,729

9,522

15,353

Ending assets

$ 234,527

$ 234,663

$ 218,433

$ 234,527

$ 218,433

For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type

(in millions)

Quarter Ended

Sept. 30, 2026

Equity

Fixed Income

Alternative / Private

Markets

Multi-asset

Total

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds .

Separate

Accounts 1

Beginning assets

$ 64,069

$ 45,521

$ 46,189

$ 54,298

$ 14,918

$ 6,729

$ 2,935

$ 4

$ 128,111

$ 106,552

Sales

4,333

4,194

3,841

3,244

489

8,707

7,512

Redemptions

(4,322)

(2,302)

(4,040)

(2,345)

(566)

(135)

(85)

(9,013)

(4,782)

Net sales (redemptions)

1,892

(199)

899

(77)

(62)

(41)

(306)

2,730

Net exchanges

(7)

(5)

Impact of foreign exchange 2

(53)

(28)

(13)

(7)

(4)

(73)

(39)

Market gains and (losses) 3

(922)

(1,001)

(760)

244

(8)

(45)

(1,724)

(719)

Ending assets

$ 63,106

$ 47,433

$ 44,969

$ 54,430

$ 15,079

$ 6,655

$ 2,849

$ 6

$ 126,003

$ 108,524

Nine Months Ended

Sept. 30, 2026

Equity

Fixed Income

Alternative / Private

Markets

Multi-asset

Total

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Beginning assets

$ 54,988

$ 42,910

$ 45,973

$ 54,154

$ 12,085

$ 7,016

$ 2,850

$ 4

$ 115,896

$ 104,084

Sales

15,631

11,049

11,693

9,006

1,674

167

143

29,141

20,223

Redemptions

(12,963)

(10,741)

(12,027)

(8,571)

(1,545)

(705)

(281)

(26,816)

(20,017)

Net sales (redemptions)

2,668

308

(334)

435

129

(538)

(138)

2,325

206

Net exchanges

(24)

(12)

(26)

Acquisition/(dispositions)

2,788

449

2,788

449

Impact of foreign exchange 2

(279)

(126)

(42)

(30)

(154)

(106)

(475)

(262)

Market gains and (losses) 3

5,753

4,321

(616)

(129)

222

(166)

136

5,495

4,027

Ending assets

$ 63,106

$ 47,433

$ 44,969

$ 54,430

$ 15,079

$ 6,655

$ 2,849

$ 6

$ 126,003

$ 108,524

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Offering Type

(in millions)

Quarter Ended

Nine Months Ended

Sept. 30, 2026

June 30, 2026

Sept. 30, 2025

Sept. 30, 2026

Sept. 30, 2025

Total Fund Assets

Beginning assets

$ 128,111

$ 116,222

$ 110,409

$ 115,896

$ 103,567

Sales

8,707

9,927

9,018

29,141

27,050

Redemptions

(9,013)

(8,837)

(8,349)

(26,816)

(26,278)

Net sales (redemptions)

(306)

1,090

669

2,325

772

Net exchanges

(5)

(1)

(26)

Acquisitions/(dispositions)

2,788

109

Impact of foreign exchange 1

(73)

(59)

(294)

(475)

1,704

Market gains and (losses) 2

(1,724)

8,071

4,414

5,495

9,043

Ending assets

$ 126,003

$ 128,111

$ 115,215

$ 126,003

$ 115,215

Total Separate Account Assets 3

Beginning assets

$ 106,552

$ 106,177

$ 100,866

$ 104,084

$ 95,662

Sales 4

7,512

7,513

6,087

20,223

16,613

Redemptions 4

(4,782)

(10,333)

(6,896)

(20,017)

(16,897)

Net sales (redemptions) 4

2,730

(2,820)

(809)

206

(284)

Net exchanges

(10)

(11)

Acquisitions/(dispositions)

449

Impact of foreign exchange 1

(39)

(154)

(262)

1,541

Market gains and (losses) 2

(719)

2,720

3,315

4,027

6,310

Ending assets

$ 108,524

$ 106,552

$ 103,218

$ 108,524

$ 103,218

Total Long-term Assets 3

Beginning assets

$ 234,663

$ 222,399

$ 211,275

$ 219,980

$ 199,229

Sales 4

16,219

17,440

15,105

49,364

43,663

Redemptions 4

(13,795)

(19,170)

(15,245)

(46,833)

(43,175)

Net sales (redemptions) 4

2,424

(1,730)

(140)

2,531

488

Net exchanges

(5)

(11)

(6)

Acquisitions/(dispositions)

3,237

109

Impact of foreign exchange 1

(112)

(23)

(448)

(737)

3,245

Market gains and (losses) 2

(2,443)

10,791

7,729

9,522

15,353

Ending assets

$ 234,527

$ 234,663

$ 218,433

$ 234,527

$ 218,433

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings.

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Unaudited Managed Assets

(in millions)

Sept. 30, 2026

June 30, 2026

March 31, 2026

Dec. 31, 2025

Sept. 30, 2025

By Asset Class

Equity 1

$ 110,539

$ 109,590

$ 100,832

$ 97,898

$ 94,656

Fixed-Income

99,399

100,487

99,798

100,127

101,813

Alternative / Private Markets

21,734

21,647

18,991

19,101

19,024

Multi-Asset 1

2,855

2,939

2,778

2,854

2,940

Total Long-Term Assets

234,527

234,663

222,399

219,980

218,433

Money Market

649,883

676,897

684,748

682,604

652,767

Total Managed Assets

$ 884,410

$ 911,560

$ 907,147

$ 902,584

$ 871,200

By Offering Type

Funds:

Equity

$ 63,106

$ 64,069

$ 55,188

$ 54,988

$ 54,110

Fixed-Income

44,969

46,189

45,921

45,973

46,478

Alternative / Private Markets

15,079

14,918

12,339

12,085

11,814

Multi-Asset

2,849

2,935

2,774

2,850

2,813

Total Long-Term Assets

126,003

128,111

116,222

115,896

115,215

Money Market

486,270

499,927

502,775

508,403

492,701

Total Fund Assets

$ 612,273

$ 628,038

$ 618,997

$ 624,299

$ 607,916

Separate Accounts:

Equity 1

$ 47,433

$ 45,521

$ 45,644

$ 42,910

$ 40,546

Fixed-Income

54,430

54,298

53,877

54,154

55,335

Alternative / Private Markets

6,655

6,729

6,652

7,016

7,210

Multi-Asset 1

127

Total Long-Term Assets

108,524

106,552

106,177

104,084

103,218

Money Market

163,613

176,970

181,973

174,201

160,066

Total Separate Account Assets

$ 272,137

$ 283,522

$ 288,150

$ 278,285

$ 263,284

Total Managed Assets

$ 884,410

$ 911,560

$ 907,147

$ 902,584

$ 871,200

1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

Unaudited Average Managed Assets

Quarter Ended

(in millions)

Sept. 30, 2026

June 30, 2026

March 31, 2026

Dec. 31, 2025

Sept. 30, 2025

By Asset Class

Equity 1

$ 112,104

$ 107,031

$ 102,037

$ 96,404

$ 92,436

Fixed-Income

100,137

100,041

100,996

100,855

99,206

Alternative / Private Markets

22,000

22,359

19,232

18,971

19,862

Multi-Asset 1

2,928

2,898

2,859

2,836

2,895

Total Long-Term Assets

237,169

232,329

225,124

219,066

214,399

Money Market

660,526

677,685

690,450

654,635

645,092

Total Avg. Managed Assets

$ 897,695

$ 910,014

$ 915,574

$ 873,701

$ 859,491

By Offering Type

Funds:

Equity

$ 64,370

$ 60,933

$ 56,987

$ 55,101

$ 51,828

Fixed-Income

46,043

45,827

46,096

46,116

45,743

Alternative / Private Markets

15,198

15,253

12,254

11,871

12,347

Multi-Asset

2,923

2,893

2,855

2,833

2,770

Total Long-Term Assets

128,534

124,906

118,192

115,921

112,688

Money Market

491,758

498,338

507,752

493,355

482,237

Total Avg. Fund Assets

$ 620,292

$ 623,244

$ 625,944

$ 609,276

$ 594,925

Separate Accounts:

Equity 1

$ 47,734

$ 46,098

$ 45,050

$ 41,303

$ 40,608

Fixed-Income

54,094

54,214

54,900

54,739

53,463

Alternative / Private Markets

6,802

7,106

6,978

7,100

7,515

Multi-Asset 1

125

Total Long-Term Assets

108,635

107,423

106,932

103,145

101,711

Money Market

168,768

179,347

182,698

161,280

162,855

Total Avg. Separate Account Assets

$ 277,403

$ 286,770

$ 289,630

$ 264,425

$ 264,566

Total Avg. Managed Assets

$ 897,695

$ 910,014

$ 915,574

$ 873,701

$ 859,491

1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

Unaudited Average Managed Assets

Nine Months Ended

(in millions)

Sept. 30, 2026

Sept. 30, 2025

By Asset Class

Equity 1

$ 107,057

$ 86,035

Fixed-Income

100,392

98,977

Alternative / Private Markets

21,197

19,642

Multi-Asset 1

2,895

2,858

Total Long-Term Assets

231,541

207,512

Money Market

676,220

639,154

Total Avg. Managed Assets

$ 907,761

$ 846,666

By Offering Type

Funds:

Equity

$ 60,763

$ 47,684

Fixed-Income

45,989

45,477

Alternative / Private Markets

14,235

12,109

Multi-Asset

2,890

2,733

Total Long-Term Assets

123,877

108,003

Money Market

499,283

469,549

Total Avg. Fund Assets

$ 623,160

$ 577,552

Separate Accounts:

Equity 1

$ 46,294

$ 38,351

Fixed-Income

54,403

53,500

Alternative / Private Markets

6,962

7,533

Multi-Asset 1

125

Total Long-Term Assets

107,664

99,509

Money Market

176,937

169,605

Total Avg. Separate Account Assets

$ 284,601

$ 269,114

Total Avg. Managed Assets

$ 907,761

$ 846,666

1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

SOURCE Federated Hermes, Inc.