Federated Hermes Reports Strong 2025 Earnings Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: PRnewswire
- Earnings Per Share Growth: Federated Hermes reported Q4 2025 EPS of $1.39, up 34% from $1.04 in Q4 2024, indicating a significant improvement in profitability that is likely to boost investor confidence.
- Substantial Net Income Increase: The company achieved a net income of $403.3 million for 2025, a 50% increase from $268.3 million in 2024, reflecting strong performance in asset management that may attract more investor interest.
- Record Managed Assets: As of December 31, 2025, Federated Hermes' total managed assets reached $902.6 billion, a 9% increase from 2024, demonstrating the company's competitive strength and enhanced client trust in the market.
- Increased Dividend Payout: The board declared a quarterly dividend of $0.34 per share, a 9.7% increase from 2024, reflecting improved financial health and potentially attracting income-seeking investors.
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Analyst Views on FHI
Wall Street analysts forecast FHI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FHI is 53.75 USD with a low forecast of 51.00 USD and a high forecast of 56.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 52.910
Low
51.00
Averages
53.75
High
56.00
Current: 52.910
Low
51.00
Averages
53.75
High
56.00
About FHI
Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets, and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 176 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations, and retirement plans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Federated Hermes to Announce Q4 Earnings on January 29
- Earnings Announcement: Federated Hermes is set to release its Q4 2024 earnings on January 29 after market close, with a consensus EPS estimate of $1.22, reflecting a 17.3% year-over-year increase, indicating sustained profitability.
- Revenue Growth Expectations: The anticipated revenue for Q4 is $471.56 million, representing an 11.0% year-over-year growth, showcasing the company's robust performance and business growth potential in the market.
- Historical Performance Review: Over the past year, Federated Hermes has beaten EPS estimates 75% of the time and revenue estimates 25% of the time, demonstrating reliability in its earnings forecasts.
- Forecast Revision Trends: In the last three months, EPS estimates have seen one upward revision with no downward adjustments, while revenue estimates have experienced four upward revisions, reflecting analysts' optimistic outlook on the company's future performance.
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Federated Hermes Q4 Earnings Exceed Expectations
- Earnings Beat: Federated Hermes reported a Q4 GAAP EPS of $1.39, surpassing expectations by $0.17, indicating robust profitability and operational efficiency.
- Significant Revenue Growth: The company achieved Q4 revenue of $482.83 million, a 13.7% year-over-year increase, exceeding forecasts by $11.27 million, reflecting ongoing business expansion and strong market demand.
- Optimistic Market Outlook: Building on a strong Q3 performance, Federated Hermes maintains a bullish outlook, suggesting further improvements in future earnings and boosting investor confidence.
- Ongoing M&A Activity: Recent developments in the company's M&A strategy demonstrate its commitment to strategic expansion, potentially providing additional growth opportunities and solidifying its market position.
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