Federated Hermes, Inc. (FHI) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 10, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 31, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the FHI SEC filings page.
Federated Hermes, Inc. (FHI) reported $1.9B in revenue over the twelve months to Jun 30, 2026, up 15.0% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
FY2025 shows earnings rebounding sharply while cash conversion weakened and capital returns consumed nearly all internally generated cash.
Net income reached$403M in FY2025, versus$268M in FY2024. Operating cash flow moved the other way, falling to$297M from$347M , indicating that the year's profit improvement did not translate proportionally into cash available for reinvestment or distributions.
Operating margin recovered to
Debt-to-equity eased to 0.3x while the current ratio rose to 2.7x, leaving the balance sheet less debt-heavy and better buffered for near-term obligations. Buybacks were
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Federated Hermes, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Federated Hermes, Inc. has an operating margin of 28.5%, meaning the company retains $29 of operating profit per $100 of revenue. This strong profitability earns a score of 91/100, reflecting efficient cost management and pricing power. This is up from 22.1% the prior year.
Federated Hermes, Inc.'s revenue grew 10.3% year-over-year to $1.8B, a solid pace of expansion. This earns a growth score of 53/100.
Federated Hermes, Inc. carries a low D/E ratio of 0.29, meaning only $0.29 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 93/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.75, Federated Hermes, Inc. holds $2.75 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 75/100.
Federated Hermes, Inc. converts 16.4% of revenue into free cash flow ($294.6M). This strong cash generation earns a score of 84/100.
Federated Hermes, Inc. earns a strong 33.7% return on equity (ROE), meaning it generates $34 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 92/100. This is up from 24.5% the prior year.
Federated Hermes, Inc. scores 5.45, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Federated Hermes, Inc. passes 6 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Federated Hermes, Inc. generates $0.74 in operating cash flow ($297.3M OCF vs $403.3M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Federated Hermes, Inc. earns $40.36 in operating income for every $1 of interest expense ($513.9M vs $12.7M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Federated Hermes, Inc. generated $502.8M in revenue in Q2 2026. This represents an increase of 18.3% from the same quarter a year earlier. Against the prior quarter it is up 5.0%.
Federated Hermes, Inc. reported $104.3M in net income in Q2 2026. This represents an increase of 14.6% from the same quarter a year earlier. Against the prior quarter it is up 8.2%.
Federated Hermes, Inc. earned $1.38 per diluted share (EPS) in Q2 2026. This represents an increase of 19.0% from the same quarter a year earlier. Against the prior quarter it is up 8.7%.
Not reported for Q2 2026.
Cash & Balance Sheet
Federated Hermes, Inc. generated $79.7M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 342.7% from the same quarter a year earlier. Against the prior quarter it is up 232.0%.
Federated Hermes, Inc. held $301.7M in cash against $348.5M in long-term debt as of Q2 2026.
Federated Hermes, Inc. paid $0.38 per share in dividends in Q2 2026. This represents an increase of 11.8% from the same quarter a year earlier. Against the prior quarter it is up 11.8%.
Margins & Returns
Federated Hermes, Inc.'s operating margin was 26.4% in Q2 2026, reflecting core business profitability. This is down 1.1 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.1 percentage points.
Federated Hermes, Inc.'s net profit margin was 20.8% in Q2 2026, showing the share of revenue converted to profit. This is down 0.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.6 percentage points.
Federated Hermes, Inc.'s ROE was 8.3% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 0.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.3 percentage points.
Not reported for Q2 2026.
Capital Allocation
Federated Hermes, Inc. spent $64.0M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 2.3% from the same quarter a year earlier. Against the prior quarter it is down 1.1%.
Federated Hermes, Inc. invested $1.2M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 52.0% from the same quarter a year earlier. Against the prior quarter it is down 75.3%.
Not reported for Q2 2026.
FHI Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $502.8M+18.3% | $479.0M+13.1% | $482.8M+13.7% | $469.4M+14.9% | $424.8M+5.5% | $423.5M+6.9% | $424.7M+8.5% | $408.5M+1.4% |
| SG&A Expenses | $161.5M+11.5% | $154.1M+7.6% | $145.0M+5.7% | $144.6M+6.3% | $144.9M+10.8% | $143.3M+4.9% | $137.2M+7.6% | $136.0M-2.2% |
| Operating Income | $132.9M+13.5% | $126.3M-4.1% | $135.6M+22.8% | $129.5M+15.8% | $117.1M+187.6% | $131.8M+33.7% | $110.4M+7.7% | $111.7M+10.2% |
| Interest Expense | $3.2M-0.3% | $3.2M+0.2% | $3.2M+0.4% | $3.2M+0.4% | $3.2M+0.3% | $3.2M+1.0% | $3.2M+1.4% | $3.2M+1.2% |
| Income Tax | $37.2M+9.0% | $33.8M+5.2% | $32.9M+15.5% | $34.2M+6.1% | $34.1M+45.7% | $32.2M+10.9% | $28.5M-8.9% | $32.3M+20.7% |
| Net Income | $104.3M+14.6% | $96.4M-4.7% | $107.0M+26.4% | $104.1M+18.9% | $91.0M+332.8% | $101.1M+34.8% | $84.7M+3.1% | $87.5M+16.7% |
| EPS (Basic) | $1.38+19.0% | $1.27+1.6% | $1.38+34.0% | $1.34+26.4% | $1.16+480.0% | $1.25+40.4% | $1.03+7.3% | $1.06+23.3% |
| EPS (Diluted) | $1.38+19.0% | $1.27+1.6% | $1.38+34.0% | $1.34+26.4% | $1.16+480.0% | $1.25+40.4% | $1.03+7.3% | $1.06+23.3% |
| Diluted Shares (Avg) | 72M-4.2% | 73M-6.3% | N/A | 74M-5.9% | 75M-6.2% | 78M-3.9% | N/A | 79M-6.0% |
Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses, EBITDA.
FHI Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.3B+8.3% | $2.1B+7.1% | $2.2B+6.9% | $2.2B+7.1% | $2.2B+12.6% | $2.0B-4.1% | $2.1B-0.8% | $2.0B-2.1% |
| Current Assets | $660.5M-13.2% | $788.6M+16.2% | $863.8M+10.6% | $802.3M+10.9% | $760.7M+24.0% | $678.6M-5.7% | $781.4M+8.4% | $723.2M+1.6% |
| Cash & Equivalents | $301.7M-18.7% | $513.9M+32.6% | $582.5M+15.5% | $506.3M+35.0% | $371.0M+20.7% | $387.6M+7.7% | $504.4M+31.6% | $375.0M-0.5% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $1.1B+25.0% | $848.9M+4.9% | $852.1M+5.9% | $861.0M+5.8% | $864.8M+7.3% | $808.9M+0.4% | $804.8M-0.3% | $813.5M+1.5% |
| Total Liabilities | $933.3M+6.7% | $881.0M+2.6% | $965.9M+3.4% | $931.5M+3.4% | $874.5M+1.2% | $858.7M-0.9% | $934.0M-1.5% | $900.6M-1.0% |
| Current Liabilities | $254.8M+12.9% | $240.7M+7.9% | $314.1M+8.6% | $256.4M-2.6% | $225.7M+1.1% | $223.0M+4.9% | $289.2M+0.6% | $263.1M+3.0% |
| Non-Current Liabilities | $678.5M+4.6% | $640.3M+0.7% | $651.7M+1.1% | $675.1M+5.9% | $648.8M+1.3% | $635.7M-2.8% | $644.8M-2.4% | $637.5M-2.5% |
| Long-Term Debt | $348.5M+0.1% | $348.4M+0.1% | $348.4M+0.1% | $348.3M+0.1% | $348.2M+0.1% | $348.2M+0.1% | $348.1M+0.1% | $348.0M+0.1% |
| Total Equity | $1.3B+12.4% | $1.2B+11.9% | $1.2B+9.3% | $1.2B+9.6% | $1.1B+9.5% | $1.1B-6.2% | $1.1B-2.9% | $1.1B-1.5% |
| Retained Earnings | $1.7B+20.6% | $1.6B+20.6% | $1.5B+21.8% | $1.5B+21.0% | $1.4B+20.8% | $1.3B+6.9% | $1.3B+5.2% | $1.2B+5.2% |
Not reported in any period shown, so not listed: Inventory, Accounts Receivable.
FHI Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $80.9M+330.5% | $28.8M+101.7% | $161.2M+27.2% | $103.1M-12.0% | $18.8M-78.8% | $14.3M+1.9% | $126.7M-2.3% | $117.1M+10.9% |
| Stock-Based Compensation | N/A | $12.3M+10.4% | N/A | N/A | N/A | $11.1M+8.3% | N/A | N/A |
| Capital Expenditures | $1.2M+52.0% | $4.8M+398.4% | -$426K-15.6% | $1.4M-52.8% | $786K-86.9% | $972K+70.8% | $505K-76.1% | -$3.0M+45.5% |
| Free Cash Flow | $79.7M+342.7% | $24.0M+80.1% | $160.8M+27.4% | $101.6M-10.9% | $18.0M-78.2% | $13.3M-1.0% | $126.2M-1.0% | $114.1M+10.2% |
| Investing Cash Flow | -$216.3M-1250.2% | $1.2M+175.9% | $14.1M-65.9% | $5.5M+165.6% | -$16.0M-547.7% | -$1.5M-105.5% | $41.4M+205.7% | -$8.3M-730.7% |
| Financing Cash Flow | -$77.0M-142.8% | -$97.2M+29.3% | -$98.5M-274.9% | $29.9M+157.9% | -$31.7M+78.2% | -$137.6M-116.6% | -$26.3M+71.3% | -$51.5M+24.6% |
| Dividends Paid | $28.8M+7.2% | $25.9M+2.5% | $26.4M+4.5% | $26.4M+3.1% | $26.8M-75.7% | $25.3M+6.6% | $25.2M+4.5% | $25.6M+3.5% |
| Share Buybacks | $64.0M-2.3% | $64.7M-46.1% | $77.1M+228.8% | $21K-99.9% | $65.5M+41.7% | $120.1M+207.8% | $23.4M-64.0% | $28.9M-54.9% |
Not reported in any period shown, so not listed: Depreciation & Amortization.
FHI Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Margin | 26.4%-1.1pp | 26.4%-4.7pp | 28.1%+2.1pp | 27.6%+0.2pp | 27.6%+17.5pp | 31.1%+6.2pp | 26.0%-0.2pp | 27.4%+2.2pp |
| Net Margin | 20.8%-0.7pp | 20.1%-3.8pp | 22.2%+2.2pp | 22.2%+0.8pp | 21.4%+16.2pp | 23.9%+5.0pp | 20.0%-1.0pp | 21.4%+2.8pp |
| Return on Equity | 8.3%+0.2pp | 8.0%-1.4pp | 8.9%+1.2pp | 8.8%+0.7pp | 8.2%+6.1pp | 9.4%+2.9pp | 7.7%+0.5pp | 8.1%+1.3pp |
| Return on Assets | 4.5%+0.3pp | 4.5%-0.6pp | 4.8%+0.7pp | 4.8%+0.5pp | 4.2%+3.1pp | 5.1%+1.5pp | 4.1%+0.1pp | 4.3%+0.7pp |
| Current Ratio | 2.59-0.8x | 3.28+0.2x | 2.750.0x | 3.13+0.4x | 3.37+0.6x | 3.04-0.3x | 2.70+0.2x | 2.750.0x |
| Debt-to-Equity | 0.280.0x | 0.290.0x | 0.290.0x | 0.290.0x | 0.310.0x | 0.320.0x | 0.320.0x | 0.320.0x |
| Asset Turnover | 0.220.0x | 0.220.0x | 0.220.0x | 0.220.0x | 0.200.0x | 0.210.0x | 0.200.0x | 0.200.0x |
| FCF Margin | 15.8%+11.6pp | 5.0%+1.9pp | 33.3%+3.6pp | 21.6%-6.3pp | 4.2%-16.3pp | 3.1%-0.3pp | 29.7%-2.8pp | 27.9%+2.2pp |
Not reported in any period shown, so not listed: Gross Margin.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Federated Hermes, Inc. FHI | FY2025 | $1.8B | $403.3M | 22.4% | $4.2B | 81/100 |
| AllianceBernstein Holding, L.P. AB | FY2025 | N/A | $299.8M | N/A | $3.2B | — |
| Victory Capital Holdings, Inc. VCTR | FY2025 | $1.3B | $330.1M | 25.3% | $6.9B | 53/100 |
| Golub Capital BDC, Inc. GBDC | FY2025 | N/A | $376.6M | N/A | $3.1B | — |
| ARTISAN PARTNERS ASSET MANAGEMENT INC. APAM | FY2025 | $1.2B | $290.3M | 24.3% | $2.4B | 57/100 |
Where Federated Hermes, Inc. Ranks
Frequently Asked Questions
What is Federated Hermes, Inc.'s annual revenue?
Federated Hermes, Inc. (FHI) reported $1.8B in total revenue for fiscal year 2025. This represents a 10.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Federated Hermes, Inc.'s revenue growing?
Federated Hermes, Inc. (FHI) revenue grew by 10.3% year-over-year, from $1.6B to $1.8B in fiscal year 2025.
Is Federated Hermes, Inc. profitable?
Yes, Federated Hermes, Inc. (FHI) reported a net income of $403.3M in fiscal year 2025, with a net profit margin of 22.4%.
What is Federated Hermes, Inc.'s EBITDA?
Federated Hermes, Inc. (FHI) had EBITDA of $535.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Federated Hermes, Inc. have?
As of fiscal year 2025, Federated Hermes, Inc. (FHI) had $582.5M in cash and equivalents against $348.4M in long-term debt.
What is Federated Hermes, Inc.'s operating margin?
Federated Hermes, Inc. (FHI) had an operating margin of 28.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Federated Hermes, Inc.'s net profit margin?
Federated Hermes, Inc. (FHI) had a net profit margin of 22.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Federated Hermes, Inc. pay dividends?
Yes, Federated Hermes, Inc. (FHI) paid $1.33 per share in dividends during fiscal year 2025.
What is Federated Hermes, Inc.'s return on equity (ROE)?
Federated Hermes, Inc. (FHI) has a return on equity of 33.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Federated Hermes, Inc.'s free cash flow?
Federated Hermes, Inc. (FHI) generated $294.6M in free cash flow during fiscal year 2025. This represents a -14.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Federated Hermes, Inc.'s operating cash flow?
Federated Hermes, Inc. (FHI) generated $297.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Federated Hermes, Inc.'s total assets?
Federated Hermes, Inc. (FHI) had $2.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Federated Hermes, Inc.'s capital expenditures?
Federated Hermes, Inc. (FHI) invested $2.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Federated Hermes, Inc.'s current ratio?
Federated Hermes, Inc. (FHI) had a current ratio of 2.75 as of fiscal year 2025, which is generally considered healthy.
What is Federated Hermes, Inc.'s debt-to-equity ratio?
Federated Hermes, Inc. (FHI) had a debt-to-equity ratio of 0.29 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Federated Hermes, Inc.'s return on assets (ROA)?
Federated Hermes, Inc. (FHI) had a return on assets of 18.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Federated Hermes, Inc.'s P/E ratio?
Federated Hermes, Inc. (FHI) trades at 10.2x earnings, its market capitalization divided by net income of $411.9M net income, trailing 12 months to June 30, 2026. The market capitalization is $4.2B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Federated Hermes, Inc.'s price-to-sales ratio?
Federated Hermes, Inc. (FHI) trades at 2.2x sales, its market capitalization divided by revenue of $1.9B revenue, trailing 12 months to June 30, 2026. The market capitalization is $4.2B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Federated Hermes, Inc.'s Altman Z-Score?
Federated Hermes, Inc. (FHI) has an Altman Z-Score of 5.45, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Federated Hermes, Inc.'s Piotroski F-Score?
Federated Hermes, Inc. (FHI) has a Piotroski F-Score of 6 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Federated Hermes, Inc.'s earnings high quality?
Federated Hermes, Inc. (FHI) has an earnings quality ratio of 0.74x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Federated Hermes, Inc. cover its interest payments?
Federated Hermes, Inc. (FHI) has an interest coverage ratio of 40.36x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Federated Hermes, Inc.?
Federated Hermes, Inc. (FHI) scores 81 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.