Federated Hermes Inc. (​NYSE: FHI) Reports Record AUM and Robust 2025 Earnings

Federated Hermes, a Pittsburgh‑based asset‑management specialist, disclosed its fourth‑quarter and full‑year 2025 results on January 29, 2026, confirming a continued trajectory of strong performance amid a stable global macro backdrop.

Record‑Setting Assets Under Management

  • Total AUM: $902.6 billion, the highest figure ever reported by the firm.
  • Money‑market AUM: $682.6 billion, underscoring the firm’s dominance in short‑term liquidity products.

The record AUM growth is driven by continued inflows into the firm’s suite of mutual funds, annuities, and institutional separate accounts, which collectively benefit from Federated Hermes’ reputation for disciplined risk management and consistent relative‑value outperformance.

Earnings Momentum

  • Q4 2025 EPS (diluted): $1.39.
  • Full‑year 2025 EPS: $5.13.

These earnings figures exceed consensus forecasts by 17–20 percent, reflecting a combination of higher fee income, superior risk‑adjusted returns, and a favorable interest‑rate environment that has bolstered performance for the firm’s money‑market and short‑duration strategies.

Dividend Policy

The board declared a quarterly dividend of $0.34 per share. The dividend yield, given the current share price of $52.91, sits comfortably above the industry average and signals management’s confidence in sustained cash‑flow generation.

Market‑Wide Context: Dollar Hedging Activity

In a separate note from January 29, Federated Hermes highlighted a “dollar slide” in the U.S. currency, noting that global investors were actively hedging against a weaker greenback rather than liquidating American assets. The firm’s own hedging strategy, designed to neutralize currency exposure for its global client base, remains robust as it continues to filter volatility through disciplined risk controls and dynamic allocation.

Forward Outlook

Federated Hermes’ recent results reinforce its positioning as a leading manager of diversified, fee‑efficient investment products. The firm’s ability to generate record AUM and sustain strong earnings in a low‑interest‑rate environment bodes well for continued shareholder value creation. With a disciplined dividend policy and a proven hedging framework, Federated Hermes is well‑positioned to navigate the next cycle of global market volatility while delivering consistent, risk‑adjusted performance to its clients.