Filing Flows › Federated Hermes (FHI) › Q1 2026
Federated Hermes (FHI) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 1, 2026
Federated Hermes (FHI) reported revenue of $479M for the first quarter 2026 (Q1 2026), +13% from a year earlier and -0.8% from the quarter before. Operating margin was 26.4%, net earnings $96.4M (20.1% of revenue).
Federated Hermes, Q1 2026: revenue $479M (+13% year over year), operating margin 26.4%, net earnings $96.4M, operating cash flow $28.8M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $479M | -0.8% | +13% |
| Operating profit | $126M | -7% | -4% |
| Net earnings | $96.4M | -10% | -5% |
| Operating cash flow | $28.8M | -82% | +102% |
| Free cash flow | $24.0M | -85% | +80% |
What changed
Revenue was $479.0M in Q1 2026, up 13% year over year and down 1% from the previous quarter. Federated Hermes Funds was the largest line at 85% of revenue. Federated Hermes Funds added $52.1M year over year (up 15%), 94% of the total change.
Operating profit was $126.3M, a 26.4% margin (down 4.7 points year over year). Operating profit fell $5.4M even though revenue rose $55.4M versus Q1 2025, so costs grew faster than sales. Total costs grew 21% against revenue growth of 13%. The fastest-growing cost line was Other operating costs (+21%). Net earnings were $96.4M, down 5% year over year. The effective tax rate was 26.1%.
Operating cash flow was $28.8M (up 102% year over year), 30% of net earnings. Non-cash charges added back $12.3M of share-based compensation. Working capital and other items used $79.4M. Capital expenditures of $4.8M left free cash flow of $24.0M.
Questions
What was Federated Hermes' revenue in the first quarter 2026?
Federated Hermes (FHI) reported revenue of $479M for the first quarter 2026 (Q1 2026), +13% from a year earlier and -0.8% from the quarter before.
Was Federated Hermes profitable in the first quarter 2026?
Operating profit was $126M (26.4% of revenue) and net earnings $96.4M.
Source: Federated Hermes 10-Q on SEC EDGAR.