Filing Flows › Federated Hermes (FHI) › Q2 2026
Federated Hermes (FHI) Q2 2026 earnings results (second quarter 2026)
10-Q filed Jul 31, 2026
Federated Hermes (FHI) reported revenue of $503M for the second quarter 2026 (Q2 2026), +18% from a year earlier and +5% from the quarter before. Operating margin was 26.4%, net earnings $104M (20.7% of revenue).
Federated Hermes, Q2 2026: revenue $503M (+18% year over year), operating margin 26.4%, net earnings $104M, operating cash flow $80.9M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $503M | +5% | +18% |
| Operating profit | $133M | +5% | +13% |
| Net earnings | $104M | +8% | +15% |
| Operating cash flow | $80.9M | +180% | +331% |
| Free cash flow | $79.7M | +232% | +343% |
What changed
Revenue was $502.8M in Q2 2026, up 18% year over year and up 5% from the previous quarter. Federated Hermes Funds was the largest line at 84% of revenue. Federated Hermes Funds added $66.8M year over year (up 19%), 86% of the total change.
Operating profit was $132.9M, a 26.4% margin (down 1.1 points year over year). Of the extra revenue versus Q2 2025, 20% reached operating profit, below the 28% margin then. Total costs grew 20% against revenue growth of 18%. The fastest-growing cost line was Other operating costs (+20%). Net earnings were $104.3M, up 15% year over year. The effective tax rate was 25.8%.
Operating cash flow was $80.9M (up 331% year over year), 76% of net income including minority interests. Non-cash charges added back $6.2M of share-based compensation. Working capital and other items used $32.2M. Capital expenditures of $1.2M left free cash flow of $79.7M.
Questions
What was Federated Hermes' revenue in the second quarter 2026?
Federated Hermes (FHI) reported revenue of $503M for the second quarter 2026 (Q2 2026), +18% from a year earlier and +5% from the quarter before.
Was Federated Hermes profitable in the second quarter 2026?
Operating profit was $133M (26.4% of revenue) and net earnings $104M.
Source: Federated Hermes 10-Q on SEC EDGAR.