Filing Flows › Federated Hermes (FHI) › Q3 2026 › vs Q2 2026
Federated Hermes (FHI) Q3 2026 vs Q2 2026 (quarter over quarter)
Federated Hermes's revenue rose $4.6M (+0.9%) from $503M in Q2 2026 to $507M in Q3 2026. The biggest changes: Federated Hermes Funds +$9.4M (+2%); Other −$4.9M (-56%); Separate Accounts +$68K (+0.1%). Operating margin 30.2% against 26.4% (+3.8 pts).
Federated Hermes, Q3 2026: revenue $507M (+8% year over year), operating margin 30.2%, net earnings $112M, operating cash flow $134M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Operating margin | 30.2% | 26.4% | +3.8 pts |
| Net margin | 22.1% | 20.7% | +1.3 pts |
| Free cash flow margin | 23.7% | 15.8% | +7.9 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Federated Hermes Funds | $434M | $424M | $9.4M | +2% |
| Separate Accounts | $69.9M | $69.8M | $68K | +0.1% |
| Other | $3.8M | $8.7M | −$4.9M | -56% |
| Revenue | $507M | $503M | $4.6M | +0.9% |
| Operating profit | $153M | $133M | $20.4M | +15% |
| Costs & expenses | $354M | $370M | −$15.9M | -4% |
| Pre-tax earnings | $152M | $144M | $8.0M | +6% |
| Sales & marketing | $5.5M | $7.3M | −$1.8M | -24% |
| Other operating costs | $348M | $363M | −$14.1M | -4% |
| Loss borne by minority interests | $1.0M | −$2.5M | $3.5M | — |
| Net earnings | $112M | $104M | $7.6M | +7% |
| Income tax | $41.2M | $37.2M | $4.0M | +11% |
| Share-based compensation | $5.9M | $6.2M | −$306K | -5% |
| Working capital & other | $16.4M | −$29.7M | $46.0M | — |
| Operating cash flow | $134M | $80.9M | $53.3M | +66% |
| Free cash flow (OCF − capex) | $120M | $79.7M | $40.6M | +51% |
| Capital expenditures | $13.9M | $1.2M | $12.7M | 12× |
Questions
How much did Federated Hermes's revenue grow quarter over quarter in Q3 2026?
Federated Hermes's revenue rose $4.6M (+0.9%) from $503M in Q2 2026 to $507M in Q3 2026.
What drove Federated Hermes's revenue change in Q3 2026?
Federated Hermes Funds +$9.4M (+2%); Other −$4.9M (-56%); Separate Accounts +$68K (+0.1%).