Filing Flows › Federated Hermes (FHI) › How it makes money
How Federated Hermes (FHI) makes money
Federated Hermes (FHI) made $507M of revenue in the third quarter 2026 (Q3 2026), +8% from a year earlier. Federated Hermes Funds brought in $434M (85%); Separate Accounts brought in $69.9M (14%); Other brought in $3.8M (1%). Of every dollar of revenue, 30¢ was left as operating profit, 22¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Federated Hermes Funds | $434M | 85.5% | +2% | +10% |
| Separate Accounts | $69.9M | 13.8% | +0.1% | +6% |
| Other | $3.8M | 0.8% | -56% | -64% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $507M | 100.0% |
| Operating profit | $153M | 30.2% |
| Income tax | $41.2M | 8.1% |
| Net earnings | $112M | 22.1% |
| Operating cash flow | $134M | 26.4% |
| Free cash flow | $120M | 23.7% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $507M | +8% |
| Q2 2026 | $503M | +18% |
| Q1 2026 | $479M | +13% |
| Q4 2025 | $483M | +14% |
| Q3 2025 | $469M | +15% |
| Q2 2025 | $425M | +6% |
| Q1 2025 | $424M | +7% |
From Federated Hermes' 10-Q filed Oct 30, 2026 (on EDGAR).
Questions
How does Federated Hermes make money?
Federated Hermes (FHI) made $507M of revenue in the third quarter 2026 (Q3 2026), +8% from a year earlier. Federated Hermes Funds brought in $434M (85%); Separate Accounts brought in $69.9M (14%); Other brought in $3.8M (1%). Of every dollar of revenue, 30¢ was left as operating profit, 22¢ was left as net earnings.
What is Federated Hermes' biggest business?
Federated Hermes Funds: $434M in the third quarter 2026, 85% of revenue, +10% from a year earlier.
What is Federated Hermes' profit margin?
Net earnings were $112M, 22.1% of revenue, in the third quarter 2026; the operating margin was 30.2%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.