At a glance
Federated Investors Inc B is worth $4.20B, about 11 times its fiscal 2025 earnings. Revenue grew 10.3% to $1.80B in fiscal 2025, with 22.4% kept as profit; over 5 years it has grown 4.5% a year. It pays a 2.54% dividend yield, and returned $1.62B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +20.4% over the past year with dividends reinvested and +16.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 64.3% in the 2020 crash (S&P 500: 33.7%) and 26.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months and 7 months after the lows.
The business in plain English
Federated Hermes is an investment manager in business since 1955. As of December 31, 2025, it had $902.6 billion in assets under management (AUM), spread across 176 funds plus separate accounts, which are portfolios run for one client such as a pension plan, government body or endowment. Most of its business comes through middlemen. Banks, broker-dealers and financial advisors use its funds for their own customers, often retail investors and retirement plans. By managed assets, this U.S. intermediary channel made up 68%, U.S. institutions 25% and international clients 7%.
The company earns fees set as a percentage of the assets it manages, so revenue moves with asset levels. Revenue was $1.80 billion in 2025: $1.20 billion in investment advisory fees, $420 million in administrative service fees and $182 million in other service fees. Its funds produced 84% of revenue and separate accounts 14%. About 86.5% came from the U.S.
Cash management is the heart of the business. Money market funds, which hold short-term, high-quality debt and usually aim to keep a steady $1 share price, held $682.6 billion of its assets and brought in about 53% of 2025 revenue. They earn lower fees per dollar than its equity and multi-asset funds. Equity ($97.9 billion) and fixed income ($100.1 billion) make up most of the rest.
Price history
The interactive chart needs JavaScript.
FHI +20.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Federated Hermes Funds | $1.51B | 84% |
| Separate Accounts | $255.8M | 14.2% |
| Other | $33.0M | 1.8% |
By geography
| U.S. | $1.56B | 86.5% |
| Non-U.S. | $242.8M | 13.5% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $507.3M, up 8.1% from a year earlier, and net income was $111.9M (+7.5%).
- For fiscal 2025, revenue was $1.80B (+10.3% year over year; +4.5% a year from FY2020 to FY2025) with a 22.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.5% watch |
|---|---|
| Operating margin | 28.5% good |
| Free cash flow margin | 16.4% good |
| Return on equity (FY2025) | 33.7% good |
| Return on assets (FY2025) | 18.1% good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.45B | $326.4M | $359.7M |
| FY2021 | $1.30B | $270.3M | $160.0M |
| FY2022 | $1.45B | $239.5M | $319.6M |
| FY2023 | $1.61B | $299.0M | $303.9M |
| FY2024 | $1.63B | $268.3M | $342.5M |
| FY2025 | $1.80B | $403.3M | $294.6M |
Valuation snapshot
| Market value | $4.20B |
|---|---|
| P/E ratio | 11.1 |
| Dividend yield | 2.54% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| FHI price data to Oct 28, 2026 | +11.2% | +20.4% | +26.7% | +16.4% | +12.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +11.2% |
| 2025 | +30.4% |
| 2024 | +29.6% |
| 2023 | -3.7% |
| 2022 | -0.1% |
| 2021 | +34.6% |
| 2020 | -3.9% |
| 2019 | +27.1% |
| 2018 | -23.4% |
| 2017 | +32.3% |
| 2016 | +6.5% |
| 2015 | -10.3% |
| 2014 | +18.4% |
| 2013 | +47.9% |
| 2012 | +48.5% |
| 2011 | -39.6% |
| 2010 | +4.1% |
| 2009 | +68.7% |
| 2008 | -53.9% |
| 2007 | +24.5% |
| 2006 | -6.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 53.2% over that stretch · deepest drop along the way 59.3%, back to its old high 54.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 64.3% over that stretch · deepest drop along the way 64.3%, back to its old high 14.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.4% over that stretch · deepest drop along the way 26.9%, back to its old high 7 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 17 sales ($9.2M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 12, 2026 | Paul A Uhlman Vice President | sell | $3.5M |
| Mar 13, 2026 | Thomas R Donahue VP, CFO & Treasurer, Director | sell | $1.7M |
| Mar 5, 2026 | Paul A Uhlman Vice President | sell | $664K |
| Mar 12, 2026 | Paul A Uhlman Vice President | sell | $584K |
| Jun 8, 2026 | Saker Anwar Nusseibeh CEO, Federated Hermes Limited | sell | $513K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 6.4% | Mar 31, 2025 |
| Vanguard Portfolio Management | 6.06% | Mar 31, 2026 |
ETFs with the most weight in FHI
| BRNY Burney U.S. Factor Rotation ETF | 4.21% |
| KCE SPDR S&P Capital Markets ETF | 1.75% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 1.55% |
| XMLV Invesco S&P MidCap Low Volatility ETF | 1.38% |
| SYLD Cambria Shareholder Yield ETF | 1.25% |
| FSCS First Trust SMID Capital Strength ETF | 1.08% |
| XMVM Invesco S&P MidCap Value with Momentum ETF | 0.92% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 0.73% |
What could go wrong
- Heavy dependence on money market funds. About 53% of 2025 revenue came from money market assets. If investors move to insured bank deposits or buy bonds directly, or new rules shrink these funds, revenue could fall sharply.
- A money fund could "break the buck". Money market funds are not government insured. If one fell below $1 a share, investors would likely pull out quickly. The company might also choose to spend its own capital propping up a fund.
- Very low interest rates squeeze fees. When short-term rates sit near zero, money fund yields can shrink to almost nothing. The company may then waive fees to keep yields from turning negative, which cuts revenue from its largest business.
- Competition from index funds and rivals. Federated Hermes focuses on active management, where managers pick securities. Low-cost index funds and exchange-traded funds, plus fee pressure from rivals, could pull assets away or force lower fees, especially if performance lags.
- Clients can leave on short notice. Fund advisory contracts need yearly approval from fund boards and can generally be ended on 60 days' notice. Separate account clients can generally leave on notice, sometimes after a 30- or 60-day wait.
- Outside shareholders have limited control. Federated Hermes has two share classes and is a "controlled company": one holder or group has most of the votes. Others cannot outvote them, and some NYSE governance rules don't apply.
Recent events
- Quarterly results released
- Quarterly results released
- Quarterly results released
- Other company announcement
- Other company announcement
- Quarterly results released
- Executive or board change
For income and retirement investors
Federated Hermes pays a dividend, but it has not risen every year. Dividends per share were $2.08 in 2020, $1.08 in 2021 and 2022, $1.11 in 2023, $2.21 in 2024 and $1.33 in 2025. That uneven record makes the income harder to plan around. The 2025 dividend used about 26% of earnings and 36% of free cash flow (cash left after running and investing in the business), a modest share. The yield was 2.54% as of October 28, 2026. The company spends more on buybacks than dividends: $1.02 billion versus $591 million from 2021 through 2025.
The shares have fallen hard in past crises. They dropped 59% in the 2008 financial crisis and took about 54 months to recover, fell 64% in the 2020 COVID crash and needed about 15 months, and lost 27% in the 2022 bear market before recovering in 7 months. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Federated Hermes make money?
Mostly by charging fees based on the assets it manages. In 2025, revenue was $1.80 billion, of which $1.20 billion came from investment advisory fees and the rest from administrative and other service fees. The company managed $902.6 billion as of December 31, 2025, across 176 funds plus separate accounts. Money market funds are the biggest piece, accounting for about 53% of 2025 revenue. Equity and multi-asset funds earn higher fees per dollar than money market funds.
Does Federated Hermes raise its dividend every year?
No. Dividends per share have moved up and down rather than rising each year: $2.21 in 2024, then $1.33 in 2025. Measured from 2020 to 2025, regular dividends per share fell an average of 8.6% a year. The 2025 payout took about 26% of earnings, a modest share, and the yield was 2.54% as of October 28, 2026. The company spent more on share buybacks than on dividends from 2021 through 2025.
How much does Federated Hermes rely on money market funds?
Heavily. Money market assets made up $682.6 billion of the company's $902.6 billion in managed assets as of December 31, 2025, and produced about 53% of 2025 revenue. That money was split among government ($420.5 billion), prime ($242.7 billion), which can hold corporate debt, and municipal ($19.4 billion) funds. Money market fees are lower per dollar than equity fees, and this business is sensitive to interest rates, regulation and competition from bank deposits.
What is Federated Hermes' P/E ratio?
About 11.1 as of October 28, 2026, based on 2025 diluted earnings of $5.13 per share. The price-to-earnings (P/E) ratio compares the share price with a year of profit per share. That figure rests on a strong year: net income rose 50.3% in 2025, while diluted earnings per share ranged from $2.65 to $3.40 from 2021 through 2024. The company's market value was about $4.24 billion on the same date.
How has Federated Hermes stock performed over the long run?
It has risen over time, with some deep drops along the way. As of October 28, 2026, its price-based return was 20.4% over one year, 16.4% a year over five years and 12.8% a year over ten years. The shares gained about 30% in both 2024 and 2025. But calendar-year losses included 53.9% in 2008, 39.6% in 2011 and 23.4% in 2018, and the deepest fall from a peak was 64.9%.