Federated Hermes reported third‑quarter 2025 earnings, posting earnings per share of $1.34 and net income of $104.1 million, up 19% from $87.5 million in the same quarter a year earlier. Total revenue rose to $469.4 million, a 15% increase year‑over‑year and 10% sequentially, driven by higher fees from money‑market and equity funds, including record net sales of its MDT equity strategies.
The firm’s total assets under management reached a record $871.2 billion at September 30, 2025, up 9% from $800.5 billion a year earlier and 3% from $845.7 billion at June 30, 2025. Money‑market assets hit $652.8 billion, a 10% year‑over‑year gain, while equity assets grew 13% and fixed‑income assets grew 2%.
Operating expenses increased 15% to $312.5 million, driven by higher distribution costs and foreign‑currency fluctuations. The expense rise offset some of the revenue gains but left net income above analyst expectations.
Management highlighted strong demand for money‑market and equity strategies, citing a declining rate environment and increased data‑center activity. The company noted that its MDT equity strategies achieved record net sales, reflecting investor confidence in active management approaches.
Federated Hermes declared a dividend of $0.34 per share, payable on November 14, 2025 to shareholders of record as of November 7, 2025. The dividend increase from $0.31 a year earlier underscores the company’s commitment to returning value to shareholders while maintaining a robust asset‑growth trajectory.
Strategic context: The record AUM reflects the successful acquisition of Rivington Energy Management in April 2025 and continued growth in active investment solutions. Management expects Q4 to maintain momentum, with a strong institutional pipeline and ongoing focus on data‑center and quantitative strategies.
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