Federated(US:FHI) Prnewswire·2026-01-29 21:17Core Insights - Federated Hermes, Inc. reported a significant increase in earnings per diluted share (EPS) for Q4 2025, reaching $1.39, up from $1.04 in Q4 2024, with net income of $107.0 million compared to $84.7 million in the previous year [1][10] - The total managed assets reached a record $902.6 billion as of December 31, 2025, marking a 9% increase from $829.6 billion at the end of 2024 [2][10] - The company declared a quarterly dividend of $0.34 per share, payable on February 13, 2026 [3][10] Financial Performance - Q4 2025 revenue increased by $58.2 million or 14%, primarily due to higher average money market and equity assets [8] - Operating expenses rose by $33.0 million or 11%, mainly driven by increased distribution expenses and higher compensation costs [9] - For the full year 2025, total revenue was $1.800 billion, a 10% increase from $1.632 billion in 2024 [13][24] Asset Management - The average managed assets for Q4 2025 were $873.7 billion, up 9% from $804.4 billion in Q4 2024 [2] - Money market assets reached a record $682.6 billion, up 8% from $630.3 billion at the end of 2024 [7] - Equity assets increased by 23% to $97.9 billion, while fixed-income assets rose by 2% to $100.1 billion [4][5] Investment Strategies - The growth in managed assets was attributed to increased investor interest in liquidity products and a diverse range of investment solutions, including ETFs and separately managed accounts (SMAs) [3] - The top-selling equity funds in Q4 2025 included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund [4] - The company’s revenue composition for 2025 showed that 53% came from money market assets and 45% from long-term assets [14]