A Look Ahead: Federated Hermes's Earnings Forecast
Federated Hermes, Inc. Class B FHI | 57.81 | -0.41% |
Federated Hermes (NYSE:FHI) is set to give its latest quarterly earnings report on Thursday, 2026-01-29. Here's what investors need to know before the announcement.
Analysts estimate that Federated Hermes will report an earnings per share (EPS) of $1.21.
Investors in Federated Hermes are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
The company's EPS beat by $0.22 in the last quarter, leading to a 2.49% increase in the share price on the following day.
Here's a look at Federated Hermes's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.12 | 1.02 | 0.91 | 0.97 |
| EPS Actual | 1.34 | 1.16 | 1.10 | 1.04 |
| Price Change % | 2.00 | -1.00 | 5.00 | 0.00 |

Performance of Federated Hermes Shares
Shares of Federated Hermes were trading at $52.51 as of January 27. Over the last 52-week period, shares are up 32.57%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Federated Hermes
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Federated Hermes.
A total of 3 analyst ratings have been received for Federated Hermes, with the consensus rating being Neutral. The average one-year price target stands at $54.33, suggesting a potential 3.47% upside.
Comparing Ratings Among Industry Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Victory Capital Holdings, Sprott and Artisan Partners Asset, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Victory Capital Holdings, with an average 1-year price target of $70.33, suggesting a potential 33.94% upside.
- Analysts currently favor an Neutral trajectory for Sprott, with an average 1-year price target of $132.0, suggesting a potential 151.38% upside.
- Analysts currently favor an Neutral trajectory for Artisan Partners Asset, with an average 1-year price target of $44.0, suggesting a potential 16.21% downside.
Summary of Peers Analysis
Within the peer analysis summary, vital metrics for Victory Capital Holdings, Sprott and Artisan Partners Asset are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Federated Hermes | Neutral | 14.93% | $324.88M | 8.64% |
| Victory Capital Holdings | Neutral | 60.08% | $257.10M | 3.06% |
| Sprott | Neutral | 28.16% | $14.74M | 3.81% |
| Artisan Partners Asset | Neutral | 7.76% | $138.04M | 15.63% |
Key Takeaway:
Federated Hermes ranks in the middle among peers for revenue growth, with a growth rate of 14.93%. It ranks at the top for gross profit, standing at $324.88M. However, it ranks lower for return on equity compared to its peers, with a rate of 8.64%.
About Federated Hermes
Federated Hermes provides asset management services for institutional and individual investors. The firm had $871.2 billion in managed assets at the end of September 2025, composed of equity (11%), multi-asset (less than 1%), fixed-income (12%), alternative (2%), and money market (75%) funds. The firm's cash management operations are expected to generate around 53% of Federated's revenue this year, compared with 28%, 11%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (68% of AUM), institutional investors (25%), and international clients (7%).
Key Indicators: Federated Hermes's Financial Health
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Federated Hermes's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.93% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Federated Hermes's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 21.18%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 8.64%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Federated Hermes's ROA excels beyond industry benchmarks, reaching 4.59%. This signifies efficient management of assets and strong financial health.
Debt Management: Federated Hermes's debt-to-equity ratio is below the industry average at 0.39, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Federated Hermes visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
