Federated Hermes's (NYSE:FHI) Q4 CY2025: Beats On Revenue

Investment management firm Federated Hermes (NYSE:FHI) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 13.7% year on year to $482.8 million. Its GAAP profit of $1.39 per share was 14% above analysts’ consensus estimates.

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"Federated Hermes' record assets at year-end were again driven by money market asset increases, as our liquidity products provided attractive cash management resources and opportunities for risk-adjusted returns," said J. Christopher Donahue, president and chief executive officer.

Company Overview

With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE:FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Federated Hermes grew its revenue at a sluggish 4.5% compounded annual growth rate. This wasn’t a great result compared to the rest of the financials sector, but there are still things to like about Federated Hermes.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Federated Hermes’s annualized revenue growth of 5.8% over the last two years is above its five-year trend, but we were still disappointed by the results.

This quarter, Federated Hermes reported year-on-year revenue growth of 13.7%, and its $482.8 million of revenue exceeded Wall Street’s estimates by 2.2%.

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Key Takeaways from Federated Hermes’s Q4 Results

It was good to see Federated Hermes beat analysts’ EPS expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 2.8% to $54.60 immediately following the results.

Federated Hermes may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).