Federated Hermes Soars 14.97% on Earnings Beat

Federated Hermes surged 14.97% in pre-market trading on August 1, 2025, driven by a strong second-quarter earnings report that exceeded analyst expectations.

Federated Hermes reported a significant 402.9% increase in net income to $96.69 million for the second quarter of 2025, accompanied by a 5.5% revenue growth to $424.84 million. This performance was highlighted by a 480% jump in earnings per share, which reached $1.16, surpassing the consensus estimate of $1.02 per share.

The company's total assets under management (AUM) reached an all-time high of $845.7 billion, driven by robust inflows into money market and equity funds. This growth underscores a strong appetite for both low-risk and higher-yielding investments. Notably, alternative quantitative strategies like MDT saw a $6.4 billion boost quarter-over-quarter, reflecting increased investor interest in flexible, non-traditional approaches.

Federated Hermes' board maintained its quarterly dividend at $0.34 and approved a new share buyback plan, demonstrating the company's commitment to returning value to shareholders. The firm's revenue narrowly beat analyst expectations, and the total managed assets grew 8% from the previous year, indicating a strong demand for safety and liquidity in the current market environment.