Federated Hermes, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with total revenue reaching $1.8 billion, a 10% increase from $1.6 billion in 2024. The growth was primarily driven by a rise in investment advisory fees, which totaled $1.2 billion, up 9% from the previous year. Administrative service fees also saw an 8% increase, amounting to $420 million. The company's net income attributable to shareholders rose to $403.3 million, compared to $268.3 million in 2024, reflecting a diluted earnings per share of $5.13, up from $3.23.
The company’s assets under management (AUM) increased by 9% to $902.6 billion as of December 31, 2025, compared to $829.6 billion in 2024. This growth was attributed to a 23% increase in equity assets, which reached $97.9 billion, and an 8% rise in money market assets, totaling $682.6 billion. The firm also reported a 10% increase in total long-term assets, which amounted to $220 billion. The increase in AUM was supported by favorable market conditions and a strong performance in the equity sector, with the S&P 500 index rising over 16% during the year.
Strategically, Federated Hermes made notable acquisitions, including a 60% equity interest in Rivington Energy Management, a U.K.-based renewable energy project development firm, and an agreement to acquire an 80% interest in FCP Fund Manager, a U.S.-based real estate investment manager. These acquisitions are expected to enhance the company's growth in international markets and diversify its investment offerings. The company also continued to focus on integrating governance, environmental, and social factors into its investment strategies, aligning with current market trends.
Operationally, Federated Hermes maintained a workforce of 2,091 employees as of December 31, 2025, with a significant presence in Pittsburgh and London. The firm’s distribution strategy involved over 11,000 institutions and financial intermediaries, with 68% of managed assets attributed to U.S. financial intermediaries. The company’s engagement metrics showed a strong performance in customer retention and asset growth, particularly in its money market and equity offerings.
Looking ahead, Federated Hermes expressed optimism about its growth trajectory, citing the potential for further expansion in both domestic and international markets. The company plans to invest approximately $300 million over the next three years in technology initiatives to enhance operational efficiency and customer engagement. However, management acknowledged the ongoing regulatory challenges and market volatility that could impact future performance, emphasizing the need for continued adaptation to changing market conditions and investor preferences.
About FEDERATED HERMES, INC.
Federated Hermes, Inc. is a global investment management firm offering active strategies across equity, fixed-income, money market, and alternative/private markets. Serving institutional, retail, and international clients, it manages over $829 billion in assets. The company provides investment advisory, stewardship, and real estate services, leveraging proprietary research and ESG integration to deliver long-term, risk-adjusted financial value. Its business model centers on asset-based fees from diverse investment products and client segments.
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