FEDERATED HERMES INC (NYSE:FHI) Reports Strong Q2 2025 Earnings with 15% After-Hours Surge
By Mill Chart
Last update: Jul 31, 2025
FEDERATED HERMES INC (NYSE:FHI) reported its second-quarter 2025 earnings, delivering a significant year-over-year improvement in profitability despite a slight revenue miss compared to analyst expectations. The market reaction has been notably positive, with shares rising nearly 15% in after-hours trading.
Key Earnings Highlights
- Revenue: The company posted Q2 2025 revenue of $424.84 million, slightly below the consensus estimate of $427.05 million.
- Earnings Per Share (EPS): EPS came in at $1.16, well above the estimated $1.03, marking a substantial improvement from the prior year’s $0.20 (which included a $0.76 per-share impairment charge).
- Net Income: Reported net income for the quarter was $91.0 million, up sharply from $21.0 million in Q2 2024.
Market Reaction
The strong EPS beat appears to be the primary driver behind the stock’s 14.99% surge in after-market trading. Investors seem to be overlooking the modest revenue miss, focusing instead on improved profitability and operational efficiency. Over the past month, FHI has already gained 9.45%, suggesting growing confidence ahead of the earnings release.
Forward-Looking Estimates
Analysts expect the company to maintain momentum, with Q3 2025 revenue projected at $435.04 million and full-year 2025 sales estimated at $1.726 billion. The next quarterly EPS estimate stands at $1.09, which Federated Hermes may exceed if cost management remains effective.
Press Release Summary
The earnings report emphasized record assets under management, reinforcing the firm’s position as a global leader in active investing. The prior-year results were weighed down by a $66.3 million non-cash impairment charge, making this quarter’s performance appear even stronger in comparison.
For a deeper dive into Federated Hermes’ earnings trends and future estimates, review the full breakdown here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
