2Q26 Delivers an Earnings Beat Driven by Expenses; LT Outflows in 2Q26; Steady Overall Pipeline But Sluggish Near-Term Outlook for Market Market Net Sales

研报英文原文证据摘录

2Q26 Delivers an Earnings Beat Driven by Expenses; LT Outflows in 2Q26; Steady Overall Pipeline But Sluggish Near-Term Outlook for Market Market Net Sales

J P M O R G A N North America Equity Research

31 July 2026

Federated Hermes

2Q26 Delivers an Earnings Beat Driven by Expenses; Underweight

LT Outflows in 2Q26; Steady Overall Pipeline But FHI, FHI US

Sluggish Near-Term Outlook for Market Market Net Price (31 Jul 26):$59.47

Sales ▲Price Target (Dec-26):$55.00 Prior (Dec-26):$54.00

Federated reported 2Q26 EPS of $1.38, well ahead of Bloomberg consensus

expectations. Expense management, as well as below the line items, drove the Brokers, Asset Managers &

Exchangesmajority of the earnings beat. 2Q26 also included a ~6c per share headwind from

a number of one-time items (e.g., FCP acquisition trxn costs, Rivington property Michael Cho AC

sale, UK development fee). Overall 2Q26 revenues and fee rates were generally in (1-212) 622-3619

michael.cho@jpmchase.com

line, but we expect a sluggish net sales backdrop for Federated’s money market

business in the near-term given seasonality and lingering market share dynamics. Kenneth B. Worthington, CFA

(1-212) 622-6613

2Q26 experienced LT net outflows of $1.7bn, reversing from inflows of $1.8bn in kenneth.b.worthington@jpmorgan.com

1Q26. Here, Federated’s equity strategies drove the inflection down q/q, which

Madeline Daleiden

was impacted by the previously announced ~$3bn institutional global equity (1-212) 622-4911

redemption. On balance, Federated’s MDT franchise continues to generate steady madeline.daleiden@jpmchase.com

positive net sales and reached record gross sales during the quarter. That said, we J.P. Morgan Securities LLC

observe some puts and takes in recent MDT performance and view risks to flows