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Robust AUM Performance on Strong Markets to Aid Invesco's Q2 Earnings
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Key Takeaways
Invesco's Q2 AUM rose 8.7% sequentially to $2T, driven by market gains and net inflows.
Revenues are expected to rise 1.9% y/y, led by higher investment and performance fees.
Earnings may have declined 7% as cost pressures, including Alpha implementation, offset revenue growth.
Invesco (IVZ - Free Report) is slated to report second-quarter 2025 results on July 22, before market open. While the company’s quarterly revenues are expected to have witnessed a rise on a year-over-year basis, earnings are likely to have declined.
In the last reported quarter, IVZ’s adjusted earnings beat the Zacks Consensus Estimate. Results were primarily aided by higher adjusted net revenues. An increase in the assets under management (AUM) balance, driven by decent inflows, was another positive. However, higher adjusted operating expenses were worrisome.
Invesco has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters, the average surprise being 6.6%.
Per the monthly metrics data published by Invesco, its preliminary total AUM as of June 30, 2025, was $2 trillion, up 8.7% on a sequential basis. Growth in AUM was driven by strong market returns and overall net inflows despite continued concerns related to the impact of Trump’s tariff plans on financials. Hence, the company’s investment management fees are expected to have increased. The Zacks Consensus Estimate for investment management fees is pegged at $1.11 billion, indicating a rise of 1.3% from the previous quarter’s reported number.
Similarly, the consensus estimate for performance fees of $8.99 million indicates a significant rise from the previous quarter’s actual.
The consensus estimate for service and distribution fees of $376 million indicates a sequential rise of 1.3%. The Zacks Consensus Estimate for other revenues is pegged at $53 million, suggesting a 3.6% sequential decline.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the rise in compensation and marketing costs is expected to have had an adverse impact on overall expenses in the to-be-reported quarter.
Management expects the one-time implementation costs of Alpha to be $10-15 million in the second quarter of 2025.
Key Q2 Development for Invesco
In April, IVZ announced its strategic product and distribution for U.S. Wealth channels with MassMutual’s $442-billion global asset management subsidiary, Barings. The alliance aims to focus on unique and market-leading private credit solutions for clients.
It combines the global private credit and public fixed income proficiency, extensive product structuring and sophisticated asset allocation capabilities of both firms.
MassMutual intends to support this initiative with an initial investment of $650 million to boost the launch and scale up of products and accelerate client adoption.
Invesco agreed to repurchase roughly $1 billion of its Series A preferred stock. The all-cash purchase will be funded by debt financing. This is expected to be accretive to Invesco’s earnings beginning in the second half of 2025.
What Our Model Predicts for IVZ
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is +1.65%.
Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy).
Invesco’s Q2 Earnings & Sales Estimates
The Zacks Consensus Estimate for Invesco’s earnings of 40 cents has been revised 2.6% higher over the past seven days. However, the figure indicates a decline of 7% from the year-ago quarter. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
The consensus estimate for sales is pegged at $1.11 billion, suggesting a year-over-year rise of 1.9%.
Other Finance Stocks Worth Considering
Here are a couple of other finance stocks that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time:
The consensus estimate for KeyCorp’s quarterly earnings has been unchanged at 34 cents over the past seven days.
Prosperity Bancshares, Inc. (PB - Free Report) is slated to announce second-quarter 2025 results on July 23. The company currently has a Zacks Rank #3 and an Earnings ESP of +1.33%.
The Zacks Consensus Estimate for Prosperity Bancshares’ quarterly earnings has been unchanged at $1.40 over the past week.
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Robust AUM Performance on Strong Markets to Aid Invesco's Q2 Earnings
Key Takeaways
Invesco (IVZ - Free Report) is slated to report second-quarter 2025 results on July 22, before market open. While the company’s quarterly revenues are expected to have witnessed a rise on a year-over-year basis, earnings are likely to have declined.
In the last reported quarter, IVZ’s adjusted earnings beat the Zacks Consensus Estimate. Results were primarily aided by higher adjusted net revenues. An increase in the assets under management (AUM) balance, driven by decent inflows, was another positive. However, higher adjusted operating expenses were worrisome.
Invesco has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters, the average surprise being 6.6%.
Invesco Ltd. Price and EPS Surprise
Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote
Invesco’s Key Q2 Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of June 30, 2025, was $2 trillion, up 8.7% on a sequential basis. Growth in AUM was driven by strong market returns and overall net inflows despite continued concerns related to the impact of Trump’s tariff plans on financials. Hence, the company’s investment management fees are expected to have increased. The Zacks Consensus Estimate for investment management fees is pegged at $1.11 billion, indicating a rise of 1.3% from the previous quarter’s reported number.
Similarly, the consensus estimate for performance fees of $8.99 million indicates a significant rise from the previous quarter’s actual.
The consensus estimate for service and distribution fees of $376 million indicates a sequential rise of 1.3%. The Zacks Consensus Estimate for other revenues is pegged at $53 million, suggesting a 3.6% sequential decline.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the rise in compensation and marketing costs is expected to have had an adverse impact on overall expenses in the to-be-reported quarter.
Management expects the one-time implementation costs of Alpha to be $10-15 million in the second quarter of 2025.
Key Q2 Development for Invesco
In April, IVZ announced its strategic product and distribution for U.S. Wealth channels with MassMutual’s $442-billion global asset management subsidiary, Barings. The alliance aims to focus on unique and market-leading private credit solutions for clients.
It combines the global private credit and public fixed income proficiency, extensive product structuring and sophisticated asset allocation capabilities of both firms.
MassMutual intends to support this initiative with an initial investment of $650 million to boost the launch and scale up of products and accelerate client adoption.
Invesco agreed to repurchase roughly $1 billion of its Series A preferred stock. The all-cash purchase will be funded by debt financing. This is expected to be accretive to Invesco’s earnings beginning in the second half of 2025.
What Our Model Predicts for IVZ
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is +1.65%.
Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy).
Invesco’s Q2 Earnings & Sales Estimates
The Zacks Consensus Estimate for Invesco’s earnings of 40 cents has been revised 2.6% higher over the past seven days. However, the figure indicates a decline of 7% from the year-ago quarter. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
The consensus estimate for sales is pegged at $1.11 billion, suggesting a year-over-year rise of 1.9%.
Other Finance Stocks Worth Considering
Here are a couple of other finance stocks that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time:
KeyCorp (KEY - Free Report) is scheduled to report second-quarter 2025 numbers on July 22. The company has a Zacks Rank #3 and an Earnings ESP of +0.61% at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for KeyCorp’s quarterly earnings has been unchanged at 34 cents over the past seven days.
Prosperity Bancshares, Inc. (PB - Free Report) is slated to announce second-quarter 2025 results on July 23. The company currently has a Zacks Rank #3 and an Earnings ESP of +1.33%.
The Zacks Consensus Estimate for Prosperity Bancshares’ quarterly earnings has been unchanged at $1.40 over the past week.