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Shares of IVZ lost 1% in the pre-market trading on weaker-than-expected results.
The results primarily benefited from an increase in adjusted revenues and growth in the assets under management (AUM) balance. However, an increase in adjusted expenses was a headwind.
Net income attributable to common shareholders (GAAP basis) was $230.4 million or 51 cents per share, up from $171.1 million or 38 cents per share in the year-ago quarter.
Adjusted net revenues in the quarter were $1.26 billion, up 14% year over year. The top line marginally missed the Zacks Consensus Estimate of $1.27 billion. The rise in revenues was driven by higher average AUM, favorable foreign exchange rate changes and revenues earned from Invesco QQQ Trust following its conversion.
Adjusted operating expenses were $828.3 million, up 9.1% year over year.
The adjusted operating margin was 34.5%, up from 31.5% a year ago.
IVZ’s AUM Balance Increases
As of March 31, 2026, AUM was a record $2.16 trillion, up 17.1% year over year. The average AUM at the end of the first quarter totaled $2.22 trillion, up 18%.
Client demand remained supportive across IVZ’s multiple investment capabilities. Net long-term inflows were led by ETFs and Index products ($18.6 billion) and the China joint venture ($8.7 billion), with additional contributions from Fundamental Fixed Income ($3.7 billion) and Multi-Asset/Other strategies ($3.6 billion). Private Markets also generated positive net inflows of $0.4 billion.
Those positives were partially offset by outflows tied to factor and product rotations. QQQ recorded net long-term outflows of $10.8 billion in the quarter, while Fundamental Equities saw net outflows of $2.4 billion.
By geography, Asia Pacific and EMEA produced net long-term inflows of $13.2 billion and $7.6 billion, respectively, while the Americas added $1.0 billion.
Invesco’s Decent Balance Sheet
As of March 31, 2026, cash and cash equivalents were $806.9 million compared with $1.04 billion as of Dec. 31, 2025.
The long-term debt was $1.97 billion. The redemption of $500 million of senior notes that matured in mid-January 2026 raised the credit facility balance to $1.1 billion.
Invesco’s Capital Distribution Updates
In the reported quarter, Invesco repurchased 1.6 million shares for $40 million. In February, the board authorized an additional $1.0 billion common share repurchase plan with no expiration date. This reinforces management’s emphasis on ongoing capital return alongside balance sheet management.
Concurrently, IVZ announced a quarterly cash dividend of 21.5 cents per share, marking a 2.4% rise from the prior payout. The dividend will be paid out on June 2 to shareholders on record as of May 15.
Our Viewpoint on IVZ
Invesco’s robust AUM balance, diverse product offerings, synergies from past acquisitions, strong balance sheet and global presence will keep supporting financials. Further, a decent balance sheet and liquidity position will likely enable it to pursue enhanced capital distributions. However, private credit concerns, tough macroeconomic backdrop and elevated operating expenses are near-term headwinds.
BlackRock’s (BLK - Free Report) first-quarter 2026 adjusted earnings of $12.53 per share handily surpassed the Zacks Consensus Estimate of $11.96. The figure reflects a 10.9% rise from the year-ago quarter.
Results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses created a headwind for BlackRock.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2026 adjusted earnings per share of $1.44 surpassed the Zacks Consensus Estimate of $1.29. Moreover, the bottom line reflected a rise of 21% from the prior-year quarter.
SEI Investments’ results were driven by higher revenues, a rise in AUM and the first full-quarter contribution from the Stratos acquisition. However, higher expenses acted as a spoilsport.
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Invesco Stock Slips as Q1 Earnings Miss Despite Higher AUM & Revenues
Key Takeaways
Invesco’s (IVZ - Free Report) first-quarter 2026 adjusted earnings of 57 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line increased 29.5% from the prior-year quarter.
Shares of IVZ lost 1% in the pre-market trading on weaker-than-expected results.
The results primarily benefited from an increase in adjusted revenues and growth in the assets under management (AUM) balance. However, an increase in adjusted expenses was a headwind.
Net income attributable to common shareholders (GAAP basis) was $230.4 million or 51 cents per share, up from $171.1 million or 38 cents per share in the year-ago quarter.
IVZ’s Adjusted Revenues Improve, Adjusted Expenses Rise
Adjusted net revenues in the quarter were $1.26 billion, up 14% year over year. The top line marginally missed the Zacks Consensus Estimate of $1.27 billion. The rise in revenues was driven by higher average AUM, favorable foreign exchange rate changes and revenues earned from Invesco QQQ Trust following its conversion.
Adjusted operating expenses were $828.3 million, up 9.1% year over year.
The adjusted operating margin was 34.5%, up from 31.5% a year ago.
IVZ’s AUM Balance Increases
As of March 31, 2026, AUM was a record $2.16 trillion, up 17.1% year over year. The average AUM at the end of the first quarter totaled $2.22 trillion, up 18%.
Client demand remained supportive across IVZ’s multiple investment capabilities. Net long-term inflows were led by ETFs and Index products ($18.6 billion) and the China joint venture ($8.7 billion), with additional contributions from Fundamental Fixed Income ($3.7 billion) and Multi-Asset/Other strategies ($3.6 billion). Private Markets also generated positive net inflows of $0.4 billion.
Those positives were partially offset by outflows tied to factor and product rotations. QQQ recorded net long-term outflows of $10.8 billion in the quarter, while Fundamental Equities saw net outflows of $2.4 billion.
By geography, Asia Pacific and EMEA produced net long-term inflows of $13.2 billion and $7.6 billion, respectively, while the Americas added $1.0 billion.
Invesco’s Decent Balance Sheet
As of March 31, 2026, cash and cash equivalents were $806.9 million compared with $1.04 billion as of Dec. 31, 2025.
The long-term debt was $1.97 billion. The redemption of $500 million of senior notes that matured in mid-January 2026 raised the credit facility balance to $1.1 billion.
Invesco’s Capital Distribution Updates
In the reported quarter, Invesco repurchased 1.6 million shares for $40 million. In February, the board authorized an additional $1.0 billion common share repurchase plan with no expiration date. This reinforces management’s emphasis on ongoing capital return alongside balance sheet management.
Concurrently, IVZ announced a quarterly cash dividend of 21.5 cents per share, marking a 2.4% rise from the prior payout. The dividend will be paid out on June 2 to shareholders on record as of May 15.
Our Viewpoint on IVZ
Invesco’s robust AUM balance, diverse product offerings, synergies from past acquisitions, strong balance sheet and global presence will keep supporting financials. Further, a decent balance sheet and liquidity position will likely enable it to pursue enhanced capital distributions. However, private credit concerns, tough macroeconomic backdrop and elevated operating expenses are near-term headwinds.
Invesco Ltd. Price, Consensus and EPS Surprise
Invesco Ltd. price-consensus-eps-surprise-chart | Invesco Ltd. Quote
Currently, IVZ carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Invesco’s Peers
BlackRock’s (BLK - Free Report) first-quarter 2026 adjusted earnings of $12.53 per share handily surpassed the Zacks Consensus Estimate of $11.96. The figure reflects a 10.9% rise from the year-ago quarter.
Results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses created a headwind for BlackRock.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2026 adjusted earnings per share of $1.44 surpassed the Zacks Consensus Estimate of $1.29. Moreover, the bottom line reflected a rise of 21% from the prior-year quarter.
SEI Investments’ results were driven by higher revenues, a rise in AUM and the first full-quarter contribution from the Stratos acquisition. However, higher expenses acted as a spoilsport.