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Shares of IVZ gained 1.6% in pre-market trading on better-than-expected results.
The results primarily benefited from an increase in adjusted revenues and substantial growth in the assets under management (AUM) balance. Record net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind.
Net income attributable to Invesco Ltd. (GAAP basis) was $345.3 million or 76 cents per share against a net loss of $12.5 million or 3 cents per share in the year-ago quarter.
IVZ’s Adjusted Revenues Improve, Expenses Rise
Adjusted net revenues in the quarter were $1.33 billion, up 20.3% year over year. The top line marginally surpassed the Zacks Consensus Estimate. The rise in revenues was driven by higher average AUM and net revenues earned from QQQ. Favorable foreign exchange rate changes increased net revenues by $6.3 million.
Adjusted operating expenses were $830.4 million, up 9.2% year over year. The increase reflected higher employee compensation and marketing expenses. General and administrative expenses also increased, primarily due to higher professional fees.
The adjusted operating margin was 37.5%, up from 31.2% a year ago.
IVZ’s AUM Balance Increases
As of June 30, 2026, AUM was $2.47 trillion, up 23.4% year over year. The average AUM in the second quarter totaled $2.37 trillion, up 24.8%.
Net long-term inflows were a record $45.1 billion compared with $15.6 billion in the year-ago quarter. The annualized long-term organic growth rate was 8.5%.
Client demand remained supportive across IVZ’s multiple investment capabilities. Net long-term inflows were led by ETFs and Index products ($30.1 billion), QQQ ($13.8 billion), the China joint venture ($6.9 billion), Private Markets ($1.9 billion) and Fundamental Fixed Income ($0.4 billion).
These positives were partially offset by net outflows from Fundamental Equities of $7.7 billion and Multi-Asset/Other strategies of $0.3 billion.
By geography, the Americas, Asia Pacific and EMEA produced net long-term inflows of $30.8 billion, $8.2 billion and $6.1 billion, respectively.
Invesco’s Decent Balance Sheet
As of June 30, 2026, cash and cash equivalents were $915.4 million compared with $806.9 million as of March 31, 2026.
Debt was $1.62 billion, down from $1.97 billion at the end of the prior quarter. The credit facility balance declined to $736 million from $1.08 billion. Net debt was $708.6 million, down from $1.16 billion as of March 31, 2026.
Invesco’s Capital Distribution Updates
In the reported quarter, Invesco repurchased 1.9 million common shares for $50 million in the open market.
The company paid $96.8 million in common dividends and $37 million in preferred dividends during the quarter.
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. 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.
Ameriprise Financial’s (AMP - Free Report) second-quarter 2026 adjusted operating earnings were $11.07 per share, which handily surpassed the Zacks Consensus Estimate of $10.72. The bottom line reflected a rise of 22% from the year-ago quarter.
Results benefited from higher revenues and an improvement in AUM and assets under administration (AUA) balance to record levels. However, an increase in expenses was a headwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.
Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.
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Invesco Q2 Earnings Beat Estimates on Higher AUM & Revenues, Stock Up
Key Takeaways
Invesco’s (IVZ - Free Report) second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line increased 97.2% from the prior-year quarter.
Shares of IVZ gained 1.6% in pre-market trading on better-than-expected results.
The results primarily benefited from an increase in adjusted revenues and substantial growth in the assets under management (AUM) balance. Record net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind.
Net income attributable to Invesco Ltd. (GAAP basis) was $345.3 million or 76 cents per share against a net loss of $12.5 million or 3 cents per share in the year-ago quarter.
IVZ’s Adjusted Revenues Improve, Expenses Rise
Adjusted net revenues in the quarter were $1.33 billion, up 20.3% year over year. The top line marginally surpassed the Zacks Consensus Estimate. The rise in revenues was driven by higher average AUM and net revenues earned from QQQ. Favorable foreign exchange rate changes increased net revenues by $6.3 million.
Adjusted operating expenses were $830.4 million, up 9.2% year over year. The increase reflected higher employee compensation and marketing expenses. General and administrative expenses also increased, primarily due to higher professional fees.
The adjusted operating margin was 37.5%, up from 31.2% a year ago.
IVZ’s AUM Balance Increases
As of June 30, 2026, AUM was $2.47 trillion, up 23.4% year over year. The average AUM in the second quarter totaled $2.37 trillion, up 24.8%.
Net long-term inflows were a record $45.1 billion compared with $15.6 billion in the year-ago quarter. The annualized long-term organic growth rate was 8.5%.
Client demand remained supportive across IVZ’s multiple investment capabilities. Net long-term inflows were led by ETFs and Index products ($30.1 billion), QQQ ($13.8 billion), the China joint venture ($6.9 billion), Private Markets ($1.9 billion) and Fundamental Fixed Income ($0.4 billion).
These positives were partially offset by net outflows from Fundamental Equities of $7.7 billion and Multi-Asset/Other strategies of $0.3 billion.
By geography, the Americas, Asia Pacific and EMEA produced net long-term inflows of $30.8 billion, $8.2 billion and $6.1 billion, respectively.
Invesco’s Decent Balance Sheet
As of June 30, 2026, cash and cash equivalents were $915.4 million compared with $806.9 million as of March 31, 2026.
Debt was $1.62 billion, down from $1.97 billion at the end of the prior quarter. The credit facility balance declined to $736 million from $1.08 billion. Net debt was $708.6 million, down from $1.16 billion as of March 31, 2026.
Invesco’s Capital Distribution Updates
In the reported quarter, Invesco repurchased 1.9 million common shares for $50 million in the open market.
The company paid $96.8 million in common dividends and $37 million in preferred dividends during the quarter.
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. 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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Invesco’s Peers
Ameriprise Financial’s (AMP - Free Report) second-quarter 2026 adjusted operating earnings were $11.07 per share, which handily surpassed the Zacks Consensus Estimate of $10.72. The bottom line reflected a rise of 22% from the year-ago quarter.
Results benefited from higher revenues and an improvement in AUM and assets under administration (AUA) balance to record levels. However, an increase in expenses was a headwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.
Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.