A month has gone by since the last earnings report for Invesco (IVZ Quick QuoteIVZ - Free Report) . Shares have added about 17.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Invesco due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Invesco Ltd. before we dive into how investors and analysts have reacted as of late.

Invesco’s Q2 Earnings Beat Estimates on Higher AUM & Revenues

Invesco’s 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.

The results primarily benefited from an increase in adjusted revenues and substantial growth in 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.

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.

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.

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.

Share Repurchase Update

In the reported quarter, Invesco repurchased 1.9 million common shares for $50 million in the open market.

Outlook

Management expects one-time implementation costs of the Alpha investment platform to be $15 million per quarter in the second half of 2026, with completion targeted by the end of 2026. As more AUM transitions onto the platform during 2026, the incremental expense associated with AUM on the system is expected to build through the year, reaching approximately $10 million per quarter later in the year. Hence, the combined costs related to the hybrid platform are expected to be $20 million to $25 million higher in 2026 than in 2025.

Implementation spending should begin tapering in the first quarter of 2027 and decline fairly quickly thereafter. Management expects the installed platform to create further expense-efficiency opportunities through 2027 and into 2028.

Beginning in the third quarter of 2026, operating income is expected to be negatively impacted initially by the Canada fund deal, including an operating expense reduction of $5 million to $10 million per quarter (i.e., a cost benefit that partially offsets other headwinds). Over time, the operating expense benefit is expected to move closer to about $10 million per quarter.

For 2026, the company expects $3.275 billion in operating expenses. Compensation expenses are expected to be roughly 40% of revenues. Third-party expenses plus distribution fees relative to management fees are expected to be 22.7–23%, likely closer to 23%, reflecting a mix shift toward lower-fee products such as QQQ, QQQM and RSP.

Non-GAAP effective tax rate is expected to be in the range of 25-26% for the second half of 2026.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Invesco has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Invesco has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Invesco belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Ameriprise Financial Services (AMP Quick QuoteAMP - Free Report) , has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Ameriprise reported revenues of $4.9 billion in the last reported quarter, representing a year-over-year change of +13%. EPS of $11.07 for the same period compares with $9.11 a year ago.

Ameriprise is expected to post earnings of $11.59 per share for the current quarter, representing a year-over-year change of +16.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.2%.

Ameriprise has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.