Invesco Q2: Record net long-term inflows of $45.1B, AUM hits $2.5T, EPS nearly doubles

Source: MarketBeat Read Time: 7 minutes

Key Points

• Invesco reported record growth in the second quarter, with $45.1 billion in net long-term inflows, assets under management reaching $2.5 trillion, and adjusted EPS rising to $0.71 from $0.36 a year earlier.
• ETFs, QQQ, and fixed income led demand: ETF and index products attracted a record $30 billion in inflows, while QQQ generated $14 billion and broader fixed-income activity brought in $14 billion.
• Invesco reduced debt by more than $450 million on a net basis, repurchased $50 million of shares, and plans to maintain a regular buyback program alongside its increased quarterly dividend.

Overview

Invesco (NYSE: IVZ) reported record second-quarter net long-term inflows and higher profitability as demand for ETFs, fixed income, separately managed accounts, and private-market strategies helped push assets under management to $2.5 trillion.

President and CEO Andrew Schlossberg said the firm generated $45.1 billion of net long-term inflows during the quarter, representing nearly 9% annualized organic growth and extending its streak of positive flows to 12 consecutive quarters. Including liquidity inflows, Invesco recorded $13.2 billion in global liquidity inflows and ended the period with $215 billion in liquidity assets.

For the first half of 2026, Schlossberg said Invesco posted record net inflows of $67 billion, or a 7% annualized organic growth rate. Net revenue rose 17% from the prior-year first half, while operating income increased 35% and the operating margin expanded by nearly 470 basis points.

Second-Quarter Financial Results

Chief Financial Officer Allison Dukes reported the following second-quarter results:

• Net revenue: $1.3 billion, increasing $65 million from Q1 and $224 million year-over-year, driven primarily by investment-management fees tied to higher average assets under management and the year-over-year effect of the QQQ fund's reclassification to fee earnings.
• Adjusted operating income: Nearly $500 million, up 14% sequentially.
• Adjusted diluted EPS: $0.71, up from $0.57 in Q1 and nearly double the $0.36 reported in the same quarter last year (a 45% increase in adjusted operating income year-over-year).
• Adjusted operating expenses: Essentially flat sequentially, rising only $2 million, while net revenue increased 5%, producing nearly 500 basis points of positive operating leverage.
• Adjusted operating margin: 37.5%, up 300 basis points from the prior quarter.

Margin and Cost Outlook

Dukes said Invesco remains focused on expanding and sustaining operating margins in the high 30% range over the near to medium term. Expense growth continues to be influenced by the company's hybrid investment-platform implementation, which incurred $14 million in one-time costs during Q2.

Key cost expectations moving forward:

• One-time hybrid-platform implementation costs: Expected to be closer to $15 million per quarter during the second half of 2026.
• Incremental platform expenses tied to assets moved onto the system: $5 million in Q2, expected to build toward about $10 million per quarter later this year.
• Platform implementation target: Completion by year-end, though some costs may carry into the first quarter of 2027.

The company's second-quarter net revenue yield was 22.4 basis points.

Stock performance referenced: IVZ -4.62%, QQQ -2.04%, BLK -1.67%