10-Q · May 5, 2026
Invesco's Q1 2026 report shows solid earnings performance with operating revenues totaling $1.74 billion, up 14.1% year-over-year. However, the company reported diluted EPS of $0.51, which fell shy of expectations of…
Earnings analysis · 10-Q
IVZ earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Invesco posted strong Q2 operating momentum: GAAP revenue increased 20.5% year over year to $1.826B, GAAP operating margin expanded to 19.9%, and diluted EPS improved to $0.76 from a $0.03 loss. Record $45.1B long-term…
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Invesco posted strong Q2 operating momentum: GAAP revenue increased 20.5% year over year to $1.826B, GAAP operating margin expanded to 19.9%, and diluted EPS improved to $0.76 from a $0.03 loss. Record $45.1B long-term inflows and $256.8B of market gains lifted ending AUM to $2.470T, with ETFs/Index, QQQ and China JV leading inflows. Offsetting considerations are $7.7B of Fundamental Equities outflows, an 80-bp year-over-year decline in net revenue yield to 22.4 bps, and higher interest expense.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.76
- Operating margin
- 19.9%
What stood out
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Revenue grew more than 20% year over year
Q2 GAAP operating revenue rose 20.5% year over year to $1.826B, while net revenues increased 20.3% to $1.329B. The filing attributes higher management fees primarily to QQQ's ETF conversion and higher average AUM.
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Margins and EPS improved sharply
GAAP operating margin expanded 580 bps year over year to 19.9% from 14.1%; adjusted operating margin increased to 37.5% from 31.2%. GAAP diluted EPS was $0.76 versus a $0.03 loss in the prior-year quarter, and adjusted EPS was $0.71 versus $0.36.
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Record flows and market gains lifted AUM
Ending AUM rose 23.4% year over year to $2.470T, supported by record Q2 net long-term inflows of $45.1B and $16.9B of money-market inflows. Market gains added $256.8B in the quarter.
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Passive and China capabilities drove flows
ETFs and Index generated $30.1B of Q2 net long-term inflows, QQQ added $13.8B, and China JV added $6.9B. These capabilities helped offset $7.7B of Fundamental Equities outflows.
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Cash generation covered low capex needs
Adjusted operating cash flow excluding consolidated investment products was $572.5M for the first six months, and capex was $44.7M, implying $527.8M of free cash flow and a 7.8% capex-to-operating-cash-flow ratio.
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Deleveraging and shareholder returns continued
Debt fell $201.1M from year-end to $1.624B, while the leverage ratio improved to 0.54x from 0.73x. The company also repurchased $90.0M of common stock in the first half, with $1.142B remaining authorized.
What to watch
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Fundamental Equities flows and performance lag
Fundamental Equities had Q2 net long-term outflows of $7.7B, versus $3.6B of outflows in Q2 2025. Its one-year active-performance metrics were also weak, with only 19% of applicable AUM in the first quartile and 26% above benchmark.
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Revenue yield declined on product mix
Net revenue yield excluding performance fees declined to 22.4 bps in Q2 2026 from 23.2 bps in Q2 2025, as client demand shifts toward products with lower net revenue yields. This mix pressure can constrain monetization even as AUM rises.
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Higher funding costs and revolver usage
Cash and equivalents declined $122.1M from December 31 to $915.4M, while the revolver balance was $736.0M and six-month interest expense increased 41.7% to $47.9M. The weighted average cost of debt rose to 4.97% from 4.71%.
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No formal risk-factor update; Canada AUM sold
The company states there were no significant changes to risk factors previously disclosed in its 2025 Form 10-K. Nonetheless, a $11.0B AUM disposition followed the June 1 Canadian fund-business sale, reducing the managed asset base.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook; management states that existing cash, operating cash flow, revolver capacity and potential capital-market activity should be sufficient for present and future cash needs.
Earlier filings 4
10-K · February 24, 2026
Invesco reports a diversified global asset manager with approximately $2.2 trillion of AUM as of December 31, 2025 and a large retail footprint (retail AUM $1,515.7 billion). The 10-K emphasizes four strategic…
10-Q · November 4, 2025
Invesco reported Q3 2025 operating revenues of $1,640.4 million, up $125.0 million (+8.3%) versus Q3 2024, with operating income improving to $270.9 million from $100.5 million and diluted EPS rising to $0.66 from…
10-Q · August 1, 2025
Invesco reported Q2 2025 operating revenues of $1,515.5 million, up $32.2 million (+2.2%) versus Q2 2024, and six‑month revenues of $3,044.7 million, up $86.1 million (+2.9%) year‑over‑year. Operating income improved to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.