Invesco (IVZ) Q1 2026 earnings summary

Executive summary

• Achieved 11th consecutive quarter of net long-term inflows totaling $21.8 billion, with annualized organic growth of 4.4% and record AUM of $2.2 trillion; AUM rebounded to $2.3 trillion in April as markets recovered.

• Net revenues rose 14% year-over-year, while expenses increased 9.1%, resulting in 490 bps of operating leverage.

• Adjusted diluted EPS increased 29.5% year-over-year to $0.57, and adjusted operating margin expanded to 34.5%, up over 300 basis points.

• Strategic focus on scalable investment capabilities, especially ETFs, fixed income, and Asia-Pacific/EMEA regions, with continued innovation in product launches and digital assets.

• Increased share buybacks to $40 million, raised quarterly dividend to $0.215 per share, and board authorized an additional $1 billion in repurchases.

Financial highlights

• Net long-term inflows of $21.8 billion, up 23.9% year-over-year, drove AUM to $2.2 trillion, up 17.1% year-over-year.

• Net revenues for the quarter were $1.3 billion, up $155 million year-over-year; operating revenues grew 14.1% to $1,744.5 million.

• Adjusted operating income rose 24.7% year-over-year to $436.0 million; operating income increased 20.2% to $333.2 million.

• Adjusted diluted EPS was $0.57, up 29.5% from last year.

• Operating expenses increased $69 million year-over-year, mainly due to higher compensation and marketing costs.

Outlook and guidance

• Operating expenses for 2026 expected to be around $3.275 billion, assuming flat markets and AUM at $2.3 trillion.

• Targeting a total payout ratio (dividends plus buybacks) near 60% for 2026.

• Non-GAAP effective tax rate estimated at 25%-26% for Q2, with variability due to discrete items.

• Margin trajectory aimed at high 30s, supported by operating leverage and disciplined expense management.

• Strategic emphasis on scalable investment capabilities and next-generation technology.