Invesco Stock Earnings Reports

Invesco reported strong first-quarter operating results driven by diversified net inflows, record ETF AUM (including QQQ reclassification), and continued strength in Asia Pacific, EMEA and its China JV. Net long-term inflows were $21.8 billion (11th straight quarter of inflows) and total AUM ended the quarter around $2.2 trillion (more recently recovered into the ~$2.3 trillion range in April). Key growth areas include ETFs (record $638 billion ending AUM, active ETF platform >$20 billion), fundamental fixed income and SMAs (SMA platform ~$37 billion, 19% annualized organic growth this quarter), China JV (record AUM $142 billion; $8.7 billion net inflows), and private markets (notable momentum in direct real estate and private credit capabilities). Investment performance: 46% of active funds top-quartile over 3 years and >70% of active AUM beating benchmarks over 5 years. Financials improved: net revenue $1.3 billion, adjusted operating margin 34.5%, adjusted EPS $0.57, and operating leverage of ~500 bps YoY. Expense guidance for 2026 operating expenses ~ $3.275 billion (assuming ~ $2.3T AUM), with ongoing hybrid platform implementation costs of $10–15M/qtr in 2026 and expected run-rate savings of at least $60M in 2027. Capital returns: $40M of buybacks in Q1, Board authorized additional $1B repurchase capacity, and target payout ratio near 60% for 2026. Balance sheet actions included redeeming a $500M note and temporary revolver usage; leverage expected to improve as the revolver is paid down. Management emphasized strategic priorities: profitable organic growth, scaling ETFs and fixed income, expanding private markets into wealth/defined contribution, Asia/EMEA penetration, product innovation, and disciplined capital allocation. They view competitive developments around the NASDAQ-100/QQQ licensing as manageable given QQQ’s liquidity, brand, institutional usage and switching frictions. AI is being embedded across the firm for investment, distribution, client analytics and operational efficiency, with broad employee adoption.