Invesco (IVZ) investor relations material

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, driven by ETFs, Index, China JV, and Fixed Income, despite market volatility and geopolitical uncertainty.

• Net revenues rose 14% year-over-year, with operating income up 24.7% and adjusted diluted EPS increasing 29.5% to $0.57.

• Strategic focus on scalable investment capabilities, especially fixed income, ETFs, and innovation in active ETFs, SMAs, and digital assets, with strong global presence in Asia-Pacific and EMEA.

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

• Continued balance sheet strengthening and prudent capital management, supporting growth and capital return to shareholders.

Financial highlights

• Ended the quarter with $2.2 trillion in AUM, up 17.1% year-over-year, with net long-term inflows of $21.8 billion.

• Net revenues reached $1.3 billion (non-GAAP), up 14% year-over-year, and operating revenues (GAAP) were $1.74 billion.

• Adjusted operating margin improved to 34.5%, up over 300 basis points year-over-year.

• Adjusted diluted EPS was $0.57, up from $0.44 in the prior year quarter.

• Net income attributable to shareholders rose 34.7% year-over-year to $230.4 million.

Outlook and guidance

• Management expects continued broad-based demand across the global platform, ongoing product innovation, and disciplined expense management to drive further operating leverage.

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

• Effective tax rate estimated at 25%-26% for Q2, excluding discrete items.

• Targeting a total payout ratio near 60% for 2026, including dividends and share buybacks.

• Margin trajectory aimed at high 30s, with continued focus on operating leverage and disciplined expense management.