Invesco misses Q2 EPS estimates despite record $2 trillion in assets

Published 22/07/2025, 12:20
 Invesco misses Q2 EPS estimates despite record $2 trillion in assets

Investing.com -- Invesco Ltd . (NYSE:IVZ) on Tuesday reported second quarter adjusted earnings per share of $0.36, falling short of analyst expectations of $0.40, while revenue came in at $1.51 billion, exceeding the consensus estimate of $1.1 billion.

The asset manager’s diluted EPS was -$0.03 for the quarter, significantly impacted by $159.3 million in costs associated with the repurchase of $1.0 billion of the company’s outstanding Series A Preferred Stock, which negatively affected earnings by $0.35 per share.

Invesco reported $15.6 billion in net long-term inflows for the quarter, representing a 5% annualized growth rate, and reached a record $2 trillion in assets under management (AUM), an increase of 8.5% from the previous quarter.

Long-term AUM grew 16% YoY, helping drive revenue growth while expenses remained controlled.

"Our global scale and breadth of products were integral to sustaining long-term organic growth even during the turbulent first month of the quarter," said Andrew Schlossberg, President and CEO of Invesco.

"We are executing well against our strategic priorities, pursuing greater efficiencies and continuing to innovate across our platform while delivering profitable growth."

The company reported a 14.1% operating margin for the second quarter, with an adjusted operating margin of 31.2%, an improvement from 30.9% in the same quarter last year.

ETFs and Index products led inflows with $12.6 billion, followed by China JV & India with $5.6 billion and Fundamental Fixed Income with $2.8 billion.

Invesco continued its capital return program, repurchasing 1.7 million common shares for $25 million during the quarter, in addition to completing the previously announced $1.0 billion repurchase of Series A Preferred Stock from MassMutual on May 16, 2025.

The effective tax rate on adjusted net income increased to 26.5% in the second quarter of 2025, compared to 22.1% in the second quarter of 2024, primarily due to tax rate changes and shifts in income mix across tax jurisdictions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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