In this paper the authors propose an adaptive estimation algorithm for in-network processing of complex signals over distributed networks. In the proposed algorithm, as the incremental augmented complex least mean square (IAC-LMS) algorithm, nodes of the network are allowed to collaborate via incremental cooperation mode to exploit the spatial dimension; while at the same time are equipped with LMS learning rules to endow the network with adaptation. The authors have extracted closed-form expressions that show how IAC-LMS algorithm performs in the steady-state. The authors further have derived the required conditions for mean and mean-square stability of the proposed algorithm. The authors use both synthetic benchmarks and real world non-circular data to evaluate the performance of the proposed algorithm. Simulation results also reveal that the IAC-LMS algorithm is able to estimate both second order circular (proper) and non-circular (improper) signals. Moreover, IAC-LMS algorithm outperforms the non-cooperative solution.