Invesco Ltd. (IVZ) Earnings & Analysis

Latest quarter

Invesco’s adjusted earnings per share of $0.72 missed the $0.75 consensus for the quarter ended September 30, 2026. Revenue as measured against the consensus also missed, with a −0.96% surprise; both reported revenue and the estimate rounded to $1.4 billion.

Invesco reported total revenue of $1.9 billion, compared with $1.6 billion a year earlier. CFO Allison Dukes said net revenue rose more than 16% year over year, largely because higher average assets under management lifted investment-management fees. She added that the reclassification of QQQ as fee-earning contributed to the increase.

Invesco’s operating margin rose to 23.3% from 16.5% a year earlier, while its adjusted operating margin increased to 40.7% from 34.2%. Dukes said higher employee variable compensation and QQQ-related marketing expenses contributed to the year-over-year rise in operating expenses. Invesco reported free cash flow of $475.0 million, down from $586.4 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Andrew Schlossberg said Invesco attracted $35.1 billion in net long-term inflows during the third quarter. Its ETF and index offering accounted for nearly $29 billion of net inflows and ended the quarter with $775 billion in assets under management. Across the first nine months, he said, “well over half of those flows came from outside the U.S.”

Schlossberg said demand differed across investment capabilities: fundamental fixed income had $2.6 billion of quarterly net outflows, driven largely by institutional reallocations, while the China joint venture had $1.5 billion of net inflows. In private markets, he cited $400 million of net outflows and said institutional demand for alternative credit was offset in part by outflows from a bank-loan ETF.

On pricing, CFO Allison Dukes said growth in lower-fee products, including ETFs, continued to affect the net revenue yield. She said money-market growth had a greater effect in the quarter, although the yield stabilized toward quarter-end. Dukes put the quarterly yield at 21.5 basis points and the exit yield at 21.3 basis points.

Dukes said the additional $1.5 billion preferred-stock repurchase was funded with a five-year floating-rate bank loan. She expects the transaction to add to earnings in 2027 and the loans to be fully repaid in 2031 based on projected cash flows.

In the question-and-answer session, Dukes said Invesco remains focused on sustaining operating margins in the high 30s, noting that quarters can be affected by seasonality. Asked about savings from retiring software as the hybrid investment platform is implemented, she said some capacity could benefit earnings and some could be reinvested; she declined to provide software-specific figures and said more guidance on 2027 expenses would come in January.

Guidance

Invesco previously said its focus was to complete implementation of the hybrid investment platform by the end of 2026. On the latest call, Dukes said the company was still working toward transitioning all assets onto the platform by year-end, but that some could move in early 2027.