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Solid AUM Performance on Upbeat Markets to Drive IVZ's Q3 Earnings

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Key Takeaways

  • Invesco's Q3 earnings and revenues are expected to rise year over year on strong market gains.
  • Total preliminary AUM reached $2.12T, up 6.2% sequentially, boosting investment and performance fees.
  • Expense pressure from higher compensation and Alpha implementation costs may weigh on results.

Invesco (IVZ - Free Report) is slated to report third-quarter 2025 results on Oct. 28, before market open. The company’s quarterly earnings and revenues are expected to have witnessed a rise on a year-over-year basis.

In the last quarter, IVZ’s adjusted earnings missed the Zacks Consensus Estimate. Higher adjusted operating expenses hurt the results. However, a rise in adjusted net revenues and an increase in the assets under management (AUM) balance were the positives.

Invesco has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with the average surprise being 1.69%.

 

Invesco Ltd. Price and EPS Surprise

Invesco Ltd. Price and EPS Surprise

Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote

Invesco’s Key Q3 Estimates & Factors to Note

Per the monthly metrics data published by Invesco, its preliminary total AUM as of Sept. 30, 2025, was $2.12 trillion, up 6.2% on a sequential basis. Growth in AUM was largely driven by solid market returns and net long-term inflows. So, the company’s investment management fees are expected to have increased. The Zacks Consensus Estimate for the metric is pegged at $1.2 billion, indicating a rise of 8.8% from the previous quarter.

Similarly, the consensus estimate for performance fees of $5.6 million indicates a significant rise from the prior quarter.

The consensus estimate for service and distribution fees of $403.5 million indicates a sequential growth of 10.9%. The Zacks Consensus Estimate for other revenues is pegged at $55.3 million, suggesting a 14.7% increase.

On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the rise in compensation and marketing costs is expected to have had an adverse impact on overall expenses in the to-be-reported quarter.

Management expects the one-time implementation costs of Alpha to be $15-$20 million in the third quarter of 2025.

Major Q3 Developments for Invesco

In August, IVZ announced its plan to divest intelliflo to The Carlyle Group Inc. for up to $200 million. This includes $135 million payable at closing, which is expected in the fourth quarter of 2025, and up to an additional $65 million in potential future earn-outs.

Founded in 2004 and headquartered in London, intelliflo supports more than 30,000 professionals across 2,600 advisory firms, managing approximately £450 billion in client assets. Its platform integrates CRM, financial planning, onboarding, compliance and reporting tools, with connectivity to more than 120 third-party applications.

The acquisition includes intelliflo’s cloud-based practice management software in the U.K., which supports independent financial advisors with end-to-end practice management tools. Separately, it consists of the firm’s U.S. subsidiaries, which cover RedBlack and intelliflo Portfolio, serving Registered Investment Advisors (RIAs).

Additionally, in July, Invesco announced plans to seek shareholder approval to convert the Invesco QQQ Trust from a unit investment trust to an open-end ETF. This would enable it to earn revenues and profits instead of just recouping marketing costs.

What Our Model Predicts for IVZ

According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate for earnings this time are low. This is because it doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Invesco is -1.80%.

Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).

Invesco’s Q3 Earnings & Sales Estimates

The Zacks Consensus Estimate for Invesco’s earnings of 46 cents has remained unchanged over the past seven days. However, the figure indicates a rise of 4.6% from the year-ago quarter. 

The consensus estimate for sales is pegged at $1.18 billion, suggesting an increase of 6.5%.

Invesco’s Peers Worth Considering

Here are a couple of IVZ’s peer stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:

Ameriprise Financial (AMP - Free Report) is scheduled to report third-quarter 2025 numbers on Oct. 30. The company has a Zacks Rank #2 and an Earnings ESP of +2.55% at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The consensus estimate for Ameriprise’s quarterly earnings has been unchanged $9.60 over the past seven days.

Franklin Resources (BEN - Free Report) is slated to announce quarterly numbers on Nov 7. The company currently has a Zacks Rank #3 and an Earnings ESP of +1.05%. 

The Zacks Consensus Estimate for Franklin’s quarterly earnings has been revised 1.8% upward to 56 cents over the past week.


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