Back to top

Image: Bigstock

Invesco (IVZ) Up 1.8% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for Invesco (IVZ - Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Invesco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Invesco's Q3 Earnings Beat, AUM Increases Y/Y to Record $2.12T

Invesco’s third-quarter 2025 adjusted earnings of 61 cents per share surpassed the Zacks Consensus Estimate of 45 cents. The bottom line increased 38.6% from the prior-year quarter.

The results have been primarily aided by an increase in adjusted revenues. Moreover, growth in the AUM balance to record levels provided support to an extent. However, an increase in adjusted operating expenses was a headwind.

Results in the reported quarter were negatively impacted by 8 cents per share due to the non-cash impairment charge of $35.9 million related to the previously announced divestiture of Intelliflo, which is expected to be closed in the fourth quarter of this year.

Net income attributable to common shareholders (GAAP basis) was $301.3 million or 66 cents per share, up from $55 million or 12 cents per share in the year-ago quarter.

Adjusted Revenues Improve, Adjusted Expenses Rise

Adjusted net revenues in the quarter were $1.19 billion, up 7.4% year over year. The top line met the Zacks Consensus Estimate.

Adjusted operating expenses were $780.2 million, up 3.3% year over year.

The adjusted operating margin was 34.2%, up from 31.6% a year ago.

AUM Balance Increases

As of Sept. 30, 2025, AUM was a record $2.12 trillion, up 18.3% year over year. The average AUM at the end of the third quarter totaled $2.06 trillion, up 18.3%.

The company witnessed long-term net inflows of $28.9 billion in the reported quarter. This was largely driven by ETFs and Index, China JV and India, Fundamental Fixed Income and Private Markets.

Decent Balance Sheet

As of Sept. 30, 2025, cash and cash equivalents were $973.1 million compared with $922.7 million as of June 30, 2025.

The long-term debt was $1.62 billion.

Share Repurchases

In the reported quarter, Invesco repurchased 1.2 million shares for $25 million.

Outlook

Management expects one-time implementation costs of Alpha to be $10-$15 million in the fourth quarter of 2025.

Non-GAAP effective tax rate is expected to be in the range of 25-26% in the fourth quarter of 2025.

Management expects its total payout ratio to be near 60% in 2025 and 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

Currently, Invesco has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Invesco has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Invesco Ltd. (IVZ) - free report >>

Published in