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Invesco Gains 16.6% in 3 Months: How to Play the Stock Now
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Key Takeaways
Invesco shares gained 16.6% in three months, topping peers and the broader market.
IVZ delivered 10% AUM CAGR in 2020-2025 and expanded private markets and ETF capabilities.
IVZ holds $12.4B in goodwill and faces rising costs from ongoing transformation efforts.
Invesco Ltd.’s (IVZ - Free Report) shares have gained 16.6% over the past three months against the industry’s 0.2% decline. Also, it outperformed the S&P 500 Index’s 3.8% growth and its peers, BlackRock, Inc. (BLK - Free Report) and AllianceBernstein Holding L.P. (AB - Free Report) , which have gained 5.3% and 5.9%, respectively.
3-Month Price Performance
Image Source: Zacks Investment Research
Following the recent strength in Invesco’s share price, it is important to assess whether additional upside potential remains. A detailed evaluation of the company’s fundamentals and growth outlook will provide better clarity.
What's Supporting IVZ's Performance?
Sustained AUM Growth to Drive Revenues: Invesco’s assets under management (AUM) have demonstrated steady growth. The metric witnessed a compound annual growth rate (CAGR) of 10% over the last five years (2020-2025). This steady increase in AUM has been a key driver of fee-based revenues.
To further strengthen its platform, the company has undertaken several strategic initiatives. Last year, it partnered with LGT Capital Partners and MassMutual’s subsidiary, Barings, to expand its private markets capabilities and tap into growing investor demand for alternative investments. In December 2025, the Invesco QQQ Trust was converted into an open-end ETF structure, allowing the company to generate revenues and profits on more than $400 billion of AUM.
After experiencing subdued performance due to a tough operating environment, the company’s total operating revenues rebounded in 2024 and 2025. Backed by these strategic initiatives and an improving macroeconomic backdrop, its top-line growth is expected to remain on an upward path.
Sales Estimates
Image Source: Zacks Investment Research
Strategic Business Restructuring & Partnerships: Invesco is actively executing a broad transformation strategy aimed at enhancing operating efficiency. In January, as part of this effort, the company announced a strategic partnership with CI Global Asset Management to reshape its Canadian operations and unlock incremental revenue potential. Further, in 2025, it divested Intelliflo and 60% of its stake in Invesco Asset Management (India) Private Limited, forming a joint venture with the Hinduja Group.
Additionally, the shift to a hybrid Alpha investment platform is expected to drive long-term cost savings and operational scalability, despite a near-term increase in expenses. Collectively, these actions, aimed at strengthening profitability, are expected to simplify IVZ’s business and better utilize resources.
Global Diversification Efforts: IVZ benefits from a well-diversified global footprint with a strong presence across Europe, Canada and the Asia-Pacific. As of Dec. 31, 2025, nearly 31.2% of its client AUM was sourced from markets outside the United States, underscoring the strength of its international operations. The acquisition of Europe-based Source significantly enhanced its ETF capabilities and expanded its reach in overseas markets.
Decent Liquidity to Support Capital Distributions: The company maintains solid liquidity and earnings strength, which enables consistent capital return to shareholders. In 2025, the company raised its quarterly dividend by 2.4% to 21 cents per share. The company increased its dividend six times in the past five years. Likewise, Invesco’s peers BLK and AB also announced quarterly dividend hikes of 10% to $5.73 per share and 11.6% to 96 cents per share, respectively. Over the past five years, BlackRock has raised its dividend six times, while Alliance Bernstein has increased it 10 times.
Also, Invesco continues to execute share repurchases, with $232.2 million remaining under its buyback authorization as of Dec. 31, 2025. It plans to repurchase $40 million worth of shares in the first quarter of 2026. Invesco is targeting a payout ratio of around 60% this year. The company’s healthy balance sheet and cash-generation capacity position it well to sustain disciplined capital distributions.
What’s Hurting IVZ’s Growth?
Rising Expense Base: Invesco has experienced sustained expense growth. Over the last five years (2020-2025), the company’s operating expenses recorded a CAGR of 6.2%. The rise has been mainly due to higher third-party distribution, service, and advisory costs. Ongoing business transformation initiatives, including investments in the hybrid Alpha platform and increased marketing spend for QQQ, are expected to keep expenses elevated in the near term. While these investments may generate operating leverage over time, they are likely to put pressure on margins in the near term.
High Goodwill & Intangible Assets: As of Dec. 31, 2025, goodwill and net intangible assets were $12.4 billion, representing 46% of the total assets. These assets are subject to annual impairment reviews, and any write-downs could meaningfully put pressure on earnings. Notably, impairment and amortization charges in 2023 and 2025 weighed heavily on results, even resulting in a net loss, making this a key risk to earnings stability and growth.
How to Approach Invesco Stock Now
IVZ’s sustained AUM growth, ongoing business restructuring and partnerships, expanding global footprint, and solid liquidity position are expected to underpin its long-term performance. Coupled with an improving operating environment, these factors strengthen the company’s capacity to drive steady revenue growth and enhance profitability.
Further, analysts are bullish on Invesco’s prospects. The Zacks Consensus Estimate for IVZ’s 2026 and 2027 earnings has been revised upward over the past 30 days. The 2026 earnings estimate of $2.66 indicates year-over-year growth of 31%. The 2027 earnings estimate of $3.03 suggests a rise of 13.6%.
Earnings Estimate Revision
Image Source: Zacks Investment Research
However, elevated goodwill and intangible assets could weigh on near-term earnings due to potential impairment risks. Additionally, operating expenses are expected to remain high amid ongoing business transformation initiatives.
Despite the operating backdrop turning favorable for Invesco, investors should keep an eye on the potential changes in the macroeconomic environment that could hurt its financials. Hence, investors should not create further positions in the stock, but those who own IVZ may consider holding the stock for long-term gains.
View the Zacks #1 Rank List
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Invesco Gains 16.6% in 3 Months: How to Play the Stock Now
Key Takeaways
Invesco Ltd.’s (IVZ - Free Report) shares have gained 16.6% over the past three months against the industry’s 0.2% decline. Also, it outperformed the S&P 500 Index’s 3.8% growth and its peers, BlackRock, Inc. (BLK - Free Report) and AllianceBernstein Holding L.P. (AB - Free Report) , which have gained 5.3% and 5.9%, respectively.
3-Month Price Performance
Image Source: Zacks Investment Research
Following the recent strength in Invesco’s share price, it is important to assess whether additional upside potential remains. A detailed evaluation of the company’s fundamentals and growth outlook will provide better clarity.
What's Supporting IVZ's Performance?
Sustained AUM Growth to Drive Revenues: Invesco’s assets under management (AUM) have demonstrated steady growth. The metric witnessed a compound annual growth rate (CAGR) of 10% over the last five years (2020-2025). This steady increase in AUM has been a key driver of fee-based revenues.
To further strengthen its platform, the company has undertaken several strategic initiatives. Last year, it partnered with LGT Capital Partners and MassMutual’s subsidiary, Barings, to expand its private markets capabilities and tap into growing investor demand for alternative investments. In December 2025, the Invesco QQQ Trust was converted into an open-end ETF structure, allowing the company to generate revenues and profits on more than $400 billion of AUM.
After experiencing subdued performance due to a tough operating environment, the company’s total operating revenues rebounded in 2024 and 2025. Backed by these strategic initiatives and an improving macroeconomic backdrop, its top-line growth is expected to remain on an upward path.
Sales Estimates
Image Source: Zacks Investment Research
Strategic Business Restructuring & Partnerships: Invesco is actively executing a broad transformation strategy aimed at enhancing operating efficiency. In January, as part of this effort, the company announced a strategic partnership with CI Global Asset Management to reshape its Canadian operations and unlock incremental revenue potential. Further, in 2025, it divested Intelliflo and 60% of its stake in Invesco Asset Management (India) Private Limited, forming a joint venture with the Hinduja Group.
Additionally, the shift to a hybrid Alpha investment platform is expected to drive long-term cost savings and operational scalability, despite a near-term increase in expenses. Collectively, these actions, aimed at strengthening profitability, are expected to simplify IVZ’s business and better utilize resources.
Global Diversification Efforts: IVZ benefits from a well-diversified global footprint with a strong presence across Europe, Canada and the Asia-Pacific. As of Dec. 31, 2025, nearly 31.2% of its client AUM was sourced from markets outside the United States, underscoring the strength of its international operations. The acquisition of Europe-based Source significantly enhanced its ETF capabilities and expanded its reach in overseas markets.
Decent Liquidity to Support Capital Distributions: The company maintains solid liquidity and earnings strength, which enables consistent capital return to shareholders. In 2025, the company raised its quarterly dividend by 2.4% to 21 cents per share. The company increased its dividend six times in the past five years. Likewise, Invesco’s peers BLK and AB also announced quarterly dividend hikes of 10% to $5.73 per share and 11.6% to 96 cents per share, respectively. Over the past five years, BlackRock has raised its dividend six times, while Alliance Bernstein has increased it 10 times.
Also, Invesco continues to execute share repurchases, with $232.2 million remaining under its buyback authorization as of Dec. 31, 2025. It plans to repurchase $40 million worth of shares in the first quarter of 2026. Invesco is targeting a payout ratio of around 60% this year. The company’s healthy balance sheet and cash-generation capacity position it well to sustain disciplined capital distributions.
What’s Hurting IVZ’s Growth?
Rising Expense Base: Invesco has experienced sustained expense growth. Over the last five years (2020-2025), the company’s operating expenses recorded a CAGR of 6.2%. The rise has been mainly due to higher third-party distribution, service, and advisory costs. Ongoing business transformation initiatives, including investments in the hybrid Alpha platform and increased marketing spend for QQQ, are expected to keep expenses elevated in the near term. While these investments may generate operating leverage over time, they are likely to put pressure on margins in the near term.
High Goodwill & Intangible Assets: As of Dec. 31, 2025, goodwill and net intangible assets were $12.4 billion, representing 46% of the total assets. These assets are subject to annual impairment reviews, and any write-downs could meaningfully put pressure on earnings. Notably, impairment and amortization charges in 2023 and 2025 weighed heavily on results, even resulting in a net loss, making this a key risk to earnings stability and growth.
How to Approach Invesco Stock Now
IVZ’s sustained AUM growth, ongoing business restructuring and partnerships, expanding global footprint, and solid liquidity position are expected to underpin its long-term performance. Coupled with an improving operating environment, these factors strengthen the company’s capacity to drive steady revenue growth and enhance profitability.
Further, analysts are bullish on Invesco’s prospects. The Zacks Consensus Estimate for IVZ’s 2026 and 2027 earnings has been revised upward over the past 30 days. The 2026 earnings estimate of $2.66 indicates year-over-year growth of 31%. The 2027 earnings estimate of $3.03 suggests a rise of 13.6%.
Earnings Estimate Revision
Image Source: Zacks Investment Research
However, elevated goodwill and intangible assets could weigh on near-term earnings due to potential impairment risks. Additionally, operating expenses are expected to remain high amid ongoing business transformation initiatives.
Despite the operating backdrop turning favorable for Invesco, investors should keep an eye on the potential changes in the macroeconomic environment that could hurt its financials. Hence, investors should not create further positions in the stock, but those who own IVZ may consider holding the stock for long-term gains.
Currently, Invesco carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.