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Invesco's Q3 earnings rise 18% to 72 cents per share but miss estimates, while revenues grow 16.5%.
IVZ's AUM climbs 19.4% y/y to $2.54T, supported by $35.1B in net long-term inflows.
Invesco's operating margin improves to 40.7% despite a 5% rise in adjusted expenses.
Invesco’s (IVZ - Free Report) third-quarter 2026 adjusted earnings of 72 cents per share missed the Zacks Consensus Estimate of 75 cents. However, the bottom line increased 18% from the prior-year quarter.
Shares of IVZ lost 1.5% in pre-market trading on weaker-than-expected results. However, a full day’s trading session will depict a clearer picture.
The results primarily benefited from an increase in adjusted revenues and substantial growth in the assets under management (AUM) balance. Continued net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind.
Net income attributable to Invesco (GAAP basis) was $294.5 million or 65 cents per share compared with $301.3 million or 66 cents per share in the year-ago quarter.
IVZ’s Adjusted Revenues Improve, Expenses Rise
Adjusted net revenues in the quarter were $1.38 billion, up 16.5% year over year. The rise in revenues was primarily driven by higher average AUM and net revenues earned from QQQ. However, the top line missed the Zacks Consensus Estimate of $1.40 billion.
Adjusted operating expenses were $819.4 million, up 5% year over year. The increase reflected higher employee compensation and marketing expenses. General and administrative expenses also increased due to higher outsourced administration costs.
The adjusted operating margin was 40.7%, up from 34.2% a year ago.
IVZ’s AUM Balance Increases
As of Sept. 30, 2026, AUM was $2.54 trillion, up 19.4% year over year. The average AUM in the third quarter totaled $2.51 trillion, up 21.8%.
Net long-term inflows were $35.1 billion compared with $28.9 billion in the year-ago quarter. The annualized long-term organic growth rate was 6.3%.
Client demand remained supportive across IVZ’s multiple investment capabilities. Net long-term inflows were led by ETFs and Index products ($28.5 billion), QQQ ($6.7 billion), Multi-Asset/Other strategies ($3.3 billion) and the China joint venture ($1.5 billion).
These positives were partially offset by net outflows from Fundamental Fixed Income of $2.6 billion, Fundamental Equities of $1.9 billion and Private Markets of $0.4 billion.
By geography, EMEA, the Americas and the Asia Pacific produced net long-term inflows of $15.9 billion, $10.3 billion and $8.9 billion, respectively.
Invesco’s Decent Balance Sheet
As of Sept. 30, 2026, cash and cash equivalents were $965.5 million compared with $915.4 million as of June 30, 2026.
Debt was $1.28 billion, down from $1.62 billion at the end of the prior quarter. The credit facility balance declined to $393 million from $736 million. Net debt was $315.8 million, down from $708.6 million as of June 30, 2026.
Invesco’s Share Repurchase Update
In the reported quarter, Invesco repurchased 2.1 million common shares for $65 million in the open market.
Our Viewpoint on IVZ
Invesco’s robust AUM balance, diverse product offerings, strong balance sheet and global presence remain supportive of its financial performance. Continued net long-term inflows, higher adjusted revenues and an improvement in the adjusted operating margin reflect positive operating trends. The reduction in net debt also strengthens its financial flexibility.
However, an increase in adjusted operating expenses, including employee compensation and marketing costs, remains a headwind.
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter’s actual.
BLK’s results benefited from higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on BlackRock’s results to an extent.
Blackstone’s (BX - Free Report) third-quarter 2026 distributable earnings of $1.32 per share outpaced the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
BX’s results benefited from a rise in the AUM balance to record levels and higher fee-related earnings. However, a decline in segment revenues was the undermining factor.
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Invesco Q3 Earnings Miss Estimates Despite Y/Y Revenue & AUM Growth
Key Takeaways
Invesco’s (IVZ - Free Report) third-quarter 2026 adjusted earnings of 72 cents per share missed the Zacks Consensus Estimate of 75 cents. However, the bottom line increased 18% from the prior-year quarter.
Shares of IVZ lost 1.5% in pre-market trading on weaker-than-expected results. However, a full day’s trading session will depict a clearer picture.
The results primarily benefited from an increase in adjusted revenues and substantial growth in the assets under management (AUM) balance. Continued net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind.
Net income attributable to Invesco (GAAP basis) was $294.5 million or 65 cents per share compared with $301.3 million or 66 cents per share in the year-ago quarter.
IVZ’s Adjusted Revenues Improve, Expenses Rise
Adjusted net revenues in the quarter were $1.38 billion, up 16.5% year over year. The rise in revenues was primarily driven by higher average AUM and net revenues earned from QQQ. However, the top line missed the Zacks Consensus Estimate of $1.40 billion.
Adjusted operating expenses were $819.4 million, up 5% year over year. The increase reflected higher employee compensation and marketing expenses. General and administrative expenses also increased due to higher outsourced administration costs.
The adjusted operating margin was 40.7%, up from 34.2% a year ago.
IVZ’s AUM Balance Increases
As of Sept. 30, 2026, AUM was $2.54 trillion, up 19.4% year over year. The average AUM in the third quarter totaled $2.51 trillion, up 21.8%.
Net long-term inflows were $35.1 billion compared with $28.9 billion in the year-ago quarter. The annualized long-term organic growth rate was 6.3%.
Client demand remained supportive across IVZ’s multiple investment capabilities. Net long-term inflows were led by ETFs and Index products ($28.5 billion), QQQ ($6.7 billion), Multi-Asset/Other strategies ($3.3 billion) and the China joint venture ($1.5 billion).
These positives were partially offset by net outflows from Fundamental Fixed Income of $2.6 billion, Fundamental Equities of $1.9 billion and Private Markets of $0.4 billion.
By geography, EMEA, the Americas and the Asia Pacific produced net long-term inflows of $15.9 billion, $10.3 billion and $8.9 billion, respectively.
Invesco’s Decent Balance Sheet
As of Sept. 30, 2026, cash and cash equivalents were $965.5 million compared with $915.4 million as of June 30, 2026.
Debt was $1.28 billion, down from $1.62 billion at the end of the prior quarter. The credit facility balance declined to $393 million from $736 million. Net debt was $315.8 million, down from $708.6 million as of June 30, 2026.
Invesco’s Share Repurchase Update
In the reported quarter, Invesco repurchased 2.1 million common shares for $65 million in the open market.
Our Viewpoint on IVZ
Invesco’s robust AUM balance, diverse product offerings, strong balance sheet and global presence remain supportive of its financial performance. Continued net long-term inflows, higher adjusted revenues and an improvement in the adjusted operating margin reflect positive operating trends. The reduction in net debt also strengthens its financial flexibility.
However, an increase in adjusted operating expenses, including employee compensation and marketing costs, remains a headwind.
Invesco Ltd. Price, Consensus and EPS Surprise
Invesco Ltd. price-consensus-eps-surprise-chart | Invesco Ltd. Quote
Currently, IVZ carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Invesco’s Peers
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter’s actual.
BLK’s results benefited from higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on BlackRock’s results to an extent.
Blackstone’s (BX - Free Report) third-quarter 2026 distributable earnings of $1.32 per share outpaced the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
BX’s results benefited from a rise in the AUM balance to record levels and higher fee-related earnings. However, a decline in segment revenues was the undermining factor.