IVZ Stock Gains on Q4 Earnings Beat as AUM, Revenues Increase Y/Y

Invesco’s IVZ fourth-quarter 2025 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line increased 19.2% from the prior-year quarter.

Shares of the company gained 4% in the pre-market trading on better-than-expected results. However, a full day’s trading session will depict a clearer picture.

The results have been primarily aided by an increase in adjusted revenues. Moreover, growth in the assets under management (AUM) balance to record levels supported the results to an extent. However, an increase in adjusted operating expenses was a headwind.

Results in the reported quarter were negatively impacted by a non-cash intangible impairment charge of $1.8 billion. On Dec. 20, Invesco QQQ Trust was converted to an open-end fund ETF. Moreover, in the reported quarter, the company completed the sale of Intelliflo and 60% of its interest in Invesco Asset Management (India) Private Limited.

Net loss attributable to common shareholders (GAAP basis) was $1.19 billion or $2.61 per share against net income of $209.3 million or 46 cents per share in the year-ago quarter.

Full-year adjusted earnings of $2.03 per share surpassed the Zacks Consensus Estimate of $1.99. The bottom line increased 18.7% from the previous year. Net loss attributable to common shareholders (GAAP basis) was $726.3 million or $1.60 per share against net income of $538 million or $1.18 per share in 2024.

Invesco’s Adjusted Revenues Improve, Adjusted Expenses Rise

Adjusted net revenues in the quarter were $1.26 billion, up 8.8% year over year. The top line marginally surpassed the Zacks Consensus Estimate of $1.25 billion. The rise in revenues was driven by higher average AUM and revenues earned from Invesco QQQ Trust following its conversion.

Adjusted net revenues in 2025 were $4.66 billion, up 5.9% year over year. The top line surpassed the Zacks Consensus Estimate of $4.58 billion.

Quarterly adjusted operating expenses were $801.1 million, up 4.4% year over year.

The adjusted operating margin was 36.4%, up from 33.7% a year ago.

IVZ’s AUM Balance Increases

As of Dec. 31, 2025, AUM was a record $2.17 trillion, up 17.5% year over year. The average AUM at the end of the fourth quarter totaled $2.16 trillion, up 18.5%.

The company witnessed long-term net inflows of $19.1 billion in the reported quarter.

Invesco’s Decent Balance Sheet

As of Dec. 31, 2025, cash and cash equivalents were $1.04 billion compared with $973.1 million as of Sept. 30, 2025.

The long-term debt was $1.83 billion.

Invesco’s Share Repurchases

In the reported quarter, Invesco repurchased 1 million shares for $25 million.

Our View on IVZ

Invesco’s robust AUM balance, diverse product offerings, strong balance sheet and global presence will keep supporting financials. Synergies from acquisitions will keep aiding profitability. Further, a decent balance sheet and liquidity position will likely enable it to pursue sustainable capital distributions.

Invesco Ltd. Price, Consensus and EPS Surprise

 

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

Currently, IVZ carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance & Earnings Release Date of IVZ’s Peers

BlackRock’s BLK fourth-quarter 2025 adjusted earnings of $13.16 per share handily surpassed the Zacks Consensus Estimate of $12.39. The figure reflected a 10.3% rise from the year-ago quarter.

BLK’s results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth to a record high of $14.04 trillion, driven by net inflows. However, higher expenses created a headwind.

Blackstone BX is slated to report fourth-quarter and 2025 results on Jan. 29.

Over the past seven days, the Zacks Consensus Estimate for BX’s quarterly earnings has been revised lower to $1.51 per share.

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This article originally published on Zacks Investment Research (zacks.com).

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