GET DAILY SIGNALSInvesco (IVZ) Delivers Record AUM Growth and Steady Inflows in Q3
Key Takeaways
- Invesco reported adjusted diluted earnings per share (EPS) of $0.72, narrowly missing consensus estimates of $0.74 by $0.02.
- Adjusted net revenues rose 16.5% year over year to $1.38 billion, slightly below the roughly $1.40 billion analysts had projected.
- Assets under management (AUM), the total value of client assets the firm oversees, reached a record $2.54 trillion, up 19.4% from a year earlier.
- Net long-term inflows of $35.1 billion marked a 13th consecutive quarter of positive flows, supported by strong demand for ETFs and QQQ.
- Adjusted operating margin expanded to 40.7% from 34.2% a year ago, reflecting improved operating leverage despite higher expenses.
Why These Results Matter
Invesco’s quarterly update provides a useful snapshot of investor appetite across equities, fixed income, and ETFs. The firm has benefited from the broader move toward lower-cost passive strategies and ETFs, leveraging its scale to support margins even as revenue yields face pressure. Net revenue yield fell from 22.9 basis points to 21.5 basis points over the past year, so the ability to grow AUM while expanding profits remains central to the story. This quarter offered a test of whether strong inflows could continue as expectations rose.
Quarterly Results in Detail
For the three months ended September 30, 2026, IVZ posted adjusted diluted EPS of $0.72, just below the $0.74 consensus. Adjusted net revenues increased 16.5% year over year to $1.38 billion, a touch under the $1.40 billion expected, helped by higher average AUM and QQQ-related revenue. On a GAAP basis, net income attributable to Invesco came in at $294.5 million, or $0.65 per share, compared with $301.3 million, or $0.66 per share, a year earlier.
The adjusted operating margin widened to 40.7% from 34.2%, even though adjusted operating expenses rose 5% due to higher compensation and marketing costs. Ending AUM hit a record $2.54 trillion, with net long-term inflows of $35.1 billion, equating to a 6.3% annualized organic growth rate. Management also completed an additional $1.5 billion preferred stock repurchase from MassMutual, bringing the total to $3 billion over 18 months, and declared a quarterly common dividend of $0.215 per share. I checked comparable names using Tickeron’s AI Screener to see how IVZ stacks up on key metrics.
Market Reaction
Shares of IVZ fell about 1.5% in pre-market trading following the release. The modest misses on EPS and revenue appeared to outweigh the record AUM and inflow strength. The stock had already been trading at a premium to historical multiples, so investors seemed to pause on the slight shortfall against estimates and ongoing fee pressure. Sentiment stays measured, balancing appreciation for margin improvement and balance-sheet progress with questions about how long fee compression will persist as the mix tilts toward lower-fee products.
Looking Ahead
Going forward, the focus will be on whether IVZ can maintain organic growth while navigating the shift in its revenue mix. Strength in ETFs, index products, and QQQ has powered AUM gains, yet these strategies typically carry lower fees. Cost control will also matter. The sequential drop in adjusted operating expenses and margin above 40% show management is translating revenue growth into profits efficiently. The balance sheet looks solid, with net debt reduced to $315.8 million and preferred stock retirements expected to support earnings for common shareholders. Inflows were positive across the Americas, EMEA, and Asia-Pacific, though some legacy equity and fixed-income strategies saw outflows. I’m watching whether those areas stabilize as newer products scale.
Using Tickeron’s AI Screener
I often turn to Tickeron’s AI Screener when reviewing asset managers and peers. The tool lets me filter thousands of stocks and ETFs by technical patterns, fundamentals, industry, and AI signals to quickly surface comparable ideas and spot trends in the financial sector without manual effort.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
IVZ's RSI Indicator ascending out of oversold territory
The RSI Indicator for IVZ moved out of oversold territory on October 15, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In 27 of the 32 cases the stock moved higher. This puts the odds of a move higher at 84%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 42 of 56 cases where IVZ's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 75%.
Following a +3.39% 3-day Advance, the price is estimated to grow further. Considering data from situations where IVZ advanced for three days, in 227 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
IVZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IVZ as a result. In 58 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 70%.
IVZ moved below its 50-day moving average on September 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IVZ crossed bearishly below the 50-day moving average on September 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 76%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IVZ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
The Aroon Indicator for IVZ entered a downward trend on October 26, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating steady price growth. IVZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 54 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly better than average.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.264) is normal, around the industry mean (2.383). P/E Ratio (-42.582) is within average values for comparable stocks, (-2.559). Projected Growth (PEG Ratio) (0.901) is also within normal values, averaging (1.319). Dividend Yield (0.030) settles around the average of (0.272) among similar stocks. P/S Ratio (1.981) is also within normal values, averaging (15.798).
The Tickeron SMR rating for this company is 92 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 99 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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