Why Invesco (IVZ) Is Up 5.3% After Record AUM and Strong Third-Quarter Results

• Invesco recently reported third-quarter 2025 adjusted earnings that surpassed expectations, supported by record assets under management of US$2.12 trillion and positive long-term net inflows from a wide range of products and regions.
• Management commentary included guidance on one-time Alpha platform implementation costs in the fourth quarter and anticipated payout ratios of approximately 60% for 2025 and 2026, offering insight into future capital allocation plans.
• We'll examine how Invesco's record growth in assets under management impacts the company's broader investment narrative and forward-looking outlook.

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Invesco Investment Narrative Recap

To be a shareholder in Invesco, you need to believe in its ability to balance growing assets under management with ongoing fee pressure from the shift toward passive strategies and ETFs. The recent third-quarter earnings beat and record US$2.12 trillion in assets under management highlight momentum in product inflows, but this does not materially change the most important short-term catalyst: further margin improvement, nor does it reduce the biggest risk, fee compression from industry-wide passive flows. Among recent announcements, Invesco’s update on its expected payout ratio of approximately 60% for 2025 and 2026 is particularly relevant, providing clarity on capital allocation and reassuring shareholders in light of elevated implementation costs for the Alpha platform. This guidance underscores management’s intent to maintain steady shareholder returns, even as technology investments and operational efficiency remain central to future margin and earnings outcomes. By contrast, investors should not overlook the ongoing challenge of lower-fee products and how persistent changes in revenue yield could influence the long-term story ...

Read the full narrative on Invesco (it's free!)

Invesco's narrative projects $4.8 billion revenue and $1.1 billion earnings by 2028. This requires a -8.2% yearly revenue decline and a $677.1 million earnings increase from $422.9 million.

Uncover how Invesco's forecasts yield a $26.38 fair value, a 8% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community includes 4 unique fair value estimates for Invesco, ranging from US$8.12 to US$27.61 per share. As ongoing pressure on net revenue yield remains a risk, these varied opinions reflect how differently investors interpret fee compression and its impact on the business over time.

Explore 4 other fair value estimates on Invesco - why the stock might be worth less than half the current price!

Build Your Own Invesco Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Invesco research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Invesco research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Invesco's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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