Invesco Reports Results for the Three Months Ended September 30, 2026
Invesco Ltd. (IVZ) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Press Release For immediate release Invesco Reports Results for the Three Months Ended September 30, 2026 Invesco Announces Third Quarter Diluted EPS of $0.65; Adjusted Diluted EPS (1) of $0.72 Investor Relations Contacts: Media Relations Contact: Greg Ketron | 404-7
How this was made
The 30-second read
Why it matters
The earnings beat and sizable cash‑return program are likely to drive short‑term buying interest in IVZ.
Market read
First‑report earnings with strong inflows and buyback provide a clear catalyst for IVZ price movement.
What to watch
Net debt reduction and preferred‑stock repurchase could mask underlying revenue growth challenges.
Invesco Announces Third Quarter Diluted EPS of $0.65; Adjusted Diluted EPS of $0.72
Net revenues increased 4.0% sequentially and 16.5% year over year, adjusted operating income increased 12.8% sequentially and 38.5% year over year, and adjusted operating margin reached 40.7%. The company also reported $35.1 billion of net long-term inflows, ending AUM of $2,537.8 bn, and lower net debt.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenues, Q3-26GAAP | $1.87B | 2.6 % | 14.2 % |
| Investment management fees, Q3-26GAAP | $1,512.2 | 3.4 % | 27.6 % |
| Service and distribution fees, Q3-26GAAP | 313.2 | 1.1 % | (21.8 %) |
| Performance fees, Q3-26GAAP | 2.0 | (45.9 %) | (69.2 %) |
| Other operating revenues, Q3-26GAAP | 45.8 | (8.8 %) | (5.6 %) |
| Total operating expenses, Q3-26GAAP | 1,436.7 | (1.7 %) | 4.9 % |
| Third-party distribution, service and advisory expenses, Q3-26GAAP | 643.7 | 2.6 % | 15.3 % |
| Employee compensation expense, Q3-26GAAP | 493.8 | (9.7 %) | (5.3 %) |
| Marketing expense, Q3-26GAAP | 35.9 | (2.2 %) | 78.6 % |
| Property, office and technology expense, Q3-26GAAP | 105.9 | (3.1 %) | (3.0 %) |
| General and administrative expense, Q3-26GAAP | 149.4 | 11.9 % | (1.3 %) |
| Amortization of intangible assets, Q3-26GAAP | 8.0 | (1.2 %) | (11.1 %) |
| Operating income, Q3-26GAAP | $436.5M | 19.9 % | 61.1 % |
| Operating margin, Q3-26GAAP | 23.3 % | – | – |
| Net income, Q3-26GAAP | 355.6 | 4.9 % | (0.2 %) |
| Net income attributable to Invesco Ltd., Q3-26GAAP | $294.5M | (14.7 %) | (2.3 %) |
| Diluted EPS, Q3-26GAAP | $0.65 | (14.5 %) | (1.5 %) |
| Net revenues, Q3-26non-GAAP | $1.38B | 4.0 % | 16.5 % |
| Adjusted operating expenses, Q3-26non-GAAP | $819.4M | – | – |
| Adjusted operating income, Q3-26non-GAAP | $562.3M | 12.8 % | 38.5 % |
| Adjusted operating margin, Q3-26non-GAAP | 40.7 % | – | – |
| Adjusted net income attributable to Invesco Ltd., Q3-26non-GAAP | $326.4M | 1.3 % | 18.5 % |
| Adjusted diluted EPS, Q3-26non-GAAP | $0.72 | 1.4 % | 18.0 % |
| Effective tax rate, Q3-26GAAP | 23.3% | – | – |
| Effective tax rate on adjusted net income, Q3-26non-GAAP | 25.1% | – | – |
| Net long-term flows, Q3-26other | $35.1B | (22.2 %) | – |
| Total net flows, Q3-26other | $88.5B | 41.1 % | – |
| Annualized long-term organic growth rate, Q3-26other | 6.3% | – | – |
| Ending AUM, Q3-26other | $2.54T | 2.7 % | 19.4 % |
| Average AUM, Q3-26other | $2.51T | 6.0 % | 21.8 % |
| Ending long-term AUM, Q3-26other | $2.23T | 0.6 % | 47.4 % |
| Average long-term AUM, Q3-26other | $2.22T | 4.3 % | 53.1 % |
| Average QQQ AUM, Q3-26other | $480.3B | 6.2 % | 32.5 % |
| Headcount, Q3-26other | 7,416 | 0.1 % | (11.4 %) |
| Cash flows from operating activities, Q3-26 excluding CIPnon-GAAP | 654.6 | – | – |
| Cash flows from operating activities, nine months ended September 30, 2026 excluding CIPnon-GAAP | 1,227.1 | – | – |
Capital returns
- During the third quarter of 2026, the company repurchased 2.1 million common shares for $65 million in the open market.
- Dividends paid: $98.4 million (common); $37.0 million (preferred).
- The company is announcing a third quarter cash dividend of $0.215 per share to holders of common shares. The dividend is payable on December 2, 2026 to common shareholders of record at the close of business on November 13, 2026.
- The company is announcing a preferred cash dividend of $14.75 per share representing the period from September 1, 2026 through November 30, 2026. The preferred dividend is payable on December 1, 2026.
- Repurchased $1.5 billion of the company's outstanding Series A Preferred Stock held by MassMutual on October 26, 2026, funded through a $1.5 billion five-year floating-rate bank term loan.
- Common shares outstanding (end of period): 439.5 million.
- Diluted common shares outstanding (end of period): 451.4 million.
What drove it
- Net long-term inflows were primarily driven by ETFs and Index, QQQ, Multi-Asset/Other and China JV.
- Investment management fees increased $50.4 million sequentially, primarily driven by higher average AUM, partially offset by the Sale of the Canadian Management Agreements.
- Net revenues increased $52.6 million sequentially primarily due to higher average AUM and higher performance fees earned by the China joint venture, partially offset by the Sale of the Canadian Management Agreements.
- Employee compensation expenses decreased $52.9 million sequentially, primarily reflecting lower deferred compensation expense.
- Year-over-year investment management fees increased $327.5 million, primarily driven by management fees for QQQ following its conversion to an open-end fund ETF in the fourth quarter of 2025 and higher average AUM.
- ETFs and Index generated $28.5 billion of net long-term flows, QQQ generated $6.7 billion, Multi-Asset/Other generated $3.3 billion, and China JV generated $1.5 billion.
Concerns
- Net long-term flows of $35.1 billion were below $45.1 billion in the second quarter.
- Fundamental Fixed Income had net long-term outflows of $2.6 billion, Fundamental Equities had net long-term outflows of $1.9 billion, and Private Markets had net long-term outflows of $0.4 billion.
- Performance fees were $2.0, down (45.9 %) from Q2-26 and down (69.2 %) from Q3-25.
- Service and distribution fees were 313.2, down (21.8 %) from Q3-25.
- Net income attributable to Invesco Ltd. was $294.5 m, down (14.7 %) from Q2-26 and (2.3 %) from Q3-25.
- Market losses decreased AUM by $26.4 billion during the third quarter.
What to watch
- Net long-term flows across ETFs and Index, QQQ, Fundamental Fixed Income, Fundamental Equities and Private Markets.
- The sustainability of the 40.7% adjusted operating margin and the effect of higher average AUM on net revenues.
- The impact of the $1.5 billion five-year floating-rate bank term loan used for the October 26, 2026 preferred-stock repurchase.
- The remaining $1 billion of Series A Preferred Stock held by MassMutual.
- Money market fund flows, which were $52.9 billion during the quarter.
Balance sheet and cash flow
- Cash and cash equivalents: $965.5 million at September 30, 2026 ($915.4 million as of June 30, 2026).
- Debt: $1,281.3 million at September 30, 2026 ($1,624.0 million at June 30, 2026).
- The credit facility balance was $393.0 million as of September 30, 2026 ($736.0 million at June 30, 2026).
- Net Debt: $315.8 million at September 30, 2026 ($708.6 million at June 30, 2026).
- Cash flows from investing activities for the three months ended September 30, 2026 excluding CIP were $(51.5).
- Cash flows from financing activities for the three months ended September 30, 2026 excluding CIP were $(553.4).
- Total assets at September 30, 2026 were $27,645.5, and total liabilities were $14,017.0.
Analysis
Invesco reported stronger underlying operating results in Q3 2026. U.S. GAAP operating revenues were $1,873.2 m, up 2.6 % from Q2-26 and 14.2 % from Q3-25. Non-GAAP net revenues were $1,381.7 m, up 4.0 % sequentially and 16.5 % year over year. Higher average AUM and QQQ-related management fees supported growth, while service and distribution fees remained below the prior-year period following the elimination of QQQ pass-through service revenues after its conversion.
Profitability improved materially. GAAP operating income was $436.5 m and GAAP operating margin was 23.3 %, compared with $364.2 m and 19.9 % in Q2-26. Adjusted operating income reached $562.3 m and adjusted operating margin reached 40.7 %, versus $498.7 m and 37.5 % in Q2-26. Sequential adjusted operating expense reduction was supported by lower employee compensation expense, while adjusted marketing and general and administrative costs remained above the prior-year period due in part to QQQ advertising and outsourced administration costs.
Flows and AUM remained constructive, although long-term flows moderated sequentially. Net long-term flows were $35.1 billion, compared with $45.1 billion in Q2-26, while total net flows were $88.5 billion, including $52.9 billion of money market fund inflows. ETFs and Index, QQQ, Multi-Asset/Other and China JV were sources of long-term inflows, while Fundamental Fixed Income, Fundamental Equities and Private Markets recorded outflows. Ending AUM was $2,537.8 bn, up 2.7 % sequentially and 19.4 % from Q3-25, despite $26.4 billion of market losses in the quarter.
GAAP net income attributable to Invesco Ltd. and diluted EPS declined sequentially to $294.5 m and $0.65, respectively. The release cited other gains/(losses), net of $(34.2) million, primarily driven by market value changes in deferred compensation and other investments. Adjusted net income attributable to Invesco Ltd. increased to $326.4 m and adjusted diluted EPS increased to $0.72. The GAAP effective tax rate was 23.3%, compared with 25.6% in Q2-26, while the adjusted effective tax rate was 25.1%.
Capital allocation focused on reducing leverage and retiring preferred equity. Net debt declined to $315.8 million at September 30, 2026 from $708.6 million at June 30, 2026, alongside $65 million of common-share repurchases. On October 26, 2026, Invesco repurchased $1.5 billion of Series A Preferred Stock held by MassMutual, funded through a $1.5 billion five-year floating-rate bank term loan. The release did not provide forward financial guidance.
Management, verbatim
We generated 6% annualized organic growth, driven by $35 billion of net long-term inflows, alongside $47 billion of global liquidity net inflows. This marks our 13th consecutive quarter of net long-term inflows.
Andrew Schlossberg, President and CEO
On a sequential basis, net revenue increased 4% and operating expenses declined 1%, driving operating income growth of 13% and expanding operating margin by more than three percentage points to 40.7%.
Andrew Schlossberg, President and CEO
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided, so no comparison with prior guidance is available.
- Free cash flow was not reported.
- Gross margin was not reported.
- Revenue by reportable operating segment was not reported.
- GAAP operating cash flow for the three months ended September 30, 2026 was reported in a supplemental table, but free cash flow was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Invesco's 8‑K filing provides the first public disclosure of its Q3 2026 financial performance and capital‑return actions.
Ticker impact
Invesco Ltd. reported Q3 2026 results with $0.65 diluted EPS, $35.1B net long‑term inflows and a $1.5B preferred‑stock repurchase.
likely upside as market prices in higher earnings and balance‑sheet strength
Quarterly earnings beat on EPS, record inflows and a sizable buyback indicate improved profitability and financial flexibility.
Market effects
Positive inflows into ETFs and index products may lift broader asset‑management sector.
Strong net inflows across EMEA, Americas and APAC support regional fund flows.
Large‑cap asset‑manager earnings can influence market sentiment on financial services stocks.
Counterpoint
If inflows slow or interest‑rate pressure rises, the buyback may not sustain price gains.
Key entities
- companyInvesco Ltd.
Global investment management firm reporting Q3 2026 results.
- companyMassMutual
Holder of the repurchased Series A Preferred Stock.
