Asset management firm Invesco (NYSE: IVZ) reported revenue ahead of Wall Street’s expectations in Q3 2026, with revenue up 57.9% year on year to $1.87 billion. Its non-GAAP profit of $0.72 per share was 2.6% below analysts’ consensus estimates.

For more on Invesco, read our full research report, available free.

"We continue to execute against our strategic priorities and leverage our advantageous global market position to deliver for clients and shareholders. 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. 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%.(1) Strong operating performance is enhancing our financial flexibility and supporting continued progress in strengthening the balance sheet. We have repurchased an additional $1.5 billion of the preferred stock held by MassMutual, bringing total repurchases to $3 billion over the past 18 months and leaving $1 billion outstanding. This ultimately enables reduced leverage, increases our balance sheet flexibility, and enhances earnings available to common shareholders. Our increasingly scaled platform and the exceptional talent across the organization are delivering profitable growth and supporting long-term value creation for clients and shareholders."

Revenue growth

A company’s long-term revenue performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Invesco’s revenue grew at a sluggish 2.3% annualized rate over the last five years, falling short of our benchmarks.

Long-term growth matters most, but within financials, a half-decade historical view may miss recent interest rate changes, market returns and industry trends. Invesco’s annualized revenue growth of 15.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Invesco reported year-on-year revenue growth of 57.9%, and its $1.87 billion in revenue beat Wall Street’s consensus estimates by 35.5%.

Assets under management (AUM)

Assets Under Management (AUM) encompasses all client funds under a firm’s investment management umbrella. The recurring fee structure on these assets provides consistent revenue generation, offering financial stability even during periods of poor investment returns, though sustained underperformance can impact future asset flows.

Invesco’s AUM has grown at an annual rate of 10% over the last five years, slightly better than the broader financials industry and faster than its total revenue. Over the last two years, Invesco’s AUM growth accelerated to 17.5% annually. Fundraising or short-term investment performance was a net contributor for the company over this shorter period since assets grew faster than total revenue. Still, asset growth carries less weight given how lumpy and cyclical it can be.

Invesco’s AUM totaled $2.54 trillion this quarter, meeting analysts’ consensus estimates. This was 19.4% higher than the same quarter last year.

Key takeaways from Invesco’s Q3 results

A revenue beat by a wide margin helped make this a decent quarter for Invesco, with some key metrics above expectations. Revenue topped analysts’ consensus estimates, but EPS fell short. Shares remained flat at $28.60 immediately after the release.

Invesco had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation when deciding if the stock is a buy. For more on those factors, read our full research report here (it’s free).