Invesco's third quarter was marked by significant top-line growth and strong operational execution, with revenue and non-GAAP profitability exceeding Wall Street expectations. Management attributed the robust quarter to record assets under management, widespread net inflows across both active and passive strategies, and disciplined expense management. CEO Andrew Schlossberg particularly highlighted the impact of diversified global flows and new business initiatives, noting that, “We reached a record AUM of $2.1 trillion with exceptionally strong net long-term inflows of nearly $29 billion.”

Is now the time to buy IVZ? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Invesco’s Q3 Earnings Call

• William Katz (TD Cowen) asked about progress toward QQQ ETF shareholder approval and implications of reclassifying marketing expenses. CFO Allison Dukes said the proposals are progressing positively, with no financial impact from the reclassification.
• Brennan Hawken (BMO Capital Markets) questioned the accounting treatment of proxy solicitation expenses for the QQQ vote. Dukes clarified these are considered fund marketing expenses and not expected to impact Invesco’s operating expenses.
• Glenn Schorr (Evercore) inquired about fixed income flows amid market volatility and the outlook across regions. CEO Andrew Schlossberg stated there was no material impact from recent credit events, and fixed income flows remain strong globally.
• Alexander Blostein (Goldman Sachs) asked about the use of proceeds from recent divestitures and expense implications. Dukes explained proceeds will support deleveraging and reinvestment, with expense discipline remaining a priority.
• Daniel Fannon (Jefferies) probed on Alpha platform integration costs and long-term expense reduction. Dukes projected implementation costs to peak in 2026, with substantial streamlining and cost savings targeted for 2027 and beyond.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will closely monitor (1) the outcome and impact of the QQQ ETF structure modernization, including shareholder approval and subsequent implementation; (2) the pace of adoption and asset growth for new active ETFs and private market offerings; and (3) the effects of recent divestitures and further progress on balance sheet deleveraging. Additionally, continued improvements in investment performance and net flow trends in key international markets will be important markers of execution.

Invesco currently trades at $23.56, in line with $23.47 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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