Shares in investment management company Invesco gained more than one per cent on Tuesday morning following the release of its financial results for the third quarter of 2026. While the company narrowly missed analyst estimates on earnings per share, it delivered substantial year-on-year revenue growth.
In the three months to 30 September 2026, Invesco generated adjusted earnings of 72 cents per share. This figure was below the Zacks consensus estimate of 75 cents, but comfortably exceeded the third quarter of 2025, which stood at 61 cents per share. Quarterly revenue climbed by 16.5 per cent over the same period to $1.4 billion, compared to $1.2 billion in the prior-year period.
Growth in assets under management and strategic capital measures
During the conference call, Andrew Schlossberg, Chief Executive Officer of Invesco, expressed satisfaction with business performance. Several strategically significant investment capabilities and vehicles reached new record levels in assets under management. Through discipline, clear focus and the advantages of scale, Invesco is achieving noticeable operating leverage and improving margins.
During the reporting period, Invesco bought back Series A preferred shares valued at $1.5 billion from MassMutual. Management stated that the move was aimed at reducing the overall financial burden. With this transaction, total share repurchases by the firm since May 2025 have reached $3 billion.
Chief Financial Officer Allison Dukes explained that the transaction would be accretive to earnings from 2027. This effect is expected to increase over time with the further repayment of the term loan. By repurchasing the preferred shares, Invesco saves an additional $88.5 million in annual preferred dividends, bringing total savings to $177 million, which is now available as earnings for ordinary shareholders.
Earnings trend and portfolio development
Net income in the third quarter of 2026 stood at $355.6 million. This represents an increase of 4.9 per cent compared to $338.9 million in the second quarter, but is slightly below the prior-year figure of $356.4 million recorded in the third quarter of 2025. In addition, the firm recorded a 6 per cent rise in average assets under management to approximately $2.5 trillion.
Dukes concluded by emphasising that organic growth and the broad positioning of the business continued to drive assets under management. The resulting revenue growth, combined with disciplined expense management, had delivered a significant improvement in the operating margin.
