Start here if you're new
what it is
Invesco manages your money in funds and ETFs, then takes a fee for keeping the machine running.
how it gets paid
Last year Invesco made $6.4B in revenue. equity funds was the main engine at $2.4B, or 38% of sales.
why it's growing
Revenue grew 5.1% last year. Revenue was $4.7B, up 186% vs. prior year, while the business also benefited from higher asset levels and fee income.
what just happened
Invesco's last report cleared estimates, with adjusted EPS at $0.62 versus a $0.59 estimate.
At a glance
A balance sheet — strong enough to weather a downturn
15/100 earnings predictability — expect surprises
14.1x trailing p/e — the market's not buying it — or you found a deal
3.1% dividend yield — cash in your pocket every quarter
6.5% return on capital — nothing to write home about
xvary composite: 62/100 — average
What they do
Invesco manages your money in funds and ETFs, then takes a fee for keeping the machine running.
Scale matters here. Invesco managed $2.26 trillion in assets as of February 2026, and bigger asset pools spread costs across more products and clients. About 30% of assets sit outside the Americas, so you are not relying on one market to carry the whole story.
How they make money
$6.4B
annual revenue · their business grew +5.1% last year
equity funds
$2.4B
fixed income funds
$1.4B
etfs
$1.5B
balanced funds
$0.7B
other mandates and services
$0.4B
The products that matter
manages client assets for fees
Investment management
$6.4B revenue · 100% of business
it's the entire $6.4B revenue base, which grew 5.1% last year and produced a 17.8% net margin.
100% of revenue
earnings power from existing scale
Operating margin story
17.8% net margin
17.8 cents of profit on every $1 of revenue is solid for a fee business, but the 6.0% return on capital says the quality is good, not elite.
quality check
capital return for shareholders
Dividend
3.1% yield
the 3.1% yield matters because you are not paying a premium multiple here. Part of the case is simply getting paid to wait for sentiment to improve.
income support
Key numbers
14.1x
trailing p/e
Price-to-earnings → what you pay for each $1 of profit → valuation. So what: at 14.1x, you are not paying a luxury multiple for a company expected to earn $2.40 a share in fiscal 2026.
$2.26T
firm aum
Assets under management → client money on the platform → the fee base. So what: a 1.2% monthly lift means roughly $27B more assets that can generate fees.
3.1%
dividend yield
Dividend yield → cash paid to you relative to the stock price → income while you wait. So what: you are getting paid while the market decides whether 14.1x earnings is too cheap.
$35
18-month target
Target price → a rough fair-value estimate → expected upside. So what: the base case points to about 24% upside from $28.16.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $1.6B (12% of capital)
- net profit margin 17.2% — keeps 17 cents of every dollar in revenue
- return on equity 9% — $0.09 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in IVZ 3 years ago → it's now worth $17,380.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Invesco's last report cleared estimates, with adjusted EPS at $0.62 versus a $0.59 estimate.
Revenue was $4.7B, up 186% vs. prior year, while the business also benefited from higher asset levels and fee income. Reported EPS figures vary by source, with quarterly history showing $0.59 for Q4 2025 and SEC data showing $1.01 for the latest quarter, which points to different reporting bases.
$4.7B
revenue
$0.62
adjusted eps
5.08%
eps surprise
the number that mattered
$0.62 matters because it beat the $0.59 estimate, and this stock needs proof that fee income can still outrun skepticism.
-
invesco has probably been making continued progress.
-
for the full year 2025, we think revenues reached $6.35 billion, representing a 5.0% annual advance.
-
during the final months of the year, business likely benefited from higher asset levels and increased fee income. (for perspective, fees associated with investment services account for over 70% of the firm’s top line.) looking ahead, we think invesco is well positioned in a number of investment categories (exchange traded funds, private credit, alternatives, etc.).
-
the firm also has built a sizable global presence.
-
we think profits settled at $2.00 per share for full-year 2025.subscribers should note that we are now reporting adjusted earnings per share, which exclude amortization, impairments, and other items.
source: company earnings report, 2026
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What could go wrong
the #1 risk is regulatory and litigation overhang on a low-predictability earnings story.
high
regulatory and litigation risk
The annual report flags ongoing litigation and regulatory investigations. For an asset manager, that is not background noise — it can pressure fees, distribution, and investor confidence all at once.
This hangs over the full $6.4B revenue base because reputation is part of the product.
med
fee pressure from larger ETF rivals
There is no wide moat. IVZ competes against firms with more scale, and bigger players can cut pricing harder when flows matter most.
Lower fees do not need a revenue collapse to hurt you — they can squeeze margin on the same assets.
med
market-sensitive revenue
This business gets paid to manage money. When markets fall or client flows weaken, the operating model loses its tailwind fast.
With 100% of revenue tied to the core asset-management engine, there is no second business to bail out a weak cycle.
low
earnings volatility
A 15/100 earnings predictability score is the market's way of saying these numbers can wobble. The quarterly EPS path of $0.44, $0.36, $0.61, and $0.59 backs that up.
That makes rerating harder. Investors pay up for smoothness, and IVZ is not selling much of it.
Between legal overhang, fee competition, and market-linked demand, the same $6.4B revenue base that produced $2.00 in FY2025 EPS can get pressured from several directions at once.
source: institutional data · regulatory filings · risk analysis
Pay attention to
setup
the jump from $2.00 to $2.40 EPS
That 20% improvement is what the valuation case is leaning on right now.
risk
regulatory and litigation updates
If disclosures get worse, the market will treat 14.1x earnings as justified, not cheap.
earnings
whether revenue moves toward $7B
Analysts want about 9% growth from the current $6.4B base. Next reports need to show the path.
flow
institutional buying staying positive
Three quarters of net buying helps the story. A reversal would tell you enthusiasm was tactical, not durable.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal setup here, not a momentum chase.
risk profile
average
stability score 3 — this sits near the middle of the market on risk, helped by the A balance sheet.
chart momentum
average
technical score 3 — the chart is behaving like a regular stock, not sending a special signal.
earnings predictability
15 / 100
Low predictability means the business can still work, but you should expect lumpier quarters than the quality franchises get away with.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 297 buyers vs. 221 sellers in 3q2025. total institutional holdings: 0.4B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$21
$48
$28
current price
$35
target midpoint · +24% from current · 3-5yr high: $45 (+60% · 15% ann'l return)
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