Invesco Adjusted Operating Margin Reaches 40.7%

The Tip Desk · November 8, 2026 · 4 min read

Adjusted operating income rose 12.8% to $562.3 million as net long-term inflows slowed to $35.1 billion.

Invesco Ltd. (IVZ) reported a 40.7% adjusted operating margin for the three months ended September 30, 2026, up 320 basis points from 37.5% in the second quarter, after a 300 basis-point sequential expansion to that 37.5% level in the prior quarter.

The asset manager’s adjusted operating income rose 12.8% sequentially to $562.3 million from $498.7 million. Net revenues increased 4.0% to $1,381.7 million from $1,329.1 million. Adjusted operating expenses decreased $11.0 million to $819.4 million. Adjusted diluted earnings per share were $0.72.

U.S. GAAP operating revenues rose 2.6% to $1,873.2 million. Operating income rose 19.9% to $436.5 million, and the operating margin was 23.3%. Diluted earnings per share were $0.65. Net income attributable to Invesco Ltd. declined 14.7% to $294.5 million from $345.3 million.

Net long-term inflows were $35.1 billion, down from a record $45.1 billion in the second quarter after accelerating from $21.8 billion in the first quarter. Annualized long-term organic growth fell to 6.3% from 8.5%. That was the 13th consecutive quarter of net long-term inflows. Retail net long-term inflows were $41.7 billion; institutional net long-term outflows were $6.6 billion.

By capability, ETFs and Index contributed $28.5 billion of net long-term inflows, QQQ $6.7 billion, Multi-Asset/Other $3.3 billion and the China joint venture $1.5 billion. Fundamental Fixed Income posted $2.6 billion of net long-term outflows, Fundamental Equities $1.9 billion and Private Markets $0.4 billion. EMEA, the Americas and Asia Pacific recorded net long-term inflows of $15.9 billion, $10.3 billion and $8.9 billion.

Net market losses decreased AUM by $26.4 billion in the third quarter; foreign-exchange movements added $4.5 billion. Money-market inflows were $52.9 billion. Ending AUM rose 2.7% to $2,537.8 billion from $2,470.3 billion, after a 14.4% sequential increase in the second quarter. Average AUM rose 6.0% to $2,510.2 billion. Headcount was 7,416.

Investment management fees increased $50.4 million sequentially, which the company said was primarily driven by higher average AUM, partially offset by lower revenue after the second-quarter sale of Canadian management agreements to CI Global Asset Management. Service and distribution fees increased $3.3 million. Performance fees decreased $1.7 million to $2.0 million. Other revenues decreased $4.4 million on lower real-estate transaction fees.

Operating expenses decreased $24.7 million. Employee compensation expenses decreased $52.9 million to $493.8 million, primarily reflecting a $43.7 million lower mark-to-market on deferred compensation liabilities and $9.7 million lower retirement-eligible timing. General and administrative expenses increased $15.9 million to $149.4 million, primarily due to an $11.7 million net benefit in the second quarter from the Canadian sale and restructuring. Third-party distribution, service and advisory costs increased $16.6 million.

Other gains and losses swung to a $34.2 million net loss from a $105.8 million net gain in the second quarter, primarily from market-value changes in deferred compensation and other investments. Other income of consolidated investment products was $29.5 million. The effective tax rate was 23.3%.

Net debt fell to $315.8 million from $708.6 million at June 30, a $393 million reduction. Debt declined to $1,281.3 million. Cash and cash equivalents were $965.5 million. The company repurchased 2.1 million common shares for $65 million.

On October 26, 2026, Invesco repurchased $1.5 billion of Series A preferred stock held by MassMutual, bringing total preferred repurchases to $3 billion over 18 months and leaving $1 billion outstanding, funded by a $1.5 billion five-year floating-rate bank term loan. The company declared a third-quarter common dividend of $0.215 a share, payable December 2, 2026.