Invesco Reports Q4 Earnings Beat Expectations with Strong Asset Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy IVZ?
Source: seekingalpha
Invesco's stock fell 5.13% and hit a 5-day low amid broader market gains, with the Nasdaq-100 up 0.80% and the S&P 500 up 0.38%.
Invesco reported a Q4 non-GAAP EPS of $0.62, exceeding expectations by $0.04, which underscores the company's robust profitability and enhances market confidence. The company achieved $1.26 billion in revenue for Q4, reflecting an 8.6% year-over-year increase and surpassing market expectations by $10 million. Additionally, net long-term inflows reached $19.1 billion, primarily driven by ETFs and index funds, showcasing investor confidence in the company's offerings.
Despite the positive earnings report, Invesco's stock price declined, indicating a potential sector rotation as investors may be reallocating funds to other sectors amid the overall market strength.
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Analyst Views on IVZ
Wall Street analysts forecast IVZ stock price to rise
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 26.740
Low
25.00
Averages
28.68
High
33.50
Current: 26.740
Low
25.00
Averages
28.68
High
33.50
About IVZ
Invesco Ltd. is an independent investment management firm. It serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East, and Africa and Asia-Pacific in 120 countries. It offers a range of investment strategies across asset classes, investment styles, and geographies. Its asset classes include equity, fixed income, balanced, alternatives and money market. Its retail assets under management include exchange-traded funds, separately managed accounts, individual savings accounts, investment companies with variable capital, investment trusts, open-end mutual funds, unit investment trusts, and variable insurance funds. Its institutional assets include institutional separate accounts, private funds, open-end mutual funds, and collective trust funds. Its client base includes public and private entities, unions, non-profit organizations, endowments, foundations, financial institutions, and sovereign wealth funds.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Portfolio Construction: VDC includes over 100 stocks weighted by market cap, offering broader industry coverage, while RSPS consists of only 37 stocks with an equal-weight strategy, giving smaller companies a larger role, which may influence investor preferences based on risk tolerance.
- Dividend Yield: RSPS offers a higher dividend yield of 2.63% compared to VDC's 2.10%, making it appealing for income-focused investors, although this is somewhat offset by its higher expense ratio, highlighting the trade-offs between income and cost in ETF selection.
See More
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- Price-to-Sales Analysis: Invesco's P/S ratio stands at 1.85x, below the capital markets industry average of 4.12x and peer average of 3.36x, indicating a more conservative pricing in the market that could attract value-seeking investors.
- Future Outlook: The Narratives tool allows investors to dynamically adjust their valuation expectations for Invesco based on the latest information, providing flexibility that may help them seize market opportunities, even though current valuations indicate certain risks.
See More
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- Emerging Distribution Fees: U.S. brokerage firms and custodians may soon impose distribution fees on ETF managers, potentially reshaping the cost structure of the $13.5 trillion U.S. ETF industry, particularly after over a decade of zero-commission trading that has disrupted traditional revenue streams.
- Impact of Zero-Commission Trading: Companies like Robinhood have attracted millions of retail investors with zero trading commissions, forcing traditional brokers like Fidelity and Charles Schwab to eliminate ETF trading fees, which, while retaining clients, has significantly impacted their profitability.
- Changing Cost Structure: J.P. Morgan estimates that the current U.S. ETF management fee pool is around $21 billion, and if intermediaries capture 10% to 20% of ETF expense ratios, the industry could incur an additional $2 billion to $4 billion in distribution costs annually, affecting investor returns.
- Market Competitive Landscape: Large ETF issuers may be better positioned under this new fee structure, while mid-sized firms could face greater pressure, particularly niche and actively managed ETFs that may be the first to feel the impact, potentially halting the decline in their expense ratios.
See More
