Invesco Ltd. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Operating revenues increased 2.6% sequentially to $1,873.2 million and 14.2% year-over-year to $1,873.2 million.
• Operating income increased 19.9% sequentially to $436.5 million and 61.1% year-over-year to $436.5 million.
• Operating margin was 23.3% in Q3 2026, up from 19.9% in Q2 2026 and 16.5% in Q3 2025.
• Net income attributable to Invesco Ltd. was $294.5 million, down 14.7% sequentially and 2.3% year-over-year.
• Diluted EPS was $0.65, down 14.5% sequentially and 1.5% year-over-year.
• Adjusted net revenues were $1,381.7 million, up 4.0% sequentially and 16.5% year-over-year.
• Adjusted operating income was $562.3 million, up 12.8% sequentially and 38.5% year-over-year.
• Adjusted operating margin was 40.7%, up 320 basis points sequentially and 650 basis points year-over-year.
• Adjusted net income attributable to Invesco Ltd. was $326.4 million, up 1.3% sequentially and 18.5% year-over-year.
• Adjusted diluted EPS was $0.72, up 1.4% sequentially and 18.0% year-over-year.
• Cash and cash equivalents were $965.5 million at September 30, 2026.
• Debt was $1,281.3 million at September 30, 2026, down from $1,624.0 million at June 30, 2026.
• Net debt was $315.8 million at September 30, 2026, down from $708.6 million at June 30, 2026.
• Effective tax rate was 23.3% in Q3 2026, compared to 25.6% in Q2 2026 and (2.8%) in Q3 2025.

Guidance and Future Outlook:

• No specific forward guidance or future growth targets were provided in the press release.
• Management stated the company continues to execute against strategic priorities to deliver profitable growth and support long-term value creation.
• The company highlighted its "increasingly scaled platform" and "exceptional talent" as drivers for future value.

Business Segments and Product Lines:

• Net long-term inflows were $35.1 billion for the quarter, driven by ETFs and Index ($28.5 billion), QQQ ($6.7 billion), Multi-Asset/Other ($3.3 billion), and China JV ($1.5 billion).
• Net long-term outflows occurred in Fundamental Fixed Income ($2.6 billion), Fundamental Equities ($1.9 billion), and Private Markets ($0.4 billion).
• Retail net long-term inflows were $41.7 billion, while Institutional net long-term outflows were $6.6 billion.
• Money market fund inflows were $52.9 billion for the quarter.
• Ending Assets Under Management (AUM) were $2.5378 trillion, up 2.7% sequentially and 19.4% year-over-year.
• Average AUM was $2.5102 trillion, up 6.0% sequentially and 21.8% year-over-year.
• QQQ AUM averaged $480.3 billion for the quarter.
• Geographic net long-term inflows were $15.9 billion (EMEA), $10.3 billion (Americas), and $8.9 billion (Asia Pacific).
• The sale of Canadian management agreements to CI Global Asset Management in Q2 2026 reduced AUM by $11.0 billion and impacted revenue/expense comparisons.
• Headcount was 7,416 at the end of the quarter, down 11.4% year-over-year.

Market and Competitive Landscape:

• The company reported 13 consecutive quarters of net long-term inflows.
• Annualized long-term organic growth rate was 6.3% for the quarter.
• Net market losses decreased AUM by $26.4 billion, while foreign exchange movements increased AUM by $4.5 billion.
• The company noted its advantageous global market position and comprehensive range of investment capabilities across public, private, active, and passive strategies.

Risks and Challenges:

• Forward-looking statements caution that actual results may differ due to risks including industry/market conditions, geopolitical events, wars, trade tensions, tariffs, natural disasters, pandemics, acquisitions/divestitures, debt financing ability, and regulatory developments.
• Market value changes in deferred compensation and other investments resulted in net losses of $34.2 million in Q3 2026.
• The company noted the elimination of QQQ's pass-through service revenues following its conversion to an open-end fund ETF in Q4 2025.

Management Commentary and Tone:

• Andrew Schlossberg, President and CEO, stated the company generated 6% annualized organic growth driven by $35 billion of net long-term inflows and $47 billion of global liquidity net inflows.
• Management highlighted that net revenue increased 4% and operating expenses declined 1% on a sequential basis, driving operating income growth of 13%.
• The tone was confident regarding the execution of strategic priorities and the strengthening of the balance sheet.

Other Key Points:

• The company repurchased $1.5 billion of Series A Preferred Stock held by MassMutual on October 26, 2026, funded by a $1.5 billion five-year floating-rate bank term loan.
• Total preferred stock repurchases reached $3 billion over the past 18 months, leaving $1 billion outstanding.
• Common share repurchases totaled $65 million (2.1 million shares) during the quarter.
• Common dividends declared were $0.215 per share, payable December 2, 2026.
• Preferred dividends declared were $14.75 per share for the period September 1, 2026 through November 30, 2026, payable December 1, 2026.
• Total dividends paid were $98.4 million for common shares and $37.0 million for preferred shares.
• The company reduced net debt by $393 million during the quarter.