Invesco reported adjusted diluted EPS of $0.62 for Q4 2025, surpassing consensus estimates by $0.05 and marking a 19% year-over-year increase from $0.52. Net revenues rose 8.8% year-over-year, driven by an 18.5% gain in average assets under management (AUM), which reached a record $2.17 trillion at quarter end. The strong top-line performance reflects robust fee income across ETFs, index strategies and the China joint venture, while adjusted operating margin expanded to 36.4%, up from 33.7% in the year-ago quarter.

The firm generated $19.1 billion of net long-term inflows in Q4, bringing full-year net inflows to $81.2 billion. Retail clients contributed $10.2 billion and institutional clients $8.9 billion, led by $11.9 billion into ETFs and index products and $8.9 billion into the China JV. Fundamental fixed income also attracted $2.2 billion, offsetting $5.5 billion of outflows from fundamental equities. On a regional basis, Asia Pacific and EMEA saw net inflows of $14.1 billion and $6.2 billion, respectively, while the Americas experienced a modest $1.2 billion outflow.

A $1.8 billion non-cash impairment of indefinite-lived intangible assets related to prior mutual fund management contracts drove a GAAP operating loss of $1.46 billion and a GAAP diluted EPS loss of $2.61, compared to a $0.66 earnings per share profit in Q3. Excluding this impairment, operating expenses were effectively flat sequentially, with lower employee compensation costs offset by higher marketing spend. The adjusted operating income of $457.8 million represented a 12.7% sequential increase, underscoring the underlying profitability of ongoing operations.

Invesco completed the conversion of its flagship QQQ Trust to an open-end ETF on December 20, enhancing liquidity and distribution efficiencies. The firm also repurchased $500 million of Series A preferred stock and repaid the remaining $240 million term loan, strengthening its balance sheet. Morgan Stanley set a price target implying a low-single-digit upside, citing AUM growth, rising performance fees—projected to reach $30.8 million in Q4—and the benefits of strategic partnerships such as those established in Asia.