Asset management firm Invesco (NYSE: IVZ) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 8.8% year on year to $1.26 billion. Its non-GAAP profit of $0.62 per share was 7.1% above analysts’ consensus estimates.

Is now the time to buy Invesco? Find out by accessing our full research report, it’s free.

Company Overview

With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Invesco struggled to consistently increase demand as its $4.66 billion of revenue for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and suggests it’s a low quality business.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Invesco’s annualized revenue growth of 4% over the last two years is above its five-year trend, but we were still disappointed by the results. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Invesco reported year-on-year revenue growth of 8.8%, and its $1.26 billion of revenue exceeded Wall Street’s estimates by 1.1%.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Assets Under Management (AUM)

Assets Under Management (AUM) represents the total value of investments that a financial institution manages for its clients. These assets generate steady income through management fees, creating predictable revenue streams that remain stable so long as clients remain invested with the firm.

Invesco’s AUM has grown at an annual rate of 11.4% over the last five years, a step above the broader financials industry and faster than its total revenue. When analyzing Invesco’s AUM over the last two years, we can see that growth accelerated to 15.8% annually. Fundraising or short-term investment performance were net contributors for the company over this shorter period since assets grew faster than total revenue. Keep in mind that asset growth can be erratic and seasonal, so we don't rely on it too heavily for our business quality analysis.

Invesco’s AUM punched in at $2.2 trillion this quarter, beating analysts’ expectations by 1.5%. This print was 19.2% higher than the same quarter last year.

Key Takeaways from Invesco’s Q4 Results

It was good to see Invesco narrowly top analysts’ AUM expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 5.6% to $30.22 immediately after reporting.

Indeed, Invesco had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).