Invesco(US:IVZ) ZACKS·2026-01-26 13:06Core Insights - Invesco (IVZ) is set to announce its fourth-quarter and full-year 2025 results on January 27, with expectations of year-over-year increases in earnings and revenues [1] - The company has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 11.35% [2] Financial Performance Estimates - Invesco's preliminary total assets under management (AUM) as of December 31, 2025, was $2.17 trillion, reflecting a 2.1% sequential increase driven by market returns and net long-term inflows [3] - The Zacks Consensus Estimate for investment management fees is $1.2 billion, indicating a 3.9% rise from the previous quarter [3] - Performance fees are estimated to increase significantly to $30.8 million from $6.5 million in the prior quarter [4] - Service and distribution fees are expected to grow by 4.1% to $417.1 million, while other revenues are projected to rise by 15.2% to $55.9 million [4] - The consensus estimate for earnings is 57 cents, representing a 9.6% increase year-over-year, while sales are estimated at $1.25 billion, an 8.3% increase [11] Cost and Efficiency Factors - Invesco's cost-saving initiatives are likely to enhance efficiency, but rising compensation and marketing costs may negatively impact overall expenses [5] - Management anticipates one-time implementation costs of $10-$15 million related to the Alpha initiative in Q4 2025 [5] Strategic Developments - In December 2025, shareholders approved the reclassification of Invesco QQQ into an open-end ETF, allowing it to generate revenues and profits [6] - Invesco partnered with LGT Capital Partners to enhance private market access for U.S. wealth and retirement investors, focusing on creating a multi-alternative private markets offering [7] Earnings Prediction Insights - The model indicates low chances of Invesco beating the Zacks Consensus Estimate for earnings due to a negative Earnings ESP and a Zacks Rank of 3 (Hold) [8]