Invesco reported earnings of $0.61 per share for Q3, exceeding expectations of $0.44 per share and rising from $0.44 a year ago. This marked a +38.64% earnings surprise, continuing a positive trend where the company outperformed earnings estimates in three of the last four quarters. For the quarter ending September 2025, revenue was $1.19 billion. This was slightly below the consensus estimate by 0.02% but higher than last year’s revenue of $1.1 billion. In contrast to earnings, the company only beat revenue forecasts once in the last four quarters. Since the beginning of the year, Invesco shares have risen about 34.2%, compared to a 16.9% increase in the S&P 500.

Future Projections

Looking ahead, analysts expect earnings per share (EPS) of $0.54 and revenue of $1.25 billion for the next quarters. For the fiscal year, expectations are $1.83 in EPS and $4.65 billion in revenue. The stock holds a Zacks Rank #2, suggesting a strong outlook. In the same industry, Cannae Holdings is projected to report a quarterly loss of $0.31 per share, down 40.9% from last year. Revenues are expected to hit $106.5 million, a 6.5% decline from the previous year. Given the impressive earnings surprise of 38.64%, we see this as a positive sign for Invesco. With the report released, the high implied volatility before the announcement is likely lower, making call options cheaper. Traders looking for growth may find this a good entry point for bullish strategies. Invesco’s year-over-year revenue growth benefits from strong industry trends. Recent data from September 2025 shows net inflows into equity and fixed-income funds, with total U.S. fund assets under management (AUM) rising roughly 1.5% in the third quarter. This positive environment indicates that Invesco’s success is part of a healthy market.

Macroeconomic Factors

Additionally, the macroeconomic landscape is more favorable for asset managers like Invesco. The Federal Reserve’s decision in September 2025 to pause interest rate hikes has stabilized the markets and boosted asset valuations. This stability encourages investors to invest, which directly helps firms by increasing their AUM and management fees. Historically, Invesco’s stock has had good performance after positive surprises. In the past three instances where they surpassed earnings estimates, the stock gained an average of 5% in the following four weeks. This trend suggests that selling out-of-the-money puts for the November or December 2025 expiration could be a good strategy to collect premium, assuming the stock remains stable or increases. While the earnings were strong, the small revenue miss and inconsistent track record of beating revenue estimates suggest caution. We need to pay close attention to the management’s comments during the earnings call for their outlook on future revenue growth and AUM flows. Any positive shifts from analysts in the coming days could also serve as an additional boost for the stock’s performance. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now