Invesco (0UAN) AI Stock Analysis

Company Guidance

Invesco expects the additional preferred-stock repurchase to be earnings accretive in 2027, with EPS accretion reaching $0.20 on a run rate basis once the loan is fully repaid; including the aggregate $3 billion in preferred stock repurchases to date, it expects EPS accretion of $0.17 in 2027, reaching a run rate of $0.41 once the associated term loans are fully repaid, with the loans fully repaid in 2031. Fourth quarter performance fees may be relatively flat to slightly higher than the third quarter, hybrid investment platform one-time implementation costs are expected to run closer to $15 million, incremental platform expense will build towards $10 million, property, office, and technology expense is expected to be in the $120 million-$125 million range, total adjusted operating expenses are expected to be in the $830 million-$840 million range assuming flat markets, and the non-GAAP effective tax rate is estimated at 25%-26% excluding any discrete items. Compensation is expected to be in the 39%-40% context for full year 2026, operating margin is targeted to remain in the high 30s, the total payout ratio is targeted to be near 60%, and the company expects initial annualized borrowing costs of $60 million-$65 million after tax, declining as the loan is paid down.