> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Invesco Hit A 40.7% Margin, But Its CFO Is Aiming For The 'High 30s' - URL: https://www.bullished.co/invesco-hit-a-40-7-margin-but-its-cfo-is-aiming-for-the-high-30s-ca93bd35/ - Published: 2026-10-27T14:51:20.000Z - Updated: 2026-10-27T14:51:20.000Z - Description: CFO Allison Dukes says the asset manager will keep investing rather than manage to a margin number, with hybrid platform costs set to fade. - Author: Matteo Parrino - Tags: Earnings, IVZ, Industry: Financials [Invesco](https://www.bullished.co/tag/ivz/)'s chief financial officer said the asset manager is aiming to hold operating margins in the "high 30s," even after a [40.7% adjusted margin](https://markets.ft.com/data/announce/detail?dockey=600-202610270655PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY81522-1&ref=bullished.co) in the third quarter, because it will not cut investment to chase a number. CFO Allison Dukes made the case on the company's earnings call Tuesday, answering a Morgan Stanley analyst. ## No ceiling, but no starving the business Invesco, an independent investment manager overseeing about $2.2 trillion as of December 31, 2025, posted its highest margin since 2021, Dukes said. Adjusted operating income rose nearly 13% from the second quarter to $562 million, with net revenue up 4% and adjusted operating expenses down 1%. The Morgan Stanley analyst asked why high 30s is the right level given nearly 41% in the quarter. Dukes said Invesco has "no ceiling on ourselves whatsoever," but is "not going to manage specifically to margins and starve the business." Her reasoning: only two recent quarters have been at or above the high 30s, and margins were "south of 30% just three years ago." The goal is to hold the level through any market, including less constructive ones. She added that quarters can be noisy and seasonal, and that at times the margin could run north of 40%. ## Hybrid platform costs set to fade Dukes guided fourth-quarter adjusted operating expenses to $830 million to $840 million, assuming flat markets. She put property, office and technology costs at $120 million to $125 million. Implementation costs for the company's hybrid investment platform were $15 million in the third quarter and should be about $15 million in the fourth. After that they should trend off, and she said she hopes not to discuss them in the first quarter. Invesco aims to move all its assets onto the platform by the end of this year, perhaps spilling into early next year. CEO Andrew Schlossberg said more than 100 different tools will be unified on the platform. Once it runs smoothly, Invesco will begin decommissioning legacy software, work that continues into 2027 and 2028\. Dukes said 2027 expense guidance will come in January. ## Pay ratio and the preferred buyback Responding to a BMO Capital Markets analyst, Dukes said the 38% to 42% compensation ratio range is annual, since pay accrues on a full-year forecast. About 25% of total compensation is variable, so the fixed portion tracks headcount, and the range could drift lower over time. Schlossberg also said Invesco repurchased another [$1.5 billion](https://markets.ft.com/data/announce/detail?dockey=600-202610270655PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY81522-1&ref=bullished.co) of preferred stock held by MassMutual, bringing the total to $3 billion and leaving $1 billion outstanding. Dukes said it was funded with a five-year floating-rate term loan and closed Monday, with the company expecting 17 cents of per-share accretion in 2027 on the combined repurchases. Dukes said the company plans to give 2027 expense guidance in January. ### Sources - [Invesco (IVZ) Could Be a Great Choice](https://finance.yahoo.com/markets/stocks/articles/invesco-ivz-could-great-choice-144502112.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance - [Compared to Estimates, Invesco (IVZ) Q3 Earnings: A Look at Key Metrics](https://finance.yahoo.com/markets/stocks/articles/compared-estimates-invesco-ivz-q3-123003064.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance - [Invesco (IVZ) Q3 Earnings and Revenues Lag Estimates](https://finance.yahoo.com/markets/stocks/articles/invesco-ivz-q3-earnings-revenues-110501344.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance - [Invesco: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/invesco-q3-earnings-snapshot-110208774.html?ref=bullished.co) — Associated Press - [Invesco Reports Results for the Three Months Ended September 30, 2026 – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610270655PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY81522-1&ref=bullished.co) — Financial Times ### More on Invesco - [Invesco Takes In $35.1 Billion Of Long-Term Inflows, Then Retires $1.5 Billion More MassMutual Preferred](https://www.bullished.co/invesco-takes-in-35-1-billion-of-long-term-inflows-then-retires-1-5-billion-more-920489fc/) - [Invesco Takes On A $1.5 Billion Loan To Buy Back MassMutual's Preferred Stock At A 12.5% Premium](https://www.bullished.co/invesco-takes-on-a-1-5-billion-loan-to-buy-back-massmutuals-preferred-stock-at-a-12-5-7d7b5179/) - [Invesco's Preliminary September AUM Fell 0.9% To $2,537.8 Billion, But Its Own Table Shows A Different Total](https://www.bullished.co/invescos-preliminary-september-aum-fell-0-9-to-2-537-8-billion-but-its-own-table-shows-a-889d87e3/) [All Invesco (IVZ) coverage →](https://www.bullished.co/tag/ivz/)