Blackrock, Inc.

Asset Management • Financial Services • New York, NY, United States • BLK (NYQ)

212 810 5300 50 Hudson Yards, New York, NY 10001, United States

Quarter: Q3 2025 Reported: July 15, 2025 Sentiment: Positive

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York, New York with additional offices in Atlanta, Georgia; Boston, Massachusetts; Chicago, Illinois; Dallas, Texas; Denver, Colorado; Greenwich, Connecticut; Houston, Texas; Miami, Florida; Newport Beach, California; Palo Alto, California; Philadelphia, Pennsylvania; Princeton, New Jersey; San Francisco, California; Santa Monica, California; Seattle, Washington; Washington, DC; West Palm Beach, Florida; Wilmington, Delaware; Mexico; Canada; South Africa; Netherlands; Greece; Serbia; Belgium; Hungary; Denmark; Ireland; Scotland; Germany; Switzerland; England; Luxembourg; Spain; Italy; France; Sweden; Austria; India; China; Australia; Hong Kong; South Korea; Singapore; Taiwan; Japan; Colombia; Argentina; Peru; Chile; Brazil; UAE; Saudi Arabia; Israel.

Analysis Summary

BlackRock demonstrated strong financial and strategic execution in Q2 2025, reporting as-adjusted diluted EPS of $12.05, a 16% increase year-over-year, and as-adjusted net income growth of 21% to $1.88 billion. GAAP diluted EPS also saw a 2% rise to $10.19. Total revenue climbed 13% to $5.42 billion, benefiting from favorable market conditions, 6% organic base fee growth, and contributions from the GIP Transaction and technology services, despite a 70 million decrease in performance fees. As-adjusted operating income increased 12% year-over-year to $2.10 billion, though GAAP operating income decreased 4% due to noncash acquisition-related expenses.

Assets Under Management (AUM) reached a record $12.5 trillion, an 18% increase from Q2 2024. The firm attracted $68 billion in net inflows during the quarter, bringing year-to-date inflows to $152 billion. These inflows were primarily driven by iShares ETFs, which had a record first half, alongside strong demand in private markets and cash management. Notably, institutional index flows experienced a significant partial redemption from a single client, impacting overall quarterly inflows. Technology services and subscription revenue saw a substantial 104 million increase year-over-year, with annual contract value (ACV) growing 16% excluding the Preqin acquisition, highlighting sustained demand for Aladdin®.

Management commentary from Chairman and CEO Laurence D. Fink emphasized BlackRock's 'whole portfolio approach' and its strategy to integrate public and private markets across asset management and technology. Key strategic initiatives include surpassing the $25.2 billion fundraising target for GIP’s fifth flagship private infrastructure fund, developing custom target date fund glidepaths incorporating private markets, and expanding digital asset offerings and joint ventures in emerging markets like India (Jio BlackRock). The recent acquisition of HPS Investment Partners, adding $165 billion in client AUM, is expected to further bolster growth in the seasonally stronger second half of the year.

Competitive positioning is strengthened by BlackRock's comprehensive platform and deep client relationships, differentiating it from traditional or pure-play private markets firms. Market trends indicate continued client demand for diversified solutions, including ETFs, private markets, and technology-driven strategies. Risk factors highlighted include market volatility, increased competition, challenges in integrating acquired businesses (GIP, Preqin, HPS), and the effective management of artificial intelligence. No specific quantitative forward guidance for the next quarter or full year was provided, beyond anticipating a 'seasonally strongest second half of the year'. No analyst Q&A highlights were available in the provided transcript.

Key Highlights

• Record AUM of $12.5 trillion, up 18% year-over-year.
• Adjusted diluted EPS increased 16% year-over-year to $12.05.
• Total revenue grew 13% year-over-year to $5.42 billion.
• Year-to-date total net inflows reached $152 billion, led by iShares ETFs, private markets, and cash.
• Organic base fee growth of 6% for Q2 and H1 2025, and 7% over the last twelve months.
• Technology services ACV growth of 16% (excluding Preqin acquisition).
• Closed acquisition of HPS Investment Partners, adding $165 billion of client AUM.

Financial Metrics

eps

12.05

YoY: 16%

revenue

5423 million

YoY: 13%

guidance

net income

1883 million

YoY: 21%

Stock Performance (90 Days)

Data through Dec 29, 2025

Layoff Events

Earnings Calls

Positive Signals

• Record AUM of $12.5 trillion, indicating strong asset gathering capabilities.
• Sustained organic base fee growth (6% in Q2 and H1 2025, 7% LTM).
• Record first half for iShares ETFs, demonstrating strength in passive investing.
• Robust technology ACV growth (16% ex-acquisition), highlighting success of Aladdin platform.
• Successful fundraising for GIP's fifth flagship fund, exceeding target at $25.2 billion.
• Strategic acquisitions (HPS, Preqin) expanding capabilities in private markets and data.

Risks & Concerns

— Changes and volatility in political, economic, or industry conditions.
— Impact of increased competition in the asset management industry.
— Ability to successfully integrate recent acquisitions (GIP, Preqin, HPS Investment Partners).
— Failure to effectively manage the development and use of artificial intelligence.
— Geopolitical unrest, global trade tensions, natural disasters, and health crises.