Blackrock, Inc.

BlackRock's Q3 2025 results showcased significant operational strength and strategic execution, despite a GAAP diluted EPS decrease of 23% to $8.43, primarily due to non-cash acquisition-related expenses. On an as-adjusted basis, diluted EPS increased 1% year-over-year to $11.55, reflecting lower nonoperating income and a higher diluted share count, partially offset by a lower effective tax rate. Revenue climbed 25% year-over-year to $6.51 billion, driven by positive market performance, 8% organic base fee growth over the last twelve months, and substantial contributions from the GIP and HPS acquisitions, alongside higher technology services revenue.

**Detailed Financial Performance:** The quarter saw $205 billion in total net inflows, with iShares ETFs achieving a record quarter and strong inflows into private markets and cash. Organic base fee growth was 10% annualized for the quarter, demonstrating broad-based strength across iShares, systematic active equities, private markets, outsourcing, and cash. Adjusted operating income increased 23% year-over-year to $2.62 billion, though the adjusted operating margin slightly contracted to 44.6% from 45.8% in Q3 2024. Technology services and subscription revenue grew by $112 million year-over-year to $515 million, with annual contract value (ACV) increasing 29% (13% excluding the Preqin acquisition).

**Strategic Initiatives and Business Segment Analysis:** The company successfully closed the acquisition of HPS Investment Partners on July 1st, adding $165 billion of client AUM and $118 billion of fee-paying AUM. CEO Laurence D. Fink emphasized the diversification of growth, with systematic active equities, private markets, digital assets, outsourcing, and iShares ETFs being top contributors. BlackRock's AUM reached a new high of $13.5 trillion, with iShares surpassing $5 trillion and cash management exceeding $1 trillion. The integration of GIP, HPS, and Preqin is already driving landmark fundraising and deal flow, accelerating client engagement, and contributing to double-digit organic revenue growth over the past year. The company repurchased $375 million worth of shares during the quarter.

**Management Commentary and Forward Guidance:** CEO Fink highlighted the company's continuous investment in future-oriented areas like technology, data analytics, ETFs, private markets, and digital assets, where it has built leading positions. He expressed strong confidence in the company's 'hyper-local client engagement model' and 'forward-looking investments.' Fink stated that BlackRock is entering its 'seasonally strongest fourth quarter with building momentum and a fully unified platform,' anchored by a public-private investment model and Aladdin technology. He believes the 'scale of the opportunity ahead for BlackRock, our clients and shareholders far exceeds what we’ve ever seen before.'

**Competitive Positioning and Market Trends:** BlackRock continues to differentiate itself through multiple sources of growth and its comprehensive platform, attracting clients globally for 'deeper, more dynamic partnerships across public and private asset classes.' The ability to execute 'largest and most multifaceted mandates' underscores its strong market position.

**Risk Factors and Concerns Raised:** The forward-looking statements section outlines various risks, including changes and volatility in economic and financial markets, the success and integration of acquisitions (GIP, HPS, Preqin), the ability to develop new products, increased competition, technological changes, the failure to effectively manage AI, legislative and regulatory actions, geopolitical unrest, climate-related risks, and the ability to attract and retain talent. No specific analyst Q&A was provided in the transcript.