Total Revenue

+11.6% (from $4,728M to $5,276M)

Total revenue grew by 11.6% YoY in Q1 2025, reflecting continued strength from underlying fee structures such as investment advisory and technology services. This gain builds on the momentum from FY2024 where strong organic base fee growth and favorable market conditions drove revenue, indicating that BlackRock’s diversified revenue model remains robust even as certain segments face volatility. " "

Investment advisory, administration fees and securities lending revenue

+16.5% (from $3,778M to $4,401M)

This revenue segment increased by 16.5% YoY, largely due to continued organic base fee growth and the beneficial impact of market beta on AUM, as observed in previous periods. Despite slight offsets from lower securities lending revenue, the consistent fee growth and successful integration of AUM acquisitions (as seen in earlier fiscal periods) have reinforced the segment’s performance. " "

Investment advisory performance fees

-70.6% (from $204M to $60M)

The dramatic decline of 70.6% YoY in performance fees is primarily attributable to a substantial drop in performance-related revenue that had been buoyed in Q1 2024 by strong alternative asset performance. This sharp reversal suggests either a change in market conditions affecting performance fee generation or contract timing differences in recognizing performance fees compared to previous periods. " "

Technology services revenue

+15.6% (from $377M to $436M)

Technology services revenue rose by 15.6% YoY, driven by heightened demand for Aladdin and related technology solutions, with multi-product client mandates and recurring fee structures playing a key role. This growth is consistent with the FY2024 trend where integration initiatives (e.g., eFront) and fixed minimum fee contracts provided revenue stability, suggesting continued strength in BlackRock’s technology offerings. " "

Net Income

-7.0% (from $1,623M to $1,510M)

Net income decreased by 7.0% YoY despite revenue gains, largely due to a mix of higher operating expenses and a significant drop in cost-sensitive segments like performance fees. The decline reflects the challenge of offsetting increased expenses with revenue shifts, indicating that cost management will remain crucial for future profitability improvements given evolving market dynamics. " "

Core G&A Expense

FY 2025

mid- to high single-digit percentage increase "

mid- to high single-digit percentage increase "

no change

Share Repurchases

FY 2025

$1.5 billion of shares for 2025 "

at least $375 million per quarter for the remainder of 2025 "

no change

Tax Rate

FY 2025

25% "

25% "

no change

HPS Transaction

FY 2025

targets closing mid-2025 (as part of acquisitions timeline) "

targets mid-2025 "

no change

Fee Rate

FY 2025

no prior guidance

expects to add fee rate accretive assets from the HPS transaction "

no prior guidance

ACV

FY 2025

no prior guidance

committed to low to mid-teens ACV growth over the long term "

no prior guidance

Organic Fee Growth & Margin Expansion

Previously, organic fee growth and margin expansion were consistently discussed with robust figures: Q4 2024 reported 7% organic fee growth and a significant margin improvement (e.g. 45.5% operating margin with a 390 basis point increase). " " " In Q3 2024, BlackRock highlighted 5% organic fee growth with record operating margins around 45.8% " " " , and in Q2 2024, modest yet steady growth (3% annualized fee growth and 160 basis point margin expansion) was noted. " "

In Q1 2025, executives reported 6% annualized organic base fee growth—exceeding targets—and a 100 basis point increase in as-adjusted operating margin reaching 43.2%. " " " "

Consistent positive narrative. BlackRock has maintained a strong growth trend in organic fee revenues and margins over the periods, with even slight improvements in targeting and performance in Q1 2025, reinforcing a positive long‐term outlook.

Private Markets Expansion & Integration

Across previous periods, BlackRock emphasized structural growth in private markets. In Q2 2024, the focus was on acquisitions (GIP and Preqin) to boost private markets AUM and capabilities. " " " In Q3 2024 and Q4 2024, discussions broadened to include integrating private markets into wealth management and retirement platforms with strategic acquisitions like HPS enhancing the offering. " "

In Q1 2025, the narrative expanded further by integrating private markets into retirement channels (e.g. target date funds with glide path technology) while also noting robust net inflows in private markets (e.g. $7 billion driven by infrastructure and private credit). " " " "

Increasingly integrated and strategic. While the focus on private markets has been consistent, Q1 2025 shows a more nuanced integration into retirement and wealth channels, indicating a deepening of the strategic role of private markets for future growth.

Strategic Acquisitions & Integration Risks

Earlier calls repeatedly mentioned acquisitions – notably GIP and Preqin – with discussions around their potential contributions, integration plans, and risks. Q2 2024 focused on planned acquisitions to drive growth. " " " Q3 and Q4 2024 speeches detailed expected fee contributions, synergies, and the management of integration risks including regulatory approvals and cultural integration. " " " "

In Q1 2025, BlackRock provided detailed updates on completed acquisitions such as GIP (adding significant base fees and strategic opportunities) and Preqin (enhancing technology and analytics), and anticipated the HPS acquisition mid-year, while reiterating rigorous integration processes to mitigate risks. " " "

Continued transformative focus. The strategic acquisition narrative remains a core growth engine with a clear emphasis on execution and integration, although integration risks are continually managed through BlackRock’s “One BlackRock” approach.

Resilient Client Demand & Sustained Inflows

In previous periods (Q2, Q3, Q4 2024) BlackRock repeatedly reported strong, diversified inflows across asset classes – from ETFs to private markets – with record inflow figures (e.g. $82 billion in Q2, $221 billion in Q3, and record annual numbers in Q4). " " " " "

Q1 2025 continued this theme with record quarterly net inflows of approximately $140 billion, robust ETF flows, diversified inflows across retail, institutional and private markets, and a narrative of clients not capitulating but seeking increased exposure despite market uncertainty. " " " " "

Consistently robust. BlackRock’s resilient client demand and inflows have been a continuous positive undercurrent, reflecting broad-based confidence in its offerings and a diversified platform that supports future growth.

Global Diversification & Geopolitical Risk Exposure

Earlier discussions (notably in Q2 2024) touched on global operations and strategic partnerships (e.g. in India, Saudi Arabia, and the Indo-Pacific) " " " , though explicit discussion of geopolitical risk was minimal. Q3 2024 had limited references to global footprint aspects through client mandates and infrastructure themes. " " " "

In Q1 2025, BlackRock offered a deeper dive into its global diversification strategy by stressing its hyper-local operating model in various countries, extensive international workforce, explicitly addressing U.S.-global tensions, and how this positioning helps manage geopolitical risks while capitalizing on long-term trends. " " " "

Emerging prominence. While global diversification was always part of BlackRock’s narrative, Q1 2025 marks a heightened focus on managing geopolitical risks and leveraging global local presence, suggesting an adaptive response to evolving international market dynamics.

Intensified ETF Fee Competition

This topic was not previously mentioned in Q2, Q3, or Q4 2024 earnings calls.

In Q1 2025, Martin Small highlighted that despite intensified fee competition in ETFs, pricing strategies remain unchanged with no price changes in the first quarter, and strong ETF inflows (e.g. $107 billion), reinforcing the firm’s competitive positioning. "

New focus area. ETF fee competition emerged as a new discussion point in Q1 2025, reflecting market pressures; however, BlackRock’s strategy of targeted pricing investments and robust inflows indicates confidence in its competitive positioning despite the pressure.

Regulatory & Adoption Challenges for Private Markets in Retirement Products

Previously, regulatory discussion was limited. In Q2 and Q3 2024, there were few explicit comments on regulatory hurdles specific to private markets in retirement. In Q4 2024, the discussion began to surface regarding the need for better analytics and potential reforms to integrate private markets into retirement products. "

In Q1 2025, more detailed commentary emerged addressing the need for regulatory guidance (e.g. DOE rule-making), litigation/advice reform, transparency via enhanced analytics, and efficient delivery through target date funds, all underscoring the challenges in scaling private markets in retirement products. "

Periodically highlighted. Regulatory and adoption challenges have resurfaced as a key discussion point indicating that while opportunities abound, progress is contingent on regulatory reforms and enhanced data transparency to drive product innovation in retirement markets.

Technology Services Integration & Growth Opportunities

Across earlier quarters (Q2, Q3, Q4 2024) BlackRock consistently emphasized growth in its technology services with strong revenue and ACV growth driven by the Aladdin platform, integration of eFront, and planned enhancements from Preqin, positioning technology as a backbone for client solutions. " " " " " "

In Q1 2025, technology services continued to grow robustly with a 16% increase in revenue, a significant ACV jump, and the successful integration of Preqin reinforcing its analytics platform. Additionally, BlackRock highlighted advancements in digital assets and blockchain, underscoring its commitment to tech innovation. " "

Consistent and evolving. Technology services remain a critical engine for growth, with steady integration and revenue improvements over time, alongside strategic innovation (e.g. blockchain initiatives), ensuring that technology continues to drive operational efficiency and competitive advantage.