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BlackRock, Inc. (BLK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered record AUM of $13.5T, total net inflows of $205B, and revenue of $6.509B; as‑adjusted diluted EPS was $11.55, with diversified strength across iShares, private markets, technology and cash management .
  • Results beat Wall Street consensus: revenue $6.509B vs $6.300B*, EPS $11.55 vs $11.34*; GAAP diluted EPS of $8.43 was lower YoY due to noncash acquisition‑related items, while as‑adjusted EPS rose 1% YoY .*
  • Operating momentum: performance fees rose to $0.516B (up 33% YoY) with ~$270M from HPS; base fees + securities lending reached $5.046B, aided by ~$215M from GIP and ~$225M from HPS .
  • Guidance: core G&A up low‑teens % for FY 2025 (maintained), Q4 tax run‑rate ~25%, and at least $375M of Q4 share repurchases; HPS performance fees expected to be modestly lower in Q4 (seasonality) .
  • Catalysts: record iShares flows ($153B), accelerating Aladdin/Preqin tech monetization (+29% ACV YoY), and a prominent tokenization roadmap that could broaden distribution and improve model portfolio execution .

What Went Well and What Went Wrong

What Went Well

  • Broad‑based growth: 10% annualized organic base fee growth in Q3, led by iShares, systematic active, private markets, outsourcing, cash, and digital assets; AUM milestones for iShares ($5T) and cash ($1T) crossed .
  • Technology momentum: tech services revenue rose to $0.515B (+28% YoY), with ACV +29% YoY (13% organically) aided by the Preqin acquisition (~$65M in Q3 tech revenue) .
  • Strong private markets contribution: performance fees $0.516B (+33% YoY), including ~$270M from HPS; GIP fundraising closed above $25B, largest private infrastructure fund raise .

What Went Wrong

  • GAAP earnings optics: diluted EPS fell to $8.43 (−23% YoY) primarily due to noncash acquisition‑related expenses despite stronger revenue and inflows; GAAP operating margin declined to 30.0% (−860 bps YoY) .
  • Non‑operating headwind: ~$115M noncash mark‑to‑market loss tied to minority stake in Circle drove $84M net investment losses, pressuring non‑operating results .
  • Expense intensity: total operating expense +26% YoY on onboarding GIP/HPS/Preqin, incentive comp, and higher G&A/technology spend; as‑adjusted operating margin was 44.6% (−120 bps YoY) .

Financial Results

Headline results vs prior periods

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Billions)$5.197 $5.423 $6.509
GAAP Diluted EPS ($)$10.90 $10.19 $8.43
As‑Adjusted Diluted EPS ($)$11.46 $12.05 $11.55
GAAP Operating Margin (%)38.6% 31.9% 30.0%
Operating Margin, As‑Adjusted (%)45.8% 43.3% 44.6%
Performance Fees ($USD Billions)$0.388 $0.094 $0.516
Technology Services & Subscription Revenue ($USD Billions)$0.403 $0.499 $0.515

Actuals vs S&P Global consensus

MetricQ3 2024Q2 2025Q3 2025
Revenue – Actual ($USD Billions)$5.197 $5.423 $6.509
Revenue – Consensus ($USD Billions)$4.933*$5.446*$6.300*
EPS – Actual ($)$11.46 $12.05 $11.55
EPS – Consensus ($)$10.31*$10.81*$11.34*
EBITDA – Actual ($USD Billions)$2.181*$2.073*$2.438*
EBITDA – Consensus ($USD Billions)$2.098*$2.340*$2.803*

Values marked with * retrieved from S&P Global.

Segment/product breakdown (Q3 2025 base fees + securities lending revenue)

Product TypeBase Fees + Securities Lending ($USD Billions)
Equity$2.408
Fixed Income$0.998
Multi‑Asset$0.353
Private Markets$0.653
Liquid Alternatives$0.178
Digital Assets$0.061
Currency & Commodities$0.077
Cash Management$0.318
Total$5.046

KPIs and flow highlights (Q3 2025)

KPIValue
End‑of‑Period AUM$13.464T
Total Net Flows$205B
Long‑Term Net Flows$171B
iShares ETF Net Flows$153B
Cash Management Net Flows$34B
Private Markets Net Flows$13.163B
Tech Services ACV YoY+29% (13% organic)
Share Repurchases$375M in Q3
Organic Base Fee Growth (Q3 annualized)10%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Core G&A Expense GrowthFY 2025Low‑teens % increase (July guidance) Low‑teens % increase Maintained
Effective Tax RateQ4 2025N/A~25% projected run‑rate New/affirmed
Share RepurchasesQ4 2025N/A≥$375M planned in Q4, subject to conditions New/affirmed
HPS Performance FeesQ4 2025Seasonality flaggedSlightly lower vs Q3 (seasonal) Lower

Earnings Call Themes & Trends

TopicQ1 2025 (Previous Mentions)Q2 2025 (Previous Mentions)Q3 2025 (Current Period)Trend
iShares ETF growthRecord Q1 ETF flows; whole‑portfolio approach emphasized Record first‑half ETF flows; fee yield mix improving Record Q3 ETF flows ($153B), iShares AUM >$5T Accelerating
Technology/Aladdin & PreqinPreqin closed; tech revenue +16% YoY; ACV +30% incl Preqin Tech revenue +26% YoY; ACV +32% incl Preqin Tech revenue $0.515B; ACV +29% YoY; Preqin ~$65M in Q3 Sustained growth
Private markets (GIP/HPS)Platform build highlighted; HPS closing pending GIP5 raised $25.2B; HPS closed 7/1 HPS contributed ~$225M base fees and ~$270M performance fees; GIP integration success Expanding
Digital assets/tokenizationEarly AUM build; IBIT/ETHA traction Momentum noted in digital assets ETPs Tokenization roadmap; digital asset ETPs raised $17B; stablecoin reserves >$60B; BIDL ~$3B Accelerating
Retirement/DC private marketsTarget date with private markets progressing Custom glidepath developments Regulatory momentum; plan for LifePath with privates in 2026; consultant/regulatory engagement Building
Macro/tariffsClients seeking stability amid uncertainty Institutional index outflows headwind April tariff shock noted; local engagement strategy reinforced Volatile backdrop managed

Management Commentary

  • “BlackRock delivered one of our strongest quarterly flows results, with net inflows of $205 billion, powering 10% organic base fee growth… Top contributors included systematic, private markets, digital assets, outsourcing, cash and iShares ETFs” — Laurence D. Fink .
  • “Third quarter revenue of $6.5 billion was 25% higher YoY… as‑adjusted operating margin 44.6%… EPS of $11.55 increased 1%” — Martin S. Small .
  • “Our AI/tokenization strategy envisions investors never leaving a digital wallet to allocate across crypto, stablecoin, and long‑term stocks and bonds” — Laurence D. Fink .
  • “GIP’s data center track record and AIP partnerships (MGX, Microsoft, KIA, Temasek, Nvidia, xAI, Cisco, GE Vernova, NextEra) open significant opportunities” — Laurence D. Fink .
  • “We repurchased $375M in Q3 and anticipate at least $375M in Q4” — Martin S. Small .

Q&A Highlights

  • Base fee growth breadth: management cited diversified contribution (digital assets, active ETFs, outsourcing, systematic), and improving fee yields on new assets .
  • Tokenization: management outlined ambitions to tokenize ETFs and long‑term products, emphasizing partnerships and operational efficiency for model portfolios .
  • Private credit risk: HPS/BLK see solid credit quality; headlines often tied to syndicated/CLO markets or idiosyncratic stress; continued deployment in non‑traded BDCs (HLAN/BDET) .
  • Active ETF share classes: viewed as positive for advisors/investors; strategy decisions will be fund‑by‑fund to optimize creation/redemption and transparency .
  • Retirement/DC: momentum with regulators and consultants; plan to launch proprietary LifePath with privates in 2026, with data/analytics as key enabler (Preqin/eFront/Aladdin) .
  • HPS fees/guidance: model Q3 as a good starting point for HPS management fees; performance fees likely seasonally lower in Q4 .
  • Tax run‑rate: Q4 projected ~25% effective tax rate .

Estimates Context

  • Q3 2025 beat consensus: revenue $6.509B vs $6.300B*, EPS $11.55 vs $11.34*; EBITDA below consensus $2.438B* vs $2.803B*, reflecting higher compensation, G&A and non‑operating items in the quarter .*
  • Q2 2025 showed EPS outperformance ($12.05 vs $10.81*) while revenue was slightly below ($5.423B vs $5.446B*); Q3 2024 beat on both EPS and revenue .*
  • Implications: consensus may need to reflect sustained performance fee seasonality (Q4 lower for HPS), recurring margin resilience (as‑adjusted margin expansion on fee‑related earnings), and continued tech revenue/ACV uplift from Preqin .*

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q3 print was strong and diversified: revenue +25% YoY to $6.509B and as‑adjusted EPS $11.55, with record AUM and flows across ETFs, private markets and cash .
  • Beat vs consensus on both EPS and revenue; watch for Q4 seasonality in HPS performance fees and a ~25% tax run‑rate guide .*
  • Structural growth pillars (iShares, private credit/infrastructure, tech/data) are scaling: tech ACV +29% YoY; base fees + securities lending up to $5.046B .
  • M&A integrations (GIP, HPS, Preqin) are accretive to fees and performance: ~$225M HPS base fees, ~$215M GIP base fees, ~$270M HPS performance fees in Q3 .
  • Non‑operating volatility (Circle mark‑to‑market loss) can obscure GAAP optics; fee‑related earnings show healthier margin trajectory (46.3% adj excluding performance fee comp) .
  • Tokenization strategy could be a medium‑term catalyst—expanding distribution into digital wallets and improving model portfolio efficiency .
  • Capital returns ongoing: $375M repurchased in Q3; ≥$375M planned for Q4 subject to conditions .

Notes: Values marked with * retrieved from S&P Global.