Executive Summary

Q4 2024 delivered strong top-line and margin expansion: revenue rose 23% Y/Y and 9% Q/Q to $5.68B; GAAP operating margin was 36.6% (up 240 bps Y/Y) and as-adjusted margin reached 45.5% (up 390 bps Y/Y) as performance fees and higher fee-rate private assets scaled post-GIP close .
Flows and platform momentum were exceptional: total net inflows of $281B (long‑term $201B; cash $81B), ETFs +$143B, and AUM hit $11.55T; Aladdin ACV grew 12% Y/Y, underscoring technology demand .
Management cited surpassing Street estimates across flows, fee rate, revenues, margins, and EPS; we could not retrieve S&P Global consensus due to data limits and thus rely on management’s characterization (see Estimates Context) .
2025 setup: BLK targets ~$1.5B of buybacks, expects to seek a Q1 dividend increase, projects a ~25% 2025 tax rate, and guides mid‑ to high‑single‑digit 2025 core G&A growth ex‑HPS while integrating GIP and (planned) Preqin/HPS to lift fee rate and organic growth durability .
Key stock catalysts: record flows/ETF momentum, sustained margin expansion, fee-rate uplift from private markets, and capital return trajectory; near-term watch items include HPS/Preqin closing and GIP realizations (~$5B expected in Q1) .

What Went Well and What Went Wrong

What Went Well
- Record client activity: $281B total net inflows with ETFs +$143B; long-term +$201B; AUM reached $11.55T; annualized organic base fee growth of 7% in Q4, aided by fee-rate uplift (~+0.7 bp Q/Q) from higher-fee private assets onboarding (GIP) .
- Margin and earnings power: as‑adjusted operating margin rose to 45.5% in Q4 (up 390 bps Y/Y); as‑adjusted EPS was $11.93 (up 23% Y/Y), supported by higher performance fees and technology revenue .
- Strategic narrative resonating: ACV +12% Y/Y on successful client onboarding; management emphasized a “category of one” platform and that results surpassed Street estimates across key metrics (flows, fee rate, revenue, margins, EPS) .
- Quote: “Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high‑growth businesses of GIP, HPS and Preqin.” – Laurence D. Fink .
What Went Wrong
- Non‑operating volatility and higher share count: GAAP non‑operating income fell sharply Y/Y; diluted share count rose (GIP consideration), modestly diluting per‑share metrics despite growth .
- Expense headwinds from M&A: Q4 comp and G&A were lifted by GIP-related retention and transaction costs; amortization/impairment increased $87M Y/Y tied to acquired intangibles .
- Securities lending moderation versus mid‑year: lending revenue was $161M, up slightly Y/Y but below Q3 trends earlier in the year’s cadence; management also noted lower non‑operating contribution Q/Q .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($B)	$4.63	$5.20	$5.68
GAAP Diluted EPS ($)	$9.15	$10.90	$10.63
As-Adjusted Diluted EPS ($)	$9.66	$11.46	$11.93
GAAP Operating Margin (%)	34.2%	38.6%	36.6%
Operating Margin, as adjusted (%)	41.6%	45.8%	45.5%
Performance Fees ($B)	$0.31	$0.39	$0.45
Technology Services Revenue ($B)	$0.38	$0.40	$0.43

Segment/client-type breakdown (Q4 2024)

Client Type	Net Flows ($B)	AUM ($B)	Base Fees + Securities Lending ($B)	Share of Base Fees + Lending
Retail	$4.65	$1,015.83	$1.11	25%
ETFs	$142.64	$4,230.38	$1.82	41%
Institutional Active	$25.13	$2,136.75	$0.96	22%
Institutional Index	$28.25	$3,247.64	$0.24	5%
Long-term Total	$200.67	$10,630.59	$4.12	93%
Cash Management	$80.75	$920.66	$0.29	7%
Total	$281.42	$11,551.25	$4.42	100%

KPIs and flow/mix (selected)

KPI	Q4 2023	Q3 2024	Q4 2024
Ending AUM ($T)	$10.01	$11.48	$11.55
Total Net Flows ($B)	$95.65	$221.18	$281.42
Long-Term Net Flows ($B)	—	$160.17	$200.67
ETFs Net Flows ($B)	—	$97	$143
Cash Mgmt Net Flows ($B)	—	$61	$81
Aladdin/Tech ACV YoY Growth	—	+15%	+12%

Drivers and mix insights: investment advisory/admin + securities lending revenue of $4.42B rose $812M Y/Y and $387M Q/Q, driven by organic base fee growth, market beta, and ~+$230M of fees from the GIP transaction; performance fees up $140M Y/Y and $63M Q/Q; tech revenue +$49M Y/Y, +$25M Q/Q on new client onboarding .

Expense color: Q4 comp and benefits +$382M Y/Y (+$307M Q/Q) on higher incentive comp and GIP-related retention; amortization/impairment +$87M Y/Y on GIP intangibles; G&A up on acquisition costs and seasonal marketing .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Effective Tax Rate (as-adjusted basis proxy)	FY 2025	—	~25% projected run-rate; actual may vary with discrete items/legislation	New detail
Core G&A Growth (ex-HPS)	FY 2025	—	Mid- to high-single-digit % increase; includes GIP/Preqin consolidation and continued tech investment	New detail
Headcount	FY 2025	—	Higher in 2025; Preqin + GIP consolidation; plus HPS later; ~2,300 new colleagues with Preqin and HPS	New detail
Share Repurchases	FY 2025	—	Target ~$1.5B, subject to conditions	New detail
Dividend	Q1 2025	—	Expect to seek Board approval for an increase	New detail
Preqin Close	Q1 2025	—	Expect close in Q1 2025, subject to approvals	Timing
HPS Close	Mid‑2025	—	Expect close mid‑2025, subject to approvals	Timing
GIP Realizations	Q1 2025	—	Expect ~+$5B of realizations from older vintages in Q1	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology & Aladdin	ACV +10% Y/Y; Preqin deal announced to enhance private data; Aladdin demand sustained	ACV +15% Y/Y; strong demand; Preqin emphasized; 45.8% adj margin	ACV +12% Y/Y; large mandates; expanding “whole portfolio” analytics incl. eFront and pending Preqin	Strong, consistent growth; multi‑product adoption
Macro/Money in Motion	Broad flows, ETFs record H1; fee growth despite rate backdrop	Record quarterly inflows; closed GIP; ETF momentum; fee rate stable to up	Back‑to‑back record flow quarters; fee‑rate +0.7 bp Q/Q; optimism on rerisking, fixed income	Accelerating client activity
ETFs/Product Performance	Record H1 ETF flows; diversified across exposures	Q3 ETFs +$97B; ETF leadership highlighted	Q4 ETFs +$143B; Bitcoin ETP called “largest ETF launch in history,” >$50B AUM	Leadership reinforced; innovation (crypto, active)
Private Markets/Infrastructure	Preqin agreement; GIP expected to double private base fees	GIP closed; infrastructure scale and fee-rate uplift	GIP fee revenue ~+$230M in Q4; HPS to expand private credit; expect ~$5B GIP realizations Q1	Fee-rate uplift; realization pipeline
Retirement & DC	Target-date/solutions leadership reiterated	Organic growth and outsourcing momentum	LifePath Paycheck $16B; exploring alts in retirement pending safe harbors; data and analytics needed (Preqin)	Expanding innovation; potential policy tailwinds
Regional/Wealth	Global breadth; diversified flows	Global flows strong; closing GIP	Europe ETF nearing $1T; retail/wealth alts push (models, RIAs)	International scaling
Regulatory/Legal	Normal disclosures	Normal disclosures	DC plan alts need safe harbor; analytics underpin fiduciary comfort	Watching U.S. retirement policy

Management Commentary

Strategy and positioning: “BlackRock is now truly in a category of one... We surpassed Street estimates for flows, fee rate, base rate, in addition to total revenues, margins and EPS.” – Laurence D. Fink .
Private markets evolution: “With the close of the GIP transaction... our private markets and alternatives platform is expected to be $600 billion... and over $3 billion in revenues or about 15% of 2024 revenues.” – Martin Small .
Technology moat: “ACV increased 12% year-over-year... strong demand for a full range of Aladdin technology offerings.” .
Capital returns: “We’re targeting the purchase of $1.5 billion of shares during 2025... expect to seek Board approval... for an increase to our first quarter 2025 dividend.” – Martin Small .
Outlook on rates/flows: “There’s close to $10 trillion of money in money market funds... opportunities in fixed income... private credit and infrastructure are going to play a larger role.” – Laurence D. Fink .

Q&A Highlights

Money in motion and fixed income demand: Management expects rotation from cash toward intermediate/longer-duration fixed income as the curve steepens; 2024 fixed income flows were $164B with continued demand across ETFs, index, and active (noted insurance partners) .
Retirement channel for alternatives: BLK is engaging policymakers; believes safe harbors and better analytics/data (Preqin + Aladdin/eFront) are key to opening DC access to alts; sees potential to blend public/private in target-date/managed accounts .
HPS acquisition: Strong positive client response across insurance and wealth; BLK expects significant synergy with Preqin/eFront data/analytics to scale private credit access globally; closing targeted mid‑2025 .
Expense/margin framework: Core G&A guided mid‑ to high‑single‑digit growth in 2025 ex‑HPS; management prioritizes profitable growth and scale leverage to expand margins in positive markets .
Realizations pipeline: Expect ~+$5B of realizations from older GIP vintages in Q1, supporting performance/fee dynamics in private markets .

Estimates Context

We attempted to pull S&P Global consensus for Q4 2024 revenue and EPS, but the SPGI endpoint returned a daily limit error, so estimate figures were unavailable at this time. Values retrieved from S&P Global are therefore not shown.
Management stated BLK “surpassed Street estimates” across flows, fee rate, revenues, margins, and EPS; we cite this as management commentary rather than a third‑party verification given the estimates data limitation .

Key Takeaways for Investors

Flow and fee-rate momentum: Back‑to‑back record flow quarters (+$221B in Q3; +$281B in Q4) and a Q/Q fee‑rate uplift (+0.7 bp) indicate rising monetization of higher‑fee private strategies alongside ETF leadership – supportive for revenue beta and margin leverage into 2025 .
Margin quality improving: As‑adjusted margin at 45%+ with performance fees and tech revenue scaling shows improving operating leverage; acquisition‑related amortization and one‑time costs are largely excluded in adjusted results, helping normalized earnings power .
Private markets inflection: GIP integration contributing (approx. $230M fees in Q4); expected HPS close mid‑2025 should add private credit scale; watch Q1 GIP realizations (~$5B) for carry/performance fee impacts .
Technology flywheel: Aladdin ACV +12% Y/Y; multi‑product “whole portfolio” wins (incl. eFront; pending Preqin) deepen client stickiness and diversify revenue with less market sensitivity .
Capital return cadence: Targeted ~$1.5B buybacks and planned dividend increase proposal in Q1 2025 add support to TSR while BLK funds strategic integrations .
Near‑term watch list: Sizing of 2025 core G&A (ex‑HPS), timing/close of Preqin/HPS, realization pace from GIP, and sustainability of ETF/digital asset flows as macro evolves .
Setup into 2025: Management tone constructive on rerisking, fixed income rotation, and private credit/infrastructure allocations; BLK’s breadth (ETFs, tech, outsourcing, private) and scale argue for above‑trend organic base fee growth potential through the cycle .

BlackRock, Inc. (BLK)·Q4 2024 Earnings Summary