A month has gone by since the last earnings report for BlackRock (BLK). Shares have lost about 9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BlackRock due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for BlackRock before we dive into how investors and analysts have reacted as of late.
BlackRock Q3 Earnings Beat Estimates on Y/Y Revenue & AUM Growth
BlackRock’s third-quarter 2025 adjusted earnings of $11.55 per share handily surpassed the Zacks Consensus Estimate of $11.25. The figure reflects a marginal rise from the year-ago quarter.
Results benefited from a rise in revenues. The AUM balance witnessed robust growth, reaching a record high of $13.46 trillion, driven by net inflows. However, higher expenses acted as a headwind.
Net income attributable to BlackRock (on a GAAP basis) was $1.32 billion, declining 18.9% from the prior-year quarter. We had projected the metric to be $1.59 billion.
Revenues Improve, Expenses Rise
Revenues (on a GAAP basis) were $6.51 billion, outpacing the Zacks Consensus Estimate of $6.20 billion. Revenues increased 25.2% year over year. The rise was driven by an increase in all revenue components.
Total expenses amounted to $4.55 billion, up 42.7% year over year. The increase was due to a rise in all cost components. Our estimate for the metric was $3.66 billion.
Non-operating income (on a GAAP basis) was $42 million compared with $259 million in the prior-year quarter.
BlackRock’s adjusted operating income was $2.62 billion, increasing 23.2% from the prior-year quarter.
AUM Balance Rises
As of Sept. 30, 2025, AUM totaled $13.46 trillion, reflecting a year-over-year rise of 17.3%. Our estimate for AUM was $12.59 trillion. The company witnessed long-term net inflows of $171 billion in the reported quarter.
As of Sept. 30, 2025, the average AUM of $12.96 trillion rose 17.1% year over year. We had projected the average AUM to be $12.56 trillion.
Share Repurchases
BlackRock repurchased shares worth $375 million in the reported quarter.
Outlook
BlackRock expects a low-teen percentage increase in 2025 core G&A expenses, with the onboarding of GIP, Preqin and HPS as the main driver of the year-over-year core G&A increase.
The company is committed to achieving 5% or more annual organic base-fee growth over a market cycle.
Management expects to repurchase at least $375 million worth of shares in the fourth quarter of 2025.
The projected tax run rate is 25% for the fourth quarter of 2025.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, BlackRock has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, BlackRock has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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BlackRock (BLK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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