BlackRock Beats on Q4 Earnings as Revenues & AUM Increase Y/Y

BlackRock’s BLK fourth-quarter 2025 adjusted earnings of $13.16 per share handily surpassed the Zacks Consensus Estimate of $12.39. The figure reflects a 10.3% rise from the year-ago quarter.

Results benefited from a rise in revenues. The assets under management (AUM) balance witnessed robust year-over-year growth, reaching a record high of $14.04 trillion, driven by net inflows. However, higher expenses created a headwind.

Net income attributable to BlackRock (on a GAAP basis) was $1.13 billion, declining 32.5% from the prior-year quarter.

For 2025, adjusted earnings of $48.09 per share handily surpassed the Zacks Consensus Estimate of $47.35. The figure reflects a rise of 10.3% from the previous year. Net income attributable to BlackRock (on a GAAP basis) was $5.55 billion, declining 12.8% from 2024.

BLK’s Revenues Improve, Expenses Rise

Quarterly revenues (on a GAAP basis) were $7.01 billion, outpacing the Zacks Consensus Estimate of $6.75 billion. Revenues increased 23.4% year over year. The rise was driven by an increase in all revenue components.

For 2025, revenues (on a GAAP basis) were $24.22 billion, outpacing the Zacks Consensus Estimate of $23.98 billion. The top line increased 18.7% year over year.

Total quarterly expenses amounted to $5.35 billion, up 48.4% year over year. The increase was due to a rise in all cost components.

Non-operating expenses (on a GAAP basis) were $54 million against income of $28 million in the prior-year quarter.

BlackRock’s adjusted operating income was $2.85 billion, increasing 22.4% from the prior-year quarter.

BlackRock’s AUM Balance Rises

As of Dec. 31, 2025, AUM totaled $14.04 trillion, reflecting a year-over-year rise of 21.6%. The company witnessed long-term net inflows of $268 billion in the reported quarter.

As of Dec. 31, 2025, the average AUM of $13.73 trillion rose 18.8% year over year.

BLK’s Capital Deployment Update

BlackRock repurchased shares worth $1.6 billion in 2025.

Concurrent to the earnings release, BlackRock announced a quarterly cash dividend of $5.73 per share, representing a hike of 10% from the prior payout. The dividend will be paid out on March 24, 2026, to shareholders of record as of March 6.

The company’s board of directors approved an additional 7 million share repurchase authorization.

Our View on BlackRock

BLK’s continued efforts to diversify its offerings and improve its revenue mix are expected to support its financials. The acquisitions of Global Infrastructure Partners, Preqin ElmTree Funds and HPS Investment Partners are likely to enhance the company’s position as a global asset manager. However, elevated expenses pose a significant challenge for the company.

BlackRock Price, Consensus and EPS Surprise

 

BlackRock price-consensus-eps-surprise-chart | BlackRock Quote

BlackRock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of BLK’s Peers

Blackstone Inc. BX is slated to report fourth-quarter 2025 results on Jan. 29.

Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has been unchanged at $1.52. The figure implies a decline of 10.1% from the prior-year quarter.

Invesco IVZ is scheduled to announce fourth-quarter 2025 numbers on Jan. 27.

Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been unchanged at 57 cents. The figure implies a rise of 9.6% from the prior-year quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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