Investment manager giant BlackRock, Inc. (NYSE:BLK) stock Thursday after the company reported fourth-quarter fiscal 2025 results.
Details
Revenue grew 23% year-over-year (Y/Y) to $7.01 billion, beating the consensus of $6.69 billion.
Adjusted operating income rose 22% Y/Y to $2.85 billion. Adjusted EPS increased 10% Y/Y to $13.16, beating the consensus of $12.25.
Revenue and Profit Breakdown
Investment advisory, administration fees, and securities lending revenue increased to $5.28 billion from $4.42 billion a year ago. This was primarily driven by annualized organic base fee growth of 12%, market beta effects on average AUM, and roughly $230 million in fees from the HPS Transaction. Securities lending revenue increased to $174 million from $161 million, primarily driven by wider spreads.
Investment advisory performance fees escalated to $754 million from $451 million in the year-ago quarter, aided by higher revenue from private markets, including the impact of the HPS Transaction, and increased revenue from liquid alternative products.
Technology services and subscription revenue rose to $531 million from $428 million, driven by strong demand for Aladdin offerings and revenue from the Preqin acquisition in March 2025, which contributed roughly $65 million in the fourth quarter. Annual contract value (ACV) for technology services and subscriptions grew 31% Y/Y, including Preqin and 16% excluding Preqin.
Asset Growth and Capital Allocation
BlackRock disclosed $698 billion of total net inflows in 2025, up from $641 billion a year ago.
At the end of the year, total AUM climbed to a record $14 trillion, up from $11 trillion in 2024.
BlackRock bought back shares worth $1.6 billion in the year.
The company increased its quarterly dividend per share by 10% to $5.73, payable on March 24, to shareholders of record as of March 6, 2026.
CEO Commentary
Laurence Fink, Chairman and CEO, commented, “2026 will be our first full year as a unified platform with GIP, HPS and Preqin. Our pipeline of business has broadened across products and regions, spanning public and private markets mandates, technology and data, and client channels. We’re seeing excellent fundraising activity as we work toward our goal of $400 billion in private markets fundraising by 2030.”
“BlackRock is at the forefront of some of the largest new growth channels across the industry – from private markets to wealth and 401(k), to active ETFs, to private markets data, to digital assets and tokenization,” added Fink.
BLK Price Action: BlackRock shares were up 1.66% at $1110.00 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by Tada Images via Shutterstock
Recent Comments