Financial Trends -- 7/10
BLK organic base fee growth accelerated from 1% in Q1 24 to 12% in Q4 25, exceeding
the 5%+ through-cycle target for 6 consecutive quarters. Total AUM reached a record
$14.0T (+21.6% YoY), driven by strong markets, the transformative GIP acquisition
($12.5B, closed Oct 2024), and record LT net inflows of $2.05T (+71% YoY). Revenue
re-accelerated to +25% in Q3 25 and +23% in Q4 25. Adjusted operating margin stable at
44.1% (vs. 44.5% in FY2024). Adjusted EPS grew +10.3% for FY2025. GAAP metrics distorted
by GIP acquisition charges: GAAP margin compressed 37.1% to 29.1%, GAAP EPS -16% YoY,
share count +6.1% from deal dilution. FCF declined -24% YoY on integration costs.
Consensus expects +17% revenue / +14% EPS for FY2026E.
Weight: 25%
Q4 25 Revenue
$7.0B
+23.4% YoY | Re-accelerating
Organic Base Fee Growth
12%
Q4 25 | Up from 1% in Q1 24
FY25 Adj. EPS
$48.09
+10.3% YoY | GAAP -16% (GIP charges)
Total AUM
$14.0T
Record | +21.6% YoY
Annual Financial Summary (FY ends December)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue ($M) | $19,374M | $17,873M | $17,859M | $20,407M | $24,216M |
| Rev YoY | — | -7.7% | -0.1% | +14.3% | +18.7% |
| GAAP Op Margin | 38.5% | 35.7% | 35.1% | 37.1% | 29.1% |
| Adj. Op Margin | 45.2% | 42.8% | 41.7% | 44.5% | 44.1% |
| GAAP Diluted EPS | $38.22 | $33.97 | $36.51 | $42.01 | $35.31 |
| GAAP EPS YoY | — | -11.1% | +7.5% | +15.1% | -15.9% |
| Adj. Diluted EPS | $39.18 | $35.36 | $37.77 | $43.61 | $48.09 |
| Adj. EPS YoY | — | -9.8% | +6.8% | +15.5% | +10.3% |
| FCF ($M) | $4,603M | $4,423M | $3,821M | $4,701M | $3,552M |
| FCF YoY | — | -3.9% | -13.6% | +23.0% | -24.4% |
| LT Net Inflows ($B) | $1,680B | $1,698B | $1,254B | $1,200B | $2,053B |
| Diluted Shares (M) | 154.4M | 152.4M | 150.7M | 151.6M | 160.9M |
| Share YoY | — | -1.3% | -1.1% | +0.6% | +6.1% |
Key trends -- annual
- Revenue recovered from 2022-2023 trough: $19.4B (FY2021) fell to $17.9B in FY2022-23, then re-accelerated to $20.4B (FY2024, +14.3%) and $24.2B (FY2025, +18.7%)
- Adjusted operating margin remarkably stable: 45.2% (FY2021) to 44.1% (FY2025), only -110 bps over 5 years despite integrating a $12.5B acquisition. GAAP margins compressed sharply (38.5% to 29.1%) due to GIP amortization and integration costs
- Adjusted EPS growing through cycle: $39.18 (FY2021) to $48.09 (FY2025), +23% cumulative. GAAP EPS distorted by GIP charges ($38.22 to $35.31)
- Record LT net inflows in FY2025: $2.05T, up +71% YoY from $1.20T in FY2024. Strongest organic growth in a decade
- FCF under pressure in FY2025: Declined -24% to $3.55B on higher working capital (compensation timing, integration costs) and increased CapEx ($375M vs. $255M)
- Share dilution from GIP deal: 150.7M (FY2023) to 160.9M (FY2025), +6.1% YoY. Acquisition-driven, not organic -- BLK continued buybacks throughout 2025
Organic Base Fee Growth and AUM (12 Quarters)
| Metric | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Organic Base Fee Growth | 1% | 2% | -2% | 1% | 1% | 3% | 5% | 7% | 6% | 6% | 10% | 12% |
| LTM Organic Growth | 0% | 0% | 1% | 1% | 1% | 1% | 3% | 4% | 6% | 7% | 8% | 9% |
| Trend | — | — | — | — | Flat | Accel. | Accel. | Accel. | Stable | Stable | Accel. | Accel. |
| Total AUM ($T) | $9.1T | $9.4T | $9.1T | $10.0T | $10.5T | $10.7T | $11.5T | $11.6T | $11.6T | $12.5T | $13.5T | $14.0T |
| AUM YoY | — | — | — | — | +15.2% | +12.9% | +26.1% | +15.4% | +10.6% | +17.6% | +17.3% | +21.6% |
| LT Net Inflows ($B) | $382B | $370B | $292B | $209B | $183B | $178B | $351B | $489B | $496B | $490B | $500B | $567B |
Key trends -- organic growth and AUM
- Clear organic acceleration: Base fee growth improved from 1% (Q1 24) to 12% (Q4 25), a sustained 8-quarter acceleration. LTM organic growth went from 1% to 9%, confirming the trajectory is not a one-quarter anomaly
- Fee rate stability is critical: Blended LT fee rate held at 93-94 bps for 3 years -- fee compression has NOT materialized despite ETF mix shift. Private markets (~150-200 bps) offsetting index fee pressure (~15-20 bps)
- Record LT net inflows: $2.05T in FY2025, +71% YoY vs. $1.20T in FY2024. Quarterly inflows strengthened from $496B (Q1) to $567B (Q4), reflecting broad-based momentum across ETFs, private markets (post-GIP), and institutional mandates
- AUM powered by market + flows: $14.0T at Q4 25, up from $10.01T at Q4 23 (+40% in 2 years)
Quarterly Revenue and EPS (12 Quarters)
| Metric | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue ($M) | $4,243M | $4,463M | $4,522M | $4,631M | $4,728M | $4,805M | $5,197M | $5,677M | $5,276M | $5,423M | $6,509M | $7,008M |
| Rev YoY | — | — | — | — | +11.4% | +7.7% | +14.9% | +22.6% | +11.6% | +12.9% | +25.2% | +23.4% |
| Adj. Diluted EPS | $7.93 | $9.28 | $10.91 | $9.66 | $9.81 | $10.36 | $11.46 | $11.93 | $11.30 | $12.05 | $11.55 | $13.16 |
| Adj. EPS YoY | — | — | — | — | +23.7% | +11.6% | +5.0% | +23.5% | +15.2% | +16.3% | +0.8% | +10.3% |
| GAAP Diluted EPS | $7.64 | $9.06 | $10.66 | $9.15 | $10.48 | $9.99 | $10.90 | $10.63 | $9.64 | $10.19 | $8.43 | $7.16 |
| GAAP EPS YoY | — | — | — | — | +37.2% | +10.3% | +2.3% | +16.2% | -8.0% | +2.0% | -22.7% | -32.6% |
Key trends -- revenue and EPS
- Revenue re-accelerating: After decelerating to +7.7% in Q2 24, revenue growth re-accelerated to +25.2% (Q3 25) and +23.4% (Q4 25). H2 2025 step-up amplified by GIP consolidation but organic base fee growth also improved
- Adjusted EPS decelerating from peak: +23.5% (Q4 24) slowed to +0.8% (Q3 25) on higher compensation and integration costs, then rebounded to +10.3% in Q4 25. Full-year adj. EPS grew +10.3% ($43.61 to $48.09)
- GAAP/Adjusted divergence is the key challenge: GAAP EPS declined -32.6% in Q4 25 vs. adj. +10.3%. The gap is entirely GIP acquisition-related (amortization, transaction costs, share dilution). Underlying business momentum is strong
Revenue by Segment ($M, 12 Quarters)
| Metric | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inv. Advisory & Admin | $3,502M | $3,611M | $3,681M | $3,605M | $3,778M | $3,875M | $4,030M | $4,417M | $4,401M | $4,454M | $5,046M | $5,278M |
| Performance Fees | $55M | $118M | $70M | $311M | $204M | $164M | $388M | $451M | $60M | $94M | $516M | $754M |
| Technology Services | $340M | $359M | $407M | $379M | $377M | $395M | $403M | $428M | $436M | $499M | $515M | $531M |
| Advisory & Other | $27M | $56M | $43M | $33M | $59M | $53M | $53M | $59M | $58M | $56M | $77M | $86M |
| Total Revenue | $4,243M | $4,463M | $4,522M | $4,631M | $4,728M | $4,805M | $5,197M | $5,677M | $5,276M | $5,423M | $6,509M | $7,008M |
Key trends -- segments
- Advisory & Admin fees (~75% of revenue): Core fee income driven by AUM levels. Grew from $3.5B (Q1 23) to $5.3B (Q4 25), reflecting record AUM and stable fee rates
- Performance fees surging: $754M in Q4 25 vs. $451M in Q4 24 (+67% YoY). Full-year $1.42B (+18% YoY), driven by alternatives fundraising and GIP infrastructure returns. Highly seasonal -- Q4 is typically the strongest quarter
- Technology services (Aladdin) accelerating: $531M in Q4 25, up from $428M in Q4 24 (+24% YoY). Full-year $1.98B (+24% YoY), accelerating from +8% in FY2024. High-margin recurring revenue with $25T on platform
- Advisory & Other small but growing: $86M in Q4 25, relatively immaterial
Annual Revenue Segments ($M)
- Technology services grew +24% in FY2025: $1.28B (FY2021) to $1.98B (FY2025), accelerating from +8% in FY2024. Aladdin ACV growth of 16% in Q4 including Preqin
- Performance fees surged +18% in FY2025: $1.42B, driven by alternatives fundraising and GIP infrastructure returns. Highly cyclical -- $514M in FY2022 trough vs. $1.42B peak
Blended Long-Term Fee Rate (bps on Avg. AUM)
Fee rate stability at 93-94 bps over 3 years is a critical positive.
Despite the industry narrative of fee compression and BLK gathering massive ETF inflows at
~15-20 bps, the blended rate has not declined. The private markets mix shift (alternatives at
~150-200 bps) is beginning to offset index fee pressure. This supports the bull case that AUM
growth translates directly to revenue growth without margin erosion.
Operating Margin Trends (12 Quarters)
Key trends -- margins
- GAAP operating margin compressed sharply: 37.1% (FY2024) to 29.1% (FY2025), with Q4 25 hitting 23.7%. Entirely driven by GIP acquisition charges including amortization of intangibles, transaction costs, and integration expenses
- Adjusted operating margin stable and expanding: 44.1% for FY2025 vs. 44.5% in FY2024 (-40 bps YoY). Q3 25 and Q4 25 expanded back toward 45%, demonstrating operating discipline even while integrating a $12.5B acquisition
- The GAAP vs. adjusted gap is ~2,100 bps in Q4 25: 23.7% GAAP vs. 45.0% adjusted. This divergence is acquisition-driven and will narrow over time as integration costs roll off, but intangible amortization persists for years
Free Cash Flow ($M, 12 Quarters)
| Metric | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CFO ($M) | ($394M) | $985M | $1,576M | $1,998M | ($408M) | $1,365M | $1,381M | $2,618M | ($1,128M) | $1,364M | $1,414M | $2,277M |
| CapEx ($M) | (81M) | (61M) | (78M) | (124M) | (64M) | (7M) | (94M) | (90M) | (78M) | (89M) | (78M) | (130M) |
| FCF ($M) | ($475M) | $924M | $1,498M | $1,874M | ($472M) | $1,358M | $1,287M | $2,528M | ($1,206M) | $1,275M | $1,336M | $2,147M |
Annual Free Cash Flow ($M)
FCF declined -24.4% in FY2025 ($4,701M to $3,552M). Operating cash flow
fell from $4,956M to $3,927M, impacted by higher working capital usage (compensation timing,
integration costs). CapEx increased from $255M to $375M. Q1 seasonality is strong -- cash
flow is heavily back-end-loaded due to annual compensation payments in Q1 (note negative
Q1 FCF in all three years: -$475M, -$472M, -$1,206M).
Diluted Shares Outstanding (M)
Share count increased +6.1% YoY in FY2025 -- entirely GIP acquisition-driven.
Pre-acquisition, BLK was consistently reducing shares via buybacks (-1.1% to -1.3% YoY).
The Q4 25 share count of 165.4M reflects further GIP-related Subco units. This is acquisition
dilution, not organic dilution -- BLK simultaneously repurchased shares throughout 2025.
No dilution penalty applied (below 10% threshold).
YoY Growth Rate Trajectory
| Metric | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|---|---|---|---|---|---|---|---|
| Revenue YoY | +11.4% | +7.7% | +14.9% | +22.6% | +11.6% | +12.9% | +25.2% | +23.4% |
| Adj. EPS YoY | +23.7% | +11.6% | +5.0% | +23.5% | +15.2% | +16.3% | +0.8% | +10.3% |
| Trend | Baseline | Decel. | Mixed | Accel. | Decel. | Stable | Accel. (rev) | Re-accel. |
- Revenue: Re-accelerating. After decelerating to +7.7% in Q2 24, revenue growth re-accelerated strongly through H2 2025, reaching +25% in Q3 25 and +23% in Q4 25. Amplified by GIP consolidation but organic growth also improved
- Adjusted EPS: Decelerating from peak. +23.5% (Q4 24) slowed to +0.8% (Q3 25) on higher compensation and integration expense. Q4 25 rebounded to +10.3%, but trend is clearly lower than 2024 peaks. Full-year adj. EPS grew +10.3%
- FCF: Under pressure. -24% YoY on annual basis due to GIP integration costs and compensation timing
Consensus Estimates (21 Analysts, StockAnalysis)
| Metric | FY2025A | FY2026E | FY2027E |
|---|---|---|---|
| Revenue | $24.22B | $28.31B | $31.34B |
| Rev YoY | — | +16.9% | +10.7% |
| Adj. EPS | $48.09 | $54.96 | $62.43 |
| EPS YoY | — | +14.3% | +13.6% |
- Continued acceleration expected: Revenue growth of +16.9% (FY2026E) and +10.7% (FY2027E), driven by record AUM, GIP synergies, and Aladdin growth
- Adj. EPS growth of +14.3% (FY2026E) and +13.6% (FY2027E): Implies operating leverage returning as GIP integration costs roll off
- FY2026 EPS range: $51.74 - $59.58, reflecting moderate dispersion among 21 analysts
Score rationale
Score of 7/10 reflects strong underlying business momentum with near-term GAAP distortions from the GIP acquisition.
Positives: Organic base fee growth accelerating sharply (1% to 12% over 8 quarters). Blended LT fee rate stable at 93-94 bps -- no fee compression. Adjusted operating margin stable at ~44% despite integrating a $12.5B acquisition. Record AUM of $14.0T and record LT net inflows of $2.05T (+71% YoY). Adjusted EPS growing +10.3%. Technology services (Aladdin) accelerating to +24% YoY. Revenue re-accelerating to +23-25% YoY.
Negatives: GAAP operating margin compressed -800 bps (37.1% to 29.1%) on acquisition charges. GAAP EPS declined -16% YoY. Share count increased +6.1% from GIP deal dilution. FCF declined -24% YoY on integration costs and CapEx. Adjusted EPS growth decelerating from +23.5% peak to +10.3%.
Forward outlook: Consensus expects +17% revenue and +14% adj. EPS growth for FY2026E as GIP integration costs roll off and operating leverage returns. The underlying organic momentum (12% base fee growth, record inflows) supports the forward estimates.
No penalty modifiers applied. FCF positive at ~$3.55B. Share dilution +6.1% (below 10% threshold, acquisition-driven). Revenue grew +18.7% but GAAP operating income declined -7.0% ($7,574M to $7,045M) -- however, this is entirely due to GIP acquisition charges and adjusted operating income grew ~10%+. Net: -0 penalty applied.
Data sourced from Daloopa and BLK earnings releases. All financials in USD. Fiscal year ends December. Consensus estimates from StockAnalysis (21 analysts).