BlackRock, Inc., the world’s largest investment management firm, announced its financial results for the fourth quarter of fiscal 2025, showcasing substantial growth in revenue, earnings, and assets under management (AUM). The company reported total revenue of $7.01 billion in the quarter, representing a 23% year-over-year increase and surpassing analyst expectations of $6.69 billion. Adjusted operating income rose 22% to $2.85 billion, while adjusted earnings per share (EPS) increased 10% to $13.16, beating the consensus forecast of $12.25.
The performance reflected BlackRock's diversified revenue streams and successful execution across its business segments. Revenues from investment advisory, administration fees, and securities lending collectively climbed to $5.28 billion compared to $4.42 billion in the same period last fiscal year. This uptick was driven by several factors, including a 12% organic growth in base fees, the effect of market beta on average assets under management, and additional fee contributions of approximately $230 million stemming from the HPS Transaction.
Securities lending revenues also showed improvement, increasing to $174 million from $161 million, largely attributable to wider spreads in the lending market. Notably, investment advisory performance fees surged to $754 million from $451 million in the year-ago quarter. This increase was supported by higher revenue generation from private market investments, which benefited from the HPS Transaction, alongside stronger inflows into liquid alternative products.
The technology division demonstrated meaningful growth, with technology services and subscription revenues rising 24% year-over-year to $531 million. This outcome was driven by strong demand for BlackRock’s Aladdin platform as well as the incremental revenue from the March 2025 acquisition of Preqin, which contributed an estimated $65 million during the quarter. The annual contract value (ACV) for technology services and subscriptions expanded by 31%, incorporating Preqin's impact; excluding Preqin, ACV growth was a solid 16%.
Asset growth for BlackRock remained robust throughout 2025. The firm recorded total net inflows of $698 billion, surpassing last year’s inflows of $641 billion. This momentum contributed to a new all-time high for total assets under management, which stood at $14 trillion at year-end, a significant increase from $11 trillion the previous year.
On the capital allocation front, BlackRock continued to return value to shareholders by repurchasing shares totaling $1.6 billion during the year. Concurrently, the company also announced a 10% increase in its quarterly dividend to $5.73 per share. This dividend hike will be payable on March 24, 2026, to shareholders holding the stock as of the record date, March 6, 2026.
Laurence Fink, BlackRock’s Chairman and Chief Executive Officer, commented on the company’s trajectory, emphasizing that 2026 will mark the first full year operating as a unified platform integrating GIP, HPS, and Preqin. He highlighted the broadening business pipeline encompassing public and private market mandates, technology and data offerings, and diverse client channels. Fink noted strong fundraising activities underway, aligning with BlackRock's ambition to reach $400 billion in private markets fundraising by 2030.
Fink also underscored BlackRock’s leadership position in multiple emerging growth sectors within the investment industry, including private markets, wealth and 401(k) services, active ETFs, private market data solutions, digital assets, and tokenization. This diversified exposure supports the firm’s strategic plans and long-term growth prospects.
Following the earnings release, BlackRock’s shares experienced a positive market reaction, trading up 1.66% to $1,110.00 in premarket activity, reflecting investor confidence in the company’s continued momentum.
Key Points
- BlackRock reported fourth-quarter revenue of $7.01 billion, a 23% increase year over year, exceeding analyst expectations.
- Adjusted operating income rose 22% to $2.85 billion, and adjusted EPS climbed 10% to $13.16, beating consensus estimates.
- Total assets under management reached a record $14 trillion, driven by $698 billion in net inflows during 2025.
- The firm increased its quarterly dividend by 10% to $5.73 per share and repurchased $1.6 billion in shares over the year.
Risks and Uncertainties
- Market fluctuations affecting average assets under management could impact future fee revenues and earnings.
- Dependence on successful integration and performance of businesses acquired through strategic transactions, such as HPS and Preqin.
- Competitive pressures in technology services and subscription offerings may affect growth prospects in this segment.
- Regulatory changes and market dynamics in private markets and other growth areas present potential operational risks.