TLDR
- BlackRock reported Q4 earnings per share of $13.16, beating analyst estimates of $12.55, with revenue reaching $7.01 billion versus expectations of $6.80 billion.
- Assets under management hit a record $14.04 trillion, driven by $698.26 billion in full-year net inflows and strong performance in ETF products.
- The company raised its quarterly dividend to $5.21 per share and authorized larger share buybacks to return capital to shareholders.
- Net income dropped roughly 33% year-over-year despite the revenue beat, with operating cash flow and profitability showing weakness.
- BlackRock plans to cut around 250 jobs while pushing deeper into private markets, targeting $400 billion in cumulative fundraising by 2030.
BlackRock posted fourth-quarter earnings that topped Wall Street expectations on Thursday. The asset manager reported earnings per share of $13.16, beating the consensus estimate of $12.55 by 61 cents.
BlackRock, $BLK, Q4-25. Results:
📊 Adj. EPS: $13.16 🟢
💰 Revenue: $7.01B 🟢
📈 Net Income: $2.18B
🔎 Strong quarter driven by higher base and performance fees, reflecting successful integration of HPS and GIP acquisitions. pic.twitter.com/uNtWVviYTc— EarningsTime (@Earnings_Time) January 15, 2026
Revenue came in at $7.01 billion for the quarter. Analysts had expected $6.80 billion. The beat came despite some underlying concerns about profitability.
The stock opened at $1,092.36 on Thursday and rose 2.5% in premarket trading. Shares have gained 4.4% so far in 2025, though that trails the broader S&P 500 index.
Assets Under Management Reach New Peak
The company’s assets under management reached a record $14.04 trillion in the quarter. That’s up from $11.55 trillion a year earlier.
Full-year net inflows hit $698.26 billion. The fourth quarter alone brought in roughly $267.8 billion in long-term net inflows.
ETF products led the charge. Equity product inflows totaled $126.05 billion, nearly flat with the prior year. Fixed-income products saw $83.77 billion in inflows during the quarter.
The rally in U.S. markets helped drive the gains. Stocks climbed on AI enthusiasm, easing interest rates, and steady economic growth. Investors poured money back into lower-cost index strategies.
Performance fees jumped 67% to $754 million in the reported period. That followed a 33% increase in the third quarter.
Profitability Concerns Temper Results
Net income fell sharply despite the revenue beat. Profit dropped roughly 33% year-over-year. Total expenses rose to $5.35 billion from $3.6 billion last year.
Excluding one-time charges, net profit came in at $2.18 billion, or $13.16 per share. That compared to $1.87 billion, or $11.93 per share, a year earlier.
Operating cash flow weakened and cash balances declined year-over-year. Cost of sales grew faster than revenue, pressuring margins. The company reported a net margin of 26.64% and return on equity of 14.80%.
BlackRock plans to cut around 250 jobs as it reprioritizes operations. The move could help margins over time but represents a transitional period.
Management increased the quarterly dividend to $5.21 per share. The company also authorized larger share buybacks. The dividend represents an annualized yield of 1.9% with a payout ratio of 53.59%.
Insider activity raised some eyebrows. Director Rachel Lord sold 12,000 shares in October at $1,165.04 per share for nearly $14 million. CFO Martin Small sold 1,258 shares in December at $1,043.38 per share.
Corporate insiders currently own 1.98% of the stock. Institutional investors and hedge funds hold 80.69%.
Analyst ratings remain mixed but lean positive. Fifteen analysts rate the stock a buy while five give it a hold rating. The consensus target price sits at $1,303.71.
Barclays lowered its price target from $1,340 to $1,300 while maintaining an overweight rating. Morgan Stanley raised its target from $1,486 to $1,514 with an overweight rating. TD Cowen reaffirmed a hold rating but trimmed its price target.
The company is pushing deeper into private markets, real estate, and infrastructure. BlackRock is targeting $400 billion in cumulative private markets fundraising by 2030. The firm’s private markets business drew inflows of $12.71 billion in the quarter.
Private assets generate higher fees than exchange-traded funds. BlackRock unveiled plans to include private assets in retirement plans as part of this strategy.
The company has a market capitalization of $169.48 billion and trades at a P/E ratio of 28.09. Its debt-to-equity ratio stands at 0.34 with a current ratio of 3.33.
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