BlackRock (BLK) Q1 2025 earnings summary

Executive summary

• Assets under management reached $11.6 trillion as of March 31, 2025, with $84 billion in net inflows and organic base fee growth of 6%, driven by record ETF inflows, private markets, and technology, despite market volatility and lower performance fees.

• Double-digit year-over-year growth in revenue, operating income, and adjusted EPS, with as-adjusted operating margin up 100 basis points to 43.2%.

• Strategic acquisitions (GIP, Preqin, upcoming HPS) and partnerships (Viridium, xAI, NVIDIA) expanded capabilities, global reach, and technology services revenue.

• GAAP diluted EPS declined 8% year-over-year to $9.64 due to acquisition-related costs and higher share count, while adjusted EPS rose 15% to $11.30.

• Share repurchases totaled $375 million in Q1, with the quarterly cash dividend increased 2% to $5.21 per share.

Financial highlights

• Q1 2025 revenue rose 12% year-over-year to $5.3 billion, with investment advisory, administration fees, and securities lending revenue at $4.4 billion, including $285 million from GIP.

• Technology services and subscription revenue grew 16% year-over-year, with Preqin contributing $20 million.

• Performance fees declined sharply to $60 million from $204 million year-over-year.

• Adjusted operating income was $2.03 billion (up 14%), with an as-adjusted margin of 43.2%.

• Net income attributable to BlackRock was $1.51 billion (GAAP), down 4% year-over-year; adjusted net income was $1.77 billion, up 20%.

Outlook and guidance

• Management expects continued growth from recent acquisitions, with the HPS deal anticipated to close mid-2025, and ongoing focus on organic growth, technology expansion, and integration.

• Expects at least $375 million in share repurchases per quarter for the rest of 2025 and a projected tax run rate of 25%, barring discrete items or tax law changes.

• Anticipates mid to high single-digit percentage increase in 2025 core G&A expense, excluding HPS and related costs.