BlackRock (BLK) Q4 2024 earnings summary

Executive summary

• Achieved record net inflows of $641 billion in 2024, with $281 billion in Q4, driving AUM to $11.6 trillion, up 15% year-over-year, reflecting broad diversification across clients, products, and geographies.

• Double-digit growth in annual revenue, operating income, and EPS year-over-year, with Q4 adjusted net income of $1.87 billion and adjusted EPS of $11.93.

• Strategic acquisitions (GIP closed, HPS and Preqin pending) position the firm as a top-five private markets provider and expand technology/data capabilities.

• Organic growth was broad-based across institutional, wealth, and technology channels, with strong client demand for integrated public and private market solutions.

• Returned $4.7 billion to shareholders in 2024, including $1.6 billion in share repurchases.

Financial highlights

• Full-year revenue rose 14% to $20.41 billion; operating income up 23% (as adjusted) to $8.1 billion; EPS increased 15% to $43.61 (as adjusted).

• Q4 revenue of $5.68 billion was up 23% year-over-year; Q4 operating income up 36% (as adjusted) to $2.33 billion; Q4 EPS up 23% (as adjusted) to $11.93.

• Base fees and securities lending revenue in Q4 rose 23% year-over-year and 10% sequentially, aided by higher AUM and GIP integration.

• Performance fees reached $1.2 billion for the year, led by alternatives; technology services revenue grew 8% to $1.6 billion, with ACV up 12%.

• As-adjusted operating margin expanded to 44.5% for the year, up 280 basis points.

Outlook and guidance

• Entering 2025 with record AUM, strong organic growth momentum, and plans to integrate HPS and Preqin.

• Expecting mid- to high-single-digit % increase in 2025 core G&A expense (excluding HPS), mainly from GIP and Preqin consolidation and tech investment.

• Targeting $1.5 billion in share repurchases for 2025 and seeking board approval for a dividend increase.

• Projected tax run rate for 2025 is 25%, subject to discrete items and legislative changes.

• Management expects continued outsized growth from structural trends and full integration of GIP, HPS, and Preqin acquisitions.