Investment manager giant BlackRock, Inc. (NYSE:BLK) reported that third-quarter 2025 revenue grew 25% year-over-year (Y/Y) to $6.51 billion, beating the consensus of $6.22 billion.
Adjusted operating income rose 23% Y/Y to $2.62 billion. Adjusted EPS increased 1% Y/Y to $11.55, beating the consensus of $11.26.
Revenue and Profit Breakdown
Investment advisory, administration fees, and securities lending revenue increased to $5.05 billion from $4.03 billion a year ago.
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This was primarily driven by organic base fee growth of 10%, market beta effects on average AUM, and fees of about $215 million and $225 million from the GIP and HPS transactions, respectively.
Securities lending revenue rose to $203 million from $149 million in the third quarter of 2024, primarily reflecting higher spreads and average balances of securities on loan.
Performance fees escalated to $516 million from $388 million in the year-ago quarter, aided by higher revenue from private markets.
Asset Growth and Capital Allocation
BlackRock stated that $205 billion of quarterly total net inflows, up from $221 billion a year ago, thanks to a record iShares ETF inflows, along with strength in private markets and cash products.
At the end of the quarter, total AUM climbed to a record $13.5 trillion, with iShares ETF exceeding $5 trillion and cash management reaching $1 trillion in AUM.
BlackRock bought back shares worth $375 million in the quarter.
CEO Commentary
Laurence Fink, Chairman and CEO, commented, “Technology and data analytics, ETFs, private markets, and digital assets are just a few examples where we invested and built leading positions. We’ve brought together the strengths of GIP, HPS, and Preqin, and together we’re already driving landmark fundraising and deal flow, accelerating client engagement, and double-digit organic revenue growth over the last year.”
“We’re entering our seasonally strongest fourth quarter with building momentum and a fully unified platform. One that’s anchored by a public-private investment model, backed by Aladdin technology, and united by a shared culture of performance and client service,” Fink added.
Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF (NASDAQ:FDFF) and Spinnaker ETF Series WarCap Unconstrained Equity ETF (NYSE:WCAP).
Price Action: BLK shares were trading lower by 0.27% to $1,152.00 premarket at last check Tuesday.
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