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    BLK
    Earnings call· Dec 2025(Q4 FY25)

    BlackRock, Inc. BLK

    Jan 15, 2026 Source

    Executive summary

    BlackRock Q4 FY25 — Record Inflows and Strong Organic Growth

    BlackRock concluded Q4 FY25 with record net inflows and robust organic base fee growth, driven by its diversified platform across public and private markets and technology. The firm is leveraging recent acquisitions and strategic initiatives in private markets, digital assets, and active ETFs to fuel future expansion and shareholder returns, despite a slight year-over-year dip in operating margin. Management expressed confidence in continued growth and margin expansion, underpinned by strong client relationships and global capital market trends.

    Highlights

    5

    • Clients awarded nearly $700 billion in net new assets for FY25, including $342 billion in Q4.

    • Achieved 9% organic base fee growth for FY25, with 12% in Q4.

    • Technology ACV expanded by 16% organically for FY25.

    • Board approved a 10% increase to the 2026 dividend per share and targeted $1.8 billion in share repurchases for 2026.

    • Full year revenue of $24 billion was up 19% year-over-year.

    Concerns

    5

    • Q4 as-adjusted operating margin of 45% was down 50 basis points year-over-year.

    • Full year as-adjusted operating margin of 44.1% decreased 40 basis points from a year ago.

    • Nonoperating results for Q4 included $106 million of net investment losses, primarily due to a noncash mark-to-market loss linked to a minority investment in Circle.

    • Institutional index experienced net outflows of $119 billion in FY25, mainly from low-fee index equity strategies.

    • HLEND redemptions were 4.1% in Q4, higher than recent quarters, influenced by seasonal factors and media attention.

    Guidance & targets

    8
    CategoryTargetConfidence
    Share Repurchases
    $1.8 billion
    high materiality
    High
    Tax Run Rate
    25%
    medium materiality
    Medium
    G&A Increase
    mid-single-digit percentage increase
    medium materiality
    Medium
    Headcount
    broadly flat
    low materiality
    Medium
    Gross Private Markets Fundraising
    $400 billion
    high materiality
    High
    LifePath Target Date Fund Launch
    first LifePath Target Date fund with private markets
    medium materiality
    High
    Adjusted Operating Margin
    45% or greater
    high materiality
    High
    Private Markets to Wealth AUM
    $60 billion
    high materiality
    High

    Segment performance

    11
    SegmentRevenueYoYQoQMargin
    iShares
    Led the industry and set a new flows record, with strong momentum into year-end supported by seasonal portfolio reallocations. Growth diversified across core equity and premium categories like fixed income, active, and digital asset ETPs. AUM has quadrupled since 2009 acquisition.
    Net inflows FY25: $527 billionNet inflows Q4: $181 billionOrganic asset growth FY25: 12%Organic base fee growth FY25: 13%AUM: $5.5 trillionRevenues: >$8 billion
    		————
    Retail
    Strong net inflows led by a significant SMA assignment and continued record performance from Aperio. Active fixed income and alternatives also contributed positively.
    Net inflows FY25: $107 billionSMA assignment from Citi Wealth Q4: $80 billionAperio net inflows FY25: $15 billionActive fixed income net inflows FY25: $3 billionAlternatives net inflows FY25: $12 billion
    		————
    Institutional Active
    Reflected the onboarding of multiple outsourcing mandates, the above-target close of GIP V, and deployment in private credit.
    Net inflows FY25: $54 billion
    		————
    Institutional Index
    Mainly driven by redemptions from low-fee index equity strategies.
    Net outflows FY25: $119 billion
    		————
    Private Markets
    Platform delivered strong net inflows led by private credit and infrastructure. The firm is targeting significant fundraising over the next five years.
    Net inflows FY25: $40 billionClient assets: $675 billionGross fundraising target through 2030: $400 billion
    		————
    Cash Management
    Driven by U.S. government, international, Prime, and Circle Reserve Funds.
    Net inflows FY25: $131 billionNet inflows Q4: $74 billion
    		————
    Systematic Equity
    Outperformed the active equity industry, leveraging two decades of data and AI investment to deliver alpha.
    Net inflows FY25: $50 billion
    		————
    Active ETFs
    Nearly tripled assets in the last year, with BINC and DYNF leading flows. DYNF was the highest inflowing active ETF in the industry with $14 billion of net inflows.
    Net inflows FY25: $50 billion
    		————
    Europe ETF
    Strong growth driven by individuals accessing iShares through digitally enabled offerings and monthly savings plans.
    Net inflows FY25: $136 billion
    		—50% higher than 2024——
    Asia
    Growth led by active wealth strategies and ETF net inflows across locally listed and global ranges. JioBlackRock JV raised $2 billion upon launch and manages 12 funds for over 1 million Indian retail investors.
    ETF net inflows: $30 billion
    		—double-digit——
    Latin America
    Local presence resonating through onshore ETFs and wealth offerings.
    		—double-digit——

    Operational metrics

    57
    Organic base fee growth
    9%
    FY25

    Firm-wide organic base fee growth for the full fiscal year.

    Organic base fee growth
    12%
    Q4 FY25

    Firm-wide organic base fee growth for the fourth quarter.

    Organic base fee growth
    10%
    Q3 FY25

    Firm-wide organic base fee growth for the third quarter.

    Organic base fee growth
    6% or higher
    Each quarter FY25

    Minimum organic base fee growth achieved in every quarter of fiscal year 2025.

    Technology ACV growth
    16%
    FY25

    Organic growth in Annual Contract Value for technology services.

    Technology ACV growth
    31%
    FY25

    Total growth in Annual Contract Value for technology services, including the impact of Preqin.

    Revenue growth
    19%YoY
    FY25

    Year-over-year growth in full year revenue.

    Revenue growth
    23%YoY
    Q4 FY25

    Year-over-year growth in fourth quarter revenue, driven by acquisitions and organic growth.

    Operating income growth
    18%YoY
    FY25

    Year-over-year growth in full year operating income.

    Operating income growth
    22%YoY
    Q4 FY25

    Year-over-year growth in fourth quarter operating income.

    EPS growth
    10%YoY
    FY25

    Year-over-year growth in full year earnings per share.

    EPS growth
    10%YoY
    Q4 FY25

    Year-over-year growth in fourth quarter earnings per share.

    Base fees and securities lending revenue
    $5.3 billionup 19% YoY
    Q4 FY25

    Revenue from base fees and securities lending, driven by market beta, organic growth, and HPS acquisition.

    Annualized effective fee rate
    0.1 basis point lowerQoQ
    Q4 FY25

    Decrease compared to Q3, primarily due to higher securities lending revenue in the prior quarter.

    Performance fees
    $754 millionincreased from a year ago
    Q4 FY25

    Reflecting higher revenue from alternatives, including contribution from HPS.

    Technology services and subscription revenue growth
    24%YoY
    FY25

    Full year growth, reflecting successful client onboarding and the Preqin transaction.

    Technology services and subscription revenue growth
    24%YoY
    Q4 FY25

    Fourth quarter growth, reflecting successful client onboarding and the Preqin transaction.

    Total expense growth
    19%
    FY25

    Primarily driven by higher compensation, sales, asset and account expense, and G&A.

    Employee compensation and benefit expense growth
    20%
    FY25

    Primarily reflecting higher incentive compensation associated with performance fees and higher operating income, plus impact of acquired employees.

    G&A expense growth
    15%
    FY25

    Primarily due to M&A transactions and higher technology investment spend.

    Adjusted operating margin
    44.1%decreased 40 bps YoY
    FY25

    Full year adjusted operating margin, reflecting the impact of performance fees and related compensation.

    Adjusted operating margin
    45%down 50 bps YoY
    Q4 FY25

    Fourth quarter adjusted operating margin, reflecting the impact of performance fees and related compensation.

    Adjusted operating margin (ex-performance fees)
    44.9%up 60 bps YoY
    FY25

    Full year adjusted operating margin, excluding the impact of performance fees and related compensation.

    Adjusted operating margin (ex-performance fees)
    45.5%up 30 bps YoY
    Q4 FY25

    Fourth quarter adjusted operating margin, excluding the impact of performance fees and related compensation.

    Share repurchases
    $1.6 billion
    FY25

    Total value of shares repurchased during the full fiscal year.

    Share repurchases
    $500 million
    Q4 FY25

    Value of shares repurchased during the fourth quarter.

    Dividend per share increase
    10%
    Q1 2026

    Increase in the first quarter 2026 dividend per share, approved by the Board of Directors.

    Total net inflows
    $698 billion
    FY25

    Full year total net inflows, reflecting positive flows across all asset classes and active/index strategies.

    Total net inflows
    $342 billion
    Q4 FY25

    Fourth quarter total net inflows, contributing to a record year.

    iShares organic asset growth
    12%
    FY25

    Organic asset growth for iShares for the full fiscal year.

    iShares organic base fee growth
    13%
    FY25

    Organic base fee growth for iShares for the full fiscal year.

    Aperio net inflows
    $15 billion
    FY25

    Net inflows for Aperio, marking its fifth consecutive record year.

    Active fixed income net inflows
    $45 billion
    FY25

    Net inflows for the high-performing active fixed income franchise.

    Private credit net inflows
    $7 billion
    Q4 FY25

    Net inflows in private credit, primarily due to deployment activity.

    HLEND gross subscriptions
    $1.1 billion
    Q4 FY25

    Gross subscriptions for the HLEND direct lending BDC.

    HLEND redemptions
    4.1%higher than recent quarters
    Q4 FY25

    Redemption rate for HLEND, in line with broader industry trends and affected by seasonal factors.

    JioBlackRock funds raised
    $2 billion6x previous industry record
    Upon launch

    Capital raised by the JioBlackRock joint venture upon its launch in India.

    JioBlackRock institutions served
    400+
    Current

    Number of institutions served by the JioBlackRock joint venture.

    JioBlackRock retail investors served
    1 million+
    Current

    Number of Indian retail investors served by the JioBlackRock joint venture.

    Net investment losses (Circle)
    $106 million
    Q4 FY25

    Noncash mark-to-market loss primarily due to a minority investment in Circle.

    Circle common stock held
    1.1 million
    Q4 FY25

    Remaining shares of Circle common stock held after contributing a portion to donor-advised funds.

    Private markets AUM
    $675 billion
    Q4 FY25

    Client assets in BlackRock's alternatives platform.

    Target date AUM
    $0.5 trillion
    Q4 FY25

    Assets Under Management in target date funds.

    Tech and data SaaS revenue
    ~$2 billion
    FY25

    Approximate revenue from the technology and data SaaS franchise.

    Insurance general account AUM
    $700 billion
    Q4 FY25

    Assets Under Management for insurance company general accounts, making BlackRock the largest manager in this space.

    HPS credit assets for insurers
    $60 billion
    Q4 FY25

    Credit assets managed by HPS for insurance companies.

    Wealth platform AUM
    $1 trillion+
    Q4 FY25

    Assets Under Management across the firm's wealth platform, spanning various client portfolios.

    AIP capital raised
    $12.5 billion
    Q4 FY25

    Capital raised by the AI partnership (AIP) from partnership founders and clients.

    AIP equity capital target
    $30 billion
    Target

    Initial target for equity capital to be mobilized and deployed by the AI partnership.

    Public fixed income, cash, private credit AUM
    $4.5 trillion+
    Q4 FY25

    Total assets managed across public fixed income, cash, and private credit strategies.

    iShares AUM
    $5.5 trillion
    Q4 FY25

    Total Assets Under Management for iShares.

    iShares revenues
    >$8 billion
    FY25

    Total revenues generated by iShares, quadrupling since the 2009 acquisition.

    Total AUM
    $14 trillion
    Q4 FY25

    Record high total Assets Under Management at year-end.

    Base fees run rate
    ~$21 billion13% higher than 2025
    Entering 2026

    Annualized run rate for base fees, reflecting strong entry point for future earnings.

    Fee yield on new assets
    6 to 7x highervs 2023
    FY25

    Indicates a significant increase in the fee yield generated from new asset flows compared to two years prior.

    Headcount
    broadly flat
    FY26

    Expectation for the firm's total employee count in the upcoming fiscal year.

    As-adjusted tax rate
    20%
    Q4 FY25

    As-adjusted tax rate for the fourth quarter, benefiting from discrete items.

    Product announcements

    2
    ProductTypeDetails
    LifePath Target Date fund with private marketslaunch
    H Series family of fundsroadmap

    Deals & partnerships

    5
    HPSAcquisition of HPS, a credit asset manager.

    The acquisition of HPS closed on July 1, 2025, and is now fully integrated into BlackRock, enhancing its private credit capabilities, especially for insurance clients.

    PreqinAcquisition of Preqin, a private markets data and insights provider.

    The acquisition of Preqin closed approximately nine months prior to the call, expanding BlackRock's technology and data SaaS franchise and its capabilities in private market data and analytics.

    GIPAcquisition of Global Infrastructure Partners (GIP).

    The GIP transaction closed a bit over a year ago, and its integration is showing synergies, particularly in infrastructure strategies and the AI partnership.

    Jio Platforms (Reliance Industries)Joint venture to launch JioBlackRock, a digital-first asset management platform in India.

    The JioBlackRock joint venture operates through a digital-first direct-to-consumer model, aiming to capitalize on the growing Indian capital markets and self-directed retirement platforms.

    ViridiumMinority investment and strategic alliance with Viridium, an insurance company.

    Announced last year, this partnership aims to increase the pool of insurance assets managed by BlackRock.

    Risks & headwinds

    5
    Money Market Flow Reversal2026

    Fed rate cuts expected to cause money market yields to fall.

    Mitigation: BlackRock expects liquidity to shift to intermediate-term bonds, where it is well-positioned with a broad range of fixed income offerings across sectors and durations.

    Private Credit Default RatesOngoing

    Direct lending defaults are rising, though remaining in historical ranges. Non-IG direct lending to corporates had abnormally low defaults for years. Smaller borrowers, particularly those financed at very high or peak valuations, are expected to be more challenged.

    Mitigation: HPS teams focus on larger companies (weighted average EBITDA on HLEND portfolio is ~$250 million). The firm emphasizes detailed credit work and maximizing recoveries, acknowledging that normalized default rates are part of the credit cycle.

    Operating Margin CompressionFY25

    Q4 as-adjusted operating margin of 45% was down 50 basis points year-over-year. Full year as-adjusted operating margin of 44.1% decreased 40 basis points from a year ago.

    Mitigation: Management is targeting 45% or greater adjusted operating margin, with recurring fee-related earnings margin expected to trend higher (towards 50%+). Growth in private markets and scaled foundational businesses are expected to drive margin expansion.

    Institutional Index OutflowsFY25

    $119 billion in net outflows in FY25.

    Mitigation: These outflows were mainly driven by redemptions from low-fee index equity strategies. The firm's overall net inflows remained strong, driven by other segments like iShares, retail, and private markets.

    HLEND RedemptionsQ4 FY25

    4.1% redemptions in Q4, higher than recent quarters.

    Mitigation: Attributed to generally elevated seasonal redemptions, media attention, profit taking, and forward expectations on lower base rates. Most BDCs still posted positive flows, and the structural pipeline for private credit fundraising remains intact.

    What to watch in Q1 FY26

    5

    Private High-Grade Deployments

    H2 2026
    Current20+ late-stage conversations with insurers
    TargetDeployments pulling through

    Why it matters

    Successful deployment of private high-grade assets from insurance clients is a key growth vector and validation of BlackRock's integrated solutions offering.

    We have over 20 conversations right now where we're working on high-grade SMAs with leading insurers and building private high-grade portfolios. A number are in later stages. We'd hope to start seeing deployments pull through, through the second half of 2026.

    Q&A highlights

    7

    What is the outlook for the net flow pipeline in 2026, and how will Fed rate cuts impact money market flows and where will that liquidity go?

    Martin Small highlighted a diversified fundraising plan across infrastructure, private financing, and multi-alternatives. He expects money market yields to fall with rate cuts, leading to a shift towards intermediate-term bonds, with BlackRock well-positioned to capture these flows. Larry Fink added that overall cash holdings will remain elevated as global capital markets grow, especially with potential tokenization.

    “I think if the bond team was here, they'd say there's a generational opportunity to earn high-quality, steady income in the front and middle of the yield curve using that full toolkit in fixed income, credit, securitized, government bonds, munis, active and index.”

    asked by Craig Siegenthaler · answered by Martin Small

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Acquisitions and Integration

    BlackRock is entering 2026 as a fully integrated firm with GIP, HPS, and Preqin, which are significantly enhancing its capabilities. The acquisitions contributed to revenue growth, with HPS adding $230 million in Q4 base fees and Preqin contributing $65 million in Q4 revenue. These integrations are pivotal to pioneering a new asset management model that combines public and private markets, traditional and decentralized finance, powered by technology and data from Aladdin, eFront, and Preqin.

    02

    Private Markets Expansion and Wealth Strategy

    The firm is aggressively expanding its private markets platform, targeting $400 billion in gross fundraising through 2030. Key initiatives include bringing private markets to wealth channels through an 'H Series' family of funds, offering direct lending, real assets, and multi-strat credit. BlackRock also plans to launch its first LifePath Target Date fund with private markets in 2026, aiming to provide additional returns and diversification for retirement savers, leveraging its $600 billion LifePath franchise and Preqin's data capabilities.

    03

    Technology and Data Leadership

    Aladdin technology continues to be a core differentiator, enabling end-to-end integration across public and private markets for clients. The platform saw 16% organic technology ACV growth in FY25, reflecting successful onboarding of new clients and expanding relationships. Preqin, acquired nine months prior, is expanding access to actionable private market data and models, with a long-term vision to standardize and index private markets, similar to how iShares transformed public markets.

    04

    Global Market Opportunities

    BlackRock is experiencing strong momentum in international markets, with double-digit organic base fee growth in Asia and Latin America in FY25. Growth in Asia was led by active wealth strategies and $30 billion in ETF net inflows. The JioBlackRock joint venture in India successfully raised $2 billion upon launch and now serves over 1 million retail investors, highlighting the potential for self-directed retirement platforms in emerging capital markets. The Middle East is also noted as one of the fastest-growing regions.

    05

    Fixed Income and Active ETFs

    The firm generated over $45 billion of net inflows in its active fixed income franchise in FY25, with a belief that 2026 returns will be primarily income-driven. BlackRock is leveraging active ETFs to provide access to portfolio managers, with active ETFs driving over $50 billion in net inflows in FY25, nearly tripling their assets. The systematic equity franchise also raised over $50 billion, demonstrating leadership in utilizing data and AI for alpha generation over two decades.

    06

    Capital Allocation and Shareholder Returns

    BlackRock returned a record $5 billion to shareholders in 2025 through dividends and share repurchases. The Board approved a 10% increase to the Q1 2026 dividend per share and authorized an additional 7 million shares for repurchase, targeting $1.8 billion in repurchases for 2026. This reflects confidence in the firm's cash flow generation, durable earnings expansion, and commitment to delivering shareholder value.

    AI-generated summary of the company’s earnings call. Not investment advice.