BlackRock Exceeds Earnings and AUM Expectations Despite Inflow Headwinds

NEW YORK, NY – July 15, 2025 – BlackRock (NYSE: BLK), the world's largest asset manager, announced its second-quarter 2025 financial results today, reporting figures that largely surpassed analyst expectations for earnings, revenue, and assets under management (AUM). This strong performance comes despite a notable shortfall in net inflows, highlighting the firm's robust operational leverage and diversified business model.

Strong Financial Performance

BlackRock delivered diluted earnings per share (EPS) of $12.05, comfortably exceeding the consensus estimate of $10.60. This represents a significant beat, underscoring the company's profitability in a dynamic market environment.

Revenue for the quarter climbed 13% year-over-year, reaching $5.42 billion. This figure slightly surpassed the analyst forecast of $5.41 billion. The revenue growth was primarily fueled by several key factors:

• Favorable Market Conditions: Broad market appreciation contributed to higher asset valuations and, consequently, increased base fees.
• Rising Base Fees: As AUM grew, so did the recurring base fees charged on managed assets.
• GIP Transaction Contributions: The strategic transaction involving Global Infrastructure Partners (GIP) began to yield financial benefits.
• Technology and Subscription Services: Continued expansion and adoption of BlackRock's Aladdin platform and other technology offerings provided a significant boost.

While these positive drivers propelled revenue higher, lower performance fees during the quarter modestly weighed on the overall results. Despite this, the firm's ability to generate strong top-line growth across multiple segments was evident.

AUM Reaches New Heights

BlackRock's assets under management (AUM) reached an impressive $12.53 trillion by the end of the second quarter. This figure comfortably exceeded analyst projections of $12.31 trillion, marking a new milestone for the asset management giant. The increase in AUM reflects both positive market performance and, to a lesser extent, net inflows.

Inflow Challenges Persist

Despite the strong financial and AUM performance, net inflows for the quarter fell short of expectations. Total net inflows were reported at $67.74 billion, significantly below the anticipated $84.72 billion. Long-term net inflows, a key metric for asset managers, also underperformed, coming in at $45.79 billion against a forecast of $61.35 billion.

A deeper dive into the inflow data reveals specific areas of weakness:

• Institutional Outflows: The firm experienced $41.03 billion in institutional net outflows, indicating some large institutional clients may have rebalanced portfolios or redeemed assets.
• Retail Inflows: Retail net inflows remained modest at $1.96 billion, suggesting a more cautious approach from individual investors.

However, a notable bright spot emerged in equity net inflows, which reached $28.78 billion. This figure was substantially higher than the estimated $3.78 billion, highlighting continued investor confidence and allocation to equity markets, where BlackRock has a strong presence through its iShares ETFs.

Outlook

BlackRock's second-quarter results demonstrate its resilience and ability to generate strong financial performance even when faced with challenges in asset gathering. The firm's vast scale, diversified product offerings, and robust technology platform continue to underpin its market leadership. While the inflow miss warrants attention, the overall beat on earnings, revenue, and AUM suggests that BlackRock remains well-positioned to navigate varying market conditions and continue its growth trajectory.