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BlackRock's Q1 Earnings Beat on AUM Growth & Higher Revenues, Stock Up

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BlackRock’s (BLK - Free Report) first-quarter 2025 adjusted earnings of $11.30 per share handily surpassed the Zacks Consensus Estimate of $10.43. The figure reflects a rise of 15% from the year-ago quarter.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Shares of BLK are trending 3.4% higher in the pre-market trading session today on the back of solid improvement in the assets under management (AUM) balance.

The results benefited from a rise in revenues. AUM witnessed robust growth and touched a record high of $11.58 trillion, driven by net inflows and favorable forex impact, partially offset by market depreciation. However, higher expenses and lower non-operating income were headwinds.

Net income attributable to BlackRock (on a GAAP basis) was $1.51 billion, decreasing 4% from the prior-year quarter. We had projected the metric to be $1.57 billion.

On March 3, 2025, BlackRock completed the acquisition of Preqin.

BLK’s Revenues Improve, Expenses Rise

Revenues (on a GAAP basis) in the quarter were $5.28 billion, missing the Zacks Consensus Estimate of $5.38 billion. The figure increased 12% year over year. The rise was driven by an increase in all revenue components except investment advisory performance fees.

Total expenses amounted to $3.58 billion, up 18%. The uptick was due to a rise in all cost components. Our estimate for the metric was $3.53 billion.

Non-operating income (on a GAAP basis) was $65 million, declining 70%. Our estimate for non-operating income was $198.9 million.

BlackRock’s adjusted operating income was $2.03 billion, climbing 14% from the prior-year quarter.

BlackRock’s AUM Balance Up

As of March 31, 2025, AUM totaled $11.58 trillion, reflecting a year-over-year rise of 11%. Our estimate for AUM was $11.78 trillion. The company witnessed long-term net inflows of $83 billion in the reported quarter.

As of March 31, 2025, the average AUM of $11.68 trillion rose 15% year over year. We had projected the average AUM to be $11.66 trillion.

BLK’s Share Repurchases

BlackRock repurchased shares worth $375 million in the reported quarter.

Our View on BlackRock

BLK’s continued efforts to diversify its offerings and improve its revenue mix are expected to support its financials. The acquisitions of Global Infrastructure Partners and Preqin and the impending buyout of HPS Investments are likely to enhance the company’s position as a global asset manager. However, the current macroeconomic environment is a major headwind for the company.
 

BlackRock Price, Consensus and EPS Surprise

BlackRock Price, Consensus and EPS Surprise

BlackRock price-consensus-eps-surprise-chart | BlackRock Quote

BlackRock currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of BLK’s Peers

Blackstone Inc. (BX - Free Report) is slated to report first-quarter 2025 results on April 17.

Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has been revised 7.4% lower to $1.13. The figure implies an increase of 15.3% from the prior-year quarter.

Invesco (IVZ - Free Report) is scheduled to announce first-quarter 2025 numbers on April 22.

Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised 2.5% lower to 39 cents. The figure implies an increase of 18.2% from the prior-year quarter.


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