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BlackRock Q2 Earnings Beat on AUM Growth & Higher Revenues, Stock Down
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Key Takeaways
BLK reported Q2 adjusted EPS of $12.05, beating estimates and up 16% from the prior year.
AUM rose 18% year over year to a record $12.52T, driven by $46B in net inflows and market gains.
Revenues rose 13% to $5.42B, while expenses increased 23% year over year to $3.69B.
BlackRock’s (BLK - Free Report) second-quarter 2025 adjusted earnings of $12.05 per share handily surpassed the Zacks Consensus Estimate of $10.66. The figure reflects a rise of 16% from the year-ago quarter.
Shares of BLK are trending 6.4% lower in the early market trading session today.
The results benefited from a rise in revenues. AUM witnessed robust growth, reaching a record high of $12.52 trillion, driven by net inflows, market appreciation, and a favorable foreign exchange impact. However, higher expenses acted as a headwind.
Net income attributable to BlackRock (on a GAAP basis) was $1.59 billion, increasing 7% from the prior-year quarter. We had projected the metric to be $1.57 billion.
On July 1, 2025, BlackRock completed the acquisition of HPS Investment Partners.
BLK’s Revenues Improve, Expenses Rise
Revenues (on a GAAP basis) in the quarter were $5.42 billion, missing the Zacks Consensus Estimate of $5.43 billion. The figure increased 13% year over year. The rise was driven by an increase in all revenue components except investment advisory performance fees.
Total expenses amounted to $3.69 billion, up 23% year over year. The uptick was due to a rise in all cost components. Our estimate for the metric was $3.32 billion.
Non-operating income (on a GAAP basis) was $521 million compared with $214 million in the prior-year quarter. Our estimate for non-operating income was $173.9 million.
BlackRock’s adjusted operating income was $2.1 billion, increasing 12% from the prior-year quarter.
BlackRock’s AUM Balance Up
As of June 30, 2025, AUM totaled $12.52 trillion, reflecting a year-over-year rise of 18%. Our estimate for AUM was $11.66 trillion. The company witnessed long-term net inflows of $46 billion in the reported quarter.
As of March 31, 2025, the average AUM of $11.97 trillion rose 15% year over year. We had projected the average AUM to be $11.62 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, Preqin, and HPS Investment Partners are likely to enhance the company’s position as a global asset manager. However, the elevated expenses poses a significant challenge for the company.
Blackstone Inc. (BX - Free Report) is slated to report second-quarter 2025 results on July 24.
Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has remained unchanged at $1.09. The figure implies an increase of 13.5% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Invesco (IVZ - Free Report) is scheduled to announce second-quarter 2025 numbers on July 22.
Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised 2.6% higher to 39 cents. The figure implies a decrease of 9.3% from the prior-year quarter.
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BlackRock Q2 Earnings Beat on AUM Growth & Higher Revenues, Stock Down
Key Takeaways
BlackRock’s (BLK - Free Report) second-quarter 2025 adjusted earnings of $12.05 per share handily surpassed the Zacks Consensus Estimate of $10.66. The figure reflects a rise of 16% from the year-ago quarter.
Shares of BLK are trending 6.4% lower in the early market trading session today.
The results benefited from a rise in revenues. AUM witnessed robust growth, reaching a record high of $12.52 trillion, driven by net inflows, market appreciation, and a favorable foreign exchange impact. However, higher expenses acted as a headwind.
Net income attributable to BlackRock (on a GAAP basis) was $1.59 billion, increasing 7% from the prior-year quarter. We had projected the metric to be $1.57 billion.
On July 1, 2025, BlackRock completed the acquisition of HPS Investment Partners.
BLK’s Revenues Improve, Expenses Rise
Revenues (on a GAAP basis) in the quarter were $5.42 billion, missing the Zacks Consensus Estimate of $5.43 billion. The figure increased 13% year over year. The rise was driven by an increase in all revenue components except investment advisory performance fees.
Total expenses amounted to $3.69 billion, up 23% year over year. The uptick was due to a rise in all cost components. Our estimate for the metric was $3.32 billion.
Non-operating income (on a GAAP basis) was $521 million compared with $214 million in the prior-year quarter. Our estimate for non-operating income was $173.9 million.
BlackRock’s adjusted operating income was $2.1 billion, increasing 12% from the prior-year quarter.
BlackRock’s AUM Balance Up
As of June 30, 2025, AUM totaled $12.52 trillion, reflecting a year-over-year rise of 18%. Our estimate for AUM was $11.66 trillion. The company witnessed long-term net inflows of $46 billion in the reported quarter.
As of March 31, 2025, the average AUM of $11.97 trillion rose 15% year over year. We had projected the average AUM to be $11.62 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, Preqin, and HPS Investment Partners are likely to enhance the company’s position as a global asset manager. However, the elevated expenses poses a significant challenge for the company.
BlackRock Price, Consensus and EPS Surprise
BlackRock price-consensus-eps-surprise-chart | BlackRock Quote
BlackRock currently carries a Zacks Rank #2 (Buy). 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 second-quarter 2025 results on July 24.
Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has remained unchanged at $1.09. The figure implies an increase of 13.5% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Invesco (IVZ - Free Report) is scheduled to announce second-quarter 2025 numbers on July 22.
Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised 2.6% higher to 39 cents. The figure implies a decrease of 9.3% from the prior-year quarter.