BlackRock (BLK) Reports Q3 2025 Adjusted EPS of $11.55, Exceeding Estimates

BlackRock (BLK.US) today announced its financial results for the third quarter of 2025, reporting an adjusted diluted EPS of $11.55. This figure surpassed analyst estimates of $11.25. The company’s revenue for the quarter reached $6.509 billion, marking a 25% increase year-over-year. Adjusted operating income also saw a significant rise of 23% year-over-year.

For the same period, GAAP diluted EPS was reported at $8.43, a 23% decrease year-over-year, primarily impacted by noncash acquisition-related expenses. Net income attributable to BlackRock, Inc., on a GAAP basis, was $1.323 billion, reflecting a 19% decrease from the prior year's quarter.

Strong Performance Drivers

BlackRock experienced robust quarterly total net inflows of $205 billion, driven by a record quarter for iShares® ETFs, alongside strong contributions from private markets and cash net inflows. This performance fueled a 10% annualized organic base fee growth in the third quarter.

The 25% increase in revenue year-over-year was positively impacted by favorable market conditions, 8% organic base fee growth over the last twelve months, and fees from the GIP and HPS Transactions. Technology services and subscription revenue also contributed significantly to this growth, increasing by 28% year-over-year.

Acquisition Impact and Organic Growth

The company's strategic acquisitions played a key role in its quarterly performance, with the acquisition of HPS Investment Partners closing on July 1st. This added $165 billion of client AUM and $118 billion of fee-paying AUM, further diversifying BlackRock’s assets.

Technology services and subscription revenue saw an increase of $112 million from the third quarter of 2024, partly due to sustained demand for Aladdin® technology offerings and $65 million from the acquisition of Preqin Holding Limited in March 2025. Annual Contract Value (ACV) for technology services and subscription increased 29%, including ACV related to Preqin.

Management Commentary and Outlook

Laurence D. Fink, Chairman and CEO, highlighted the diversified nature of BlackRock’s growth, with top organic base fee growth contributors including systematic franchise, private markets, digital assets, outsourcing, cash, and iShares ETFs. BlackRock’s Assets Under Management (AUM) reached a new high of $13.5 trillion, with iShares and cash franchises surpassing new AUM milestones of $5 trillion and $1 trillion, respectively.

Fink expressed confidence in the company's future, stating that BlackRock is entering its seasonally strongest fourth quarter with building momentum and a fully unified platform. He believes the scale of the opportunity ahead for BlackRock, its clients, and shareholders far exceeds what has been seen before, anchored by a public-private investment model and Aladdin technology.