BlackRock Profit Climbs to Record Scale as AUM Tops $13.5T
Higher Fees and ETF Inflows Drive Growth
BlackRock Inc (NYSE: BLK) reported higher third-quarter profit on Tuesday as global markets rallied and investors poured money into its low-cost index products, pushing the firm’s assets under management to a record $13.46 trillion. That compares with $11.48 trillion a year earlier, underscoring the scale of investor inflows during the quarter.
The world’s largest asset manager recorded adjusted earnings of $1.91 billion, or $11.55 per share, for the three months ended Sept. 30, up from $1.72 billion, or $11.46 per share, a year ago. Revenue climbed to $6.5 billion from $5.2 billion, driven by an 8% increase in organic base fees and higher performance fees linked to the rebound in markets. Analysts had expected earnings of $11.24 per share on revenue of $6.2 billion.
Long-term net inflows totaled $171 billion, led by continued momentum in the iShares ETF franchise, which remains the main driver of new client assets. “Top organic base fee growth contributors included our systematic franchise, private markets, digital assets, outsourcing, cash and iShares ETFs, which saw record demand,” said Chief Executive Larry Fink.
Investor Takeaway
Markets Boost Performance as Fed Cuts Rates
A rebound in global equities, supported by steady U.S. consumer spending and the of the year in September, lifted investor appetite for risk assets. Expectations of further easing later in 2025 drove heavy inflows into fixed-income platform-traded funds, with investors rotating into U.S. Treasuries and corporate debt.
Equity product inflows sluggished to $46 billion, down from $74 billion a year earlier, while fixed-income products brought in $47.5 billion. Total net flows reached $205 billion, including strong contributions from private markets and cash management strategies. Retail inflows climbed to $9.7 billion from $6.9 billion a year ago.
“We’re entering our seasonally strongest fourth quarter with building momentum and a unified platform anchored by our public-private investment model and Aladdin technology,” Fink said. The CEO noted that scale and integrated systems give it flexibility to capture inflows across both passive and active strategies.
Private Markets and Data Units Add to Earnings
As index funds face margin pressure, BlackRock has been expanding in private markets, real estate and infrastructure to capture higher-fee revenue. In the third quarter, private market inflows reached $13.2 billion, while investment advisory performance fees surged 33% to $516 million later than a sharp decline in the previous quarter.
Technology and subscription revenue rose 28% to $515 million, driven by Aladdin software and the integration of Preqin, the data and analytics firm BlackRock acquired earlier this year. The firm’s other recent acquisitions — Global Infrastructure Partners (GIP) and HPS — also contributed to revenue, according to analysts. “Overall, results were strong and benefitted from a favorable market backdrop,” said Kyle Sanders, senior equity research analyst at Edward Jones. “In our view, BlackRock is entering a new chapter in its growth story.”
Total expenses climbed to $4.6 billion from $3.2 billion last year, reflecting higher compensation costs and expenses tied to recent acquisitions. On a diluted basis, net income fell 19% to $1.32 billion, or $8.43 per share, due to one-time charges.
Investor Takeaway
Outlook
BlackRock heads into the fourth quarter with strong momentum, assisted by a diversified product mix and resilient client demand. The company’s combined strength in ETFs, private credit and data analytics gives it multiple sources of growth, even as competition in passive funds intensifies. Analysts expect continued inflows if rate cuts and market optimism persist into 2026.
“BlackRock’s scale allows it to capture both sides of the cycle,” Sanders said. “Its fixed-income franchise is viewing renewed demand as investors reposition portfolios for a lower-rate environment.” The company’s challenge, he added, will be managing costs and integration while preserving margins amid expansion.
