01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
BlackRock, Inc. reported strong revenue growth in the third quarter of 2025, driven by increased investment advisory, administration fees, and technology services.
Acquisitions, notably HPS Investment Partners, contributed significantly to Assets Under Management (AUM) and revenue, bolstering the company's private markets and credit offerings. Despite higher operating expenses due to integration costs and investments in technology, BlackRock maintained a robust operating margin. Diluted earnings per share saw a decrease compared to the prior year, primarily attributed to increased share count from acquisitions and higher non-cash acquisition-related expenses.
Key financial highlights include a substantial increase in total revenue to $6.5 billiona, up 25% year-over-year, and AUM reaching $13.5 trillion. The company's strategic acquisitions are integrating well, expanding its capabilities and client base.
Investors should note the impact of acquisition-related costs on GAAP earnings, while the 'as adjusted' figures provide a clearer view of ongoing operational performance. The company remains committed to capital return to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Total revenue increased 25% year-over-year to $6.5 billion in Q3 2025.
- Assets Under Management (AUM) grew to $13.5 trillion by September 30, 2025.
- The HPS Investment Partners acquisition contributed significantly to AUM and revenue, enhancing private credit capabilities.
- Employee compensation and benefits expense increased substantially due to acquisitions and retention awards.
- GAAP operating income decreased year-over-year due to acquisition-related expenses, while 'as adjusted' operating income showed strong growth.
- Diluted earnings per share decreased year-over-year, impacted by higher share counts and acquisition costs.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $6.51B$5.20B | +25.2% |
| Operating Expenses | $4.55B$3.19B | +42.7% |
| Operating Income | $1.96B$2.01B | −2.5% |
| Net Income | $1.32B$1.63B | −18.9% |
| EPS (Basic) | $8.54$11.02 | −22.5% |
| EPS (Diluted) | $8.43$10.90 | −22.7% |
| Shares Outstanding (Basic) | 154.92M148.05M | +4.6% |
| Shares Outstanding (Diluted) | 165.18M149.61M | +10.4% |
05—Questions
Frequently Asked Questions
How did the recent acquisitions impact BlackRock's financial performance in the third quarter?
BlackRock completed the acquisitions of HPS Investment Partners (July 1, 2025), Preqin Holding Limited (March 3, 2025), and ElmTree Funds (September 2, 2025). These acquisitions contributed to increased AUM, revenue, and expanded service offerings, particularly in private markets and credit. However, they also led to higher operating expenses, including amortization of intangible assets and acquisition-related compensation costs, which impacted GAAP profitability. The 'as adjusted' financial measures exclude these acquisition-related costs, providing a view of ongoing operational performance.
What is the outlook for BlackRock's revenue and earnings growth?
Revenue growth was strong in Q3 2025, driven by organic growth, market performance, and contributions from recent acquisitions, alongside technology services and subscription revenue. While GAAP earnings per share were lower year-over-year due to acquisition-related expenses and a higher share count, the 'as adjusted' earnings per share showed an increase. Management believes that continued organic growth, strategic acquisitions, and the expansion of its technology and private market offerings position the company for sustained future growth.
How is BlackRock managing its expenses, particularly in light of increased costs from acquisitions?
BlackRock experienced higher operating expenses, particularly in employee compensation and benefits, general and administration, and amortization of intangible assets, largely due to the recent acquisitions and associated integration costs. The company is focusing on managing these expenses while continuing to invest in technology and strategic initiatives. The 'as adjusted' financial results exclude certain acquisition-related costs and restructuring charges to better reflect ongoing operational performance, indicating that core operational efficiency remains a focus.
06—Continue