Morningstar

BlackRock Earnings: Solid AUM and Revenue Growth Offset by Modest Margin Compression

We expect the back half of the year to pose more headwinds for the stock.

The BlackRock logo on a building exterior.
Siegfried Anthony/STAR MAX/IPx via AP
Securities in This Article
BlackRock Inc
(BLK)

Key Morningstar Metrics for BlackRock

What We Thought of BlackRock’s Earnings

BlackRock BLK ended June 2025 with a record $12.528 trillion in managed assets, up 17.7% year over year. Second-quarter revenue increased 12.9% year over year on higher average AUM and slightly higher fee rates. Adjusted operating margins declined 80 basis points year over year to 43.3%.

Why it matters: BlackRock continues to outdo its traditional asset management peers from an organic AUM growth perspective, as its mix of passive products—index funds and ETFs—continues to appeal more to investors than most active products. The expansion of its private capital platform will only add to the firm’s ability to stay ahead of the group.

  • Net long-term inflows of $46 billion represented an annualized organic AUM growth rate of 1.7% for the June quarter, below our annual target of 3%-5% but reflective of the ongoing market uncertainty. We expect to see lower growth rates from its peers.
  • The iShares platform remains the biggest driver of flows for BlackRock, with the firm picking up $85 billion in net long-term inflows—equivalent to an 8.8% annualized organic AUM growth rate—from its ETF business during the second quarter.

The bottom line: While BlackRock benefited greatly from market gains and favorable currency exchange in the second quarter, we expect the back half of the year to pose more headwinds as the impacts of the US government’s fiscal, tariff, and immigration policies become more apparent.

  • There was little in the second-quarter results that would alter our long-term view of BlackRock. The company continues to trade at a hefty premium relative to the price/earnings multiples of the other US-based traditional asset managers (which we think is warranted).
  • The stock is fairly valued relative to our $1,050 per share fair value estimate. While a case could be made for an upward revision to our estimate, we expect to stick with our more conservative near-term assumptions for BlackRock and the rest of the US-based asset managers.

Correction: (July 16, 2025): A previous version of this note included an incorrect fair value estimate for BlackRock. It should be $1,050, not $1,100.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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