BlackRock delivered a robust QQ3 2025 performance characterized by record assets under management, broad-based net inflows, and the strongest organic base fee growth in years. The quarter featured 10% annualized organic base fee growth, driven by a diversified mix of franchises including iShares ETFs, private markets, systematic outsourcing, and cash strategies. Revenue rose 25% year over year to $6.51 billion, supported by acquisitions (GIP, Preqin, HPS) and favorable market movements on average AUM. Despite a 26% year-over-year rise in total expenses, the company maintained an as-adjusted operating margin of 44.6% (46.3% ex-performance-fee/related comp), underscoring the margin expansion potential of recurring fee-related earnings as the integration of acquired platforms matures.
Management emphasized the value of a single BlackRock platform, accelerated cross-sell across public and private markets, and the potential of tokenization and digital-asset enablement to reshape long-duration investing. Net inflows of $205 billion in Q3 were broad-based, with iShares ETFs contributing $153 billion of net inflows. The cash management platform surpassed $1 trillion in AUM, signaling ongoing demand for scalable liquidity solutions. Looking ahead, BlackRock reiterated a commitment to its long-term growth trajectory (targeting 5%+ organic base fee growth to 2030 and currently achieving mid-teens growth in core G&A on a low-teens trajectory for 2025). The fourth quarter is historically stronger for organic growth, and the company signaled continued buybacks of at least $375 million.
Key takeaways for investors: (1) structural growth remains intact across ETFs, private markets, digital assets, and outsourcing; (2) the integrated platform approach is producing broad-based demand, including new mandates in private credit and infrastructure; (3) the tokenization/digital-wallet roadmap represents a potentially transformative optionality, contingent on regulatory clarity and technology development; and (4) the earnings trajectory hinges on continued net inflows, favorable market beta, and disciplined expense management as non-operating items normalize post-acquisitions.