BlackRock Q3 2025 presentation: Record $13.5T AUM drives 25% revenue growth

Introduction & Market Context

BlackRock (NYSE:BLK) released its Q3 2025 earnings presentation on October 14, 2025, revealing record assets under management of $13.5 trillion and substantial revenue growth amid favorable market conditions. The asset management giant reported a 25% year-over-year increase in revenue, reaching $6.51 billion for the quarter, exceeding analyst expectations of $6.29 billion.

The company’s performance benefited from strong equity markets, with the S&P 500 rising 16% year-over-year to 6,688 as of September 30, 2025. Following the earnings announcement, BlackRock’s stock rose 1.52% to $1,155.12, trading near its 52-week high of $1,209.82.

Quarterly Performance Highlights

BlackRock reported adjusted earnings per share of $11.55 for Q3 2025, surpassing the forecasted $11.31 and representing a modest increase from $10.91 in Q3 2023. The company’s adjusted operating income reached $2.62 billion, up significantly from $1.69 billion in Q3 2023, while operating margin expanded to 44.6% from 42.3% over the same period.

As shown in the following chart of BlackRock’s profitability metrics over the past two years:

The firm’s net income (as adjusted) increased to $1.91 billion in Q3 2025 from $1.64 billion in Q3 2023, demonstrating consistent profitability growth despite market fluctuations.

BlackRock’s diversified business model continues to be a key strength, with assets under management distributed across various product types, client segments, and geographic regions:

Equity products represent the largest portion of BlackRock’s AUM at 55%, generating 48% of base fees, while alternatives account for just 3% of AUM but contribute a disproportionate 17% of base fees, highlighting the higher fee structure of alternative investments.

Detailed Financial Analysis

BlackRock’s revenue composition for Q3 2025 shows base fees as the dominant revenue source at 75%, followed by technology services and distribution fees at 8% each, with performance fees contributing 5%:

The company reported impressive year-over-year revenue growth across all categories, with base fees increasing 25%, securities lending revenue up 36%, and performance fees rising 33%. Technology services and subscription revenue also showed strong growth at 28% year-over-year, reflecting BlackRock’s continued expansion beyond traditional asset management.

A closer examination of investment advisory, administration fees, and securities lending revenue reveals the key drivers behind BlackRock’s growth:

The $1.02 billion year-over-year increase in these revenues was driven primarily by growth in ETFs, private markets, and active equity strategies, demonstrating the company’s ability to capitalize on multiple growth vectors simultaneously.

On the expense side, BlackRock maintained disciplined cost management despite expanding operations:

While expenses increased by $819 million year-over-year, the company maintained its operating margin at 44.6%, indicating that revenue growth outpaced expense increases.

Strategic Initiatives & Business Diversification

BlackRock’s ETF business continues to be a significant growth driver, with consistently positive net flows ranging from $67 billion to $143 billion per quarter. The company’s long-term organic asset growth rate for ETFs has remained strong at 6-12%:

The alternatives business represents another strategic focus area for BlackRock, with $405 billion in client assets across various alternative investment categories:

Liquid alternatives and liquid credit have shown notable growth in fee-paying AUM, increasing from $52 billion to $76 billion and from $76 billion to $88 billion, respectively, between Q3 2024 and Q3 2025.

BlackRock has maintained a consistent capital return strategy, with quarterly share repurchases generally at $375 million and steadily increasing dividends:

The dividend per share has grown from $5.00 in Q3 2023 to $5.21 in Q3 2025, reflecting the company’s commitment to returning capital to shareholders while investing in growth initiatives.

Forward-Looking Statements

According to the earnings call transcript, BlackRock is targeting over 5% organic base fee growth through 2030, with plans to further explore tokenization of ETFs and long-term investment products. The company’s CEO, Laurence D. Fink, emphasized the potential of tokenization, stating, "We see future commercial opportunities in using tokenization to further bridge the gap between traditional capital markets and the growing digital asset space."

The company is also planning to launch a proprietary LifePath fund in 2026 and continues to focus on expanding its digital wallet strategies. CFO Martin S. Small noted, "Our goal is to basically replicate everything that sits in traditional wealth management... in the digital wallet."

While BlackRock’s presentation highlights its strong performance and growth initiatives, the company faces potential challenges from market volatility, regulatory changes in digital assets, competitive pressures from other asset managers, and macroeconomic conditions including interest rate fluctuations.

With its diversified business model, strategic growth initiatives, and strong financial performance, BlackRock appears well-positioned to maintain its leadership in the asset management industry as it navigates an evolving financial landscape.

Full presentation:

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