Blackstone Q3 2025 slides reveal 12% AUM growth amid mixed market reaction

Introduction & Market Context

Blackstone Inc (NYSE:BX) released its third quarter 2025 financial results on October 23, showcasing substantial growth across key metrics despite a negative market reaction. The world’s largest alternative asset manager reported total assets under management (AUM) of $1.24 trillion, representing a 12% increase year-over-year, while its stock fell 4.87% in pre-market trading to $161.07.

The company’s presentation highlighted strong distributable earnings of $1.9 billion ($1.52 per share), exceeding analyst expectations of $1.24 per share, marking a significant 22.58% surprise. However, revenue fell short at $3.09 billion against a forecast of $3.2 billion, which likely contributed to the negative stock movement despite the earnings beat.

Quarterly Performance Highlights

Blackstone’s third quarter results demonstrated robust performance across multiple financial metrics. Fee Related Earnings (FRE) reached $1.5 billion ($1.20 per share) for the quarter, bringing the last twelve months’ total to $6.0 billion ($4.92 per share). Distributable Earnings (DE) grew to $1.9 billion ($1.52 per share), representing a 48% increase year-over-year.

As shown in the following comprehensive overview of the quarter’s key metrics, Blackstone maintained strong momentum in fundraising with inflows of $54.2 billion for the quarter and $225.4 billion over the last twelve months:

The company’s segment earnings data further illustrates this growth trajectory, with total segment distributable earnings increasing significantly compared to the same period last year:

Chairman and CEO Stephen A. Schwarzman highlighted these results in the earnings release, stating, "The firm has achieved much in the past 40 years, but I strongly believe the best is ahead." This sentiment was echoed by President and COO Jon Gray who added, "The deal dam is finally breaking, and we have a bunch of secular tailwinds driving us forward."

Segment Analysis

Blackstone’s performance varied across its four main business segments, with Credit & Insurance showing particularly impressive growth. This segment saw AUM increase by 22% year-over-year to $432.3 billion, with massive inflows of $36.0 billion in the quarter alone and $127.3 billion over the last twelve months.

The following segment breakdown shows how distributable earnings were distributed across Blackstone’s business units for both the quarter and the last twelve months:

The Private Equity segment also performed strongly, with total AUM increasing 15% to $395.6 billion and segment distributable earnings more than doubling from $423.8 million in Q3 2024 to $871.5 million in Q3 2025. The Real Estate segment, while showing strong distributable earnings of $618.3 million, saw a slight decrease in total AUM to $320.5 billion.

The investment performance across strategies showed mixed results, with realizations leading to slightly lower Net Accrued Performance Revenues quarter-over-quarter:

Capital Deployment and Returns

Blackstone maintained an active investment approach during the quarter, deploying $26.6 billion in capital and achieving realizations of $30.6 billion. Over the last twelve months, the firm deployed $137.6 billion and realized $105.3 billion, demonstrating its ability to both identify investment opportunities and successfully exit positions.

The following chart illustrates the detailed movement in Blackstone’s total AUM, including inflows, outflows, realizations, and market activity:

Blackstone declared a quarterly dividend of $1.29 per common share, payable on November 10, 2025, bringing total dividends over the last twelve months to $4.69 per share. The company also continued its share repurchase program, buying back 0.2 million common shares during the quarter.

As shown in the following dividend information, Blackstone has maintained its commitment to returning capital to shareholders:

Forward Outlook

Despite the mixed market reaction to the earnings report, Blackstone’s management expressed optimism about future growth prospects. The firm anticipates 2026 to be a busy year for product launches and expects an acceleration of realizations. The company’s presentation highlighted its strong balance sheet position, with $11.1 billion in total cash, cash equivalents, corporate treasury, and other investments.

The company’s deconsolidated balance sheet highlights show a solid financial foundation for future growth:

Blackstone’s continued expansion in private wealth and insurance channels, supported by its growing perpetual capital base (now at $500.6 billion, up 15% year-over-year), positions the firm well for future growth. However, investors should note potential risks including revenue challenges, market volatility, and intense competition in the alternative asset management space.

As Blackstone navigates these opportunities and challenges, its scale, diversification, and market leadership continue to provide competitive advantages in the alternative investment landscape, even as the market digests the mixed signals from this quarter’s results.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.