← Back

BlackRock: BlackRock's Strong 2025 Earnings: A Testament to its Diversified Platform

BlackRock's financial performance in 2025 was impressive, with revenue reaching $24 billion, up 19% year-over-year, driven by the acquisitions of HPS and Preqin, organic base fee growth, and the positive impact of market movements on average AUM. The company's operating income was $9.6 billion, up 18%, and earnings per share were $48.09, up 10%. In the fourth quarter, revenue was $7 billion, up 23% year-over-year, with base fees and securities lending revenue of $5.3 billion, up 19% year-over-year. The operating margin in the quarter was 45%, and excluding performance fees and related comp, the margin would have been 45.5%, up 30 basis points.

BLK

USD 1156.65

5.93%

A-Score: 5.7/10

Publication date: January 15, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Strong Revenue and Profit Growth: Full-year 2025 revenue reached $24 billion (+19% YoY), with operating income at $9.6 billion (+18%) and EPS of $48.09 (+10%).
  • Record Net New Assets: Added nearly $700 billion in net new assets, driven by iShares ETFs ($527B inflows) and private markets growth.
  • Shareholder Returns: Returned $5 billion to shareholders in 2025, including a 10% dividend increase and $1.8 billion in 2026 share repurchases.
  • Private Markets Expansion: Raised $25 billion for General Investment Platform V and targets $400 billion in private markets by 2030, with high-growth markets expected to generate $500 million in revenue by 2030.
  • Operating Margin Stability: 45% operating margin in Q4 2025, with adjusted margin of 45.5% excluding performance fees, reflecting efficient cost management.

Growth Prospects

BlackRock has a strong pipeline of business, with excellent fundraising activity and a broadened platform across products and regions. The company is building leading franchises in high-growth markets, including private markets, insurance, and digital assets, which are expected to be $500 million revenue generators in the next five years. BlackRock is optimistic about its growth prospects, citing a base fees run rate that's approximately 35% higher than in 2024 and 50% higher than in 2023. Analysts estimate next year's revenue growth at 11.5%, indicating a continued upward trajectory.

Valuation

To understand what's priced into BlackRock's stock, we can look at some key valuation metrics. The company's P/E Ratio is 27.17, P/B Ratio is 3.23, and P/S Ratio is 7.41. The EV/EBITDA ratio is 21.77, and the Dividend Yield is 1.8%. For a financial sector company like BlackRock, the Price-to-Book Ratio is particularly relevant. A P/B ratio of 3.23 suggests that investors are willing to pay a premium for the company's book value, reflecting its strong brand and profitability. The ROE of 13.19% also indicates a high level of profitability.

Business Highlights

Some key business highlights from the earnings report include the company's strong performance in fixed income, with over $45 billion of net inflows in 2025, and the success of its iShares ETFs, with a record year and $527 billion of net inflows. BlackRock's systematic equity franchise also raised over $50 billion in 2025. The company's Aladdin technology continues to power and unite its platform, driving growth and profitability.

Future Plans

BlackRock is focused on driving profitable growth, with plans to raise a cumulative $400 billion in private markets by 2030. The company is also targeting a 45% or greater adjusted operating margin profile, with a focus on recurring fee-related earnings. With its strong financial performance, diversified platform, and growth prospects, BlackRock is well-positioned for continued success in the years to come.

BlackRock's A-Score