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BlackRock Profit Dips Despite Beating Earnings Estimates
15 Jan
Summary
- BlackRock's net income fell 33% to $1.13 billion in Q4.
- The firm surpassed analyst earnings per share expectations.
- Assets under management exceeded $14 trillion for the first time.
BlackRock reported a 33% year-over-year decline in net income for the fourth quarter, reaching $1.13 billion. Despite this decrease, the world's largest money manager surpassed analyst earnings per share estimates, posting $13.16 per share against an expected $12.24. The company ended 2025 with assets under management exceeding $14 trillion for the first time.
Net inflows from clients totaled $268 billion, which was below the anticipated $311.6 billion. However, base management fees, excluding fund performance, showed a healthy 9% increase compared to the previous year. This growth indicates a stable revenue foundation for BlackRock.
Chief Executive Larry Fink's strategy to expand into private asset management continues to show promise. BlackRock reported $423.6 billion in alternative assets under management, a substantial increase from $290.6 billion a year earlier, partly due to acquisitions like HPS Investment Partners. Fink expressed optimism about achieving their private markets fundraising goal of $400 billion by 2030.
