BlackRock Tops $698 B Net Inflows, Posts 19% Revenue Growth and Approves $1.8 B Buybacks
BlackRock reported record net inflows of $698 billion in 2025, fueling 19% full‐year revenue growth to $24 billion and a 10% increase in adjusted EPS to $48.09. The board approved a 10% dividend hike for Q1 2026 and authorized repurchase of 7 million shares, targeting $1.8 billion in buybacks.
1. Fourth-Quarter Financial Performance
BlackRock reported fourth-quarter as-adjusted revenue of $7.0 billion, a 23% increase year-over-year driven by the acquisitions of HPS and Preqin, organic base fee growth, and favorable market moves on average assets under management. Operating income rose 22% to $2.8 billion, while earnings per share climbed 10% to $13.16. The quarter also reflected a lower effective tax rate of about 20%, offset by $106 million of net investment losses from a non-cash mark-to-market adjustment on its minority stake in Circle.
2. Record Net Inflows and AUM Expansion
For the full year 2025, BlackRock attracted $698 billion of net new assets, led by $527 billion at iShares (12% organic asset growth) and $40 billion in private markets. Retail channels saw $107 billion of inflows, boosted by an $80 billion separately managed account assignment, while institutional active strategies garnered $54 billion. Cash management products drew $131 billion. Total assets under management expanded to a record level, underpinning a 9% rise in organic base fees and 16% growth in technology annual contract value.
3. Technology Services and Fee Growth
Technology and subscription revenue advanced 24% year-over-year, fueled by client onboarding, expansions with existing relationships, and the full-year impact of Preqin, which contributed $213 million. Organic annual contract value grew 16% excluding acquisitions. Base fees and securities lending revenue reached $5.3 billion in the quarter, up 19%, including approximately $230 million from HPS. Performance fees totaled $754 million, with $158 million attributable to HPS.
4. Capital Return and 2026 Outlook
BlackRock’s board approved a 10% hike to the first-quarter 2026 dividend and authorized repurchase of an additional 7 million shares, targeting $1.8 billion of buybacks this year. Management reiterated its commitment to a 45% or greater adjusted operating margin, anticipating mid-single-digit G&A growth and broadly flat headcount after annualizing HPS and Preqin impacts. The firm enters 2026 with an integrated platform, a projected 25% tax rate, and strategic priorities in private markets, insurance, retirement solutions and digital assets positioning it for continued fee expansion and margin improvement.