Blackstone Q2 Earnings Beat as AUM Hits Record High on Solid Inflows

Core Insights - Blackstone's second-quarter 2025 distributable earnings of $1.21 per share exceeded the Zacks Consensus Estimate of $1.10, marking a 26% increase from the prior-year quarter [1][9] - The company's shares rose nearly 2% in pre-market trading due to the better-than-expected quarterly performance [1] - Results were driven by higher segment revenues and an increase in assets under management (AUM), although GAAP expenses increased, presenting a challenge [1] Financial Performance - Net income attributable to Blackstone reached $764.2 million, a significant surge of 72% from the year-ago quarter [2] - Total segment revenues for the quarter were $3.07 billion, a 22% year-over-year increase, surpassing the Zacks Consensus Estimate of $2.75 billion [3][9] - On a GAAP basis, revenues were $3.71 billion, reflecting a 33% growth [3] - Total GAAP expenses amounted to $1.93 billion, rising 18% year over year [3] Assets Under Management - As of June 30, 2025, Blackstone's fee-earning AUM grew 10% year over year to $887.1 billion [5] - The total AUM reached $1.21 trillion, up 13%, primarily driven by $52.1 billion in inflows during the reported quarter [5][9] - The undrawn capital available for investment was $181.2 billion as of June 30, 2025 [5] Share Repurchase Activity - During the reported quarter, Blackstone repurchased 0.2 million shares [6] - As of June 30, 2025, there was $1.4 billion worth of buyback authorization remaining [6] Strategic Outlook - Blackstone is positioned for top-line growth, supported by a continuous rise in AUM and strong fundraising capabilities [7] - However, high expenses and a challenging operating environment may impact the bottom line in the near term [7]