BlackRock Beats on Q4 Earnings as Revenues & AUM Increase Y/Y

Core Insights - BlackRock's fourth-quarter 2025 adjusted earnings per share (EPS) of $13.16 exceeded the Zacks Consensus Estimate of $12.39, marking a 10.3% increase year-over-year [1][8] - The company's assets under management (AUM) reached a record high of $14.04 trillion, driven by net inflows of $268 billion during the quarter [5][8] - Despite revenue growth, total expenses rose significantly, impacting net income [4][9] Financial Performance - BlackRock's net income on a GAAP basis for Q4 2025 was $1.13 billion, a decline of 32.5% from the prior-year quarter [2] - Quarterly revenues were reported at $7.01 billion, surpassing the Zacks Consensus Estimate of $6.75 billion, reflecting a year-over-year increase of 23.4% [3][8] - For the full year 2025, adjusted earnings were $48.09 per share, exceeding the Zacks Consensus Estimate of $47.35, with a year-over-year rise of 10.3% [2] Expense Analysis - Total quarterly expenses amounted to $5.35 billion, up 48.4% year-over-year, attributed to increases across all cost components [4] - Non-operating expenses were reported at $54 million, contrasting with an income of $28 million in the prior-year quarter [4] AUM and Inflows - As of December 31, 2025, AUM totaled $14.04 trillion, reflecting a year-over-year rise of 21.6% [5] - The average AUM for the year was $13.73 trillion, which rose 18.8% year-over-year [5] Capital Deployment - BlackRock repurchased shares worth $1.6 billion in 2025 and announced a quarterly cash dividend of $5.73 per share, a 10% increase from the previous payout [6] - The board approved an additional 7 million share repurchase authorization [6] Strategic Outlook - The company is focusing on diversifying its offerings and improving its revenue mix, with recent acquisitions expected to enhance its position as a global asset manager [9] - Elevated expenses remain a significant challenge for the company [9]