Core Insights - BlackRock (BLK) has become the first asset manager to exceed $12 trillion in assets under management (AUM), reaching $12.53 trillion in Q2 2025, which significantly contributed to adjusted earnings of $12.05 per share, surpassing estimates by 13% and increasing 16% year-over-year [1][9] Financial Performance - Total revenues on a GAAP basis were $5.42 billion, reflecting a 13% year-over-year increase, although slightly below the consensus estimate of $5.43 billion [2][9] - Investment advisory and administration fees rose 15% to $4.28 billion, while technology services and subscription revenues surged 26% to $499 million; however, performance fees dropped 43% to $94 million [8][9] - Total expenses increased by 23% to $3.69 billion, primarily due to a 17% rise in employee compensation and benefits [10] AUM and Market Dynamics - The record AUM was driven by an 18% year-over-year increase, supported by strong U.S. stock market performance and robust net client inflows [3][9] - BlackRock experienced total net inflows of $68 billion in the quarter, with significant contributions from cash and money-market funds ($22 billion), digital asset ETFs ($14 billion), and alternative investments ($9.8 billion) [4] Client Activity - A notable withdrawal of $52 billion by a large Asian institutional client from a low-cost index strategy negatively impacted long-term net inflows, which decreased by 10% year-over-year to $46 billion [2][9]