BlackRock (NYSE:BLK) Q4 2025 Earnings call January 15, 2026 07:30 AM ET Company ParticipantsMichael Brown - Managing DirectorBen Budish - DirectorMichael Cyprys - Managing DirectorAlex Blostein - Managing DirectorChristopher Meade - General CounselDan Fannon - Managing DirectorLaurence Fink - Chairman and CEOCraig Siegenthaler - Managing DirectorMartin Small - CFOConference Call ParticipantsKen Worthington - Senior Equity Research AnalystOperatorGood morning. My name is Jennifer, and I will be your conferen ...

Financial Data and Key Metrics Changes - BlackRock reported nearly $700 billion in net new assets for 2025, with a 9% organic base fee growth and a 16% technology annual contract value (ACV) expansion [3][4] - Full year revenue reached $24 billion, up 19% year over year, while operating income was $9.6 billion, an 18% increase [8] - Earnings per share (EPS) for the full year was $48.09, reflecting a 10% increase [8] Business Line Data and Key Metrics Changes - Fourth quarter base fees and securities lending revenue amounted to $5.3 billion, a 19% increase year over year, driven by market beta impacts and organic growth [10] - Performance fees in the fourth quarter were $754 million, up from the previous year, with significant contributions from alternatives [11] - Technology services and subscription revenue increased by 24% year over year, reflecting successful client onboarding and the closing of the Preqin transaction [11] Market Data and Key Metrics Changes - iShares led the industry with $527 billion in net inflows for 2025, representing 12% organic asset growth [15] - Retail net inflows for the year were $107 billion, significantly boosted by a $80 billion SMA assignment from Citi Wealth [16] - Institutional active franchise generated net inflows of $54 billion, while institutional index net outflows were $119 billion, primarily due to low-fee index equity strategy redemptions [16] Company Strategy and Development Direction - BlackRock aims to build leading franchises in high-growth markets such as private markets, digital assets, and active ETFs, targeting $500 million revenue generators in the next five years [6][7] - The company plans to raise $400 billion in private markets by 2030, leveraging strong client relationships and investment performance [22] - BlackRock is focused on integrating public and private markets, enhancing its technology and data capabilities through platforms like Aladdin and Preqin [7][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing strong client relationships and a diversified pipeline across products and regions [18][19] - The company anticipates continued organic base fee growth of 6% or higher, supported by a favorable market environment [38] - Management highlighted the importance of adapting to changing market conditions and the potential for increased cash holdings as capital markets grow [42][43] Other Important Information - BlackRock returned a record $5 billion to shareholders in 2025 through dividends and share repurchases, with a planned 10% increase in the dividend per share for 2026 [13][14] - The company is targeting a $1.8 billion share repurchase program for 2026 [15] - BlackRock's platform is positioned to capture flows with strong performance across various asset classes, including fixed income and active ETFs [28][29] Q&A Session Summary Question: What is the outlook for net flow pipeline and the money market business? - Management noted that organic base fee growth has consistently outperformed expectations, with a strong pipeline for private markets and systematic strategies [37] - They expect money market yields to fall with potential rate cuts, but anticipate continued demand for fixed income offerings [39][40] Question: How is BlackRock prioritizing growth in Asia? - Management highlighted the rapid growth of capital markets in Asia, particularly in Japan and India, and emphasized the potential for self-directed retirement platforms [45][46] Question: How does BlackRock differentiate in the insurance channel? - BlackRock is the largest general account manager for insurance companies, focusing on delivering customized solutions and integrating public and private portfolios [50][52]