EX-99.12blk-ex99_1.htmEX-99.1 EX-99.1
Exhibit 99.1
INVESTOR RELATIONS:
Caroline Rodda 212.810.3442
MEDIA RELATIONS:
Patrick Scanlan 212.810.3622
BlackRock Reports Full Year 2025 Diluted EPS of $35.31, or $48.09 as adjusted
Fourth Quarter 2025 Diluted EPS of $7.16, or $13.16 as adjusted
New York, January 15, 2026 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2025.
$14 trillion in AUM following record $698 billion of full year net inflows, including $342 billion in the fourth quarter
12% annualized organic base fee growth in the fourth quarter reflects broad-based strength across iShares® ETFs, systematic active equities, private markets, outsourcing and cash
19% increase in full year revenue reflects the positive impact of markets, 9% organic base fee growth over the last twelve months, fees related to the GIP and HPS Transactions, and higher technology services and subscription revenue
7% decrease in full year GAAP operating income and 16% decrease in GAAP diluted EPS related to noncash acquisition-related expenses and a noncash charitable contribution, which have been excluded from as adjusted results
18% increase in full year as adjusted operating income driven by higher revenue
10% increase in full year as adjusted diluted EPS also reflects lower nonoperating income and a higher diluted share count
$5 billion returned to shareholders in 2025, including $1.6 billion worth of share repurchases
10% increase in quarterly cash dividend to $5.73 per share approved by Board of Directors, payable March 24, 2026 to shareholders of record at the close of business on March 6, 2026
7 million additional shares authorized for repurchase under existing repurchase program by Board of Directors
Laurence D. Fink, Chairman and CEO:
“BlackRock enters 2026 with accelerating momentum across our entire platform, coming off the strongest year and quarter of net inflows in our history. Clients entrusted us with $698 billion of new assets in 2025, powering 9% organic base fee growth. And we ended the year with back-to-back quarters of double-digit organic base fee growth, including 12% in the fourth quarter.
“2026 will be our first full year as a unified platform with GIP, HPS and Preqin. Around the world, clients are looking to do more across BlackRock. Our pipeline of business has broadened across products and regions, spanning public and private markets mandates, technology and data, and client channels. We’re seeing excellent fundraising activity as we work toward our goal of $400 billion in private markets fundraising by 2030.
“BlackRock is at the forefront of some of the largest new growth channels across the industry – from private markets to wealth and 401(k), to active ETFs, to private markets data, to digital assets and tokenization. Our belief in our increasing growth and margin trajectory led us to raise our dividend per share by 10% and our level of planned share repurchases.
“BlackRock is differentiated as a scale operator in public and private markets investing and technology, which is enhancing our positioning with clients worldwide. We’re a leader in public and private markets, and in technology and data. We’re a foundational player in both traditional and decentralized financial markets. Importantly, we bring it all together to deliver BlackRock to our clients in a consistent, unified way. We’ve already begun 2026 with strong momentum, and we’re positioned ahead of big future opportunities to deliver better outcomes for clients and growth for our shareholders.”
FINANCIAL RESULTS
NET FLOW HIGHLIGHTS(1)
(in millions,
Q4
Q4
Full Year
Q4
Full Year
except per share data)
2025
2024
2025
2024
(in billions)
2025
2025
AUM
$
14,041,518
$
11,551,251
$
14,041,518
$
11,551,251
Long-term net flows:
$
268
$
567
% change
22
%
22
%
Average AUM
$
13,731,112
$
11,555,434
$
12,603,633
$
10,804,007
By region:
% change
19
%
17
%
Americas
$
190
$
418
Total net flows
$
341,711
$
281,416
$
698,261
$
641,351
EMEA
86
215
APAC
(8
)
(66
)
GAAP basis:
Revenue
$
7,008
$
5,677
$
24,216
$
20,407
By client type:
% change
23
%
19
%
Operating income
$
1,661
$
2,075
$
7,045
$
7,574
Retail:
$
82
$
107
% change
(20
)%
(7
)%
US
51
62
Operating margin
23.7
%
36.6
%
29.1
%
37.1
%
International
31
45
Net income(1)
$
1,127
$
1,670
$
5,553
$
6,369
% change
(33
)%
(13
)%
ETFs:
$
181
$
527
Diluted EPS
$
7.16
$
10.63
$
35.31
$
42.01
Active
13
54
% change
(33
)%
(16
)%
Core equity
70
168
Weighted-average
Digital assets
1
35
diluted shares
165.4
157.0
160.9
151.6
Fixed income
48
159
% change
5
%
6
%
Precision & other
49
111
As Adjusted(2):
Institutional:
$
5
$
(66
)
Operating income
$
2,848
$
2,326
$
9,600
$
8,110
Active
16
53
% change
22
%
18
%
Index
(12
)
(119
)
Operating margin
45.0
%
45.5
%
44.1
%
44.5
%
Net income(3)
$
2,176
$
1,874
$
7,736
$
6,612
Cash management net flows
$
74
$
131
% change
16
%
17
%
Diluted EPS(3)
$
13.16
$
11.93
$
48.09
$
43.61
Total net flows
$
342
$
698
% change
10
%
10
%
_________________________
_________________________
(1) Net income represents net income attributable to BlackRock, Inc.
(2) See pages 12 through 14 for the reconciliation to accounting principles generally accepted in
the United States ("GAAP") and notes (1) through (3) to the condensed consolidated
statements of income and supplemental information for more information on as adjusted items.
(3) Beginning in the third quarter of 2025, net income attributable to BlackRock, Inc., as adjusted,
and diluted earnings per common share, as adjusted, assume all Class B-2 common units
("Subco Units") of BlackRock Saturn Subco, LLC ("Subco"), a consolidated subsidiary of the
Company, have been exchanged in accordance with their terms on a one-for-one basis into
common stock of BlackRock. Accordingly, the noncontrolling interest related to these Subco
Units has been included as part of net income attributable to BlackRock, Inc., as adjusted.
(1) Totals may not add due to rounding.
1
BUSINESS RESULTS
Q4 2025
Q4 2025
Base fees(1)
Base fees(1)
December 31, 2025
and securities
Q4 2025
December 31, 2025
and securities
AUM
lending revenue
(in millions), (unaudited)
Net flows
AUM
lending revenue
% of Total
% of Total
RESULTS BY PRODUCT TYPE
Equity
$
126,053
$
7,793,875
$
2,530
55
%
48
%
Fixed income
83,771
3,272,021
1,037
23
%
20
%
Multi-asset
36,868
1,223,625
373
9
%
7
%
Alternatives:
Private markets
12,708
322,624
663
2
%
13
%
Liquid alternatives
2,862
100,990
184
1
%
3
%
Alternatives subtotal
15,570
423,614
847
3
%
16
%
Digital assets
579
78,435
58
1
%
1
%
Currency and commodities(2)
4,957
169,216
103
1
%
2
%
Long-term
267,798
12,960,786
4,948
92
%
94
%
Cash management
73,913
1,080,732
330
8
%
6
%
Total
$
341,711
$
14,041,518
$
5,278
100
%
100
%
RESULTS BY CLIENT TYPE
Retail
$
81,759
$
1,278,732
$
1,243
9
%
24
%
ETFs
181,484
5,467,710
2,279
39
%
43
%
Institutional:
Active
16,125
2,518,170
1,167
18
%
22
%
Index
(11,570
)
3,696,174
259
26
%
5
%
Institutional subtotal
4,555
6,214,344
1,426
44
%
27
%
Long-term
267,798
12,960,786
4,948
92
%
94
%
Cash management
73,913
1,080,732
330
8
%
6
%
Total
$
341,711
$
14,041,518
$
5,278
100
%
100
%
RESULTS BY INVESTMENT STYLE
Active
$
97,731
$
3,432,743
$
2,321
24
%
44
%
ETFs
181,484
5,467,710
2,279
39
%
43
%
Non-ETF index
(11,417
)
4,060,333
348
29
%
7
%
Long-term
267,798
12,960,786
4,948
92
%
94
%
Cash management
73,913
1,080,732
330
8
%
6
%
Total
$
341,711
$
14,041,518
$
5,278
100
%
100
%
(1)
Base fees include investment advisory and administration fees.
(2)
Amounts include commodity exchange-traded funds ("ETFs") and exchange-traded products ("ETPs").
INVESTMENT PERFORMANCE AT December 31, 2025(1)
One-year period
Three-year period
Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable
76%
86%
82%
Tax-exempt
46%
53%
62%
Index AUM within or above applicable tolerance
99%
99%
99%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental
40%
71%
46%
Systematic
78%
95%
94%
Index AUM within or above applicable tolerance
95%
96%
99%
(1)
Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 16 for performance disclosure detail.
TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION
Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Thursday, January 15, 2026 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (312) 471-1353, or from outside the United States, (800) 330-6710, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 3978109). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.
The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Thursday, January 15, 2026. To access the replay of the webcast, please visit the investor relations section of www.blackrock.com.
ABOUT BLACKROCK
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
Three Months
Three Months Ended
Ended
December 31,
September 30,
2025
2024
Change
2025
Change
Revenue
Investment advisory, administration fees and
securities lending revenue:
Investment advisory and administration fees
$
5,104
$
4,256
$
848
$
4,843
$
261
Securities lending revenue
174
161
13
203
(29
)
Total investment advisory, administration fees
and securities lending revenue
5,278
4,417
861
5,046
232
Investment advisory performance fees
754
451
303
516
238
Technology services and subscription revenue
531
428
103
515
16
Distribution fees
359
322
37
355
4
Advisory and other revenue
86
59
27
77
9
Total revenue
7,008
5,677
1,331
6,509
499
Expense
Employee compensation and benefits
2,584
1,885
699
2,357
227
Sales, asset and account expense:
Distribution and servicing costs
676
565
111
638
38
Direct fund expense
470
389
81
464
6
Sub-advisory and other
80
42
38
60
20
Total sales, asset and account expense
1,226
996
230
1,162
64
General and administration expense
814
624
190
689
125
Change in fair value of contingent consideration
455
(28
)
483
93
362
Amortization and impairment of intangible assets
268
125
143
253
15
Total expense
5,347
3,602
1,745
4,554
793
Operating income
1,661
2,075
(414
)
1,955
(294
)
Nonoperating income (expense)
Net gain (loss) on investments
(38
)
(18
)
(20
)
64
(102
)
Net interest income (expense)
(16
)
46
(62
)
(22
)
6
Total nonoperating income (expense)
(54
)
28
(82
)
42
(96
)
Income before income taxes
1,607
2,103
(496
)
1,997
(390
)
Income tax expense
372
442
(70
)
470
(98
)
Net income
1,235
1,661
(426
)
1,527
(292
)
Less:
Net income (loss) attributable to noncontrolling
interests ("NCI") - consolidated sponsored
investment products ("CIPs")
51
(9
)
60
134
(83
)
Net income (loss) attributable to NCI - Subco
57
-
57
70
(13
)
Net income attributable to BlackRock, Inc.
$
1,127
$
1,670
$
(543
)
$
1,323
$
(196
)
Weighted-average common shares outstanding
Basic
155.1
155.0
0.2
154.9
0.2
Diluted (including Subco Units)
165.4
157.0
8.4
165.2
0.2
Earnings per share attributable to BlackRock, Inc.
common stockholders
Basic
$
7.27
$
10.78
$
(3.51
)
$
8.54
$
(1.27
)
Diluted
$
7.16
$
10.63
$
(3.47
)
$
8.43
$
(1.27
)
Cash dividends declared and paid per share
$
5.21
$
5.10
$
0.11
$
5.21
$
-
Supplemental information:
AUM (end of period)
$
14,041,518
$
11,551,251
$
2,490,267
$
13,463,625
$
577,893
Shares outstanding including Subco Units
162.8
154.9
7.9
163.2
(0.4
)
GAAP:
Operating margin
23.7
%
36.6
%
(1,290
)
bps
30.0
%
(630
)
bps
Effective tax rate
23.9
%
20.9
%
300
bps
25.2
%
(130
)
bps
As adjusted:
Operating income (1)
$
2,848
$
2,326
$
522
$
2,621
$
227
Operating margin (1)
45.0
%
45.5
%
(50
)
bps
44.6
%
40
bps
Nonoperating income (expense), less net income
(loss) attributable to NCI - CIPs (2)
$
(122
)
$
39
$
(161
)
$
(106
)
$
(16
)
Net income attributable to BlackRock, Inc. (3)
$
2,176
$
1,874
$
302
$
1,907
$
269
Diluted earnings attributable to BlackRock, Inc.
common stockholders per share (3)
$
13.16
$
11.93
$
1.23
$
11.55
$
1.61
Effective tax rate
20.2
%
20.8
%
(60
)
bps
24.2
%
(400
)
bps
See pages 12 through 14 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the fourth quarter of 2025, BlackRock updated the presentation of the Company's expense line items within the condensed consolidated statements of income to separately present the change in fair value of contingent consideration line item, which was previously disclosed within general and administration expense. Prior periods have been updated to conform to this new presentation. Beginning in the third quarter of 2025, net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, assume all Subco Units have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock.
Accordingly, the noncontrolling interest related to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. As of December 31, 2025, there were 155.1 million shares of common stock and 7.7 million Subco Units outstanding.
3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
Year Ended
December 31,
2025
2024
Change
Revenue
Investment advisory, administration fees and
securities lending revenue:
Investment advisory and administration fees
$
18,474
$
15,485
$
2,989
Securities lending revenue
705
615
90
Total investment advisory, administration fees
and securities lending revenue
19,179
16,100
3,079
Investment advisory performance fees
1,424
1,207
217
Technology services and subscription revenue
1,981
1,603
378
Distribution fees
1,355
1,273
82
Advisory and other revenue
277
224
53
Total revenue
24,216
20,407
3,809
Expense
Employee compensation and benefits
8,446
6,546
1,900
Sales, asset and account expense:
Distribution and servicing costs
2,460
2,171
289
Direct fund expense
1,767
1,464
303
Sub-advisory and other
233
140
93
Total sales, asset and account expense
4,460
3,775
685
General and administration expense
2,731
2,257
474
Change in fair value of contingent consideration
720
(36
)
756
Restructuring charge
39
-
39
Amortization and impairment of intangible assets
775
291
484
Total expense
17,171
12,833
4,338
Operating income
7,045
7,574
(529
)
Nonoperating income (expense)
Net gain (loss) on investments
634
492
142
Net interest income (expense)
(60
)
229
(289
)
Total nonoperating income (expense)
574
721
(147
)
Income before income taxes
7,619
8,295
(676
)
Income tax expense
1,677
1,783
(106
)
Net income
5,942
6,512
(570
)
Less:
Net income (loss) attributable to NCI - CIPs
262
143
119
Net income (loss) attributable to NCI - Subco
127
-
127
Net income attributable to BlackRock, Inc.
$
5,553
$
6,369
$
(816
)
Weighted-average common shares outstanding
Basic
155.0
150.0
4.9
Diluted (including Subco Units)
160.9
151.6
9.3
Earnings per share attributable to BlackRock, Inc.
common stockholders
Basic
$
35.83
$
42.45
$
(6.62
)
Diluted
$
35.31
$
42.01
$
(6.70
)
Cash dividends declared and paid per share
$
20.84
$
20.40
$
0.44
Supplemental information:
AUM (end of period)
$
14,041,518
$
11,551,251
$
2,490,267
Shares outstanding including Subco Units
162.8
154.9
7.9
GAAP:
Operating margin
29.1
%
37.1
%
(800
)
bps
Effective tax rate
22.8
%
21.9
%
90
bps
As adjusted:
Operating income (1)
$
9,600
$
8,110
$
1,490
Operating margin (1)
44.1
%
44.5
%
(40
)
bps
Nonoperating income (expense), less net income
(loss) attributable to NCI - CIPs (2)
$
251
$
533
$
(282
)
Net income attributable to BlackRock, Inc. (3)
$
7,736
$
6,612
$
1,124
Diluted earnings attributable to BlackRock, Inc.
common stockholders per share (3)
$
48.09
$
43.61
$
4.48
Effective tax rate
21.5
%
23.5
%
(200
)
bps
See pages 12 through 14 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the fourth quarter of 2025, BlackRock updated the presentation of the Company's expense line items within the condensed consolidated statements of income to separately present the change in fair value of contingent consideration line item, which was previously disclosed within general and administration expense. Prior periods have been updated to conform to this new presentation. Beginning in the third quarter of 2025, net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, assume all Subco Units have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock.
Accordingly, the noncontrolling interest related to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. As of December 31, 2025, there were 155.1 million shares of common stock and 7.7 million Subco Units outstanding.
4
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Product Type
Net
September 30,
inflows
Market
FX
December 31,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Equity
$
7,459,075
$
126,053
$
-
$
218,485
$
(9,738
)
$
7,793,875
$
7,629,717
Fixed income
3,178,965
83,771
(225
)
17,997
(8,487
)
3,272,021
3,216,982
Multi-asset
1,161,957
36,868
-
24,104
696
1,223,625
1,185,944
Alternatives:
Private markets
320,886
12,708
(10,706
)
(317
)
53
322,624
320,397
Liquid alternatives
97,448
2,862
(136
)
787
29
100,990
98,845
Alternatives subtotal
418,334
15,570
(10,842
)
470
82
423,614
419,242
Digital assets
103,965
579
-
(26,113
)
4
78,435
92,317
Currency and commodities(4)
136,600
4,957
-
27,739
(80
)
169,216
149,998
Long-term
12,458,896
267,798
(11,067
)
262,682
(17,523
)
12,960,786
12,694,200
Cash management
1,004,729
73,913
-
2,246
(156
)
1,080,732
1,036,912
Total
$
13,463,625
$
341,711
$
(11,067
)
$
264,928
$
(17,679
)
$
14,041,518
$
13,731,112
Current Quarter Component Changes by Client Type and Product Type (Long-Term)
Net
September 30,
inflows
Market
FX
December 31,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Retail:
Equity
$
597,262
$
15,230
$
-
$
16,833
$
(244
)
$
629,081
$
609,007
Fixed income
344,651
37,575
-
2,053
608
384,887
355,201
Multi-asset
168,883
26,038
-
4,711
23
199,655
178,560
Private markets
29,770
1,290
(571
)
194
(2
)
30,681
30,298
Liquid alternatives
33,002
1,626
(29
)
(165
)
(6
)
34,428
33,552
Retail subtotal
1,173,568
81,759
(600
)
23,626
379
1,278,732
1,206,618
ETFs:
Equity
3,788,431
122,770
-
94,781
32
4,006,014
3,897,017
Fixed income
1,157,582
51,919
-
(3,675
)
127
1,205,953
1,186,224
Multi-asset
13,111
1,070
-
143
78
14,402
13,735
Digital assets
103,965
579
-
(26,113
)
4
78,435
92,317
Commodities
130,225
5,146
-
27,506
29
162,906
143,660
ETFs subtotal
5,193,314
181,484
-
92,642
270
5,467,710
5,332,953
Institutional:
Active:
Equity
242,002
(4,256
)
-
10,990
(743
)
247,993
245,857
Fixed income
901,576
(2,091
)
(225
)
7,476
(1,170
)
905,566
900,155
Multi-asset
976,474
9,818
-
19,199
615
1,006,106
990,179
Private markets
291,116
11,418
(10,135
)
(511
)
55
291,943
290,099
Liquid alternatives
64,446
1,236
(107
)
952
35
66,562
65,293
Active subtotal
2,475,614
16,125
(10,467
)
38,106
(1,208
)
2,518,170
2,491,583
Index
3,616,400
(11,570
)
-
108,308
(16,964
)
3,696,174
3,663,046
Institutional subtotal
6,092,014
4,555
(10,467
)
146,414
(18,172
)
6,214,344
6,154,629
Long-term
$
12,458,896
$
267,798
$
(11,067
)
$
262,682
$
(17,523
)
$
12,960,786
$
12,694,200
(1)
Realizations represent return of capital/return on investments.
(2)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(4)
Amounts include commodity ETFs and ETPs.
5
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
Net
September 30,
inflows
Market
FX
December 31,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Active:
Equity
$
517,176
$
11,128
$
-
$
18,650
$
(926
)
$
546,028
$
528,827
Fixed income
1,213,771
35,176
(225
)
9,187
(551
)
1,257,358
1,222,766
Multi-asset
1,145,338
35,857
-
23,910
638
1,205,743
1,168,723
Private markets
320,886
12,708
(10,706
)
(317
)
53
322,624
320,397
Liquid alternatives
97,448
2,862
(136
)
787
29
100,990
98,845
Active subtotal
3,294,619
97,731
(11,067
)
52,217
(757
)
3,432,743
3,339,558
ETFs:
Equity
3,788,431
122,770
-
94,781
32
4,006,014
3,897,017
Fixed income
1,157,582
51,919
-
(3,675
)
127
1,205,953
1,186,224
Multi-asset
13,111
1,070
-
143
78
14,402
13,735
Digital assets
103,965
579
-
(26,113
)
4
78,435
92,317
Commodities
130,225
5,146
-
27,506
29
162,906
143,660
ETFs subtotal
5,193,314
181,484
-
92,642
270
5,467,710
5,332,953
Non-ETF index
3,970,963
(11,417
)
-
117,823
(17,036
)
4,060,333
4,021,689
Long-term
$
12,458,896
$
267,798
$
(11,067
)
$
262,682
$
(17,523
)
$
12,960,786
$
12,694,200
Current Quarter Component Changes by Private Markets Product Type (Long-Term)
Net
September 30,
inflows
Market
FX
December 31,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Private markets:
Infrastructure
$
110,101
$
4,986
$
(2,998
)
$
(4
)
$
31
$
112,116
$
110,141
Private equity
34,033
423
(3,780
)
(55
)
2
30,623
32,412
Private credit
141,974
7,271
(3,571
)
(285
)
(4
)
145,385
143,392
Real estate
25,525
(189
)
(255
)
(44
)
25
25,062
25,099
Multi-alternatives
9,253
217
(102
)
71
(1
)
9,438
9,353
Total private markets
$
320,886
$
12,708
$
(10,706
)
$
(317
)
$
53
$
322,624
$
320,397
(1)
Realizations represent return of capital/return on investments.
(2)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
6
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Product Type(1)
Net
December 31,
inflows
Market
FX
December 31,
Average
2024
(outflows)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Equity
$
6,310,191
$
220,126
$
-
$
-
$
1,163,276
$
100,282
$
7,793,875
$
6,918,801
Fixed income
2,905,669
164,399
(2,752
)
13,567
122,151
68,987
3,272,021
3,080,234
Multi-asset
992,921
72,269
-
-
132,762
25,673
1,223,625
1,087,995
Alternatives:
Private markets
211,974
39,834
(30,178
)
101,017
(5,161
)
5,138
322,624
261,535
Liquid alternatives
76,390
11,143
(195
)
6,377
6,392
883
100,990
88,477
Alternatives subtotal
288,364
50,977
(30,373
)
107,394
1,231
6,021
423,614
350,012
Digital assets
55,306
34,763
-
-
(11,640
)
6
78,435
76,809
Currency and
commodities(6)
78,137
24,953
-
-
65,795
331
169,216
114,002
Long-term
10,630,588
567,487
(33,125
)
120,961
1,473,575
201,300
12,960,786
11,627,853
Cash management
920,663
130,774
-
-
10,054
19,241
1,080,732
975,780
Total
$
11,551,251
$
698,261
$
(33,125
)
$
120,961
$
1,483,629
$
220,541
$
14,041,518
$
12,603,633
Year-over-Year Component Changes by Client Type and Product Type (Long-Term)(1)
Net
December 31,
inflows
Market
FX
December 31,
Average
2024
(outflows)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Retail:
Equity
$
505,118
$
25,465
$
-
$
-
$
86,921
$
11,577
$
629,081
$
556,325
Fixed income
318,641
44,523
-
-
12,623
9,100
384,887
336,477
Multi-asset
150,978
24,657
-
-
22,817
1,203
199,655
163,888
Private markets
15,749
3,905
(1,389
)
11,674
182
560
30,681
22,566
Liquid alternatives
24,735
8,007
(32
)
-
1,482
236
34,428
29,828
Retail subtotal
1,015,221
106,557
(1,421
)
11,674
124,025
22,676
1,278,732
1,109,084
ETFs:
Equity
3,106,398
289,263
-
-
580,684
29,669
4,006,014
3,478,155
Fixed income
985,652
175,328
-
-
29,682
15,291
1,205,953
1,097,396
Multi-asset
10,734
1,978
-
-
1,477
213
14,402
12,029
Digital assets
55,306
34,763
-
-
(11,640
)
6
78,435
76,809
Commodities
72,285
25,379
-
-
64,992
250
162,906
107,936
ETFs subtotal
4,230,375
526,711
-
-
665,195
45,429
5,467,710
4,772,325
Institutional:
Active:
Equity
218,848
(20,573
)
-
-
43,419
6,299
247,993
233,638
Fixed income
840,328
(10,637
)
(2,752
)
13,567
50,878
14,182
905,566
876,517
Multi-asset
828,039
45,636
-
-
108,194
24,237
1,006,106
908,764
Private markets
196,225
35,929
(28,789
)
89,343
(5,343
)
4,578
291,943
238,969
Liquid alternatives
51,655
3,136
(163
)
6,377
4,910
647
66,562
58,649
Active subtotal
2,135,095
53,491
(31,704
)
109,287
202,058
49,943
2,518,170
2,316,537
Index
3,249,897
(119,272
)
-
-
482,297
83,252
3,696,174
3,429,907
Institutional subtotal
5,384,992
(65,781
)
(31,704
)
109,287
684,355
133,195
6,214,344
5,746,444
Long-term
$
10,630,588
$
567,487
$
(33,125
)
$
120,961
$
1,473,575
$
201,300
$
12,960,786
$
11,627,853
(1)
Beginning in the first quarter of 2025, BlackRock updated the presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation.
(2)
Realizations represent return of capital/return on investments.
(3)
Amounts include AUM attributable to the acquisitions of HPS in July 2025 (the "HPS Transaction") and ElmTree Funds ("ElmTree") in September 2025 (the "ElmTree Transaction").
(4)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(5)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
(6)
Amounts include commodity ETFs and ETPs.
7
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)(1)
Net
December 31,
inflows
Market
FX
December 31,
Average
2024
(outflows)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Active:
Equity
$
467,163
$
(14,293
)
$
-
$
-
$
81,509
$
11,649
$
546,028
$
496,505
Fixed income
1,133,874
29,115
(2,752
)
13,567
62,258
21,296
1,257,358
1,183,030
Multi-asset
979,001
70,293
-
-
131,010
25,439
1,205,743
1,072,635
Private markets
211,974
39,834
(30,178
)
101,017
(5,161
)
5,138
322,624
261,535
Liquid alternatives
76,390
11,143
(195
)
6,377
6,392
883
100,990
88,477
Active subtotal
2,868,402
136,092
(33,125
)
120,961
276,008
64,405
3,432,743
3,102,182
ETFs:
Equity
3,106,398
289,263
-
-
580,684
29,669
4,006,014
3,478,155
Fixed income
985,652
175,328
-
-
29,682
15,291
1,205,953
1,097,396
Multi-asset
10,734
1,978
-
-
1,477
213
14,402
12,029
Digital assets
55,306
34,763
-
-
(11,640
)
6
78,435
76,809
Commodities
72,285
25,379
-
-
64,992
250
162,906
107,936
ETFs subtotal
4,230,375
526,711
-
-
665,195
45,429
5,467,710
4,772,325
Non-ETF index
3,531,811
(95,316
)
-
-
532,372
91,466
4,060,333
3,753,346
Long-term
$
10,630,588
$
567,487
$
(33,125
)
$
120,961
$
1,473,575
$
201,300
$
12,960,786
$
11,627,853
Year-over-Year Component Changes by Private Markets Product Type (Long-Term)
Net
December 31,
inflows
Market
FX
December 31,
Average
2024
(outflows)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Private markets:
Infrastructure
$
109,606
$
15,757
$
(11,975
)
$
-
$
(3,150
)
$
1,878
$
112,116
$
109,690
Private equity
36,327
2,975
(8,747
)
-
(256
)
324
30,623
34,662
Private credit
32,425
18,703
(7,717
)
101,017
(726
)
1,683
145,385
83,256
Real estate
26,147
123
(1,181
)
-
(1,111
)
1,084
25,062
25,521
Multi-alternatives
7,469
2,276
(558
)
-
82
169
9,438
8,406
Total private markets
$
211,974
$
39,834
$
(30,178
)
$
101,017
$
(5,161
)
$
5,138
$
322,624
$
261,535
(1)
Beginning in the first quarter of 2025, BlackRock updated the presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation.
(2)
Realizations represent return of capital/return on investments.
(3)
Amounts include AUM attributable to the HPS and ElmTree Transactions.
(4)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(5)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
8
SUMMARY OF REVENUE
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Revenue
Investment advisory, administration fees and
securities lending revenue(1):
Equity:
Active
$
585
$
558
$
27
$
557
$
28
$
2,167
$
2,166
$
1
ETFs
1,696
1,375
321
1,597
99
6,043
5,124
919
Equity subtotal
2,281
1,933
348
2,154
127
8,210
7,290
920
Fixed income:
Active
526
494
32
513
13
2,018
1,952
66
ETFs
421
360
61
393
28
1,532
1,367
165
Fixed income subtotal
947
854
93
906
41
3,550
3,319
231
Active multi-asset
363
319
44
344
19
1,332
1,248
84
Alternatives:
Private markets
663
480
183
653
10
2,350
1,196
1,154
Liquid alternatives
184
146
38
178
6
669
568
101
Alternatives subtotal
847
626
221
831
16
3,019
1,764
1,255
Non-ETF index
348
312
36
353
(5
)
1,321
1,183
138
Digital assets, commodities and multi-asset
ETFs(2)
162
80
82
140
22
502
247
255
Long-term
4,948
4,124
824
4,728
220
17,934
15,051
2,883
Cash management
330
293
37
318
12
1,245
1,049
196
Total investment advisory, administration
fees and securities lending revenue
5,278
4,417
861
5,046
232
19,179
16,100
3,079
Investment advisory performance fees:
Equity
96
112
(16
)
14
82
132
161
(29
)
Fixed income
2
22
(20
)
-
2
16
34
(18
)
Multi-asset
11
10
1
2
9
23
24
(1
)
Alternatives:
Private markets
334
108
226
298
36
695
308
387
Liquid alternatives
311
199
112
202
109
558
680
(122
)
Alternatives subtotal
645
307
338
500
145
1,253
988
265
Total investment advisory performance fees
754
451
303
516
238
1,424
1,207
217
Technology services and subscription revenue
531
428
103
515
16
1,981
1,603
378
Distribution fees
359
322
37
355
4
1,355
1,273
82
Advisory and other revenue:
Advisory
11
14
(3
)
12
(1
)
50
49
1
Other
75
45
30
65
10
227
175
52
Total advisory and other revenue
86
59
27
77
9
277
224
53
Total revenue
$
7,008
$
5,677
$
1,331
$
6,509
$
499
$
24,216
$
20,407
$
3,809
(1)
Beginning in the first quarter of 2025, BlackRock reclassified the presentation of the Company's investment advisory, administration fees and securities lending revenue line items to align with the updated presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation. See page 11 of Exhibit 99.2 to the Current Report on Form 8-K furnished on April 11, 2025 for the reclassified presentation of the 2024 investment advisory, administration fees and securities lending revenue line items.
(2)
Amounts include commodity ETFs and ETPs.
Highlights
•
Investment advisory, administration fees and securities lending revenue increased $861 million from the fourth quarter of 2024, primarily driven by organic base fee growth, the impact of market beta on average AUM, and approximately $230 million of fees related to the HPS Transaction. Securities lending revenue of $174 million increased from $161 million in the fourth quarter of 2024, primarily reflecting higher spreads.
Investment advisory, administration fees and securities lending revenue increased $232 million from the third quarter of 2025, primarily driven by organic base fee growth and the impact of market beta on average AUM. Securities lending revenue of $174 million decreased from $203 million in the third quarter of 2025, primarily reflecting lower spreads.
•
Performance fees increased $303 million from the fourth quarter of 2024, primarily reflecting higher revenue from private markets, including the impact of the HPS Transaction, and higher revenue from liquid alternative products.
Performance fees increased $238 million from the third quarter of 2025, primarily reflecting higher revenue from liquid alternative and long-only products.
•
Technology services and subscription revenue increased $103 million from the fourth quarter of 2024 and $16 million from the third quarter of 2025, reflecting the sustained demand for Aladdin® technology offerings and revenue from the acquisition of Preqin Holding Limited ("Preqin") in March 2025 (the "Preqin Transaction"). Preqin added approximately $65 million to fourth quarter revenue. Technology services and subscription annual contract value (“ACV”)(1) increased 31% from the fourth quarter of 2024 including ACV related to Preqin, and increased 16% excluding ACV related to Preqin.
(1)
See note (4) to the condensed consolidated statements of income and supplemental information on page 14 for more information on ACV.
9
SUMMARY OF OPERATING EXPENSE
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Operating expense
Employee compensation and benefits
$
2,584
$
1,885
$
699
$
2,357
$
227
$
8,446
$
6,546
$
1,900
Sales, asset and account expense:
Distribution and servicing costs
676
565
111
638
38
2,460
2,171
289
Direct fund expense
470
389
81
464
6
1,767
1,464
303
Sub-advisory and other
80
42
38
60
20
233
140
93
Total sales, asset and account expense
1,226
996
230
1,162
64
4,460
3,775
685
General and administration expense:
Marketing and promotional
101
92
9
82
19
373
314
59
Occupancy and office related
150
113
37
137
13
521
421
100
Portfolio services
62
68
(6
)
69
(7
)
257
262
(5
)
Technology
209
182
27
213
(4
)
809
674
135
Professional services
98
88
10
104
(6
)
326
277
49
Communications
10
10
-
12
(2
)
43
39
4
Foreign exchange remeasurement
3
(7
)
10
(3
)
6
(4
)
-
(4
)
Charitable contribution
109
-
109
-
109
109
-
109
Other general and administration
72
78
(6
)
75
(3
)
297
270
27
Total general and administration expense
814
624
190
689
125
2,731
2,257
474
Change in fair value of contingent
consideration(1)
455
(28
)
483
93
362
720
(36
)
756
Restructuring charge
-
-
-
-
-
39
-
39
Amortization and impairment of intangible
assets
268
125
143
253
15
775
291
484
Total operating expense
$
5,347
$
3,602
$
1,745
$
4,554
$
793
$
17,171
$
12,833
$
4,338
(1)
Beginning in the fourth quarter of 2025, BlackRock updated the presentation of the Company's expense line items within the condensed consolidated statements of income to separately present the change in fair value of contingent consideration line item, which was previously disclosed within general and administration expense. Prior periods have been updated to conform to this new presentation.
Highlights
•
Employee compensation and benefits expense increased $699 million from the fourth quarter of 2024 and $227 million from the third quarter of 2025, primarily reflecting the impact of higher operating income and performance fees. Fourth quarter 2025 employee compensation and benefits expense was also impacted by the HPS Transaction, including nonrecurring retention-related deferred compensation expense(1).
•
Sales, asset and account expense increased $230 million from the fourth quarter of 2024 and $64 million from the third quarter of 2025, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
•
On December 10, 2025, BlackRock contributed a portion of its stake in Circle Internet Group, Inc. ("Circle") to the BlackRock Charitable Fund, which BlackRock established in 2013 (the “Charitable Contribution”). The Charitable Contribution resulted in an operating expense of $109 million(1), which was offset by a tax benefit of $29 million(1). The Charitable Contribution will add to the long-term funding for BlackRock’s philanthropic grants and programs.
•
General and administration expense increased $190 million from the fourth quarter of 2024 and $125 million from the third quarter of 2025, primarily driven by the Charitable Contribution and an increase in occupancy and office related expense.
•
Change in fair value of contingent consideration(1) increased $483 million from the fourth quarter of 2024 and $362 million from the third quarter of 2025, primarily related to Global Infrastructure Management, LLC ("GIP").
•
Amortization and impairment of intangible assets(1) increased $143 million from the fourth quarter of 2024, primarily reflecting amortization of intangible assets acquired in the HPS and Preqin Transactions.
(1)
These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustments for acquisition-related costs and the Charitable Contribution, as applicable. See pages 12 through 14 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.
10
SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests - Consolidated sponsored investment products
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Nonoperating income (expense), GAAP basis
$
(54
)
$
28
$
(82
)
$
42
$
(96
)
$
574
$
721
$
(147
)
Less: Net income (loss) attributable to
NCI - CIPs
51
(9
)
60
134
(83
)
262
143
119
Nonoperating income (expense), net of
NCI - CIPs
(105
)
37
(142
)
(92
)
(13
)
312
578
(266
)
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
17
(2
)
19
14
3
61
45
16
Nonoperating income (expense), net of
NCI - CIPs, as adjusted(2)
$
(122
)
$
39
$
(161
)
$
(106
)
$
(16
)
$
251
$
533
$
(282
)
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Net gain (loss) on investments, net of NCI - CIPs
Private equity
$
(42
)
$
(42
)
$
-
$
(14
)
$
(28
)
$
17
$
(10
)
$
27
Real assets
17
(5
)
22
3
14
19
14
5
Other alternatives(3)
2
8
(6
)
8
(6
)
22
41
(19
)
Other investments(4)
(15
)
42
(57
)
26
(41
)
12
127
(115
)
Hedge gain (loss) on deferred cash
compensation plans(1)
17
(2
)
19
14
3
61
45
16
Subtotal
(21
)
1
(22
)
37
(58
)
131
217
(86
)
Other income/gain (expense/loss)(5)
(68
)
(10
)
(58
)
(107
)
39
241
132
109
Total net gain (loss) on investments, net of
NCI - CIPs
(89
)
(9
)
(80
)
(70
)
(19
)
372
349
23
Net interest income (expense)
(16
)
46
(62
)
(22
)
6
(60
)
229
(289
)
Nonoperating income (expense), net of
NCI - CIPs
(105
)
37
(142
)
(92
)
(13
)
312
578
(266
)
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
17
(2
)
19
14
3
61
45
16
Nonoperating income (expense), net of
NCI - CIPs, as adjusted(2)
$
(122
)
$
39
$
(161
)
$
(106
)
$
(16
)
$
251
$
533
$
(282
)
(1)
Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans.
(2)
Management believes nonoperating income (expense), net of NCI - CIPs, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP, see notes to the condensed consolidated statements of income and supplemental information on pages 12 through 14.
(3)
Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
(4)
Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.
(5)
Amounts for the three months ended December 31, 2025, include nonoperating noncash pre-tax loss in connection with the Company’s minority investment in Circle of approximately $116 million. Additional amounts include earnings (losses) from certain equity method minority investments and noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.
summary of INCOME TAX EXPENSE
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Income tax expense
$
372
$
442
$
(70
)
$
470
$
(98
)
$
1,677
$
1,783
$
(106
)
Effective tax rate
23.9
%
20.9
%
300 bps
25.2
%
(130) bps
22.8
%
21.9
%
90 bps
Highlights
•
Fourth quarter 2025 included a discrete tax benefit of $29 million related to the Charitable Contribution, which was excluded from as adjusted results due to its nonrecurring nature. In addition, fourth quarter 2025 and 2024 included $102 million and $63 million, respectively, of net discrete tax benefits realized from changes in the Company’s organizational tax structure.
11
RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2025
2024
2025
2025
2024
Operating income, GAAP basis
$
1,661
$
2,075
$
1,955
$
7,045
$
7,574
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation)
on deferred cash compensation plans (a)
11
-
14
52
43
Amortization and impairment of intangible assets (b)
268
125
253
775
291
Acquisition-related compensation costs (b)
315
116
262
738
148
Acquisition-related transaction costs (b)(1)
29
38
44
122
90
Change in fair value of contingent consideration (b)
455
(28
)
93
720
(36
)
Charitable Contribution (c)
109
-
-
109
-
Restructuring charge (d)
-
-
-
39
-
Operating income, as adjusted (1)
$
2,848
$
2,326
$
2,621
$
9,600
$
8,110
Revenue, GAAP basis
$
7,008
$
5,677
$
6,509
$
24,216
$
20,407
Non-GAAP adjustments:
Distribution fees
(359
)
(322
)
(355
)
(1,355
)
(1,273
)
Investment advisory fees
(317
)
(243
)
(283
)
(1,105
)
(898
)
Revenue used for operating margin measurement
$
6,332
$
5,112
$
5,871
$
21,756
$
18,236
Operating margin, GAAP basis
23.7
%
36.6
%
30.0
%
29.1
%
37.1
%
Operating margin, as adjusted (1)
45.0
%
45.5
%
44.6
%
44.1
%
44.5
%
(1)
Amounts included within general and administration expense.
See note (1) to the condensed consolidated statements of income and supplemental information on page 13 for more information on as adjusted items.
RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI - CIPs, AS ADJUSTED
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2025
2024
2025
2025
2024
Nonoperating income (expense), GAAP basis
$
(54
)
$
28
$
42
$
574
$
721
Less: Net income (loss) attributable to NCI - CIPs
51
(9
)
134
262
143
Nonoperating income (expense), net of NCI - CIPs
(105
)
37
(92
)
312
578
Less: Hedge gain (loss) on deferred cash compensation
plans (a)
17
(2
)
14
61
45
Nonoperating income (expense), less net income (loss)
attributable to NCI - CIPs, as adjusted (2)
$
(122
)
$
39
$
(106
)
$
251
$
533
See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 13 and 14 for more information on as adjusted items.
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
(in millions, except per share data), (unaudited)
2025
2024
2025
2025
2024
Net income attributable to BlackRock, Inc., GAAP basis
$
1,127
$
1,670
$
1,323
$
5,553
$
6,369
Noncontrolling interest - Subco
57
-
70
127
-
Net income attributable to BlackRock, Inc., (for diluted EPS)
1,184
1,670
1,393
5,680
6,369
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)
(4
)
2
-
(6
)
(1
)
Amortization and impairment of intangible assets (b)
200
94
189
578
218
Acquisition-related compensation costs (b)
231
87
198
549
110
Acquisition-related transaction costs (b)
20
28
33
91
66
Change in fair value of contingent consideration (b)
454
(21
)
94
717
(27
)
Charitable Contribution (c)
80
-
-
80
-
Restructuring charge (d)
-
-
-
29
-
Income tax matters
11
14
-
18
(123
)
Net income attributable to BlackRock, Inc., as adjusted (3)
$
2,176
$
1,874
$
1,907
$
7,736
$
6,612
Diluted weighted-average common shares outstanding, including
Subco Units
165.4
157.0
165.2
160.9
151.6
Diluted earnings per common share, GAAP basis
$
7.16
$
10.63
$
8.43
$
35.31
$
42.01
Diluted earnings per common share, as adjusted (3)
$
13.16
$
11.93
$
11.55
$
48.09
$
43.61
(1)
Non-GAAP adjustments, excluding income tax matters, are net of tax.
See note (3) to the condensed consolidated statements of income and supplemental information on page 14 for more information on as adjusted items.
12
NOTES TO THE CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)
BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented.
Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.
•
Operating income, as adjusted, includes the following non-GAAP expense adjustments:
(a)
Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income.
This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.
(b)
Acquisition-related costs. Acquisition-related costs include adjustments related to amortization and noncash impairment of intangible assets, change in fair value of contingent consideration (primarily associated with noncash contingent consideration) incurred in connection with certain acquisitions and other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation and general and administration expense primarily related to professional services. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.
(c)
Charitable Contribution. The Charitable Contribution expense of $109 million has been excluded from operating income, as adjusted, due to its nonrecurring nature.
(d)
Restructuring charge. In the second quarter of 2025, the Company recorded a restructuring charge, comprised of
severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify our organization to fit more closely with strategic priorities. Management believes excluding the impact of this restructuring charge when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
13
•
Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client.
The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.
(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.
(3) Net income attributable to BlackRock, Inc., as adjusted:
•
Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.
For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. The fourth quarter of 2025 included a discrete tax benefit of $29 million recognized in connection with the Charitable Contribution. The discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the Charitable Contribution. Additionally, the amount for income tax matters in 2024 included a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. Furthermore, the non-GAAP adjustment in 2025 related to the change in fair value of contingent consideration is primarily not deductible for income tax purposes.
•
In addition, beginning in the third quarter of 2025, in connection with the HPS Transaction, the Company updated its definition of net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, to assume all outstanding Subco Units issued as part of the consideration for the HPS Transaction have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock, as Subco Units will be exchangeable at the option of the holder when exchange rights begin. Accordingly, the noncontrolling interest related to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. Management believes that these updated non-GAAP measures are useful indicators of BlackRock’s profitability and enhance comparability among periods presented, and therefore are useful to investors.
•
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.
(4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services and subscription's ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services and subscription revenue over time, as it is linked to the net new business in technology and subscription services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date.
ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.
14
FORWARD-LOOKING STATEMENTS
This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of GIP, Preqin and HPS (collectively, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) the unfavorable resolution of legal proceedings; (9) the extent and timing of any share repurchases; (10) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (11) the failure to effectively manage the development and use of artificial intelligence; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) increasing focus from stakeholders regarding environmental and social-related matters; (18) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, global trade tensions, tariffs, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (19) climate-related risks to BlackRock’s business, products, operations and clients; (20) the ability to attract, train and retain highly qualified professionals; (21) fluctuations in the carrying value of BlackRock’s economic investments; (22) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (23) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (24) the failure by key third-party providers to fulfill their obligations to BlackRock; (25) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (26) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (27) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (28) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.
BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.
15
PERFORMANCE NOTES
Past performance is not indicative of future results. Except as specified, the performance information shown is as of December 31, 2025 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of November 30, 2025. The performance data does not include accounts terminated prior to December 31, 2025 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.
Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares funds globally using an index strategy. AUM information is based on AUM available as of December 31, 2025 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.
Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.
16
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 1 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 7 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | — | — |
| Buybacks share repurchase, buyback program | 3 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor