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BlackRock Q4 earnings capped off a historic year for the wopBlackRock became the first asset manager in history to surpass $14 trillion in assets under management, capping a record-breaking 2025 despite a 33% decline in fourth-quarter net income as surging expenses offset strong revenue growth.
BlackRock reported that total AUM reached $14.04 trillion at the end of 2025, the highest level in its history and an industry milestone no other asset manager has previously achieved. The headline figure dominated market reaction to the BlackRock Q4 earnings release, underscoring the firm’s scale and its dominance across ETFs, equities, fixed income, and private markets.
However, the quarter was not without pressure. Net income for the three months ended December came in at $1.13 billion, down 33% from the same period a year earlier, as higher compensation, technology investments, and acquisition-related costs took a toll.
On an adjusted basis, BlackRock Q4 earnings still outperformed Wall Street expectations. Adjusted earnings per share reached $13.16, comfortably ahead of the consensus analyst estimate of $12.24. Base fees—management fees excluding market impacts—rose 9% year over year, highlighting the firm’s ability to generate organic growth despite volatile markets.
Revenue for the fourth quarter surged to $7 billion, a 23% increase compared with Q4 of the prior year. GAAP operating income, however, declined 20% to $1.66 billion, pushing the operating margin down sharply from 36.6% to 23.7%.
Adjusted operating income painted a different picture. Excluding noncash charges and one-off items, operating income rose to $2.85 billion, with an adjusted margin of 45%, nearly flat year over year. Management emphasized those adjusted results as a better reflection of the firm’s underlying performance in the BlackRock Q4 earnings call.
Chief Executive Officer Larry Fink framed the results as proof of BlackRock’s resilience across market cycles.
“Client activity remained strong, and our platform continues to benefit from the breadth of our investment capabilities,” Fink said in the company’s earnings statement, adding that scale remains a key competitive advantage.
That scale was evident in quarterly net inflows, which totaled $268 billion. While that figure fell short of analyst expectations of $311.6 billion, it still ranked among the strongest quarters in the firm’s history and played a major role in the BlackRock Q4 earnings narrative.
Beyond headline performance, BlackRock Q4 earnings also delivered good news for shareholders. The board approved a 10% increase in the quarterly cash dividend to $5.73 per share, payable on March 24, 2026, to shareholders of record as of March 6.
Over the course of 2025, BlackRock returned $5 billion to shareholders, including $1.6 billion through share repurchases. The board also authorized an additional 7 million shares for future buybacks, reinforcing management’s confidence in long-term cash generation.
For the full year, GAAP operating income declined 7%, and GAAP diluted earnings per share fell 16%, weighed down by noncash acquisition charges and a one-time donation. Excluding those items, adjusted operating income rose 18%, while adjusted diluted EPS increased 10%.
A closer look at flows shows why BlackRock Q4 earnings remain a bellwether for global asset management trends. Total net inflows for the quarter reached $341.7 billion, driven primarily by long-term investments.
Equity products led the way, attracting $126 billion in net inflows and lifting total equity AUM to $7.79 trillion. Fixed income followed with $83.8 billion, pushing those assets to $3.27 trillion. Multi-asset strategies added $36.9 billion, while private markets drew in $12.7 billion, reaching $322.6 billion in AUM.
ETFs were once again the standout category. ETF inflows totaled $181.5 billion during the quarter, bringing total ETF assets to $5.47 trillion. Analysts noted that ETFs remain central to the strength of BlackRock Q4 earnings, particularly amid continued demand for low-cost, liquid investment vehicles.
Not every segment posted gains. Digital asset AUM declined to $78.4 billion from $104 billion, reflecting market price movements rather than net outflows. By contrast, commodities and currency products added $5 billion, reaching $169.2 billion.
By region, the Americas generated $190 billion in net inflows, EMEA contributed $86 billion, while APAC recorded $8 billion in net outflows. Average AUM for the quarter stood at $13.73 trillion, up 19% year over year, further reinforcing the scale behind BlackRock Q4 earnings.
In total, BlackRock added $341.7 billion in assets during the quarter through a combination of inflows, market appreciation, and currency movements. After accounting for $11.1 billion in realizations and $17.7 billion in currency losses, the firm closed the year at $14.04 trillion in AUM.
Despite margin pressure from rising costs, BlackRock Q4 earnings underscored a defining theme of 2025: unprecedented scale, durable inflows, and a business model capable of absorbing short-term profit volatility.
As one analyst put it following the release, “No firm illustrates the consolidation of global asset management better than BlackRock—and these results make that clearer than ever.”
