BlackRock (NYSE: $BLK) is the largest asset manager in the world. It invests money on behalf of clients, who include governments, pension funds, and individuals. In its latest earnings results, the company stated that its assets under management had topped $14 trillion for the first time. Let us take a deep dive into its Q4 results.
BlackRock Q4 Results
For Q4 fiscal 2025, BlackRock reported long-term net inflows of $268 billion, beating forecasts of $265 billion and above the $171 billion reported in the prior quarter. It reported an adjusted EPS of $13.16, beating analysts’ estimates of $12.30 and above the $11.93 reported last year.
The investment manager reported revenue of $7.01 billion, beating estimates of $6.75 billion and above the $5.68 billion reported last year.
Other Financial Highlights
BlackRock’s adjusted operating margin came in at 45% for Q4, beating the 44.6% reported in Q3, but a dip from the 45.5% reported last year. Its total investment advisory, administration fees, and security lending revenue came in at $5.28 billion, above the $5.05 billion reported in Q3 and the $4.42 billion reported last year. Its investment advisory and administration fees were up 20% Y/Y to $5.1 billion.
The company reported $531 million in technology services and subscription revenue, an increase from the $515 million reported in Q3 and the $428 million reported last year. BlackRock ended Q425 with $14.04 trillion in assets under management, beating estimates of $13.97 trillion, and an increase from the $13.46 trillion reported in Q3, and the $11.55 trillion reported last year.
Total expenses in Q4 came in at $5.35 billion, a 4.3% Q/Q increase, and a 22% Y/Y increase from the $3.60 billion reported last year. For the quarter, BlackRock declared a dividend of $5.21 per share of common stock.
BlackRock Announces Layoffs
Earlier in the week, BlackRock announced plans to cut 250 jobs, representing 1% of its workforce. The cuts are part of efforts to improve efficiency at the investment management firm.
Market Performance
Following the earnings and revenue beat, BlackRock (BLK) shares were up 4.3% to $1,140.07 as of 9:42 AM in New York. Year to date, the shares are up 6.57%, while over the past six months, the stock is up 9.03%. Over the past 12 months, BLK stock has gained 12.68%.
The stock has underperformed the S&P 500, which is up 11.57% in the past six months and 17.08% in the past 12 months. Its current price is above the 50- and 200-day moving averages of $1,068.59 and $1,054.62, respectively.
Analysts give the stock an overall strong buy rating. They forecast an average price of $1,321.25, which is 21.01% upside. The analysts give a wide range of forecasts, with a high of $1,514 and a low of $1,209.
Is BLK A Buy In 2026?
BlackRock benefits from being in a position of market dominance. Additionally, it has demonstrated strong dividend growth and continues to grow its assets under management. With over $14 trillion in assets under management, this gives it a steady stream of fee-based revenue, and a massive economic moat.
The company is also well-positioned to benefit from the growing trend toward passive investing, and the rising popularity of ETFs via its iShares brand. Over the long term, the company has also delivered market-beating results, making it a potentially great investment option for long-term investors. As such, adding BLK shares to your portfolio as part of a long-term investment strategy could potentially be the right move.
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