TLDR:
- BlackRock’s quarterly net income fell 4% to $1.5 billion
- Assets under management reached a record $11.6 trillion
- The company earned $11.30 per share, beating expectations of $10.08
- Net inflows of $84 billion missed analyst estimates of $128.6 billion
- TD Cowen maintains Buy rating with $1,032 price target
BlackRock, the world’s largest asset manager, reported its first-quarter results for 2025, showing a slight drop in net income while assets under management climbed to a new record. The financial giant continues to navigate through what CEO Larry Fink called “an unsettling period” in the markets.
The company announced that its quarterly net income fell 4% to $1.5 billion compared to the same period last year. This decrease was attributed to acquisition-related costs.
Despite the income dip, BlackRock’s revenue rose 12% to $5.28 billion, almost matching analyst expectations of $5.29 billion.
The firm’s adjusted earnings came in at $11.30 per share, handily beating Wall Street’s forecasts of $10.08.
Assets under management reached a record $11.6 trillion, helped by $84 billion in net inflows. However, these inflows fell short of analyst estimates of $128.6 billion.
Market Volatility Impacts Performance
BlackRock’s shares have taken a hit this year, falling 16% amid a broader selloff in financial stocks. The company is currently trading around $858.72, well below TD Cowen’s price target of $1,032.
In his statement, CEO Larry Fink didn’t sugarcoat the situation. “Uncertainty and anxiety about the future of markets and the economy are dominating client conversations,” he wrote.
Fink compared the current environment to previous market disruptions. “We’ve seen periods like this before when there were large, structural shifts in policy and markets – like the financial crisis, COVID, and surging inflation in 2022.”
He remained optimistic about BlackRock’s ability to weather the storm. “We always stayed connected with clients, and some of BlackRock’s biggest leaps in growth followed.”
Financial Details Show Mixed Results
Base management fees, which aren’t tied to fund performance, reached $4.4 billion, just shy of analyst estimates of $4.42 billion.
Performance fees took a bigger hit, dropping to $60 million from $204 million in the first quarter of last year.
The company’s Aladdin portfolio management software reported $436 million in revenue, falling short of estimates of $445 million.
On a positive note, BlackRock’s adjusted operating margin improved to 43.2%, up from 42.2% in the prior period.
Analyst Outlook Remains Positive
TD Cowen analysts have maintained their Buy rating for BlackRock stock with a price target of $1,032, suggesting substantial upside potential from current levels.
The analysts praised BlackRock’s strategic pivot toward technology and private markets. They expect the company to benefit in the long term from the democratization of retail investing.
TD Cowen sees limited risk of downward EPS revisions for 2025 and 2026. They noted that the market recovery on April 9 likely offset some of the declines from earlier in the quarter.
The analysts anticipate that BlackRock will provide a “constructive strategic update” during their earnings call.
They believe the company sets a high standard in terms of fundamentals and model flexibility that may be difficult for competitors to match.
In other developments, BlackRock recently issued €1 billion in senior unsecured notes, maturing in 2035, with an interest rate of 3.75%. The funds will be used for general corporate purposes.
The company is also involved in a potential acquisition of Panama Canal ports, though CK Hutchison has delayed the sale to a consortium led by BlackRock.
Larry Fink has been vocal about his concerns regarding rising protectionism ahead of new U.S. tariffs. He has warned about potential inflationary pressures and market declines.
Fink also noted that many CEOs believe the U.S. may already be in a recession, which could have consequences for companies and consumers alike.
