Key Stats for BlackRock Stock
- Price Change for BlackRock stock: 3.4%
- Current Share Price: $1,194
- 52-Week High: $1,210
- $BLK Stock Price Target: $1,260
What Happened?
BlackRock (BLK) stock surged over 3% to a fresh record high today after the world’s largest asset manager posted strong third-quarter results that showcased the power of its recent acquisition strategy.
The company crushed expectations while hitting a new milestone with assets under management reaching $13.46 trillion, up from $11.48 trillion a year ago.
Adjusted earnings came in at $11.55 per share versus the $11.34 estimate. Revenue hit $6.5 billion, topping the $6.2 billion consensus, and net inflows totaled $205 billion in the quarter, with long-term inflows of $171 billion driven by continued strength in ETFs.
What really stood out was the organic base fee growth of 10% for the quarter and 8% over the trailing twelve months, the highest level in over four years. Even more impressive, this growth came from across the entire platform, not just one or two hot products.
Breaking down the flows:
- iShares ETFs delivered a record $153 billion in net inflows during the quarter.
- Core equity and index fixed income led the way with $53 billion and $41 billion, respectively.
- Digital asset ETPs, including IBIT and ETHA, brought in another $17 billion.
- Active ETFs gathered $21 billion as investors embraced higher-value strategies.
The recent acquisitions are already making meaningful contributions. HPS Investment Partners, acquired at the start of Q3, added $225 million in base fees and $270 million in performance fees.
Combined with GIP and Preqin, the recent deals provided a $500 million revenue boost during the quarter.
Private markets momentum continues to build with $13 billion of inflows driven by private credit, multi-alternatives, and infrastructure.
The cash management platform has crossed $1 trillion in AUM, with $34 billion in quarterly inflows, including over $64 billion now managed for Circle’s stablecoin reserves.
Technology revenue jumped 28% to $515 million, boosted by Aladdin and the newly acquired Preqin data business, while annual contract value increased 29% including Preqin, or 13% organically.
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What the Market Is Telling Us About BLK Stock
The market’s reaction reflects BlackRock finally hitting its stride as a truly diversified asset management powerhouse.
CEO Larry Fink’s vision of building a “whole portfolio” platform across public markets, private markets, technology, and data is playing out exactly as planned.
BlackRock doesn’t operate as a collection of boutiques like many competitors. Everything is fully integrated into one platform, utilizing shared Aladdin technology and providing unified client access.
That’s why the HPS acquisition closed just three months ago but is already contributing meaningfully, with strong traction in insurance and wealth channels.
President Martin Small noted Q3 represents BlackRock’s highest organic base fee growth in over four years, and importantly, it’s “broadly diversified” across foundational businesses and new capabilities developed in recent years.
The top organic growth contributors span digital assets, active ETFs, systematic strategies, private credit, and pension outsourcing—validating the multi-year investment strategy.
Fink emphasized one of the most exciting opportunities ahead: tokenization of traditional assets. BlackRock is exploring how to bring stocks and bonds into digital wallets where over $4.5 trillion currently sits in crypto, stablecoins, and tokenized assets.
The goal is to enable investors to build diversified portfolios without ever leaving their digital wallet. With BUIDL (BlackRock’s tokenized money fund) already at $3 billion in AUM and growing, this could unlock a massive new distribution channel, especially with younger investors.
GIP’s fifth fund closed above its $25 billion target in July, the largest private infrastructure fund ever. The AI Infrastructure Partnership continues attracting capital from sovereign wealth funds and tech giants.
BlackRock estimates $1.5 trillion will be needed for data center build-out over the next five years alone, positioning GIP perfectly for this infrastructure boom.
In wealth management, the combination of HPS’s BDC expertise with BlackRock’s massive distribution network creates a compelling value proposition.
Management targets growing retail alternatives from $30 billion today to over $60 billion by 2030, with potential upside beyond that.
The retirement opportunity is massive, given BlackRock manages over $585 billion in target date funds and is pushing to bring private markets into 401(k) plans.
Recent regulatory momentum, including the President’s executive order and draft safe harbor provisions, suggests this long-awaited change may finally happen.
If it does, the data analytics opportunity alone could be huge for Preqin as plan fiduciaries need better tools to evaluate private market investments.
Excluding performance fees, the adjusted operating margin was 46.3%, up 110 basis points year-over-year. The company targets a low-teens percentage increase in core G&A for 2025, mainly from onboarding GIP, Preqin, and HPS.
Management views Q4 as typically the strongest quarter for flows, emphasizing that it will enter with “even stronger momentum” than Q3.
With the diversified growth engine now firing across ETFs, private markets, technology, digital assets, and cash management, BlackRock looks positioned to sustain premium organic growth rates.
The $30 billion spent on acquisitions over the past two years is already paying dividends through revenue diversification and higher-fee products.
As these integrations mature and cross-selling accelerates, the earnings power of this platform should become increasingly apparent.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
