Financial Performance Overview
BlackRock concluded 2025 with a record-breaking $14.04 trillion in assets under management, marking the highest figure the company has ever achieved and the first time an asset manager has surpassed the $14 trillion threshold.
Despite this significant milestone in assets, the company's profit experienced a decline in the final three months of the year due to increased costs. Net income for the quarter was $1.13 billion, representing a 33% decrease compared to the same period in the previous year.
On an adjusted basis, BlackRock reported earnings per share of $13.16, exceeding the average analyst estimate of $12.24. The company also noted that base fees, which are fixed management fees not dependent on performance, saw a 9% year-over-year increase after accounting for market fluctuations.
Total net inflows for the quarter amounted to $268 billion, falling short of the forecast of $311.6 billion, yet still representing a substantial inflow.
Dividend Increase and Share Buybacks
For the entirety of the year, BlackRock's GAAP operating income decreased by 7%, and GAAP diluted earnings per share fell by 16%. These figures were impacted by non-cash charges associated with acquisitions and a one-time donation.
These specific expenses were excluded from the adjusted figures. Without these charges, operating income saw an 18% jump, and diluted EPS increased by 10%. The total number of diluted shares for the year was 160.9 million, a 6% increase from 2024.
The board of directors approved a 10% increase in the cash dividend, bringing it to $5.73 per share. This dividend is scheduled to be paid on March 24, 2026, to shareholders of record by March 6. Throughout 2025, the company returned $5 billion to its shareholders.
This shareholder return included $1.6 billion generated from stock buybacks. Furthermore, the board authorized an additional 7 million shares for future repurchase.
Revenue for the fourth quarter reached $7 billion, an increase of 23% compared to the fourth quarter of the previous year. However, GAAP operating income for the quarter was $1.66 billion, a 20% decrease. The operating margin declined from 36.6% to 23.7%.
On an adjusted basis, operating income stood at $2.85 billion with a margin of 45%, which is nearly consistent with the previous year.
Quarterly Inflows Driven by ETFs and Equity
Total net inflows for the fourth quarter were $341.7 billion, with long-term flows contributing $267.8 billion. Cash management products added an additional $73.9 billion. For the full year, total net flows reached $698.3 billion. The average assets under management for the quarter were $13.73 trillion, up 19% from the prior year.
Equity products attracted the largest inflows at $126 billion, raising total equity assets to $7.79 trillion. Fixed income products saw inflows of $83.8 billion, reaching $3.27 trillion. Multi-asset products brought in $36.9 billion, now totaling $1.22 trillion. Private markets attracted $12.7 billion in new investments, reaching $322.6 billion.
Liquid alternatives experienced gains of $2.9 billion. Digital assets, however, saw a decrease in value, ending the quarter at $78.4 billion, down from $104 billion. Commodities and currency products added $5 billion, bringing their total to $169.2 billion.
By client type, ETFs were the primary driver of inflows, attracting $181.5 billion and increasing total ETF assets to $5.47 trillion. Retail investors contributed $81.8 billion, bringing their total holdings to $1.28 trillion. Institutional clients added $4.6 billion, with active strategies gaining $16.1 billion while index strategies experienced $11.6 billion in outflows.
In terms of investment style, active funds attracted $97.7 billion. Non-ETF index products experienced outflows of $11.4 billion. ETFs continued to be strong performers, with the same $181.5 billion in flows. Long-term assets now constitute $12.96 trillion of the total assets, with cash management accounting for the remaining $1.08 trillion.
Geographically, the Americas saw inflows of $190 billion, EMEA attracted $86 billion, and APAC experienced net outflows of $8 billion. On the retail side, equity products added $15.2 billion, fixed income brought in $37.6 billion, and multi-asset gained $26 billion. Retail clients also added approximately $2.9 billion across private markets and liquid alternatives.
Within ETFs, equity funds received $122.8 billion, and fixed income ETFs attracted $51.9 billion. Digital asset ETFs saw new flows of $579 million. Commodity ETFs added $5.1 billion. For institutional clients, equity products experienced a pullback of $4.3 billion, and fixed income saw outflows of $2.1 billion. Multi-asset products gained $9.8 billion. Private markets and alternatives combined brought in $12.7 billion, while index strategies recorded outflows of $11.6 billion.
In total, BlackRock added $341.7 billion in assets during the quarter. This increase was a result of new investments, market appreciation, and minor currency impacts. There were $11.1 billion in realizations and $17.7 billion in currency losses. These factors combined to bring the final assets under management to $14.04 trillion, a record high under Larry Fink's leadership.