Based on the projections presented by the company on the investor day of March 31, 2025, we will assume 5-year fundamental projection for BlackRock based on its 2024 results and strategic targets:
🔍 Assumptions
- Revenue CAGR: 10% annually, aligned with BlackRock’s 2030 ambition.
- Operating Margin: Maintained at 45% (as adjusted).
- P/E Ratio: Expands from 20x to 25x, reflecting higher-margin revenue from tech and private markets.
Based on Q2 2025 Earnings July 15, 2025 Earnings Release Supplement:
📊 Financial Highlights
- Assets Under Management (AUM): $12.5 trillion as of June 30, 2025.
- Base Fees & Securities Lending Revenue: $4.5 billion in Q2 2025.
- Total Revenue (Q2 2025): $5.423 billion, up 13% YoY and 3% QoQ.
- Operating Income (Adjusted): $2.099 billion, up from $2.032 billion in Q1 2025.
- Net Income (Adjusted): $1.883 billion, up from $1.770 billion in Q1 2025.
- EPS (Adjusted): $12.05, up from $11.30 in Q1 2025.
💼 Revenue Breakdown (Q2 2025 vs Q2 2024)
- Base Fees: +15%
- Securities Lending Revenue: +11%
- Tech Services & Subscription Revenue: +26%
- Performance Fees: -43%
- Distribution Fees: +1%
- Advisory & Other Revenue: +6%
📈 Net Flows
- Total Net Flows: $28 billion in Q2 2025.
- Retail Long-Term Flows: $29 billion
- Institutional Long-Term Flows: $(1) billion (net outflows)
🌍 AUM by Region
- Americas: 66%
- EMEA: 28%
- Asia-Pacific: 6%
🧾 Expenses (Adjusted, Q2 2025)
- Total: $3.324 billion
- Employee Compensation & Benefits: $2.924B (+12% YoY)
- Sales, Asset & Account: $183M (+14% YoY)
- General & Administration: $217M (+16% YoY)
🏗️ Alternatives Growth
- Client Assets in Alternatives: $474 billion (up from $326B in Q2 2024)
- Fee-Paying AUM in Alternatives: $392 billion (up from $297B)
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Disclaimer
The user kapirey has a position in NYSE:BLK. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
