BlackRock (BLK) AI Stock Analysis

Compare

8,189 Followers

Top Page

BlackRock

(NYSE:BLK)

Select Model

Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$1,205.00

▲(10.64% Upside)

BlackRock's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting record AUM and strategic growth. However, high valuation and potential overbought technical indicators present risks. Investors should monitor expense management and operational efficiency closely.

Positive Factors

Record AUM and Net Inflows

The record AUM and substantial net inflows indicate strong client trust and effective asset management, supporting long-term revenue growth.

Strong Organic Base Fee Growth

Sustained organic base fee growth reflects robust demand for BlackRock's products, enhancing revenue stability and market position.

Successful Acquisitions and Expansions

Strategic acquisitions and expansions bolster BlackRock's capabilities, diversifying offerings and strengthening competitive advantage.

Negative Factors

Higher Expenses Impact Operating Margin

Rising expenses pressure operating margins, potentially affecting profitability and requiring efficient cost management for long-term health.

Non-Operating Income Decline

Decline in non-operating income can limit overall profitability growth, impacting financial performance if not addressed.

Decreased Operating Cash Flow

A decrease in operating cash flow could challenge liquidity and investment capacity, necessitating attention to cash management.

BlackRock (BLK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$176.74B

Dividend Yield1.91%

Average Volume (3M)629.56K

Price to Earnings (P/E)28.2

Beta (1Y)1.11

Revenue Growth15.79%

EPS Growth-3.85%

CountryUS

Employees22,600

SectorFinancial

Sector Strength70

IndustryAsset Management

Share Statistics

EPS (TTM)11.55

Shares Outstanding155,150,910

10 Day Avg. Volume598,025

30 Day Avg. Volume629,556

Financial Highlights & Ratios

PEG Ratio1.59

Price to Book (P/B)3.24

Price to Sales (P/S)7.54

P/FCF Ratio32.72

Enterprise Value/Market Cap1.15

Enterprise Value/Revenue8.91

Enterprise Value/Gross Profit17.26

Enterprise Value/Ebitda22.42

Forecast

1Y Price Target

$1,319.83

Price Target Upside21.19% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering13

EPS Forecast (FY)48.33

Revenue Forecast (FY)$23.93B

BlackRock Business Overview & Revenue Model

Company DescriptionBlackRock, Inc. (ticker: BLK) is a global investment management corporation headquartered in New York City. Founded in 1988, BlackRock is one of the largest asset managers in the world, offering a wide range of investment products and services across various sectors, including equity, fixed income, multi-asset, alternatives, and real estate. The company serves a diverse client base that includes pension funds, endowments, insurance companies, and individual investors. BlackRock is also known for its innovative technology platform, Aladdin, which provides risk management and investment analytics to institutional investors.

How the Company Makes MoneyBlackRock generates revenue primarily through its asset management fees, which are charged as a percentage of assets under management (AUM). The company earns management fees from a variety of investment products, including mutual funds, exchange-traded funds (ETFs), and separate accounts. Additionally, BlackRock earns performance fees based on the investment performance of certain funds. The firm has a significant revenue stream from its iShares ETFs, which have become one of the leading ETF providers globally. Aside from management and performance fees, BlackRock also generates revenue from technology services provided through its Aladdin platform, which is used by other financial institutions for risk management and investment analysis. Strategic partnerships with various financial institutions and a strong global distribution network further contribute to BlackRock's earnings.

BlackRock Key Performance Indicators (KPIs)

Any

Assets Under Management

Assets Under Management
Reflects the total value of assets managed, indicating the scale of operations and investor trust, which are key to revenue generation and market influence.

Chart InsightsBlackRock's AUM has surged to a record $12.5 trillion, driven by strong net inflows and strategic acquisitions like HPS Investment Partners. Despite significant institutional index redemptions, the firm achieved robust organic growth and expanded its presence in private markets and digital assets. The earnings call highlights a 13% revenue increase and a 16% rise in EPS, underscoring BlackRock's resilience and strategic focus on diversifying revenue streams, aiming for 30% from private markets and technology by 2030. However, increased expenses and declining performance fees pose challenges to operating margins.

Data provided by:

The Fly

BlackRock Earnings Call Summary

Earnings Call Date:Oct 14, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Jan 21, 2026

Earnings Call Sentiment Positive

The earnings call for BlackRock, Inc. reflected a positive sentiment overall, with significant achievements in organic base fee growth, record AUM, successful acquisitions, and expansion in digital assets. However, challenges were noted in the form of higher expenses impacting the operating margin and losses in non-operating income.

Q3-2025 Updates

Positive Updates

Record AUM and Net Inflows

BlackRock, Inc. finished the third quarter with record assets under management (AUM) of $13.5 trillion. Over the last twelve months, clients entrusted BlackRock with nearly $640 billion of net new assets, including $205 billion of net inflows in the third quarter.

Strong Organic Base Fee Growth

The company achieved 10% annualized organic base fee growth in the third quarter, driven by broad-based client demand for iShares, private markets, systematic outsourcing, and cash strategies. This represents the highest quarterly growth since 2021.

Successful Acquisitions and Expansions

BlackRock closed acquisitions of HPS and Elmtree, announced an $80 billion SMA solution with City Wealth, and onboarded a $30 billion pension mandate, significantly strengthening their platform capabilities across private markets, digital assets, data, and technology.

Record Revenue and Operating Income Increase

Third quarter revenue reached $6.5 billion, a 25% increase year over year, while operating income rose by 23% year over year, driven by acquisitions and organic growth.

iShares ETFs and Digital Assets Growth

iShares ETFs generated $153 billion of net inflows in the third quarter, with significant contributions from digital assets ETPs and active ETFs, marking a record flows quarter.

Advancements in Tokenization and Digital Assets

BlackRock is actively exploring tokenization to integrate traditional investment products into digital wallets, aiming to expand access to high-quality investment opportunities in a digital format.

Negative Updates

Non-Operating Income Decline

Earnings per share increased only 1%, as higher operating income was offset by lower non-operating income. The quarter included $84 million of net investment losses primarily due to a mark-to-market non-cash loss linked to a minority investment in Circle.

Higher Expenses Impact Operating Margin

Total expenses increased by 26% year over year, driven by higher compensation, sales, asset, account, and G&A expenses, resulting in a decrease in the as adjusted operating margin by 120 basis points to 44.6%.

Company Guidance

In the third quarter of 2025, BlackRock, Inc. reported strong financial performance driven by diverse growth across its business segments. The company achieved an 8% organic base fee growth over the last twelve months, marking its highest level in over four years. This growth was fueled by significant momentum in ETFs, private markets, and cash management, leading to $205 billion of net inflows in the quarter, reflecting a 10% annualized organic base fee growth. Notable milestones include the acquisition of HPS and Elmtree, an $80 billion SMA solution with City Wealth, and the onboarding of a $30 billion pension mandate. BlackRock ended the quarter with a record $13.5 trillion in assets under management (AUM). Revenue for the quarter increased by 25% year over year to $6.5 billion, while operating income rose 23% to $2.6 billion. Earnings per share saw a modest increase of 1% to $11.55, influenced by a higher diluted share count. The company's as adjusted operating margin was 44.6%, slightly down from the previous year but showing improvement when excluding performance fees. BlackRock plans to maintain its capital management strategy, focusing on strategic growth initiatives and shareholder returns through dividends and share repurchases.

BlackRock Financial Statement Overview

Summary

BlackRock demonstrates strong financial performance with consistent revenue and profit growth, low leverage, and efficient cash flow management. However, slight declines in operational efficiency and cash flow warrant monitoring.

Income Statement

Very Positive

BlackRock's income statement shows strong profitability with a consistent gross profit margin above 50% and a net profit margin around 30%. The company has demonstrated a solid revenue growth rate of 6.08% in the TTM, indicating a positive trajectory. However, the EBIT margin has slightly decreased from previous years, suggesting some pressure on operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a robust financial position with a low debt-to-equity ratio of 0.041 in the TTM, indicating minimal leverage risk. The return on equity is healthy at 13.12%, showcasing effective use of shareholder funds. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Very Positive

Cash flow analysis reveals strong free cash flow growth of 1.26% in the TTM, and a high operating cash flow to net income ratio of 1.87, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also robust at 0.92, reflecting solid cash conversion. However, the operating cash flow has decreased compared to previous periods, which could be a concern if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.89B	20.41B	17.86B	17.87B	19.37B	16.20B
Gross Profit	11.82B	10.09B	8.58B	8.68B	9.82B	8.27B
EBITDA	9.10B	8.21B	6.77B	6.90B	7.90B	6.08B
Net Income	6.10B	6.37B	5.50B	5.18B	5.90B	4.93B
Balance Sheet
Total Assets	162.68B	138.62B	123.21B	117.63B	152.65B	176.98B
Cash, Cash Equivalents and Short-Term Investments	12.60B	14.59B	10.61B	8.75B	9.32B	8.66B
Total Debt	15.04B	14.22B	9.70B	8.49B	9.32B	8.02B
Total Liabilities	100.83B	89.26B	81.97B	78.84B	113.75B	139.33B
Stockholders Equity	55.52B	47.49B	39.35B	37.74B	37.69B	35.28B
Cash Flow
Free Cash Flow	3.93B	4.70B	3.82B	4.42B	4.60B	3.55B
Operating Cash Flow	4.27B	4.96B	4.17B	4.96B	4.94B	3.74B
Investing Cash Flow	-7.28B	-3.00B	-959.00M	-1.13B	-1.94B	-254.00M
Financing Cash Flow	-1.12B	2.24B	-1.99B	-5.44B	-2.29B	244.00M

BlackRock Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1089.09

Price Trends

50DMA

1089.95

Negative

100DMA

1105.00

Negative

200DMA

1030.74

Positive

Market Momentum

MACD

2.84

Negative

RSI

57.21

Neutral

STOCH

87.29

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLK, the sentiment is Positive. The current price of 1089.09 is above the 20-day moving average (MA) of 1045.15, below the 50-day MA of 1089.95, and above the 200-day MA of 1030.74, indicating a neutral trend. The MACD of 2.84 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 87.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLK.

BlackRock Risk Analysis

BlackRock disclosed 46 risk factors in its most recent earnings report. BlackRock reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

BlackRock Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLK	77 Outperform	$176.74B	28.15	12.61%	1.91%	15.79%	-3.85%
BK	75 Outperform	$82.76B	17.13	12.21%	1.71%	4.22%	51.01%
BX	72 Outperform	$191.02B	44.91	35.17%	3.10%	33.12%	19.86%
KKR	69 Neutral	$126.16B	60.30	8.73%	0.53%	-33.80%	-24.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ARES	64 Neutral	$58.27B	75.95	18.64%	2.47%	50.70%	7.32%
CG	59 Neutral	$21.69B	33.49	11.85%	2.40%	-24.62%	437.16%

* Financial Sector Average

Performance Comparison

BLK

BlackRock

1,089.09

45.83

4.39%

Bank of New York Mellon

117.03

39.66

51.26%

KKR

KKR & Co

136.60

-18.88

-12.14%

Blackstone Group

151.18

-31.63

-17.30%

Carlyle Group

58.35

6.96

13.54%

ARES

Ares Management

173.78

-5.23

-2.92%

BlackRock Corporate Events

Business Operations and StrategyFinancial Disclosures

BlackRock Reports Record Q3 2025 Financial Results

Positive

Oct 14, 2025

On October 14, 2025, BlackRock reported its financial results for the third quarter of 2025, highlighting a record $205 billion in net inflows, driven by strong performance in iShares ETFs and private markets. The company saw a 25% increase in revenue year-over-year, despite a decrease in GAAP operating income and diluted EPS due to acquisition-related expenses. BlackRock’s strategic acquisitions and investments in technology and data analytics have positioned it for continued growth and client engagement, with AUM reaching $13.5 trillion.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025