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BlackRock (BLK)
NYSE:BLK
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Blackrock (BLK) AI Stock Analysis

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BLK

Blackrock

(NYSE:BLK)

Rating:74Outperform
Price Target:
$1,255.00
â–²(11.56% Upside)
BlackRock's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust growth in AUM and key financial metrics. The high valuation and incomplete technical analysis data slightly temper the score. The company's strategic focus on private markets and digital assets positions it well for future growth, despite challenges from increased expenses and institutional index redemptions.
Positive Factors
Acquisitions and Collaborations
Acquisitions are expected to drive a shift towards more durable revenue streams, enhancing BlackRock's growth prospects.
Earnings Growth
BLK is on track to achieve high operating income margins, which supports strong EPS growth for the stock.
Market Expansion
BlackRock is seen as an attractive opportunity for global capital market expansion, with potential collaborations with governments.
Negative Factors
Expense Guidance
BlackRock shares underperformed on 2Q earnings day due to poorly received expense guidance after the HPS acquisition.
Margin Pressure
The stock was down as investors grappled with margin commentary that pointed to weaker than expected margins following the integration of HPS.
Price Target Adjustment
The price target for BlackRock is slightly reduced due to more conservative fee rate and expense assumptions.

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

Blackrock Business Overview & Revenue Model

Company DescriptionBlackRock, Inc. (BLK) is a leading global investment management corporation, headquartered in New York City. As one of the largest asset managers in the world, BlackRock provides a wide range of investment and technology services to institutional and retail clients. The company's core offerings include equity, fixed income, cash management, alternative investments, and multi-asset strategies designed to meet the diverse objectives of its clients. Additionally, BlackRock is known for its Aladdin platform, a sophisticated risk management and portfolio management software used by other financial institutions.
How the Company Makes MoneyBlackRock primarily generates revenue through investment advisory and administration fees collected from managing assets on behalf of its clients. These fees are generally based on a percentage of assets under management (AUM), which fluctuate with market conditions and client inflows or outflows. BlackRock's revenue streams also include performance fees, which are contingent on achieving specific investment returns, and technology service fees from its Aladdin platform. Furthermore, the company benefits from securities lending activities, where it earns income by lending securities held in client portfolios to borrowers. Significant partnerships with financial institutions and distribution networks expand BlackRock's market reach and contribute to its earnings growth.

Blackrock Key Performance Indicators (KPIs)

Any
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:Main Street Data

Blackrock Earnings Call Summary

Earnings Call Date:Jul 15, 2025
(Q2-2025)
|
% Change Since: 1.22%|
Next Earnings Date:Oct 10, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a strong performance with record AUM, significant growth in key financial metrics, and successful expansions in digital assets and private markets. However, the positive performance was somewhat offset by significant institutional index redemptions, a decline in performance fees, and increased expenses impacting operating margins.
Q2-2025 Updates
Positive Updates
Record Assets Under Management (AUM)
BlackRock finished the second quarter with a record AUM of $12.5 trillion, indicating strong growth and market positioning.
Double-Digit Growth in Key Financial Metrics
BlackRock achieved double-digit year-over-year growth in revenue, operating income, and earnings per share, with EPS up 16% to $12.05.
Strong Organic Growth
The company posted 6% organic base fee growth in the second quarter, marking the fourth consecutive quarter of 5% or higher growth.
Successful Fundraising in Private Markets
GIP V closed above its $25 billion target, marking the largest private market fundraise in BlackRock’s and GIP’s histories.
Expansion into Digital Assets
BlackRock's digital asset ETPs and active ETFs added $14 billion and $11 billion in net inflows, respectively, showcasing strong demand and innovation in this sector.
Significant Net Inflows
Excluding low-fee institutional index outflows, BlackRock delivered approximately $116 billion of net inflows in the quarter.
Acquisition of HPS Investment Partners
The acquisition of HPS added $165 billion of client AUM and is expected to contribute approximately $450 million in revenue.
Negative Updates
Impact of Institutional Index Redemptions
Net inflows were impacted by $48 billion of net outflows from low-fee institutional index redemptions, including a significant $52 billion redemption by a single client.
Decline in Performance Fees
Performance fees decreased to $94 million from a year ago, reflecting lower performance revenue from private markets and other products.
Operating Margin Decline
The as-adjusted operating margin of 43.3% was down 80 basis points from a year ago, partially due to lower performance fees.
Higher Expenses
Total expenses increased 14% year-over-year, driven by higher compensation, sales asset and account expense, and higher G&A expenses.
Company Guidance
In the second quarter of 2025, BlackRock reported significant financial achievements, including record assets under management (AUM) of $12.5 trillion and net inflows of $68 billion, excluding $48 billion of low-fee institutional index outflows. The firm delivered 6% organic base fee growth, marking the fourth consecutive quarter of over 5% growth, with revenue rising 13% year-over-year to $5.4 billion. Operating income increased by 12% to $2.1 billion, and earnings per share (EPS) rose 16% to $12.05. Notably, BlackRock's acquisitions, including HPS Investment Partners, added $165 billion in client AUM, with HPS expected to contribute $450 million in revenue in Q3. The firm's as-adjusted tax rate was approximately 25%, and it achieved $94 million in performance fees, despite a decrease from the previous year. BlackRock's strategic focus on private markets and technology aims for 30% revenue contribution by 2030, with significant progress demonstrated by the $25 billion GIP V fund and continued growth in digital assets, active ETFs, and systematic strategies.

Blackrock Financial Statement Overview

Summary
BlackRock exhibits strong financial health with robust profitability and a solid balance sheet. The company has maintained steady revenue growth and efficient operations, as evidenced by strong margins. While the balance sheet shows moderate leverage, the increase in debt levels requires monitoring. Cash flow generation remains strong, though the recent decline in free cash flow growth could be a potential area of concern.
Income Statement
85
Very Positive
BlackRock's income statement shows strong profitability with a gross profit margin of 60.95% and a net profit margin of 29.44% for TTM (Trailing-Twelve-Months). The company has demonstrated consistent revenue growth, with a 5.57% increase in the latest period. EBIT and EBITDA margins are robust at 39.36% and 41.04%, respectively, indicating efficient operations. However, the slight decline in net profit margin compared to the previous year suggests some pressure on net earnings.
Balance Sheet
78
Positive
The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.30, indicating moderate leverage. Return on equity is strong at 14.49%, showcasing effective use of equity to generate profits. The equity ratio stands at 33.55%, suggesting a solid capital structure. However, the increase in total debt over the past year could pose potential risks if not managed carefully.
Cash Flow
72
Positive
Cash flow analysis reveals a slight decline in free cash flow growth at -2.09% for TTM, which could be a concern. The operating cash flow to net income ratio is healthy at 2.57, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.95, suggesting efficient cash conversion. Despite these strengths, the negative growth in free cash flow warrants attention.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.12B20.41B17.86B17.87B19.37B16.20B
Gross Profit11.50B10.09B8.58B8.68B9.82B8.27B
EBITDA9.10B8.21B6.77B6.90B7.90B6.08B
Net Income6.40B6.37B5.50B5.18B5.90B4.93B
Balance Sheet
Total Assets146.47B138.62B123.21B117.63B152.65B176.98B
Cash, Cash Equivalents and Short-Term Investments11.65B14.59B10.61B8.75B9.32B8.66B
Total Debt16.66B14.22B9.70B8.49B9.32B8.02B
Total Liabilities97.16B89.26B81.97B78.84B113.75B139.33B
Stockholders Equity49.14B47.49B39.35B37.74B37.69B35.28B
Cash Flow
Free Cash Flow3.88B4.70B3.82B4.42B4.60B3.55B
Operating Cash Flow4.24B4.96B4.17B4.96B4.94B3.74B
Investing Cash Flow-6.43B-3.00B-959.00M-1.13B-1.94B-254.00M
Financing Cash Flow1.15B2.24B-1.99B-5.44B-2.29B244.00M

Blackrock Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1124.97
Price Trends
50DMA
1052.46
Positive
100DMA
987.37
Positive
200DMA
990.53
Positive
Market Momentum
MACD
17.66
Positive
RSI
60.81
Neutral
STOCH
77.82
Neutral
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 1124.97 is above the 20-day moving average (MA) of 1107.01, above the 50-day MA of 1052.46, and above the 200-day MA of 990.53, indicating a bullish trend. The MACD of 17.66 indicates Positive momentum. The RSI at 60.81 is Neutral, neither overbought nor oversold. The STOCH value of 77.82 is Neutral, 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$72.70B15.7511.75%1.88%7.41%51.70%
76
Outperform
$61.82B105.4312.97%2.18%46.84%-7.13%
74
Outperform
$173.60B27.0814.35%1.83%15.56%2.86%
74
Outperform
$128.75B69.169.03%0.50%-23.81%-48.96%
68
Neutral
$31.42B12.4110.94%2.74%11.66%67.88%
67
Neutral
$17.05B11.609.79%3.95%10.63%1.86%
66
Neutral
$206.73B45.7137.72%2.52%27.13%41.35%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BLK
Blackrock
1,124.97
304.59
37.13%
BK
BNY
103.09
41.27
66.76%
KKR
KKR & Co
142.67
30.44
27.12%
STT
State Street
111.08
36.00
47.95%
BX
Blackstone Group
168.91
43.04
34.19%
ARES
Ares Management
188.43
51.68
37.79%

Blackrock Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
BlackRock Reports Strong Q2 2025 Financial Results
Positive
Jul 15, 2025

On July 15, 2025, BlackRock reported its financial results for the second quarter of 2025, highlighting a diluted EPS of $10.19, or $12.05 as adjusted. The company experienced significant net inflows, driven by record performance in iShares ETFs and private markets, alongside a 13% increase in revenue year-over-year. BlackRock’s strategic acquisition of HPS Investment Partners added substantial assets under management, further strengthening its market position. The firm continues to innovate by integrating public and private markets and expanding its digital assets offerings, aiming to attract a new generation of global investors.

The most recent analyst rating on (BLK) stock is a Hold with a $774.00 price target. To see the full list of analyst forecasts on BlackRock stock, see the BLK Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
BlackRock Completes Acquisition of HPS Investment Partners
Positive
Jul 1, 2025

On July 1, 2025, BlackRock completed its acquisition of HPS Investment Partners, a global credit investment manager, enhancing its capabilities in the private credit market. This strategic move positions BlackRock to better meet client demands by integrating HPS’s expertise into its existing platform, creating Private Financing Solutions (PFS) to offer comprehensive public and private income solutions. The acquisition is expected to strengthen BlackRock’s market position by addressing the evolving needs of clients and borrowers, while maintaining HPS’s branding for its flagship strategies.

The most recent analyst rating on (BLK) stock is a Hold with a $774.00 price target. To see the full list of analyst forecasts on BlackRock stock, see the BLK Stock Forecast page.

Executive/Board ChangesShareholder Meetings
BlackRock Approves Executive Compensation at Annual Meeting
Neutral
May 16, 2025

On May 15, 2025, BlackRock, Inc. held its Annual Meeting of Shareholders, where all director nominees were elected, and the compensation for named executive officers was approved through a non-binding advisory vote. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for fiscal year 2025. However, shareholder proposals regarding a report on risks associated with stakeholder capitalism and reform of board elections were not approved.

The most recent analyst rating on (BLK) stock is a Hold with a $774.00 price target. To see the full list of analyst forecasts on BlackRock stock, see the BLK Stock Forecast page.

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: Aug 07, 2025