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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(11.34% 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
Acquisitions are expected to drive a shift towards more durable revenue streams, enhancing BlackRock's growth prospects.
Earnings
BLK's fundamentals remain solid, underscored by a 6% annualized organic base fee growth, with contributions from HPS likely to further enhance this.
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 the 2Q earnings day with a decline influenced by softness in certain metrics, poorly received expense guidance after the HPS acquisition, and a slower path to margin expansion.
Margins
The stock was down as investors grappled with margin commentary that pointed to weaker than expected margins following the integration of HPS.
Price Target
The price target for BlackRock is slightly reduced due to more conservative fee rate and expense assumptions, despite an increase in the 2025 EPS estimate.

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

BlackRock Business Overview & Revenue Model

Company DescriptionBlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.
How the Company Makes MoneyBlackRock generates revenue primarily through investment management fees, which are charged as a percentage of the assets under management (AUM). The company earns management fees from its mutual funds, iShares ETFs, and other pooled investment vehicles. In addition to management fees, BlackRock also generates revenue from performance fees, which are earned when investment returns exceed certain benchmarks. Another significant revenue stream comes from technology and risk management services provided to clients through its Aladdin platform, which offers analytics and risk management tools. The company has established partnerships with various financial institutions, pension funds, and sovereign wealth funds that contribute to its AUM and revenue. Additionally, BlackRock benefits from economies of scale, allowing it to maintain competitive fee structures while maximizing profitability.

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: |
Next Earnings Date:Oct 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted BlackRock's strong performance in terms of record AUM, revenue growth, and successful acquisitions, particularly in private markets and technology. However, the company faced challenges with significant low-fee institutional index outflows and a decline in performance fees and operating margin.
Q2-2025 Updates
Positive Updates
Record AUM and Revenue Growth
BlackRock finished the second quarter with record AUM of $12.5 trillion. Revenue of $5.4 billion was 13% higher year-over-year, driven by organic growth and higher average AUM.
Strong Net Inflows
Excluding low-fee institutional index redemptions, BlackRock delivered approximately $116 billion of net inflows in the quarter.
Successful Acquisitions and Expansions
BlackRock closed its acquisition of HPS Investment Partners and announced plans to acquire ElmTree Funds. These acquisitions are expected to significantly contribute to growth in private markets and technology.
Significant Growth in Technology Services
Quarterly technology services revenue and subscription revenue was up 26% compared to a year ago, driven by sustained demand for Aladdin technology offerings and the impact of the Preqin transaction.
Private Markets Fundraising Success
GIP V closed above its $25 billion target, making it the largest private market fundraise in BlackRock's history.
Negative Updates
Impact of Low-Fee Institutional Index Outflows
Second quarter net inflows of $68 billion were impacted by low-fee institutional index redemptions, with $48 billion of net outflows due to a single client redemption.
Lower Performance Fees
Performance fees of $94 million decreased from a year ago, reflecting lower performance revenue from private markets, liquid alternatives, and long-only products.
Decline in Operating Margin
The second quarter as-adjusted operating margin of 43.3% was down 80 basis points from a year ago, partially due to the impact of lower performance fees.
Company Guidance
During BlackRock's Second Quarter 2025 Earnings Teleconference, the company provided detailed guidance on several key metrics. BlackRock reported a record $12.5 trillion in assets under management (AUM) and achieved 6% organic base fee growth, marking the fourth consecutive quarter of at least 5% growth. The company recorded $68 billion in net inflows, with $116 billion excluding low-fee institutional index redemptions. Revenue for the quarter was $5.4 billion, a 13% increase year-over-year, while operating income rose 12% to $2.1 billion. Earnings per share grew 16% to $12.05. Notably, the acquisition of HPS Investment Partners, completed on July 1, is expected to add $165 billion in client AUM and contribute approximately $450 million in revenue in the third quarter. The transaction is projected to positively impact BlackRock's effective fee rate by 0.6 basis points. The company also highlighted the closing of Global Infrastructure Partners V above its $25 billion target and announced plans to launch a proprietary LifePath target date fund with private allocations by 2026. Additionally, BlackRock's cash management platform grew by 25% year-over-year, generating $22 billion in net inflows during the quarter.

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 Revenue21.57B20.41B17.86B17.87B19.37B16.20B
Gross Profit10.57B10.09B8.58B8.68B9.82B8.27B
EBITDA8.92B8.21B6.77B6.90B7.90B6.08B
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
Neutral
Last Price1127.14
Price Trends
50DMA
1099.58
Positive
100DMA
1018.64
Positive
200DMA
1002.20
Positive
Market Momentum
MACD
9.66
Positive
RSI
52.20
Neutral
STOCH
34.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLK, the sentiment is Neutral. The current price of 1127.14 is below the 20-day moving average (MA) of 1132.95, above the 50-day MA of 1099.58, and above the 200-day MA of 1002.20, indicating a neutral trend. The MACD of 9.66 indicates Positive momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 34.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
79
Outperform
$74.47B16.1311.75%1.84%7.41%51.70%
76
Outperform
$58.55B102.5213.92%2.29%45.89%-9.53%
74
Outperform
$183.93B27.3214.35%1.83%15.88%2.87%
71
Outperform
$124.28B66.908.22%0.52%-24.62%-48.96%
71
Outperform
$32.62B12.8810.94%2.64%11.66%67.88%
70
Outperform
$210.51B46.2737.72%2.49%23.08%41.35%
68
Neutral
$17.89B11.9510.28%3.72%9.74%1.61%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BLK
BlackRock
1,127.14
259.62
29.93%
BK
BNY
105.60
39.26
59.18%
KKR
KKR & Co
139.49
21.86
18.58%
STT
State Street
114.97
31.71
38.09%
BX
Blackstone Group
171.40
36.90
27.43%
ARES
Ares Management
179.20
40.82
29.50%

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