BlackRock hits a record $12.53 trillion in AUM, but shares fall as a $52B client withdrawal weighs on strong Q2 earnings.
BlackRock, Inc. delivered mixed Q2 earnings against a backdrop of high market volatility, where revenues and AUM increased modestly but fell short of expectations. The asset manager is betting strongly in private markets to continue with its high growth and diversify away from public products. Despite the company having a solid growth pipeline and a competitive advantage, its valuation is currently overvalued, and therefore, I decided to rate the shares as a Hold.
Major U.S. equity indexes were mixed as the latest Consumer Price Index report showed inflation ticking higher in June, with indications that President Donald Trump's tariffs are beginning to push up prices on goods like groceries and clothing.
BlackRock CEO Larry Fink on Tuesday said infrastructure is at the "beginning of a golden age" and that there's a need to invest trillions of dollars into power grids, AI and economic digitization.
BLK beats Q2 earnings estimates and posts record $12.52T AUM, but shares dip 6.4% despite strong revenue growth.
BlackRock, Inc. (NYSE:BLK ) Q2 2025 Earnings Conference Call July 15, 2025 7:30 AM ET Company Participants Christopher Joseph Meade - Senior MD, General Counsel & Chief Legal Officer Laurence Douglas Fink - Founder, CEO & Chairman Martin S. Small - Senior MD, CFO & Global Head of Corporate Strategy Conference Call Participants Alexander Blostein - Goldman Sachs Group, Inc., Research Division Benjamin Elliot Budish - Barclays Bank PLC, Research Division Brian Bertram Bedell - Deutsche Bank AG, Research Division Craig William Siegenthaler - BofA Securities, Research Division Daniel Thomas Fannon - Jefferies LLC, Research Division Michael J.
BlackRock (BLK) said its assets under management reached a record $12.5 trillion in the second quarter, though its revenue missed estimates, sending shares lower Tuesday.
An Asian institutional client pulled $52 billion from the asset manager during the second quarter, crimping net client inflows into the investment firm.
BlackRock Inc (NYSE:BLK) shares fell more than 5% after the investment firm reported a revenue miss for the second quarter, overshadowing better-than-expected earnings. Revenue for Q2 was $5.42 billion, up 13% from the year-ago quarter but slightly below the Wall Street consensus of about $5.44 billion.
BlackRock (BLK) came out with quarterly earnings of $12.05 per share, beating the Zacks Consensus Estimate of $10.71 per share. This compares to earnings of $10.36 per share a year ago.
I assign BlackRock a cautious Buy rating, confident in its long-term growth potential, strong market positioning, and robust revenue growth despite recent margin pressures. BlackRock's strategy of external growth through acquisitions, especially in infrastructure and private markets, is a key catalyst for future expansion and diversification. The company's solid financial structure, adaptability to market trends, and exposure to positive macroeconomic tailwinds support resilience and ongoing opportunity.
The financial sector will take center stage next Tuesday, July 15, with Q2 results from most of the major domestic banks set to be released.