BlackRock reported a stronger-than-expected fourth quarter, powered by a broad market rebound that boosted fee-generating assets and lifted its assets under management to an all-time high of $14.04 trillion.
The world’s largest asset manager said profit beat Wall Street estimates as higher markets and solid client activity drove revenue growth. BlackRock’s shares rose 2.5% in premarket trading after the results.
The quarter reflected a risk-on backdrop in U.S. markets, where investor optimism around artificial intelligence, expectations for easier interest rates, and steady economic growth supported equity gains and encouraged investors to reallocate to lower-cost index strategies. At the same time, easing inflation and signs of a cooling labor market pushed the Federal Reserve in a more dovish direction, a shift that has supported demand for fixed income and contributed to strong momentum in BlackRock’s bond products.
BlackRock reported equity product inflows of $126.05 billion for the quarter, roughly consistent with $126.57 billion a year earlier. Fixed-income products brought in $83.77 billion, underscoring how rate expectations and demand for yield have been translating into bond flows. Long-term net inflows totaled about $267.8 billion, led by continued strength in exchange-traded funds, the firm’s key driver of organic growth through its iShares franchise. For the full year, BlackRock posted record net inflows of $698.26 billion, highlighting the ongoing popularity of ETFs among investors seeking diversified, low-cost exposure.
The company also benefited from higher performance fees, which increased 67% to $754 million in the quarter, extending growth following a nearly 33% increase in the third quarter. BlackRock’s business model is closely tied to asset levels because much of its revenue is earned as a percentage of assets under management, making market performance and net client flows central drivers of results.
Along with the ETF-led growth engine, BlackRock emphasized its longer-term push to expand into higher-fee businesses such as private markets, real estate, and infrastructure. The firm has been increasingly focused on AI-linked themes—including data centers and power infrastructure—in an effort to access larger, longer-duration pools of capital and generate more stable, higher-margin revenue than traditional public-market index products. BlackRock’s private markets business drew $12.71 billion of inflows in the quarter. The company is targeting $400 billion of cumulative private-markets fundraising by 2030 and has outlined plans to incorporate private assets into retirement-plan offerings.
BlackRock’s assets under management increased to $14.04 trillion, up from $11.55 trillion a year earlier, reflecting both market appreciation and client inflows. Total revenue climbed to $7.0 billion from $5.68 billion, exceeding analysts’ expectations of $6.69 billion. Total expenses increased to $5.35 billion from $3.6 billion.
On an adjusted basis excluding certain one-time items, net profit rose to $2.18 billion, or $13.16 per share, for the three months ended Dec. 31, compared with $1.87 billion, or $11.93 per share, a year earlier. Analysts had expected $12.21 per share, according to LSEG data. BlackRock shares gained 4.4% in 2025, trailing the broader S&P 500’s performance over the same period.
