BlackRock (NYSE: BLK) reported mixed fiscal 2025 first-quarter results, with strong earnings but weaker-than-expected assets under management (AUM) and net inflows. Shares rose more than 1% pre-market today as investors digested the update.
The asset management giant posted earnings per share of $11.30, topping analyst expectations of $10.76. However, revenue came in at $5.28 billion, missing the $5.38 billion consensus estimate.
AUM grew 11% year-over-year to reach $11.58 trillion but was just below the expected $11.62 trillion. Despite the year-over-year increase, total net inflows of $84.17 billion fell short of the $96.02 billion estimate. Long-term net inflows totaled $83.35 billion, also missing the $105.15 billion projection.
Institutional clients withdrew a net $37.18 billion during the quarter, weighing on overall flows. On a positive note, BlackRock (NYSE: BLK) reported organic base fee growth of 6%, marking its strongest start to the year since 2021. The company’s adjusted operating margin improved to 43.2%, slightly above the expected 42.6%.
While the firm continues to see momentum in long-term asset growth, ongoing market uncertainty and shifting investor sentiment might be weighing on flows, particularly among institutional clients.
Ahead of its earnings release, TD Cowen analysts reiterated their Buy rating on BlackRock and maintained a price target of $1,032.00. The company’s shares are currently trading at $891 and are down more than 15% since the start of the year.
