BlackRock (BLK) delivered a strong start to 2025 with first-quarter revenue rising 12% year-over-year to $5.28 billion, fueled by solid organic growth and record levels of assets under management. Despite a slight dip in GAAP operating income, which held steady at $1.70 billion, and a decline in GAAP operating margin to 32.2% due to acquisition-related costs, the firm demonstrated enhanced efficiency, with adjusted operating income climbing 14% to $2.03 billion and adjusted margins expanding to 43.2%.

Net income on a GAAP basis came in at $1.51 billion, down modestly from the prior year, while adjusted diluted EPS rose 15% to $11.30, reflecting strong underlying profitability. A notable reduction in the adjusted effective tax rate to 16.0% also contributed to bottom-line resilience.

BlackRock’s AUM reached a record $11.58 trillion, up from $10.47 trillion a year earlier, with net inflows totaling $84 billion for the quarter. Excluding episodic low-fee institutional index outflows, inflows would have reached $140 billion, underscoring strong client demand. Growth was led by ETF inflows of $107 billion, particularly in core equity and fixed income products, while retail and institutional active strategies contributed $13 billion and $8 billion, respectively. The firm also reported $7 billion in private markets net inflows, reflecting continued momentum in infrastructure and private credit.

From a revenue perspective, investment advisory and related fees surged 16% to $4.40 billion, driven by strength in equity, fixed income, and alternative strategies. Technology services revenue increased 16% to $436 million, benefiting from the integration of Preqin. However, performance fees declined sharply to $60 million, primarily due to weaker returns in private markets and liquid alternatives.

Geographically, the Americas accounted for the lion’s share of revenue at $3.48 billion, followed by $1.56 billion from Europe and $242 million from Asia-Pacific.

Management emphasized the benefits of BlackRock’s diversified platform, highlighting growth across ETFs, private markets, digital assets, and technology services. The Preqin acquisition, completed in March, is expected to bolster the firm’s capabilities in private markets data, while the pending HPS Investment Partners deal, targeted to close mid-year, will scale BlackRock’s private credit AUM to approximately $220 billion.

Despite rising expenses—up 10% year-over-year—BlackRock maintained strong operating leverage, supported by strategic investments in talent and technology. The firm also returned $375 million to shareholders via share repurchases and raised its quarterly dividend to $5.21 per share.

Looking ahead, BlackRock remains confident in its ability to drive market-leading organic growth, expand margins, and benefit from continued demand in infrastructure, private credit, and advice-led solutions. Management reiterated expectations for positive fee rate accretion as higher-margin businesses scale and anticipates sustained low- to mid-teens growth in technology services. With global expansion efforts underway and a robust product pipeline, BlackRock is well-positioned to navigate market volatility and deepen client engagement worldwide.