BlackRock (NYSE: BLK), the world’s largest asset manager, reported a record $13.46 trillion in assets under management (AUM) for the third quarter, driven by a combination of global market rallies, strategic acquisitions, and strong inflows into its flagship exchange-traded funds (ETFs). The results underscore BlackRock’s dominance in the asset management industry and its ability to leverage both organic growth and deal-making strategies to boost revenue.

Record-Breaking Assets Under Management

For the quarter ending September 30, BlackRock’s AUM surged from $11.48 trillion a year ago to $13.46 trillion, fueled by long-term net inflows totaling $171 billion. The firm’s ETF business remained the primary engine of organic growth, benefiting from investor preference for low-cost, diversified investment products.

Resilient U.S. consumer spending and robust equity markets supported inflows, while the Federal Reserve’s interest rate cut in September—the first of 2025—encouraged investment into BlackRock’s fixed-income ETFs. Despite cautious investor sentiment toward longer-dated Treasuries, demand for U.S. government securities remained solid.

Strong Third-Quarter Profit and Revenue Growth

BlackRock reported adjusted earnings of $1.91 billion, or $11.55 per share, up from $1.72 billion, or $11.46 per share, in the same period last year. Total revenue climbed to $6.5 billion from $5.2 billion, reflecting both the market rally and an 8% increase in organic base fees, surpassing the company’s internal targets.

CEO Larry Fink emphasized the firm’s global strength:
“Our third-quarter results reflect the strength of our global relationships. The accelerating activity we’re seeing validates BlackRock’s business model.”

Acquisitions Boost Fee Revenue

The quarter marked the first reporting period to include earnings from recent acquisitions, including HPS Investment Partners, a private credit manager. Over the past two years, BlackRock spent approximately $30 billion on acquisitions, with some deals contributing an estimated $500 million in additional revenue during the quarter.

Analysts welcomed these strategic moves, noting that acquisitions such as GIP, Preqin, and HPS are expanding BlackRock’s growth potential and diversifying its revenue streams.

ETF and Private Markets Lead Inflows

BlackRock’s long-term net inflows reached $171 billion, up 7% from last year, with overall net inflows hitting $205 billion. Strength in the ETF business and demand for private market assets—which typically generate higher fees—were key contributors.

During the quarter:

• Private markets inflows: $13.2 billion
• Equity product inflows: $46 billion (down from $74 billion last year)
• Fixed-income inflows: $47.5 billion
• Retail inflows: $9.7 billion (up from $6.9 billion)

Private markets, real estate, and infrastructure are becoming increasingly important as BlackRock diversifies revenue beyond index strategies, which tend to yield lower fees.

Technology and Advisory Services Drive Growth

BlackRock’s technology and subscription revenue rose 28% to $515 million, supported by the Aladdin platform and the newly acquired Preqin data business. Performance fees from investment advisory services surged 33% to $516 million, rebounding from a 42.7% drop in the second quarter.

Stock Performance and Market Outlook

BlackRock shares have surged nearly 14% year-to-date, slightly outperforming the S&P 500’s 13% gain. Following the third-quarter report, shares rose 3.5% to a record high, reflecting investor confidence in BlackRock’s diversified business model and strategic acquisitions.

Senior equity research analyst Kyle Sanders of Edward Jones commented:
“Overall, results were strong and benefitted from a favorable market backdrop. BlackRock is entering a new chapter in its growth story.”

Looking Forward: Diversification and Growth

BlackRock’s strategy focuses on diversifying revenue streams through ETFs, private markets, fixed-income products, and technology-driven services. As the firm continues to integrate acquisitions and expand its offerings, BlackRock is positioned to maintain its leadership in the asset management industry while capturing new opportunities in both public and private markets.