BlackRock's Resilient Platform: Delivering Above-Target Organic Growth Amid Market Volatility
BlackRock, Inc. has just reported its first-quarter 2025 earnings, and the results are nothing short of impressive. Despite a sharp change in markets and uncertainty in fiscal and monetary policy, the company's platform has demonstrated its ability to be more resilient and deliver higher and more consistent organic growth through market cycles.
According to Martin Small, Chief Financial Officer, BlackRock's strategy to anchor its business and structural growth engines like private markets, ETFs, digital assets, whole portfolio solutions, systematic and tax-managed strategies, and technology has helped deliver above-target 6% organic base fee growth. This is alongside double-digit growth across the board in revenue, operating income, and earnings per share, with a 100 basis point margin expansion in the first quarter of 2025.
The company's platform has shown its ability to be more resilient, delivering higher and more consistent organic growth through market cycles. As Chairman and Chief Executive Officer Laurence D. Fink noted, "We've been through times of economic and market disruption before during the financial crisis, COVID, and in 2022. So more than ever, it's important that we continue our successful track record of being strongly connected to our clients, policymakers, and employees locally in all the markets in which we operate."
BlackRock has a track record of share gains when there's money in motion, benefiting from its breadth and leading capabilities that integrate public and private markets. The company finished the quarter with a record AUM of $11.6 trillion, with over 60% of year-over-year AUM growth organic. First-quarter net inflows continued this growth, reaching $84 billion.
Excluding episodic large low-fee institutional index redemptions of $55 billion in the quarter, BlackRock delivered approximately $140 billion of net inflows. Organic asset and base fee growth were driven by client demand for private markets, strategic and precision categories within ETFs as well as top-performing systematic strategies.
Turning to its financial results, BlackRock reported first-quarter revenue of $5.3 billion, a 12% year-over-year increase, driven by the impact of organic growth and higher markets on average AUM. Operating income was up 14%, and earnings per share reached $11.30, a 15% increase versus a year ago.
The company's successful track record in delivering above-target organic growth amid market volatility is a testament to its robust platform and strategic investments in structural growth engines like private markets, ETFs, digital assets, whole portfolio solutions, systematic and tax-managed strategies, and technology. As the world continues to navigate uncertainty and market resets, BlackRock is well-positioned to serve its clients and grow with leading capabilities that integrate public and private markets."
