BlackRock's Q1 Earnings Beat on AUM Growth & Higher Revenues, Stock Up

Core Viewpoint - BlackRock's first-quarter 2025 adjusted earnings of $11.30 per share exceeded expectations, reflecting a 15% increase year-over-year, despite challenges in net income and revenue [1][3]. Financial Performance - Adjusted operating income rose 14% year-over-year to$ 2.03 billion, while net income on a GAAP basis decreased 4% to $1.51 billion [3][5]. - Revenues for the quarter were$ 5.28 billion, a 12% increase from the previous year, but fell short of the Zacks Consensus Estimate of $5.38 billion [4]. - Total expenses increased by 18% to$ 3.58 billion, driven by rising costs across all components [4]. Assets Under Management (AUM) - As of March 31, 2025, AUM reached a record high of $11.58 trillion, marking an 11% year-over-year increase, with long-term net inflows of$ 83 billion during the quarter [6]. - The average AUM for the quarter was $11.68 trillion, reflecting a 15% year-over-year rise [6]. Shareholder Actions - BlackRock repurchased shares worth$ 375 million during the reported quarter [7]. Strategic Initiatives - The company is diversifying its offerings through acquisitions, including Global Infrastructure Partners and Preqin, which are expected to strengthen its position as a global asset manager [8].