BlackRock, Inc. (BLK) reported a strong second quarter of 2025, underpinned by record-high assets under management (AUM) of $12.53 trillion, an 18% increase from the prior year. The firm posted total net inflows of $67.7 billion for the quarter and $152 billion year-to-date, led by record-setting activity in iShares® ETFs, robust interest in private markets, and strong demand for cash management solutions.

Revenue climbed 13% year-over-year to $5.42 billion, reflecting broad-based strength across BlackRock’s platform. Growth in investment advisory and lending fees—up 15% to $4.45 billion—was fueled by organic base fee growth, favorable market conditions, FX tailwinds, and a notable $240 million contribution from the GIP transaction. Meanwhile, technology services revenue surged 26% to $499 million, bolstered by demand for Aladdin® and the recently acquired Preqin, which added $60 million in the quarter. However, performance fees dropped 43% to $94 million, weighed down by weaker returns in private markets and liquid alternatives.

Despite the topline strength, GAAP operating income fell 4% to $1.73 billion, primarily due to noncash acquisition-related costs, with the GAAP operating margin narrowing to 31.9% from 37.5%. Still, adjusted metrics painted a more favorable picture: as adjusted operating income rose 12% to $2.10 billion, and adjusted diluted EPS grew 16% to $12.05. The firm repurchased $375 million of shares during the quarter.

On the AUM front, equities led with $6.91 trillion and $28.8 billion in inflows, while alternatives posted $9.77 billion in inflows, largely from private markets. Digital assets and cash management also stood out, attracting $14.1 billion and $21.95 billion in net new assets, respectively. In contrast, fixed income and multi-asset strategies saw net outflows.

By client type, ETFs brought in a record $84.9 billion in inflows, propelling iShares® to a milestone first half. Institutional clients, however, recorded $41.0 billion in net outflows, largely due to a one-time $52 billion index redemption. Retail clients contributed $2.0 billion in net inflows.

Investment performance remained strong, particularly in fixed income, where 73% of actively managed AUM outperformed benchmarks over one year, and long-term index strategies remained firmly within tolerance ranges.

Strategic milestones included the successful close of the HPS Investment Partners acquisition on July 1, adding $165 billion in client AUM, and surpassing the fundraising target for GIP’s fifth flagship infrastructure fund at $25.2 billion—a record in private infrastructure. Technology saw continued momentum, with ACV growth reaching 16%, and the Preqin acquisition further enhancing BlackRock’s data and analytics offerings.

Looking ahead, management anticipates continued momentum into the typically stronger second half of the year, supported by increased demand for private markets, digital assets, and technology solutions. BlackRock’s ability to integrate public and private investment capabilities, combined with its leadership in ETFs and technology, positions it well for sustained growth.