VALUATION HIGHLIGHTS

1. Equity Investments constitute 37% of the Trefis price estimate for BlackRock's stock.
2. Alternative Investments constitute 19% of the Trefis price estimate for BlackRock's stock.
3. Fixed Income Investments constitute 17% of the Trefis price estimate for BlackRock's stock.

WHAT HAS CHANGED?

Latest Earnings: Q4 and Full Year 2025

BlackRock reported full year 2025 revenue of $24.22 billion, an 19% increase year-over-year, and adjusted EPS of $48.09, up 10%. For the fourth quarter, revenue reached $7.01 billion, climbing 23% compared to the prior year. These results were primarily fueled by record net inflows of $698 billion for the year, including $342 billion in Q4 alone, and the strategic integration of recent acquisitions. Assets Under Management (AUM) reached an unprecedented $14.04 trillion, supported by strong organic base fee growth and positive market movements. While GAAP net income saw a decline due to non-cash acquisition-related expenses and charitable contributions, adjusted operating income rose 18% to $9.6 billion, reflecting robust underlying profitability across the platform.

Note: BlackRock's FY'25 ended on December 31, 2025.

Major Expansion into Private Markets

In a transformative move to dominate the alternatives space, BlackRock completed the acquisition of HPS Investment Partners in 2025, adding approximately $165 billion in client AUM. This followed the integration of Global Infrastructure Partners (GIP) and the acquisition of Preqin to bolster data capabilities. These transactions represent a significant strategic pivot toward private credit and infrastructure, as the firm aims to capture the growing "continuum" between public and private markets. By early 2026, a BlackRock-led consortium also emerged as a frontrunner for a multi-billion dollar acquisition of AES Corporation, signaling an aggressive push into the AI-driven energy and infrastructure sector.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of BlackRock's value that present opportunities for upside or downside to the current Trefis price estimate:

Investment Advisory and Administration

• Organic Base Fee Growth: BlackRock achieved 12% annualized organic base fee growth in Q4 2025, significantly outperforming historical averages. If the firm sustains high-single-digit growth through its private markets expansion and iShares dominance, there is meaningful upside to fee revenue estimates. Conversely, a shift back to low-fee index products could compress margins.


• Private Markets Contribution: Alternative assets now contribute roughly 17% of base fees despite being a small fraction of total AUM. Success in scaling HPS and GIP assets could drive fee yields 6 to 7 times higher than traditional products. Failure to integrate these high-margin platforms efficiently or a slowdown in private credit demand represents a key downside risk.

For additional details, select a division from the interactive Trefis split for BlackRock at the top of the page.

BUSINESS SUMMARY

BlackRock is the world's largest asset manager, operating a highly diversified business model that spans passive index funds (iShares), active management, private markets, and technology services (Aladdin). The company generates the majority of its revenue through investment advisory and administration fees linked to its $14 trillion AUM base. By integrating industry-leading technology with a massive global distribution network, BlackRock acts as a one-stop shop for institutional and retail investors seeking "whole-portfolio" solutions.

SOURCES OF VALUE

BlackRock's value is anchored by its unmatched scale and the recurring nature of its fee-based revenue streams.

Dominant iShares ETF Ecosystem

The iShares franchise is the world's leading ETF provider, managing $5.5 trillion in assets. Its scale creates a virtuous cycle of liquidity and low tracking error, making it the preferred choice for both retail and institutional investors. In 2025, iShares led the industry with record net flows of $527 billion, demonstrating a massive installed base that acts as a stable foundation for fee generation.

Aladdin Technology Integration

The Aladdin platform provides risk management and investment operations for many of the world's largest financial institutions. With $2 billion in annual technology services revenue and 24% growth in 2025, Aladdin creates high switching costs and deepens client relationships. The integration of generative AI and Preqin data into Aladdin further solidifies its position as the operating system for modern finance.

KEY TRENDS

AI Infrastructure and Energy Nexus

BlackRock has identified the build-out of AI data centers as a primary "mega force." The firm is positioning its infrastructure funds to finance the massive capital expenditure required for power generation and grid upgrades. This trend shifts the investment focus from software providers to the physical infrastructure sustaining the AI ecosystem, providing a new long-term growth vector for the firm's private market portfolios.

Democratization of Private Markets

A significant strategic shift is underway to bring private credit and infrastructure to wealth and retirement investors. Through new "evergreen" and semi-liquid fund structures, BlackRock is lowering the barrier to entry for individual investors. This "retailization" of alternatives is expected to drive higher-margin inflows as traditional 60/40 portfolios evolve toward more complex, diversified allocations.