Analysts React To BlackRock's Q2 Earnings Beat Amid Margin Pressures

BlackRock, Inc. (NYSE:BLK) on Tuesday reported that second-quarter 2025 revenue grew 13% year-over-year to $5.42 billion, beating the consensus of $5.34 billion. 

Adjusted operating income rose 12% to $2.09 billion. Adjusted EPS increased 16% to $12.05, beating the consensus of $10.80.

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Goldman Sachs maintains the Buy rating on BlackRock, revising the price forecast $1,163 from $1,115.

Analyst Alexander Blostein on Wednesday wrote the investors grappled with margin commentary that pointed to ~44.5% margin in the second half of 2025, weaker than buyside expectations following the integration of HPS

“We remain constructive on BLK’s ability to generate 6%-7% organic base fee growth, as the revenue base continues to mix towards private markets and see a meaningful ramp in performance fees over the coming quarters. As the business scales, we think BLK is on track to achieve high-40%’s operating income margins, which coupled with reasonable capital returns supports a mid-teen EPS growth algo for the stock,” Goldman Sachs said in an investor note.

Keefe, Bruyette & Woods wrote, “…the beat was lower quality as it was primarily driven by higher non-operating income.”

“BLK remains in the early stages of its transformation story, and despite the 2Q results, we remain constructive on the firm’s various growth initiatives,” said Kyle Voigt in an investor note on Tuesday.

Keefe analyst lowered forward estimates mainly on lower investment advisory base fees and higher compensation expense, offset slightly by higher performance fees. The analyst reiterates the Outperform rating, while lowering the price target from $1,260 to $1,215.

JPMorgan also lowered the price forecast for BlackRock from $1,018 to $1,093.

Analyst Kenneth Worthington wrote on Tuesday, “With the closing of the HPS acquisition, BlackRock looks to execute against its private market ambitions over the medium term, with alts being a key growth driver for the organization.”

“We see alternatives helping to mitigate what we see as a maturing equity ETF business,” the JP Morgan analyst added.

BLK Price Action: BlackRock stock is up 2.95% at $1,078.40 at publication on Wednesday.

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