BlackRock Stock Drops Despite Record Assets, Acquisition

BlackRock reported record assets under management of $12.5 trillion in Q2 2025, but shares fell over 6% as revenues of $5.42 billion missed estimates and net inflows were below expectations, partly due to a $52 billion redemption by a single institutional client. Adjusted earnings per share reached $12.05, and net income rose 7% year-over-year, both exceeding analyst forecasts. The company continued its strategic expansion into higher-fee private markets, completing a $12 billion acquisition of HPS Investment Partners, which contributed $165 billion in client assets. Despite robust ETF business, fee compression in index products and lighter-than-expected net flows present near-term challenges. BlackRock’s overall asset growth and diversification are viewed positively for long-term stability. The firm’s stock performance has outpaced the S&P 500 year-to-date, though investors remain cautious regarding future earnings guidance.