BlackRock Assets Hit Record $10.47 Trillion as Stock Rally Fuels Q1 Earnings

BlackRock’s (BLK) first-quarter earnings beat analyst expectations, with the stock market rally and investor interest in its new spot bitcoin exchange-traded fund (ETF) helping drive its assets under management (AUM) to a record. BlackRock shares were up about 2.3% an hour before the opening bell Friday.

The investment manager’s AUM surged $1.4 trillion year-over-year to $10.47 trillion, on the back of $57 billion of quarterly total net inflows, after accounting for seasonal withdrawals by clients. Blackrock’s ETFs together saw net inflows more than triple to $67.24 billion compared to the same period last year, with roughly $14 billion flowing into its iShares Bitcoin Trust (IBIT).

The company reported net income of $1.57 billion or earnings of $10.48 per diluted share. After adjustments, net income stood at $1.47 billion and adjusted diluted EPS was $9.81, both better than what analysts predicted and roughly 23% higher than the year-ago quarter.

Revenue grew 11% to $4.73 billion as rising stock markets not only boosted AUM but also fees the company earned on trading and investment advisory services.

“Organic asset and base fee growth accelerated into the end of the quarter, and first quarter long-term net inflows of $76 billion already represent nearly 40% of full year 2023 levels,” BlackRock Chief Executive Officer (CEO) Larry Fink said in a press release.