With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

Industries included in the sector are banks, insurance, and real estate companies.

Fortune Sector Leaders: Financials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

WMA-2024-BlackRock

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-BlackRock

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-20-Blackrock

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-18-BlackRock

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-192-BlackRock

The world's largest asset manager helps handle the investments of its clients, with over $8 trillion in assets under management.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-219-BlackRock

Money management firm BlackRock provides investment and risk management services to clients including endowments, pension funds, and insurance companies. In a January 2020 letter to investors, CEO Larry Fink outlined the ways in which the company would <a href="https://fortune.com/longform/wall-street-fossil-fuels-divest-climate-change/">prioritize environmental sustainability</a> in its investment strategy in order to curb climate change.

As we face unprecedented collective challenges, cooperation has become a business superpower.

05.CTW20.Blackrock

Few events moved the needle on corporate climate policy like CEO Larry Fink’s warning, in January, that BlackRock considers climate change an investment risk. The world’s largest asset manager, with $7.3 trillion under management, has since begun pressuring companies to be transparent about their exposure to climate risks, and used its shareholder clout to oppose policies that are climate-unfriendly.

Change the World

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Change The World

Impact Segment

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Strongest Dimension

Years on list

Previous rank

State

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

BlackRock held $11.6 trillion in assets under management at the end of 2024, making it far and away the world’s largest asset manager. BlackRock serves institutional and individual investors across more than 100 countries. Its largest business divisions include investment advisory services, technology services, stock lending distribution, and a variety of shareholder services. Founded in 1988, BlackRock is today known for its popular iShares ETF platform, Aladdin risk management technology, and expanding presence in private markets, infrastructure, and private credit. One of BlackRock’s newest businesses is cryptocurrency, including a Bitcoin ETF that quickly became the world’s biggest.

Q2 2026

Q1 2026

Q4 2025

Q2 2025

Q1 2025

Q4 2024

BlackRock (BLK): Company Profile, Stock Price, News, Rankings

legacy

BlackRock

blackrock

Good morning. My name is Katie, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock Incorporated First Quarter twenty twenty five Earnings Teleconference. Our host for today's call will be the Chairman and Chief Executive Officer, Laurence D. Fink Chief Financial Officer, Martin S.

Small President, Robert Escapito and General Counsel, Christopher J. Meade. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer period. Thank you.

Mr. Meade, you may begin your conference.

Good morning, everyone. I'm Chris Meade, the General Counsel of BlackRock. Before we begin, I'd like to remind you that during the course of this call, we may make a number of forward looking statements. We call your attention to fact that BlackRock's actual results may, of course, differ from these statements. As you know, BlackRock has filed reports with the SEC, which lists some of the factors that may cause the results of BlackRock to differ materially from what we say today.

BlackRock assumes no duty and does not undertake to update any forward looking statements. So with that, I'll turn it over to Martin.

Thanks, Chris. Good morning, everyone. It's my pleasure to present results for the first quarter of twenty twenty five.

Before I turn it over to Larry, I'll review our financial performance and business results. Our earnings release discloses both GAAP and as adjusted financial results. I'll be focusing primarily on our as adjusted results. We've built BlackRock's platform to help clients in all market environments. Even against a sharp change in markets and uncertainty in fiscal and monetary policy, our strategy to anchor our business and structural growth engines like private markets, ETFs, digital assets, whole portfolio solutions, systematic and tax managed strategies and technology, that strategy helped again deliver above target 6% organic base fee growth.

That's alongside double digit growth across the board in revenue, operating income and earnings per share and with 100 basis points of margin expansion in the first quarter of twenty twenty five. The first quarter demonstrates the benefits of our investments to make platform more all weather across asset management and technology, integrating public and private for clients and shareholders. Our platform is showing its ability to be more resilient and deliver higher and more consistent organic growth through market cycles. We're a partner with both long term perspective and ability to move quickly in times of stress. We've been through times of economic and market disruption before during the financial crisis, COVID and in 2022.

So more than ever, it's important that we continue our successful track record of being strongly connected to our clients, policymakers and employees locally in all the markets in which we operate. We don't think of ourselves as a U. S. Firm with international offices. We're a European firm.

We're a Canadian firm. We're a Middle Eastern firm. We aspire to be the best partner to our clients. We work to help governments and clients understand markets and complex questions at the intersection of investor portfolios and geopolitics. We lead with empathy and trusted advice.

These periods of uncertainty with major market resets, they're often catalysts for client changes to asset allocation and portfolio construction. Benefiting from our breadth, BlackRock has a track record of share gains when there's money in motion. We historically did that as a public markets focused firm. Now with money in motion again, BlackRock's better positioned to serve our clients and grow with leading capabilities that integrate public and private markets. We finished the record quarter with record AUM, record units of trust of $11,600,000,000,000 Over the last twelve months, clients trusted BlackRock with $670,000,000,000 of new assets, making more than 60% of our year over year AUM growth organic.

First quarter net inflows continued our growth with $84,000,000,000 As a management team, we look at core flow trends away from episodic large low fee institutional index redemptions, of which we had $55,000,000,000 in the quarter. Excluding that activity, BlackRock delivered approximately $140,000,000,000 of net inflows in the quarter. Organic asset and base fee growth were driven by client demand for private markets, strategic and precision categories within ETFs as well as top performing systematic strategies. These are all capabilities we've invested in over recent years and demonstrate the success of our structural growth strategy. Turning to our financial results.

First quarter revenue of $5,300,000,000 increased 12% year over year, driven by the impact of organic growth and higher markets on average AUM, base fees consolidated in the GIP transaction and higher technology services and subscription revenue. Operating income of $2,000,000,000 was up 14% and earnings per share of $11.3 was 15% higher versus a year ago. EPS also reflected lower non operating income, a lower tax rate and higher share count in the current quarter. The higher year over year share count included shares issued and delivered at the closing of the GIP transaction on 10/01/2024. Non operating results for the quarter included $68,000,000 of net investment gains, driven primarily by mark to market non cash gains on our co investment portfolio and a gain on a minority investment.

Our as adjusted tax rate for the first quarter was approximately 16% and reflected $195,000,000 of discrete tax benefits. A portion was related to stock based compensation awards that vest in the first quarter of each year. We continue to estimate that 25% is a reasonable projected tax run rate for the remainder of 2025. The actual effective tax rate may differ because of nonrecurring or discrete items or potential changes in tax legislation. First quarter base fee and securities lending revenue of $4,400,000,000 was up 16% year over year, driven by positive impact of market beta on average AUM, organic base fee growth and approximately $285,000,000 in base fees from GIP.

On an equivalent day count basis, our annualized effective fee rate was zero one basis point higher compared to the fourth quarter. This was mainly due to the impact of approximately $60,000,000 higher catch up base fees associated with private markets fundraising. Excluding first quarter catch up fees and including the impact of market and foreign exchange movements towards the second half of the first quarter, we entered the second quarter with base fees approximately 1% lower than the first quarter. Performance fees of $60,000,000 decreased from a year ago, primarily reflecting lower performance revenue from private markets and liquid alternatives. Quarterly technology services and subscription revenue was up 16% compared to a year ago.

Growth reflects sustained demand for our full range of Aladdin technology offerings and the closing of the Prequen transaction on March 3. Prequen added approximately $20,000,000 to first quarter revenue. Annual contract value or ACV increased 30% year over year, including the Prequen acquisition and increased 14% organically. We remain committed to low to mid teens ACV growth over the long term. Total expense increased 10% year over year, reflecting higher sales asset and account, G and A and compensation expense.

Employee compensation and benefit expense was up 7%, reflecting higher headcount associated with the onboarding of the GIP and Prequen employees and higher incentive compensation linked to higher operating income. G and A expense increased 12%, primarily driven by the GIP and Prequen acquisitions and continued technology investments. Excluding the impact of the GIP and Prequen acquisitions, G and A would have increased 6% from a year ago. Sales asset and account expense increased 14% compared to a year ago, primarily driven by higher direct fund expense and distribution costs. Direct fund expense was up 16% year over year, mainly due to higher average index AUM.

Our first quarter as adjusted operating margin of 43.2% was up 100 basis points from a year ago, reflecting the positive impact of markets on revenue and organic base fee growth. We continue to execute on our financial rubric. This approach has yielded profitable growth and operating leverage in good markets, and we believe will add more resilience to our operating margin when markets are less supportive. In line with our January guidance, which excludes the impact of HPS and related transaction costs, at present, we continue to expect a mid to high single digit percentage increase in 2025 core G and A expense. Our capital management strategy remains consistent.

We invest first in our business, either to scale strategic growth initiatives or drive operational efficiency and then return cash to our shareholders through a combination of dividends and share repurchases. We repurchased $375,000,000 worth of common shares in the first quarter. At present, based on our capital spending plans for the year and subject to market and other conditions, we still anticipate repurchasing at least $375,000,000 of shares per quarter for the balance of the year, consistent with our January guidance. We continue to target mid-twenty twenty five for the closing of the HPS transaction, which remains subject to regulatory approvals and other customary closing conditions. Last month, an investor consortium, including BlackRock, announced the acquisition of Veridium Group.

Veridium is Germany's leading closed block life insurance consolidator and fourth largest life insurance company. Upon the close of the transaction, BlackRock will have a noncontrolling, nonconsolidated minority equity investment in Veridium and help the company access a broader range of private markets investment opportunities in support of policyholders and the company. We expect that growth to be in private credit strategies, including infrastructure and corporate debt as well as asset based finance. The transaction is expected to close in the second half of twenty twenty five, subject to regulatory approvals and other customary closing conditions. Also in March, we issued €1,000,000,000 of euro denominated ten year debt at a coupon of 3.75% to refinance our euro denominated notes maturing in May 2025.

The euro debt aligns our capital structure with our global business. Beginning in the first quarter, we refined our AUM presentation to further highlight growth areas within BlackRock. The updates primarily focus on our private markets and ETF platforms. We believe these changes provide investors with further transparency into channels powering BlackRock's organic growth strategy. In the first quarter, BlackRock generated total net inflows of $84,000,000,000 Excluding low fee institutional index outflows driven by rebalancing, BlackRock's net inflows were $140,000,000,000 ETF net inflows of $107,000,000,000 were positive across all channels, led by core equity and fixed income ETFs with net inflows of $46,000,000,000 and $34,000,000,000 respectively.

Our innovative product launches across ETFs continue to see widespread adoption as clients use our latest offerings to access a range of investment exposures. Our active ETFs contributed $9,000,000,000 of net inflows, and our digital asset ETPs generated another $3,000,000,000 Inflows into these higher fee ETF categories contributed to 7% annualized organic base fee growth for ETFs in the first quarter. Retail net inflows of $13,000,000,000 were led by record quarterly flows in Aperio, sustained demand for fixed income offerings and our systematic liquid alternatives funds. Institutional active net inflows were $8,000,000,000 driven by demand for infrastructure private markets, our LifePath target date franchise and systematic active equity offerings. These inflows were partially offset by a handful of client specific redemptions from active fixed income, primarily due to reinsurance activity.

Institutional index net outflows of $46,000,000,000 were concentrated in low fee index equities, partially offset by inflows into index fixed income. Our institutional channel delivered 7% long term organic base fee growth in the quarter, benefiting from client demand for private markets and systematic strategies. In private markets, we saw an aggregate $7,000,000,000 of net inflows led by infrastructure and private credit. Liquid alternatives added $2,000,000,000 of net inflows primarily into global equity market neutral and multi strategy funds run by our systematic teams. Finally, BlackRock's cash management platform saw $1,000,000,000 of net inflows in the first quarter.

Cash management results reflected growth in the Circle Reserve Fund, partially offset by seasonal redemptions from U. S. Government funds. We've built our business around structural growers, ETFs, private markets, tax managed and systematic, data driven investing and whole portfolio solutions. It's not just that they're less market sensitive.

It's that they are secular shifts in the way clients are doing business. That's what gives those categories tailwinds. When markets are strong, they'll grow faster. When markets are weaker, they may grow slower, but they still grow. Our first quarter results show our strategy in action.

We surpassed our 5% organic base fee growth target even with more stressed and uncertain markets. Markets may take some time to sort out saber rattling around trade and tariffs, but BlackRock and our clients see growth and opportunity. Clients may look to preserve capital in the near term, but ultimately, we'll continue investing. It will be a market where clients are looking for advice and where BlackRock shines as an integrated whole portfolio provider. Looking ahead, we believe our strategy will continue to deliver for both our clients and shareholders, resulting in market leading organic growth, differentiated operating leverage and earnings and multiple expansion over time.

Thank you, Martin. Good morning, everyone, and thank you for joining the call. BlackRock's positioning and connectivity with clients are stronger than ever, and it's clear in our results. Our structural growth strategy resonated in the first quarter with secular growth across our businesses even with a volatile market backdrop. We delivered above target 6% organic base fee growth, which represented our best start of the year since 2021.

That's in a quarter where the S and P 500 ended 9% off its February peak. It's proof of BlackRock's enhanced structural strength where we can power organic revenue growth that's undeterred by market movement. Revenues grew double digit and our as adjusted operating margin expanded by over 100 basis points. First quarter total net inflows were approximately $140,000,000,000 excluding the episodic institutional index equity activity that Martin mentioned. Importantly, net inflows and organic base fee growth were well diversified across the entire BlackRock platform.

We invested ahead of our secular growth opportunities and ahead of where our clients are going. This quarter represents, the largest organic basic drivers were strategies where we developed in just the last few years, including GIP, our digital asset offerings, Aperio, active ETFs, as well as our tech and data driven systematic equity equity franchise. Strength in our foundational businesses also underpinned results with a record start of the year for iShares ETFs and a 14% technology ACV growth. Uncertainty and anxiety about the future of the markets and the economy are dominating each and every client conversation. I was traveling in Europe last week when the sweeping US terrorist announcements went beyond anything I could have imagined in my forty nine years in finance.

I wrote in my chairman's letter last week that no system has done more to generate wealth for more people than the capital markets. As the capital markets have grown, more people than ever before are investing in the stock market. A little more than 60% of Americans own stock in one way or another, in mutual funds, in ETFs, in individual shares, and especially in their own retirement accounts like four zero one k's and IRA's. So this isn't Wall Street versus Main Street. The market downturn impacts millions of ordinary people's retirement savings.

There are investments for a child's college education and tuition or steps they're taken to have more financial stability. We're in a period of geopolitical and economic activity, but we've seen this before. When there are big pivots in the world, big structural changes in the market like the financial crisis, like the European debt crisis or COVID or the surging inflation in 2022, BlackRock stayed in front of our clients and made some of our greatest leaps forward. At Blackhawk, we are we really challenge ourselves not to get mirrored mirrored down in all the negativity, but to navigate, to mitigate, to move forward, to work with each and every client, to help each and every client. In recent weeks, we've connected with thousands of clients providing them with real time information and our views on unfolding events.

BlackRock's expertise is built and delivered to our nearly 23,000 employees located in 30 plus countries. Together, they serve clients in more than 100 countries. The majority of our workforce is actually based outside The United States. Our international workforce includes people in our global platform centers in Europe, in India, and our international commercial, offices all across the world. This enables us to bring the global insight and investment strategies locally and to bring local insights globally.

We need to be an American in The United States or German in Germany or Japanese in Japan or Canadian in Canada and Mexicans in Mexico. It's also to bring opportunities we see in each and every country to our global client base. It's contributing loyalty to build a country's capital market and retirement system and working for each and every client in each and every country. Probably 80% of what we bring to our clients, our clients are looking looking for a global global strength, global expertise. They're looking for scale and operating efficiencies and investment talent.

But it's the last 20% of the magic where it occurs. It's where you show the best of BlackRock in a local setting anywhere in the world. Doesn't matter whether the client is large or small or where they are, but to know that BlackRock is working for them and we are and and we show that we are working for each and every one of them. We're intentionally shaping our platform around the needs of our clients, and we talk about this in every quarter result. It's about the clients, building a premier global public private market investment and and technology firm.

We're we've assembled a leading franchise across active strategies, ETFs, private markets, technology to serve the complete range of our clients' needs and to help them in each and every one of their own ambitions. Whether seeking capital preservation in cash and short duration or capitalizing on opportunities and equities or looking for income and uncorrelated returns in private markets, BlackRock's comprehensive offering is leading to clients consolidating more of their portfolio with them. I look at our cash business as one example of how we help clients manage asset allocation and liquidity. Our cash AUM is up at an all time high. As of April now, it's at $950,000,000,000.

At BlackRock, we're always listening and deeply listening to each and every client and looking ahead to what their future needs will be. We're working with them on long term issues, not the ups and downs of the market or the next tweet or the next issue. We're constantly testing ourselves to see where we need to do more to be more different, to be faster, to be working on behalf of our clients. I said last quarter that it's just the beginning. The successful arcs of BlackRock of GIP and Prequen and soon HPS are all coming together in a shared story.

GIP and Prequen employees moved into our BlackRock headquarters earlier this year, and we expect HPS to join shortly after the closing. It's one BlackRock physically and definitely one BlackRock spiritually. We're seeing how sensitive public markets are to uncertainty and how quickly they can move in reaction to policy proposals. These dynamics could drive even more capital flows into private markets as investors look to insulate portfolios from tariff impacts and seek attractive income and growth. Last year, we invested in enriching our private markets information, investments, data platform to serve our clients more.

We are seeing the results today and are positioned for this type of secular growth as economic uncertainty plays out. In infrastructure, our combination with GIP just six months ago has already unlocked differentiated opportunities for our clients. Last month, we announced the largest infrastructure investment in our history. We have an agreement in principle to acquire a significant portfolio of 43 ports in more than 20 countries. We had a strong existing relationship with a seller of these assets and as a long term shareholder.

Our partners in this consortium includes, Mediterranean Shipping Company, 1 of the world's leading leaders in shipping and logistics and Terminal Investment Limited, which is one of the world's largest global container terminal operators. Upon closing on this deal, our consortium, our investors will have a portfolio of approximately 100 ports around the world. Together, we know how to invest in, own them, improve on them and operate them. We have recently expanded our AI infrastructure partnership, and we're excited to welcome xAI and NVIDIA as partners alongside Microsoft and MGX. Since its announcement, AIP has attracted significant capital interest and advanced key discussions on AI infrastructure projects.

The partnership will meet the expected target of $30,000,000,000 in capital from investors, asset owners and corporations. And over time, we believe this can unlock over $100,000,000,000 in investment potential, including debt financing of these infrastructure projects. Both AIP and the Landmark Ports announcement are early confirmations of the power and value of GIP pairing with BlackRock. It's unlikely either of us on our own would have been part of these transactions. At the heart of the GIP acquisition was our conviction and how our combined relationships, our combined expertise would come together and deliver fantastic investment opportunities for each and every client worldwide.

We expect to scale our private credit AUM to approximately $220,000,000,000 following our planned acquisition of HPS. The opportunity set for private credit is expanding as a variety of borrowers from startups to large corporate partners seek more flexible execution as they evaluate their financing needs. And the longer duration, lower risk returns of investment grade private debt are driving increased allocations from insurance companies. BlackRock already manages approximately $700,000,000,000 for the for the insurance industry, primarily in index, public credit strategies, and our Aladdin technology powers over 100 different insurance companies. As Mark mentioned, our investment in Veridium is the latest example of our commitment to supporting partners through broad solution sets, including investments, capital, and insurance expertise.

BlackRock has a meaningful role in helping manage Veridium's private market investments going forward, including in infrastructure investments and private credit. The upcoming addition of HPS represents even more opportunities to extend our insurance relationships across all private credit markets. We also expect HPS to advance our positioning in the quickly growing alts to wealth space, including through their approximately $20,000,000,000 of wealth focused BDC offerings. We've had recent success with our own non traded BDCs, placements with RIAs and with a large traditional distribution platforms. And we're looking forward to leveraging our shared expertise and expanded network to grow our combined franchises even further after closing.

Our acquisition of Prequen brings leading capabilities in private market data to our technology platform and now triples our desktop reach to more than 300,000 users. We believe this acquisition enriches growth potential not only for BlackRock private markets and technology franchises, but for the entire private market industry as a whole. Growth is diversified across our Aladdin franchise as clients are increasingly choosing to leverage the integrated capabilities of Republic private market workflow and data offerings. It's more important than ever for our clients to have a clear, unified view of their portfolio from the building blocks of asset allocation to the minutiae of trade execution and accounting. Aladdin recently went live with our first client in Korea, adding to our scaled relationships with leading institutions around the world.

And looking ahead, we see more opportunity to expand our relationships with Prefins' more than 4,400 clients. BlackRock is a global firm, but one that operates hyper locally. We connect our clients across regions to both local and global capital markets. The U. S.

Investment opportunity set is still going to be very relevant. We see our role outside The United States to both help our clients understand dynamics of The United States markets and enabling them to channel investments into their own capital markets. Strong local capital markets underpin the development of each and every country's robust retirement system. BlackRock is partnering with governments and sovereign wealth funds in these efforts. In India, we expect our joint venture with GeoBlackRock to launch later this year subject to regulatory approvals.

We believe we can transform access to investing for Indians, ultimately contributing to the development of a retirement system and a better financial future for each and every of our clients in India. In Saudi Arabia, we launched an investment management platform to partner with the public investment fund to drive capital into the local markets. It's managed by a dedicated BlackRock team in Riyadh. We're also working in The Kingdom to help develop a mortgage backed securities market, an establishment of a secondary market for mortgage loans, which should help banks lower the cost of mortgages and home mortgages becoming more accessible for citizens in The Kingdom. In Europe, we are making it easier for more and more people to shift from savings to investing through ETFs and digital first offerings.

Our European ETF platform crossed over 1,000,000,000,000 for the first time this quarter and is well positioned for the future with approximately 40% market share by AUM. And the European ETF market has opened in 2025 with record demand. IShares European net inflows have more than doubled compared to the flows at this time last year. BlackRock iShares is well positioned to capture significant upside in the coming years with our leading platform and diversified offering. We continue to innovate new products and new uses and recently brought our Bitcoin ETF to Europe.

This builds on the success of our Bitcoin ETF launched in The United States last year and Canada in January. They continue to gain adoption with another $3,000,000,000 in net inflows in the first quarter. We see large opportunities for growth in digital assets and more broadly for blockchain and tokenization technology. Digital assets drove cash management net inflows this quarter as we continue to manage cash based reserves through our relationship with Circle. And BlackRock tokenized digital liquidity fund available on a public blockchain became the first Wall Street issued fund to cross over $1,000,000,000 in AUM and just recently surpassed $2,000,000,000.

BlackRock will continue to look for ways to push on chain finance forward as part of our leadership in financial technology and innovation and in data. BlackRock's global scale, our relationships worldwide and locally, and our industry leading technology has made us the first call for more clients and more partnerships than any other time. They are seeking BlackRock to have conversations that not about the TikTok of any one single day of the market. They're looking to us to talk to them on long term trends, working with them to help them design a portfolio that can be leading them for better futures. We're not a transactional organization.

BlackRock has always remained to be focused on the long term with consistency, always there with capital. With corporations, we often have relationships that going back decades as long term investors in their debt and their equity. And through our financial markets advisory practice, we're the advisor of choice that governments, central banks, and other public and private capital market participants turn to when they need frameworks to support their economy and their capital liquidity. Since the financial crisis, FMA has been more trusted to counsel the Fed, governments of Greece and Ireland and Bank of Canada and so many others. We have a long history of providing guidance on practical, targeted monetary and fiscal solutions in support of the global economy.

We will continue to work with clients. We will continue to work with governments around the world to help them navigate develops in the economies and help them build out the global capital markets. I'd note that the market downturn this year is different from what we've seen in other shocks since the financial crisis. We do not see systemic risks. That there is not a pandemic.

The financial system has shown it's safe and sound and the resiliency of the markets of trading more volume with liquidity than any other time. With all this volatility, the markets have proven to be quite successful and work quite well. Obviously, there's near term uncertainty, but the big macro trends that were in place eighty days ago actually are still around. I know it's hard to believe, only eighty days ago. But the mega forces like artificial intelligence, surging demand for global infrastructure, and an ongoing evolution of debt financing presents transformative investment opportunities.

Buildouts of data centers and energy, the need for power grids and semiconductor plants and other infrastructure are beginning and are gonna be growing dramatically over the coming years. Obviously, more policy clarity will help this uncertainty, but I remain very optimistic about the capital coming into the markets over the long term. I want to end by saying that I believe that we are in a better position, better prepared today to meet our clients' demand at BlackRock than ever before. This is reflective of our depth, the quality of our dialogue, and the deepness of our relationships and the length of our relationships with our clients worldwide. We are having the most the highest quality of conversations with our clients worldwide here in The United States than ever before.

Actually, in markets like today, clients are putting even a greater premium on BlackRock and the differentiating value proposition that BlackRock can offer them. We have remained in good times and bad times their trusted partner. I'd like to thank our employees for their steadfast focus on delivering for our clients and driving value for our shareholders. Once again, we're very proud that BlackRock generated 6% organic base fee growth against this very complex market backdrop, driven by categories that we've only invested in recent years like the structural long term growers like infrastructure, like ETFs, and like systematic equities. We lead with a growth mindset.

We lead with optimism. Long term winners don't get bogged down in the pessimism. They break down barriers to find solutions, to help build that optimism with each and every client over the long run. We try to see through the pessimism of the short run, and that is exactly what we are doing. And we're excited for the opportunity to do great work beyond today and tomorrow, throughout 2025, and going forward in the coming years ahead.

I want to thank everybody. So operator, let's open it up for questions.

Thank you. Your first question comes from Michael Cyprys with Morgan Stanley.

Hey, thanks for taking the question. Maybe just given, so much going on around the world, maybe just starting off with the current backdrop, curious in your conversations with clients, are you getting any sort of sense of how retail and institutional allocations may shift as we look forward from here? And how are clients approaching their decision making in this current backdrop?

So, Michael, I mean, I I we have not seen any capitulation with any clients at all. Obviously, we're spending a lot of time with our retail investors. We're seeing you know, we're we've seen an elevated increase in April, which is an unusual time to see elevated increases in cash. We had $20,000,000,000 in inflows this month alone in in in cash. But let's be clear.

There's over $12,000,000,000,000 in money market funds, so there is this huge reserve of money that will be put to work in the future. We're having a lot of conversations related to fixed income. And you had to think about as the yield curve steepens, and we are we are a big believer that yield curve is gonna continue to steepen. You know, in the coming months, as the yield curve continues to steepen, we probably are gonna see more people extend out, and and it represents more opportunities. And if you now go out the yield curve and then look at where private credit's trading, that you're gonna be able to earn, you know, eight ish percent or even more today.

And so with all this market uncertainty, a, these are not bad places to put, for intermediate period of time where where you would be putting your money. That being said, we have not seen one true capitulation with one client in equities. Actually, in most cases, more and more our clients are saying, a, should we be when do we come in and and buy more equities? Obviously, a lot of people think at this time, you don't buy the dip. But I would say the one thing of caution is over the last fifteen years, we've seen a broadening of interest in The US capital markets.

We saw The US capital markets grow to represent 75% of the total value of the world capital markets. As Europe is is now finally focused on growing instead of controlling, could Europe become a new a better destination for capital? Are there other areas where we could see reallocations? We as a country benefited by the huge reallocation and overallocation in in US markets. Are we gonna see a systematic reallocation into other parts of the world?

We have not seen that yet, but that's a good question to be raising as people are starting to believe that Europe might is might for the first time in many years focusing on growth, not containment. And so more questions are being asked, but I think the dominant area where we're seeing conversations are, should is this a time to go out the curve and fix thing, and this is the time when is this time to add more equity exposure? Then I would also say very clearly, has been no change in client demand for infrastructure. If anything, the demand for infrastructure strategies that can throw off mid teen returns over that that are that can be a great protector of inflationary pressures over the long run. The opportunity in in infrastructure probably is as great as any other time that we've seen.

The one thing that we are seeing that is, I think, is differentiated with most other asset managers. Our systematic equity team that has had great performance even now, we continue to see large, large interest and consistent inflows. We saw inflows in systematic equities in the first quarter, and we and our conversations that, you know, in some cases, moving out of fundamental equities into systematic equities is is certainly the conversation to be had. But I would say it's too early to see any major wholesale changes by any major client base.

Thank you. We'll take our next question from Craig Siegenthaler with Bank of America.

Good morning, Larry, Martin. Hope everyone's doing well.

I'm good. So there's a lot to talk about these days, but I wanted to come back to some comments that you made in your annual letter around private markets entering the retail channel. So given that BlackRock is one of the largest foreign k managers, and is the largest DCIO manager, Where are you in the build out of adding privates into either existing target date funds or launching new target date funds, that have a significant allocation of privates? And are you really just waiting on guidance actual rule making from the Department of Labor before you move forward?

Let me just talk on one thing. This is one of the main reason why we bought Frequent and why I believe Frequent will become a major component for the whole ecosystem. And I said that in my prepared remarks. To properly add, especially in in retirement products, more private private investments, I believe better data analytics that will create better transparency, better price discovery is gonna be necessary. And this is why we believe in what we are doing in the Aladdin space with eFront Frequent is gonna be a major component of this the changing ecosystem in retirement.

And I'll let Martin get into the specifics of what we're doing at BlackRock related to those type of products.

Yeah. Thanks. So, Craig, you've got it. You know, BlackRock's the number one DC investment only firm, the number one DCIO firm, and we're a top five private markets and alts manager following our recent acquisitions. So we have the investment content.

We have the franchise. We have a $500,000,000,000 AUM target date business. And Larry talked about it in his letter, but we see real potential benefits to retirees in greater diversification and better retirement outcomes through the blending of public and private markets. We have a real strong presence in both retirement channels and private markets, relationships, distribution, investment opportunities. So a couple of things.

One, we have developed the glide path technology to create a target date style product in terms of allocations and moving allocations across public and private markets to think about growth potential and liquidity in target date style. So we have the glide path technology in order to implement those portfolios. We are launching and have plans to launch in the middle of the year a target date style offering with private markets on a retirement platform, one of the larger trust companies in The United States. So we look forward to being able to update you about that later in the year. So we see target date really, Craig, is the most efficient way to deliver private markets into retirement accounts, particularly defined contribution.

Because this approach would embed these exposures in allocations already made by target funds. So it's gotta be target funds, balance funds, or managed accounts. We see that as the most efficient way of doing it. Those are the types of vehicles that serve as the qualified default investment alternative or the QDIA, and they capture the bulk of four zero one k flows and participant directed individual accounts. We do think for the opportunity to be really broad, really scalable, and the most tangible, we'd likely need to see litigation reform or at least some advice reform in The US to add private markets disclosure into DC plans.

We have innovated. We've advocated on behalf of workers for improved retirement solutions and national initiatives to modernize retirement. Just this past quarter, we hosted a large group of policymakers and members of congress to discuss retirement at a BlackRock Retirement Summit in Washington DC that was very successful. This was one of the topics that we discussed. So if there's an opportunity to make private markets more accessible in the retirement channel, our plan is to be at the forefront.

Thank you. We'll take our next question from Alex Blostein with Goldman Sachs.

Hey, Larry. Good morning, everybody. Question for you guys a little bit more strategically in when I sort of think about periods of prior major market dislocations, BlackRock made some real kind of monumental changes to the business. GFC obviously comes to mind with iShares acquisition. And while I know you made a big bet on private markets today, as I sort of think about ahead and any other major changes that are yet to come from markets and it sounds like U.

S. Decoupling from the rest of the world in terms of cap markets is top of mind for you guys. Does that mean BlackRock might need to get even larger outside The U. S? Does that mean that BlackRock might need to pursue larger acquisitions outside The U.

S? Or how are you thinking about this sort of period of disruption relative to your longer term strategy versus other periods?

Great question, Alex. So let me just say, a, the answer is no related to any acquisitions outside the end of the world. Our relationship with governments across the world is giving us a real opportunity. You know, I talked about what we're doing in India and building out that that market. We're very excited about that opportunity in India.

We have a couple of announcements of partnerships with other organizations in in LatAm that we're working on. So it's strategically partnering with our our our long term clients. In addition, if you just looked at our position in Europe, with ETFs, with 40% market share, in iShares. And then our our you know, as I said, in my prepared remarks, I was in Europe last week. The the conversation we're having, let's say, in Netherlands, they move away from defined benefit to dot defined contribution.

The opportunities we have there in working with all these different, plans, sponsors, and the major pension plans there. But across the board, our acquisition be part of the consortium of Iridium really gives us a unique opportunity in in the in the insurance space and managing insurance assets in Germany and other parts of Europe. Working with with in Australia where I was earlier this year, the opportunity we have with GIP and, the opportunities we have in infrastructure across the board I think, as you know, GIP acquired all the airports in in in Malaysia. And so if anything, our our footprint continues to grow. We are now in 30 different countries with offices, and I would say by year end, we'd maybe be as large as 34, 30 five different countries.

We will be shortly announcing three new countries where we're opening our offices. We actually manage money for in a hundred different countries for our clients worldwide. So if anything, by helping countries navigate changes in their retirement system, like DB to DC, by helping countries begin a retirement system, like India or beginning an a mortgage backed security system like in Saudi Arabia, and then continue to have a footprint. No firm is in the position to have these this this footprint in so many different parts of the world. If anything, this has been one of our, you know, great features, which I think, in many cases, has been totally underappreciated, how deeply engaged we are and how deeply local we are within so many countries.

And the one thing that we talk about across the board, as one of the largest shareholders of companies worldwide, our relationships are not transactional. We are we are working with the pension fund communities. We're working with all the major corporations in all the different countries. And and it it is us a differentiated, position with, you know, one of the big reasons that I said in the prepared remarks related to the port transaction, our long term relationship with with with CK Hutchinson is it just gives us the ability to understand the client better. And so I actually believe that with this type of uncertainty, with this type of volatility, volatility, with this type of sometimes chaos that we're seeing, if anything, the degree of BlackRock's consistency that we could bring to each and every client, has allowed us to have a broadening conversation.

Thank you. We'll go next to Mike Brown with Wells Fargo Securities.

Hi. Good morning. Thanks for taking my question. Lots of good color here on the international footprint and, key strengths of the franchise there. But I just wanted to ask about the growing frictions between The U.

S. And other countries. Are you worried about the risk of some assets potentially moving away from The U. S. In general?

And is there any risk you think of any backlash to BlackRock specifically as a US Headquarter Manager?

Great question. As I said in my prepared remarks, we are Mexican in Mexico, Canadian in Canada, Dutch in Netherlands, British in The UK, Irish in Ireland, Japanese in Japan. This is this is not something new. This is something that we started this type of emphasis thirty seven years ago. You know, the whole foundation of BlackRock.

Our first client worldwide was a Japanese client. It was not a US client. And we have systematically made sure that we remain local, vibrant, and a part of each and every economy. And that's what we're trying to do. And that's why we're gonna be opening a few more offices, that we're gonna announce shortly, to be even more local in these different areas where we have large client, client relationships.

And so there is no question, as I said also said in my prepared remarks, that when you think about the growth of The US capital markets representing 75% of the totality of the global capital markets, and it used to be around fifty fifty five, could we see re you know, could what the European leaders are doing that are now unlocking growth instead of containing growth, could this be a time where people should be reallocating back or at least at least be in a in a market you know, most most clients underinvested in Europe? Is this a time to at least have a market waiting in Europe, or is this a time to have a market overweight? And you could do say this about many other areas. So we're not you know, our job is to be working with each and every client. A lot of it is gonna be on relative evaluation.

But as I said in my prepared remarks, eighty days ago, everyone talked about US supremacy, the vitality of The United States. That was a major conversation even in Davos Eighty Days ago about, you know, the the strength of The US. That is not a conversation that have been having now, but as I said in my prepared remarks, the macro forces of AI, of infrastructure is just as strong today as it was eighty days ago and all the other macro trends. I do believe, when the Trump administration works on their growth initiatives that they've talked about, the deregulation, the simplification of permits, and I hope the same thing happens in Europe, that is going to unlock an amazing amount of private capital. And this is why we're why we put such an emphasis in infrastructure and private credit.

We will be prepared when there is an unlocking of more private capital to invest in infrastructure, in data centers, in airports, in grids, in in in power. And so all of this remains I know it's been obscured by the conversations with tariffs, been obscure about all the other issues going around, but the macro mega trends have not changed. And as I said, if Europe is focused on growth, that is a great added opportunity that we didn't see eighty days ago. If other parts of the world are focusing on their own growth in addition to what you know,

BlackRock (BLK) Q1 2025 Earnings Call Transcript

Company Participants