BlackRock, the world’s largest asset manager, reached a new milestone in the first quarter of 2025 as its assets under management climbed to a record $11.58 trillion.
But despite this growth, the firm reported a 4% drop in profit as global financial markets faced renewed turbulence.
The rise in assets reflects continued investor interest in BlackRock’s long-term investment products, even as economic uncertainty rattled markets. A year ago, the firm reported $10.47 trillion in assets, and just last quarter it managed $11.55 trillion. The latest increase underscores its dominant position in the industry, but market volatility cut into its earnings.
In the three months ending March 31, BlackRock’s net income fell to $1.51 billion, or $9.64 per share. This was down from $1.57 billion, or $10.48 per share, in the same period last year. The drop came as expenses rose sharply to $3.58 billion from $3.04 billion, driven by higher operating costs and strategic investments.
The decline in profit comes amid a shaky start to the year for U.S. financial markets. The S&P 500 fell 4.6% during the first quarter—its worst quarterly start since 2022. A key factor behind the downturn was President Donald Trump’s aggressive tariff announcements. His administration’s sudden trade measures unsettled investors and triggered global selloffs, cutting into market optimism that had initially followed his return to office.
BlackRock’s Chairman and CEO Larry Fink acknowledged the tense mood among investors. He pointed to rising client anxiety and uncertainty, drawing comparisons to other crisis periods like the 2008 financial crash and the COVID-19 pandemic. However, he expressed confidence that BlackRock’s close client engagement would help it weather the storm and position it for future growth.
Despite the profit dip, the firm still saw long-term net inflows of $83 billion, up from $76 billion last year. Fixed income products led the way, pulling in $37.7 billion, although that was slightly lower than last year’s $41.7 billion. Equity products saw stronger momentum, with $19.3 billion in inflows compared to $18.4 billion in the same period last year.
Adding to the market unease, Fink warned earlier this week that the U.S. economy might already be entering a contraction. His comments followed Trump’s announcement of steep new tariffs, which triggered a harsh market reaction. However, Trump later softened his stance by easing some levies on selected countries, a move that briefly steadied markets.
Still, BlackRock’s own stock has not escaped the volatility. Shares dropped nearly 11% in the aftermath of Trump’s so-called “Liberation Day” trade announcements. Yet Fink remained optimistic, suggesting that the recent dip in market performance might actually present a long-term buying opportunity.
BlackRock’s latest earnings show that even the most powerful players in global finance are not immune to shifting political winds and market disruptions. As the second quarter unfolds, all eyes will remain on how BlackRock adapts to this changing environment—and whether investor confidence holds steady in the face of continued uncertainty.