BlackRock earned $1.66 billion on $205 billion of inflows; FERC must still clear its $33.4 billion AES buyout
Net income rose 24.8 percent to $1.66 billion on $205 billion of inflows, answering the private-credit scare that had cut the stock more than 8 percent from its high. The bet still open is GIP's $33.4 billion AES takeover, now waiting on FERC.
Vincent Jiang · 3 min read
The quarter that answered the scare
BlackRock+3.84% — BlackRock, up 3.84 percent today earned $1.66 billion of net income in the third quarter, up 24.8 percent from $1.33 billion a year earlier, on revenue of $7.7 billion against the $7.52 billion analysts expected 12. Adjusted earnings of $15.93 a share cleared the $14.13 consensus, clients added a net $205 billion, and assets under management reached $15.5 trillion, from $13.46 trillion a year earlier 3. Technology contract value tied to the Aladdin platform grew 12 percent 1. Chief executive Larry Fink tied the flows to the technology cycle: "Market fundamentals are strong and well supported, with higher margins and earnings momentum catalyzed by new technology" 3. The stock rose as much as 5 percent on the print 3.
Net income jumped 24.8 percent in Q3 from a soft quarter a year earlier
Data
| Net income | |
|---|---|
| Q2 '24 | $1.5B |
| Q3 '24 | $1.63B |
| Q4 '24 | $1.67B |
| Q1 '25 | $1.51B |
| Q2 '25 | $1.59B |
| Q3 '25 | $1.32B |
| Q4 '25 | $1.13B |
| Q1 '26 | $2.21B |
| Q2 '26 | $1.91B |
| Q3 '26 | $1.66B |
HPS redemptions eased, and the fee math still argues for the bet
The fear that had cut the shares more than 8 percent from their 2026 high was private credit 2. HPS, the manager with more than $197 billion in assets that BlackRock acquired, fielded redemption requests for 11.5 percent of its Corporate Lending Fund shares in the third quarter, after 13.3 percent in the second 2. The fund now plans to repurchase $600 million of shares, and Reuters reports the pressure easing industry-wide 45. Private markets are about 2 percent of BlackRock's assets but roughly 11 percent of its base fees 5, and Fink said the firm raised $68 billion for private markets in twelve months, $25 billion of it credit 3.
BlackRock revenue is up 49 percent in two years
Data
| Revenue | |
|---|---|
| Q3 '24 | $5.2B |
| Q4 '24 | $5.68B |
| Q1 '25 | $5.28B |
| Q2 '25 | $5.42B |
| Q3 '25 | $6.51B |
| Q4 '25 | $7.01B |
| Q1 '26 | $6.7B |
| Q2 '26 | $7.08B |
| Q3 '26 | $7.75B |
The other private bet waits on FERC
The second wager has no quarterly print. BlackRock's Global Infrastructure Partners leads the consortium taking the power company AES private at $15 a share, $33.4 billion including debt, and the Federal Energy Regulatory Commission's public-interest review is the last gate before a close guided for late 2026 or early 2027 78. Five lawmakers, Senator Elizabeth Warren among them, told FERC chair Laura Swett on September 28 that GIP seeks returns of 15 to 20 percent, roughly double the 10 percent historical median for regulated utilities, and that BlackRock's data-center holdings invite cross-subsidization 8. AES−0.13% — AES, down 0.13 percent today says no deal cost reaches ratepayers 8. Indiana's commission approved the 390-megawatt Google data center plan on October 7 while allowing $73.8 million of network upgrades into the transmission rate base that retail bills repay; Google pays $32.3 million for its direct connection 9. Ohio ordered directors with data-center ties to recuse 7. Indiana's rehearing, covering the Google+0.05% — Google, up 0.05 percent today project and the buyout, runs to a March 11, 2027, hearing 7.
Two prints decide it: HPS's next redemption and FERC's word
Two prints matter now: the next HPS redemption request, which tests whether the easing holds, and FERC's word in docket EC26-99 7. The index funds carried this quarter. The regulator holds the next one.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
