BlackRock, which was founded in 1988 and is headquartered in New York, provides asset management, risk management, and financial technology solutions, including investment advisory and exchange-traded funds, serving global clients with innovative investment platforms and technology tools. The company operates through a single asset management segment. Geographically, it is segmented into the Americas, Europe and Asia-Pacific.

BlackRock acquires ElmTree Funds

On September 2, 2025, BlackRock announced that it had acquired ElmTree Funds, LLC, a Missouri-based real estate private equity firm, funded through an upfront payment in stocks, with potential future payouts depending on ElmTree's performance over five years. ElmTree's integration will enhance BlackRock's Private Financing Solutions (PFS) platform, strengthening its capabilities in commercial net-lease investments and long-term, stable income solutions. This acquisition positions BlackRock to capitalize on structural shifts in real estate and presents differentiated investment opportunities.

Steady growth

BlackRock maintained steady performance over FY 21-24, achieving a revenue CAGR of 1.8%, reaching $20.4bn in FY 24, driven by robust asset management performance, strategic acquisitions, and expansion of private market offerings. EBIT rose at a CAGR of 0.9% to $7.7bn. However, margins contracted by 101bp to 37.6%.

Over FY 21-24, FCF rose from $5.8bn to $6.3bn. In addition, cash and cash equivalent rose from $9.1bn to $12.8bn.

BlackRock's Q3 25 results posted solid revenue growth, driven by higher technology services and subscription revenue, and increased organic base fee, on account of record demand for digital assets, iShares, ETFs and systematic franchise. However, operating margins contracted by 860bp.

In comparison, State Street Corporation, a local peer, had a revenue CAGR of 2.3%, reaching $12.9bn over FY 21-24. EBIT declined at a CAGR of -0.1% to $2.7bn. Consequently, its margin contracted from 22.3% to 20.8%.

Positive outlook

Over the past year, the company paid an annual dividend of $20.4 in FY 24, resulting in a dividend yield of 2.0%.

BlackRock is currently trading at a P/E of 24.2x, based on the FY 25 estimated EPS of $42.1, which is higher than its 3-year historical average of 22.5x and that of State Street (11.6x). The company is currently trading at an EV/EBIT of 18.5x, based on FY 25 estimated EBIT of $8.6bn, which is slightly lower than its 3-year historical average of 18.8x but higher than that of State Street (17.5x).

The stock is monitored by 17 analysts with 14 having 'Buy' ratings and three having 'Hold' ratings for a target price of $1,334.0, reflecting 30.9% upside potential over its current market price.

Analysts' views are supported by an estimated EBIT CAGR of 17.7% over FY 24-27, reaching $12.4bn, with a margin of 39.9% in FY 27. In addition, analysts estimate a net profit CAGR of 13.7% to $9.4bn. Likewise, for State Street, the analysts estimate an EBIT CAGR of 9.4% and a net profit CAGR of 10.8% over FY 24-27.

Overall, BlackRock posted strong execution and adaptability, supported by robust asset management and portfolio diversification. The company remains well positioned for future growth, with its private market initiatives reinforcing confidence in its long-term prospects. However, it could face heightened risks from ongoing macroeconomic volatility, regulatory scrutiny, geopolitical tensions and ESG backlash.