CoreWeave is down 12% at the open, the worst move across the priority universe and a level worth checking before the session settles. Bank of America, sitting exactly at $50, is the blue chip to keep an eye on next.
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BlackRock's results demonstrate the value of our integrated platform, as clients increasingly choose us as a partner across investing, financing, and technology. That client trust is translating into higher earnings power, with shareholders benefiting from a more than 35% increase in adjusted earnings per share year-over-year, a 47.8% adjusted operating margin, and 11% annualized organic base fee growth in the third quarter.
A 47.8% adjusted operating margin holds up in a business where the industry keeps warning about fee compression. Organic base fee growth running at 11% annualized shows the money is still coming in the door.
Clients entrusted us with $205 billion of net inflows this quarter, and $869 billion over the last year. Our results reflect the scale of BlackRock, with 12% technology ACV growth and net inflows across every asset class, client type, region, and across active and index. Our track record of strong investment performance drove $66 billion of active net inflows, led by our fixed income and systematic franchises. iShares generated $135 billion of net inflows, diversified across categories and…
Money is moving into BlackRock from every direction at once: iShares took in $135 billion, with inflows in every asset class, region and client type on the Q3 call. Fee growth rides on that breadth.
BlackRock's ability to originate and structure at scale is leading to premier financing relationships and sourcing opportunities for our clients. We've raised $68 billion in private markets over the last twelve months, and our AI Infrastructure Partnership made its first deployment this quarter.
Fink is pointing fee growth away from ETFs and toward private markets, where the past twelve months of fundraising now anchors the growth story. The AI Infrastructure Partnership moving from announcement to first capital deployed in the third quarter puts a timeline on the asset manager's biggest new bet.
Clients handed BlackRock $205 billion of net inflows in a single quarter, a pace that lifted the adjusted operating margin and extended the EPS beat streak to five. Management says the seasonally strongest quarter is still ahead.
Sixteen straight quarters of EPS beats go on the line at 6:00 AM ET, with consensus at $14.24 on $7.55 billion in revenue. Fee pressure and ETF share losses are the live question, so the flows commentary matters more than the beat itself.
Q3 earnings season front-loads everything into two mornings: JPMorgan, Goldman, Wells Fargo, Citi, UnitedHealth and Johnson & Johnson all report before the open Tuesday, with Bank of America, Morgan Stanley, BlackRock and ASML following Wednesday. Of 51 companies on the week, 38 land before the bell, so the tone for rates, credit and chip demand gets set early.
- UNHUnitedHealth Group IncorporatedTue Oct 13Before open
- JPMJPMorgan Chase & Co.Tue Oct 13Before open
- GSThe Goldman Sachs Group, Inc.Tue Oct 13Before open
- WFCWells Fargo & CompanyTue Oct 13Before open
- DPZDomino's Pizza, Inc.Tue Oct 13Before open
- JNJJohnson & JohnsonTue Oct 13Before open
- CCitigroup Inc.Tue Oct 13Before open
- ACIAlbertsons Companies, Inc.Tue Oct 13Before open
- FBKFB Financial CorporationTue Oct 13Before open
- AZZAZZ Inc.Tue Oct 13After close
- ASMLASML Holding N.V.Wed Oct 14Before open
- BACBank of America CorporationWed Oct 14Before open
- MSMorgan StanleyWed Oct 14Before open
- BLKBlackRock, Inc.Wed Oct 14Before open
- PGRProgressive CorporationWed Oct 14Before open
An $87 billion swing in IVV's usual annual haul is the kind of gap that forces a price response, and Bloomberg's ETF analyst says a fee cut is on the table. Cheaper S&P 500 exposure would be a win for holders and a margin hit for BlackRock.
New from me today on how BlackRock has an IVV problem and a fee cut could be in store.. If you look at the biggest ETF issuers all of them are in record territory except BlackRock, the gap almost entirely due to IVV which is -$7b YTD flows (normally it contributes $80b!). Now https://t.co/1HqEfcypZB
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