Following a whirlwind week, one of the world’s largest asset managers, BlackRock, posted its fourth quarter and full year 2025 earnings report on Thursday, Jan 15. From strategic job cuts to a record Asset Under Management (AUM), the investment firm navigated a period of intense activity this week.
Earlier this week, the investment management company laid off over 250 employees, including members of the investment and sales teams. A total of 1% of BlackRock’s global headcount, Bloomberg reported.
Part of the firm’s objective — to push into alternative investments — follows two job cuts that the firm made in 2025. Each cut was 1% of its headcount. The news led to a stock decline, especially after TD Cowen downgraded the asset manager from Buy to Hold and lowered the price target to $1,209, down from $1,407, citing a lack of positive catalysts heading into 2026, as reported by TheFly.
BlackRock’s stock price increased 8% year-to-date.
Photo by Ben Whitley – PA Images on Getty Images
BlackRock has made several recent major acquisitions
This past year, BlackRock also made headlines with high-profile acquisitions, the results of which the firm expects to see in 2026 fully. In 2025, it completed the acquisition of HPS Investment Partners (HPS) for $12 billion, with 100% of the consideration paid in BlackRock equity.
“To fully capture the opportunities by this combination, BlackRock is creating Private Financing Solutions (PFS), which will combine the firms’ market-leading private credit, GP and LP solution, and private and liquid CLO businesses into one integrated platform,” said the acquisition announcement in July 2025.
And now, BlackRock’s CEO and Chairman, Laurence D. Fink, is looking forward to a more rewarding and diversified 2026 for its shareholders and high-income clients.
Fink further emphasized how 2026 will be its “first full year as a unified platform with GIP, HPS and Preqin.” Noting that BlackRock offers a diversity of services and products, including but not limited to private markets, 401(k), active ETFs, digital assets, and tokenization.
BlackRock’s Q4 offers increased dividends
BlackRock increased its quarterly dividend by 10% to $5.73 per share, while noting a 16% decrease in its full-year diluted EPS to $35.31. The firm attributes it to acquisition-related expenses and noncash charitable contributions.
More Wall Street
- Analyst who nailed 2023 bull run sets S&P 500 target for 2026
- Longtime fund manager sends blunt message on P/E ratios
- Nasdaq’s near 24-hour trading plan sparks Wall Street backlash
- Every major analyst’s S&P 500 price target for 2026
The company reported $14 trillion in AUM, driven by record full-year net inflows of $698 billion. The Q4 alone saw $342 billion in net inflows with a notable 12% annualized organic base fee growth.
The firm’s investments in acquiring HPS, GIP and Preqin have proved beneficial so far, increasing client inflows and revenue.
- In the fourth quarter, HPS contributed approximately $230 million in fees.
- Preqin, which it acquired in March 2025, added $65 million to Q4 revenue, also propelling a 34% increase in technology services annual contract value (ACV).
Major banks increase price target for BlackRock
Analysts are also optimistic about the stock’s near-term trajectory, which has seen a 17% year-to-date increase to $1163.17.
Bank of America raised its price target for the firm to $1,467 from $1,431, keeping a Buy rating following the earnings report and increased Q1 2026, 2027, and 2028 EPS estimates based on higher management and performance fees, which offset a slightly lower operating margin, as noted at TheFly.
Deutsche Bank raised its price target from $1,296 to $1,380, maintaining a Buy rating, citing “solid” Q4 and fee-growth momentum that support a higher share valuation.
Related: Dave Ramsey bluntly warns on one big vice Americans face