Alternative investment manager Blackstone (NYSE: BX) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 26.6% year on year to $3.09 billion. Its GAAP profit of $0.80 per share was 34.8% below analysts’ consensus estimates.

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Company Overview

With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE: BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Blackstone’s 18.7% annualized revenue growth over the last five years was excellent. Its growth beat the average financials company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Blackstone’s annualized revenue growth of 17.4% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Blackstone generated an excellent 26.6% year-on-year revenue growth rate, but its $3.09 billion of revenue fell short of Wall Street’s high expectations.

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Assets Under Management (AUM)

Assets Under Management (AUM) represents the total value of investments that a financial institution manages for its clients. These assets generate steady income through management fees, creating predictable revenue streams that remain stable so long as clients remain invested with the firm.

Blackstone’s AUM has grown at an annual rate of 15.3% over the last four years, better than the broader financials industry. When analyzing Blackstone’s AUM over the last two years, we can see that growth decelerated to 9.3% annually. Fundraising or short-term investment performance were net detractors to the company over this shorter period since assets grew slower than total revenue. But again, we put less weight on asset growth given how lumpy and cyclical it can be.

Blackstone’s AUM punched in at $1.24 trillion this quarter, meeting analysts’ expectations. This print was 12.1% higher than the same quarter last year.

Key Takeaways from Blackstone’s Q3 Results

We were impressed by how significantly Blackstone blew past analysts’ fee-related earnings expectations this quarter. On the other hand, its revenue missed and its EPS also fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock remained flat at $160.30 immediately after reporting.

So should you invest in Blackstone right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.