Blackstone’s third quarter saw the company deliver strong year-over-year revenue growth, but results fell short of Wall Street’s expectations, leading to a negative market reaction. Management attributed robust inflows and fee-related earnings to continued momentum in private credit, infrastructure, and private wealth channels. However, higher-than-anticipated expenses weighed on profitability. Distributable earnings and net realizations saw significant acceleration year over year, as highlighted by management. President and Chief Operating Officer Jon Gray acknowledged that while transaction and advisory fees nearly doubled year-over-year, margin performance reflected the mix of revenue streams and seasonal expenses.
Is now the time to buy BX? Find out in our full research report (it’s free for active Edge members).
Blackstone (BX) Q3 CY2025 Highlights:
- Revenue: $3.34 billion vs analyst estimates of $3.13 billion (36.7% year-on-year growth, 6.6% beat)
- Adjusted EPS: $1.52 vs analyst estimates of $1.23 (23.8% beat)
- Adjusted EBITDA: $2.12 billion (63.5% margin, 37.9% year-on-year growth)
- Operating Margin: 59.5%, up from 57.4% in the same quarter last year
- Market Capitalization: $116.6 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Blackstone’s Q3 Earnings Call
- Daniel Fannon (Jefferies) asked about changes in credit quality given recent defaults. President and COO Jon Gray clarified these events were unrelated to private credit and emphasized Blackstone’s disciplined underwriting and minimal realized losses.
- Craig Siegenthaler (Bank of America) inquired about Blackstone’s strategy for the defined contribution market. Gray explained the firm’s approach involves partnerships, a dedicated team, and a long-term commitment to providing alternatives to retirement plans.
- Michael Cyprys (Morgan Stanley) questioned the evolution of Blackstone’s brand and marketing, particularly in Japan and global private wealth. Gray stated that targeted advertising and broader outreach are being ramped up as the firm expands internationally and into new investor segments.
- Ben Budish (Barclays) pressed on the sustainability of data center investments and the risk of a bubble. Gray responded that prudent development, long-term leases with investment-grade tenants, and strong demand for AI-driven infrastructure underpin the business’s stability.
- Brian Bedell (Deutsche Bank) asked about competition from banks in direct lending and the future of credit insurance growth. Gray and CFO Michael Chae highlighted Blackstone’s scale, open architecture, and persistent client demand as advantages, but acknowledged that some fee growth could slow due to market dynamics.
Catalysts in Upcoming Quarters
Looking ahead, key developments to watch include (1) the pace of real estate transaction activity and signs of recovery in core sectors like logistics and data centers, (2) progress on new product launches and expansion into defined contribution and RIA channels, and (3) the ability to sustain fundraising momentum in private credit and insurance. Execution against these milestones will indicate whether Blackstone can maintain growth through evolving market cycles.
Blackstone currently trades at $149.75, down from $161.79 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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