Blackstone Inc. (BX) Stock: Earnings Rise As Inflows Hit Three-Year High And AI Infrastructure Bets Expand

TLDR

• Blackstone’s Q4 distributable earnings rose to $2.24 billion, beating estimates
• Quarterly inflows reached $71.5 billion, the highest level in over three years
• Assets under management increased 13% year over year to $1.27 trillion
• Fee-related earnings declined, led by weakness in private equity
• Blackstone is weighing deeper involvement in Oracle’s $14 billion Michigan data center project

Blackstone Inc. (BX) shares were trading at $141.20, down 3.81%, during late morning trading as investors digested a mixed but largely resilient fourth-quarter earnings report. The world’s largest alternative asset manager delivered higher distributable earnings and record inflows, even as fee-related earnings softened in parts of the business. The results underline Blackstone’s ability to attract capital amid volatile markets while reinforcing its strategic focus on large-scale digital and energy infrastructure.

Blackstone Inc., BX

Distributable earnings, a key metric for dividend-paying investment firms, climbed to $2.24 billion, or $1.75 per share, from $2.17 billion, or $1.69 per share, a year earlier. The figure exceeded the FactSet analyst consensus of $1.54 per share. Net income for the quarter rose sharply to $1.97 billion, or $1.30 per share, compared with $1.33 billion, or 92 cents per share, in the prior-year period. Total revenue increased to $4.36 billion from $3.08 billion.

Inflows Surge And Assets Under Management Expand

Blackstone recorded $71.48 billion of inflows during the fourth quarter, marking its strongest quarterly fundraising performance in more than three years. Full-year inflows reached $239.39 billion, reflecting renewed investor appetite for alternative assets as market conditions stabilized. Assets under management climbed 13% year over year to $1.27 trillion, reinforcing Blackstone’s scale advantage across private equity, credit, insurance, real estate, and multi-asset strategies.

Stephen Schwarzman, Blackstone’s Chairman and Chief Executive Officer, pointed to the firm’s focus on digital and energy infrastructure as a key driver of long-term value creation. Management highlighted continued demand from institutional and retail investors seeking exposure to long-duration assets tied to structural growth trends.

Fee-Related Earnings Show Mixed Performance

Fee-related earnings declined to $1.54 billion, or $1.25 per share, from $1.84 billion, or $1.50 per share, a year earlier. The drop reflected lower performance in private equity and multi-asset investing, where fee-related earnings fell 52% and 4% year over year, respectively. Real estate and credit and insurance provided some offset, posting fee-related earnings growth of 39% and 14%.

Segment revenues totaled $3.94 billion, down 5% year over year, though the figure still exceeded analyst expectations. Net accrued performance revenue rose to $6.74 billion from $6.28 billion, signaling potential upside for future earnings as realizations progress.

Capital Deployment And Liquidity Position

Blackstone ended the quarter with $198.3 billion in dry powder, highlighting significant capacity for new investments. Private equity accounted for $77.4 billion of that total, followed by $63.7 billion in credit and insurance and $52.8 billion in real estate. During the quarter, the firm invested $42.2 billion and committed another $23 billion.

As of December 31, Blackstone held $11.3 billion in cash, cash equivalents, and corporate treasury investments, along with $20.9 billion of cash and net investments, providing ample liquidity to pursue opportunities during periods of market dislocation.

Oracle Data Center Financing Signals AI Push

Blackstone is weighing a deeper role in financing Oracle’s $14 billion data center project in Michigan. The firm is already in talks to provide equity and is considering a debt investment as Bank of America leads efforts to raise financing for the Saline Township site. While market volatility and Oracle’s recent share price weakness have raised scrutiny, the project structure relies on long-term lease agreements rather than Oracle borrowing directly.

The potential deal aligns with Blackstone’s broader push into AI-driven infrastructure, building on its ownership of QTS Realty Trust and partnerships with Digital Realty Trust. With $248 billion in Oracle data center leases yet to commence, Blackstone’s strategy underscores its conviction in the long-term demand for digital infrastructure assets.

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