BlackRock's (BLK) Q3 2024 financial performance demonstrated robust growth, with total revenue reaching $5,197 million, a significant increase from $4,522 million in Q3 2023. This growth was driven by higher investment advisory, administration fees, and securities lending revenue, which rose to $4,030 million from $3,681 million in the same period last year. The increase reflects strong performance across equity, fixed income, and alternative investment products, as well as higher performance fees.

Operating income for Q3 2024 was $2,006 million, up from $1,637 million in Q3 2023, reflecting a 22.6% year-over-year increase. The operating margin also improved to 38.6% from 36.2%, driven by revenue growth and operational efficiencies, despite higher expenses related to employee compensation, sales, and general administration.

Net income attributable to BlackRock rose to $1,631 million in Q3 2024, compared to $1,604 million in Q3 2023. Diluted earnings per share increased to $10.90 from $10.66, reflecting a 2% year-over-year growth. This improvement was primarily driven by higher operating income, partially offset by a higher effective tax rate of 26.0% compared to 11.7% in the prior year, which had benefited from discrete tax items.

Investment advisory and administration fees saw notable growth, with equity products contributing $2,060 million in Q3 2024, up from $1,832 million in Q3 2023. Fixed income products also performed well, generating $940 million compared to $887 million in the prior year. Alternatives revenue increased to $441 million from $420 million, driven by both illiquid and liquid alternative investments. These results underscore BlackRock's diversified revenue streams and strong client demand across asset classes.

Performance fees surged significantly to $388 million in Q3 2024, compared to $70 million in Q3 2023. This increase was largely driven by liquid alternatives, which contributed $364 million, reflecting strong performance in this segment. The growth in performance fees highlights BlackRock's ability to deliver value through active management strategies.

Technology services revenue remained stable at $403 million in Q3 2024, compared to $407 million in Q3 2023. This segment continues to provide a steady contribution to BlackRock's overall revenue, reflecting the firm's ongoing investment in technology and innovation.

BlackRock's assets under management (AUM) reached a record $11.475 trillion as of September 30, 2024, up from $9.101 trillion a year earlier. This growth was driven by positive market performance and net inflows across various investment products, underscoring the firm's leadership in the asset management industry.

Nonoperating income increased to $259 million in Q3 2024 from $171 million in Q3 2023, supported by higher interest and dividend income and a pre-tax gain of approximately $66 million from a transaction related to a minority investment in EquiLend Holdings, LLC. However, this was partially offset by lower mark-to-market gains on private equity co-investments and higher interest expenses.

BlackRock's expense management showed a controlled increase, with total expenses rising to $3,191 million in Q3 2024 from $2,885 million in Q3 2023. The increase was primarily due to higher employee compensation and benefits, which grew to $1,578 million from $1,420 million, reflecting investments in talent and competitive compensation practices.

The firm's operating margin on an adjusted basis improved to 45.8% in Q3 2024 from 42.3% in Q3 2023, reflecting enhanced profitability after excluding a $50 million noncash impairment charge related to certain indefinite-lived open-end management contracts. This adjustment highlights BlackRock's focus on maintaining strong operational performance.