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lackstone (BX) delivered a third‑quarter performance that fell short of Wall Street’s consensus. Revenue climbed 20.2 % YoY to $2.93 billion, yet missed the $3.13 billion estimate by 6.2 %. GAAP earnings per share were $0.80, 34.8 % below the $1.23 forecast, while the operating margin slipped to 44.6 % from 57.4 % a year earlier. The firm’s market cap sits at $121.3 billion.

    Management highlighted that the revenue uptick stemmed from robust inflows and fee‑related earnings in private credit, infrastructure, and private wealth. However, higher-than‑expected expenses weighed on profitability. Distributable earnings and net realizations accelerated sharply, and transaction and advisory fees nearly doubled YoY, according to COO Jon Gray. He noted that margin performance reflected the mix of revenue streams and seasonal costs.

    Looking ahead, Blackstone sees growing demand for alternative investments across institutional and private wealth channels, with particular emphasis on real‑estate and energy‑infrastructure opportunities. CEO Stephen Schwarzman said the firm is “in the early innings of penetrating markets of enormous size and potential,” while Gray emphasized the firm’s positioning to benefit from a cyclical resurgence in capital‑market activity and the sustained growth of its credit and insurance platforms.

    Key drivers of the quarter included:

    * **Private credit momentum** – Direct lending and asset‑based credit grew 29 % YoY, driven by disciplined underwriting, low loan‑to‑value ratios, and a focus on investment‑grade opportunities.

    * **Wealth‑channel expansion** – The private‑wealth platform reached $290 billion AUM, up 15 % YoY, with fundraising more than doubling thanks to products such as BCRED and BXP.

    * **Real‑estate recovery** – The BREIT platform saw improved performance after commercial‑property values bottomed in late 2023, buoyed by increased transaction activity and strong demand for logistics and data‑center assets.

    * **Fee‑related earnings** – Total fee‑related earnings rose 26 % YoY, driven by higher management fees in private equity, insurance, and credit. CFO Michael Chae noted that while year‑to‑date margin expansion was healthy, the Q4 FRE margin could be sequentially lower due to seasonal expenses, though the firm remains on track for the full year.

    Blackstone is preparing for an active 2026, focusing on launching multi‑asset strategies and expanding distribution, especially in Asia and through registered investment advisors. Strategic partnerships with Vanguard and Wellington are expected to support these initiatives.

    In summary, Blackstone’s Q3 results reflected solid revenue growth but fell short of expectations due to higher costs. Management remains optimistic about the firm’s positioning in growing alternative‑investment markets, with a clear focus on private credit, real‑estate, and global product launches.