As for profitability, BlackRock posted a 240-basis-point increase in first-quarter GAAP operating margins to 37.5%. On an adjusted basis, the firm's operating margins were 44.2%. While fee compression and other industry headwinds have blunted the operating leverage inherent in the asset-management business, we still see BlackRock generating adjusted operating margins in a 44%-46% range over the next five years, compared with 44.4% on average during 2017-21. Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.