BlackRock, Inc.

BlackRock reported second-quarter revenue of $7.1 billion, up 31% year over year; operating income was $2.9 billion, up 39%; and EPS was $13.91, up 15%. Operating margin was 45.9%, up 260 basis points year over year, and base fee and securities lending revenue was $5.7 billion, up 29%. Net inflows were $192 billion, representing 8% organic base fee growth. Technology services and subscription revenue increased 13%, and annual contract value rose 15%. Management said the as-adjusted tax rate was approximately 25% and reiterated that 25% is a reasonable run rate for the rest of 2026. For capital return, BlackRock repurchased $450 million of stock in the quarter and now expects to repurchase at least $550 million per quarter going forward. Guidance-wise, management said full-year G&A should rise mid-single digits after annualizing HPS and Preqin, and they continue to target a 45% or greater adjusted operating margin over time.

Larry Fink framed the quarter as evidence that BlackRock is benefiting from long-term growth in capital markets, global ETF adoption, private markets, retirement, and technology. He emphasized that the platform is already outperforming the firm’s 2030 ambitions in several areas, including the combined contribution from GIP, HPS, and Preqin, and said momentum is accelerating. His tone was notably optimistic, repeatedly highlighting record AUM of $15.3 trillion, over $1 trillion of AUM added so far in 2026, and confidence that BlackRock is positioned as a preferred destination for client capital.

Martin Small focused on the financial drivers behind the quarter: 31% revenue growth, 39% operating-income growth, 15% EPS growth, and 260 basis points of margin expansion to 45.9%. He said performance fees and related compensation lifted results, but recurring fee-related earnings are also expanding, with margin ex performance fees at 46.5%. On capital allocation, he said BlackRock repurchased $450 million of stock in Q2 and, based on spending plans, now expects at least $550 million per quarter going forward, higher than prior guidance. He also reiterated a 25% tax run rate, low-to-mid-teens ACV growth over the long term, and mid-single-digit full-year G&A growth.

Analysts focused on Aperio, tokenization, private markets/insurance demand, margin sustainability, distribution fees, and Europe. Management said Aperio’s flows were about $7 billion in Q2 and roughly $20 billion year to date, calling tax-aware portfolio construction a structural growth theme. On tokenization, BlackRock said it is working toward tokenized money market funds and eventually tokenized ETFs and other products, while on insurance it said it has closed about $10 billion of high-grade and infrastructure debt mandates so far in 2026 and sees a growing pipeline. On distribution fees, management said BlackRock has not been approached by major U.S. distributors for ETF tolls and does not see the economics meaningfully changing on active ETFs versus mutual funds.