BlackRock (BLK) investor relations material

Executive summary

• Achieved record AUM of $15.3 trillion as of June 30, 2026, driven by $868 billion in net inflows and 10% organic base fee growth, reflecting broad diversification across products, clients, and geographies.

• Delivered double-digit increases in revenue, operating income, and EPS, with all three reaching new quarterly records in Q2 2026.

• Integrated acquisitions (HPS, GIP, Preqin) are accelerating growth, exceeding 2030 plan targets, and impacting share count and business mix.

• Net flows remained positive across retail, ETF, and institutional channels, supporting organic asset and base fee growth.

• Q2 2026 base fees and securities lending revenue totaled $5.7 billion, with strong contributions from ETFs and institutional clients.

Financial highlights

• Q2 2026 revenue was $7.1 billion, up 31% year-over-year, driven by organic growth, higher markets, HPS acquisition, and increased technology revenue.

• Adjusted operating income for Q2 2026 was $2.92 billion, with an adjusted operating margin of 45.9%, the highest in nearly five years.

• Adjusted net income reached $2.29 billion, and adjusted EPS was $13.91, both showing strong year-over-year growth.

• Quarterly expenses, as adjusted, rose 25% year-over-year to $4.17 billion, mainly due to higher compensation and general administrative costs.

• Non-operating results included $170 million in net investment gains, mainly from equity method earnings and non-cash valuation gains.

Outlook and guidance

• High conviction in free cash flow growth and structurally higher margins, targeting sustained double-digit EPS growth.

• Planned quarterly share repurchases increased to $550 million, with a 2026 target of $2 billion.

• Projected as-adjusted tax rate for 2026 remains at 25%, subject to discrete items or tax law changes.

• 2030 goal to reach over 30% of revenue from private markets and technology, aiming to dampen market sensitivity and drive steady growth.

• Management highlighted continued focus on organic growth, product innovation, and integration of recent acquisitions.