BlackRock (BLK) investor relations material

Executive summary

• Achieved record AUM of $15.3 trillion as of June 30, 2026, up from $12.5 trillion year-over-year, 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; diluted EPS rose 20% year-over-year (15% as adjusted).

• Net flows remained positive across retail, ETF, and institutional channels, with Q2 net inflows of $192 billion and strong contributions from ETFs, private markets, and active strategies.

• Integrated acquisitions (HPS, GIP, Preqin) are accelerating growth, exceeding 2030 plan targets, and boosting alternative and technology offerings.

• Revenue increased 31% year-over-year, supported by market appreciation, organic growth, HPS transaction fees, higher performance fees, and technology services growth.

Financial highlights

• Q2 2026 revenue was $7.1 billion (up 31% year-over-year), with adjusted operating income of $2.92 billion and adjusted operating margin of 45.9%.

• Q2 2026 net income attributable was $1.91 billion (GAAP), $2.29 billion (as adjusted), and diluted EPS was $12.19 (GAAP), $13.91 (as adjusted).

• 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 and $223 million in nonoperating income, mainly from equity method earnings and non-cash valuation gains.

• Cash and cash equivalents stood at $10.5 billion at quarter-end.

Outlook and guidance

• Management expects continued growth in AUM and revenue, supported by strong ETF inflows, private markets expansion, and technology services demand.

• 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.