BlackRock (NYSE:BLK) executives said the asset manager delivered record second-quarter results and its strongest first half on record, driven by broad-based client inflows, higher markets, acquisitions and continued demand for ETFs, private markets and technology offerings.
Chief Financial Officer Martin S. Small said BlackRock generated second-quarter revenue of $7.1 billion, up 31% from a year earlier, while adjusted operating income rose 39% to $2.9 billion. Adjusted earnings per share were $13.91, up 15% year over year. Small said all three measures reached quarterly records.
Chairman and Chief Executive Officer Laurence D. Fink said BlackRock’s assets under management reached a record $15.3 trillion after increasing by more than $1 trillion so far in 2026. “Clients are turning to BlackRock for insight and opportunities, as evident in our results this quarter,” Fink said.
Margins Expand as Revenue Hits Record
Small said BlackRock’s adjusted operating margin was 45.9% in the quarter, up 260 basis points from a year ago and the highest level in nearly five years. Excluding performance fees and related compensation, he said the adjusted operating margin would have been 46.5%, also up 260 basis points year over year.
Base fee and securities lending revenue was $5.7 billion, up 29% year over year, reflecting market gains, organic base fee growth and approximately $230 million in base fees from HPS. Performance fees rose to $305 million, including $115 million from HPS, and technology services and subscription revenue increased 13%. Annual contract value, or ACV, rose 15% from a year earlier.
Expenses increased 25% year over year. Small attributed the rise to higher compensation tied to operating income and performance fees, higher headcount from HPS, increased distribution and servicing costs, direct fund expenses and general and administrative expenses related to the acquisition.
BlackRock also raised its planned share repurchase pace. Small said the company repurchased $450 million of shares in the second quarter and now expects to repurchase at least $550 million per quarter going forward, subject to market and other conditions. Fink said BlackRock expects to return more than $5.7 billion to shareholders this year through dividends and buybacks, a 16% increase over 2025.
ETF Inflows Lead the Quarter
BlackRock’s iShares ETF platform generated $178 billion of net inflows in the quarter, led by $85 billion in core equity ETFs and $61 billion in index bond ETFs. Small said active ETFs added $20 billion, while “precision” ETFs, including international and sector equity products, added $15 billion.
Fink said iShares now has more than $6 trillion in assets under management globally and is benefiting from increased adoption and category innovation. He said iShares has raised $80 billion year to date in Europe, bringing European AUM to $1.5 trillion. In Asia Pacific, locally domiciled iShares crossed $100 billion in assets during the quarter.
Fink also highlighted growth in active ETFs, saying BlackRock has gathered more than $70 billion in active ETF net inflows over the past year and is leading the industry in active flows in 2026. “In just the last three years, we’ve gone from the seventh largest active ETF manager to the third largest,” Fink said.
Retail net inflows were $19 billion, led by active fixed income, Aperio and liquid alternative funds. Institutional active net inflows totaled $44 billion, driven by private markets, fixed income, systematic strategies, outsourced chief investment officer offerings and target date products. Institutional index strategies saw $41 billion of net outflows, concentrated in low-fee index equities.
Private Markets and Acquisitions Gain Traction
Executives said BlackRock’s acquisitions of Global Infrastructure Partners, HPS and Preqin are performing ahead of plan and supporting the company’s 2030 ambitions. Fink said the combined platform is helping accelerate opportunities across public and private markets, particularly in infrastructure, private credit and technology.
Small said private markets saw an aggregate $15 billion of net inflows in the second quarter. He said that included $6 billion from private credit deployment, $5 billion from a mix of infrastructure fundraising and deployment, and $3 billion from partial funding of a private equity solutions outsourcing mandate with a client in Latin America.
Fink said BlackRock has closed about $10 billion in high-grade and infrastructure debt mandates for insurance companies so far in 2026. He said insurers globally are increasingly seeking private markets exposure to earn higher yields, and that collaboration between HPS and GIP is building a pipeline of joint opportunities, particularly in digital infrastructure.
Fink also pointed to the expected close of Aligned Data Centers in the coming weeks, describing it as “the largest data center infrastructure transaction ever announced.” He said the transaction brought together AIP, GIP and MGX.
Technology, Tokenization and Customization Remain Priorities
BlackRock executives emphasized technology as a key growth driver. Small said Aladdin, eFront and Preqin are benefiting from client demand for integrated technology, data and analytics across public and private markets. He said regulatory and market developments are increasing the need for private markets transparency and benchmarking.
Fink said creating a seamless analytical platform across public and private markets is “one of the key priorities for BlackRock over the coming year.” He said the company is not yet fully there, but sees strong demand from retail and institutional clients for tools that help them understand risk across entire portfolios.
On digital assets and tokenization, Small said BlackRock has about $110 billion in AUM connected to digital assets and aims, as part of its 2030 plan, to make digital assets a $500 million revenue business. He said the company is working to tokenize long-term investment products, including Treasury funds, iShares ETFs and potentially private markets over time.
Small said BlackRock has filed two registration statements with the SEC for tokenized money market funds. He also said the firm manages $60 billion of reserves for Circle, representing about a quarter of the $300 billion stablecoin market, and wants to be the stablecoin reserve manager of choice.
Executives Point to Structural Growth Themes
Fink said he remains optimistic about global markets, citing broadening returns outside the U.S., higher corporate margins and earnings momentum supported by new technology. He said BlackRock benefits directly from capital market expansion because of its scale and client relationships around the world.
The company also highlighted growth in retirement and personalized wealth solutions. Fink said LifePath Paycheck has grown to $30 billion in AUM as plan sponsors focus on retirement income. He said Aperio’s AUM is approaching $200 billion, up more than fourfold since BlackRock acquired the business five years ago, while SpiderRock AUM has nearly tripled to $13 billion since its acquisition two years ago.
Small said Aperio generated $7 billion of net inflows in the second quarter, split roughly evenly between long-only and long-short strategies. He said 2026 Aperio flows of about $20 billion have already surpassed 2025’s record flows of $15 billion.
Fink closed the call by saying BlackRock’s first-half performance represented “the strongest start to a year in our history” and that investments in the platform are showing up in results. “I believe the best of BlackRock is still ahead,” he said.
About BlackRock (NYSE:BLK)
BlackRock, Inc is a global investment management firm that provides a broad range of products and services to institutional, intermediary and individual investors. Its core activities include portfolio management across active and index strategies, exchange-traded funds (ETFs) under the iShares brand, fixed income, equity and multi-asset solutions, as well as alternatives such as private equity, real estate and infrastructure. The firm also offers cash management and liquidity solutions and retirement-focused products designed for defined contribution and defined benefit investors.
In addition to traditional investment management, BlackRock is known for its technology and risk management capabilities, most prominently its Aladdin platform, which combines portfolio management, trading and risk analytics and is used both internally and licensed to external clients.
