BlackRock, Inc.
BLK · NYSE
Dec 2026
Next quarter
Expected to report Jan 14, 2027 — estimated from last year’s reporting date.
Consensus is $15.53 EPS for Dec 2026 across 7 estimates, ranging $14.87 to $16.05.
BLK Sep 2026
- 13.70%
- $14.01
- $15.93
- —
- —
Highlights
- Adjusted EPS: $15.93, 13.7% above the supplied $14.01 consensus and up 38% from $11.55 a year ago; GAAP diluted EPS was $10.57.
- AUM and flows: Assets under management reached $15.49 trillion, up 15% year over year, after $205.5 billion of quarterly net inflows; trailing-12-month inflows were $868.6 billion.
- Adjusted profitability: Adjusted operating income rose 27% year over year to $3.33 billion, and adjusted operating margin expanded to 47.8% from 44.6%.
- Revenue: Revenue increased 19% year over year to $7.75 billion, led by higher base fees and securities lending, performance fees, and technology subscriptions.
- Flow mix: Long-term inflows totaled $174.8 billion, including $134.5 billion into ETFs and $66.4 billion into active strategies; institutional index products had $27.4 billion of outflows.
- GAAP distortion: A $564 million noncash charge from the change in fair value of contingent consideration helped pull GAAP operating income down 5% sequentially to $2.33 billion.
- Technology and capital returns: Technology services and subscription revenue grew 14% to $588 million, ACV increased 12% year over year, and BlackRock repurchased $550 million of shares.
Analysis
BlackRock delivered a strong adjusted quarter: diluted adjusted EPS of $15.93 beat the supplied $14.01 consensus by 13.7%, increased 38% from $11.55 a year earlier and rose from $13.91 in Q2. Revenue of $7.75 billion grew 19% year over year and 9% sequentially. The underlying business was supported by $205.5 billion of quarterly net inflows and $15.49 trillion of ending AUM, while higher performance fees and technology revenue added to fee growth.
The main qualification is the gap between adjusted and GAAP results. Adjusted operating income rose 27% year over year to $3.33 billion, with margin widening to 47.8%; GAAP operating income was $2.33 billion, down 5% from Q2, after a $564 million noncash fair-value charge on contingent consideration, mainly tied to the GIP and HPS transactions. GAAP diluted EPS was $10.57, versus $12.19 in Q2 and $8.43 a year ago. Flows were broad but not uniform: ETFs brought in $134.5 billion and active strategies $66.4 billion, while institutional index products lost $27.4 billion. Technology services and subscription revenue rose 14% to $588 million, with ACV up 12%.
Earnings and adjustments
- Adjusted results: Adjusted operating income was $3.33 billion, up 27% year over year and 14% sequentially. Adjusted EPS of $15.93 was up 38% year over year and 14.5% from Q2's $13.91; adjusted margin increased to 47.8% from 44.6% a year earlier and 45.9% in Q2.
- GAAP comparison: GAAP operating income was $2.33 billion, up 19% year over year but down from $2.46 billion in Q2. GAAP diluted EPS of $10.57 rose from $8.43 a year ago but fell from $12.19 sequentially; attributable net income was $1.66 billion versus $1.91 billion in Q2.
- Fair-value charge: The quarter included a $564 million expense from changes in the fair value of contingent consideration, compared with $11 million in Q2 and $93 million a year ago. BlackRock excluded this acquisition-related item from adjusted results; it was primarily associated with the GIP and HPS transactions and is affected by BlackRock's share price.
Flows and AUM
- Quarterly flows: Net inflows were $205.5 billion, close to $204.6 billion a year earlier. Long-term inflows were $174.8 billion and cash management added $30.7 billion; annualized organic base fee growth was 11%.
- Sources of growth: ETFs attracted $134.5 billion and active strategies $66.4 billion. Fixed income brought in $78.2 billion, equity $52.4 billion and private markets $15.3 billion. Institutional index products saw $27.4 billion of outflows, partly offset by $44.5 billion of institutional active inflows.
- Scale: Ending AUM of $15.49 trillion was up 15% year over year and $143.6 billion from Q2. Over the last twelve months, net inflows totaled $868.6 billion, representing 10% organic base fee growth. Market and foreign-exchange movements also shaped ending AUM: year-over-year market gains were about $1.27 trillion, while currency effects reduced AUM by about $81.5 billion.
Fee and technology growth
- Recurring fees: Investment advisory, administration and securities-lending revenue rose 20% year over year to $6.04 billion and 5% sequentially. BlackRock attributed the increase to organic base-fee growth and higher average AUM from market movements; securities-lending revenue was $253 million, up from $203 million a year ago.
- Performance fees: Investment advisory performance fees reached $630 million, up from $516 million a year earlier and $305 million in Q2. The year-over-year increase reflected stronger liquid-alternative revenue, largely from one hedge fund whose annual performance period ends in Q3; sequentially, liquid alternatives and private markets led the increase.
- Technology: Technology services and subscription revenue grew 14% year over year to $588 million and 4% sequentially. Annual contract value rose 12% year over year, with the company citing sustained demand for Aladdin and multi-product solutions.
Costs and margins
- Adjusted margin: Adjusted operating margin expanded 320 basis points year over year and 190 basis points sequentially to 47.8%, as adjusted operating income growth outpaced revenue growth.
- Operating costs: Excluding the contingent-consideration mark from the comparison, employee compensation and benefits rose $83 million year over year to $2.44 billion, while sales, asset and account expense increased $251 million to $1.41 billion, primarily reflecting higher AUM and related distribution and fund costs.
- GAAP margin: GAAP operating margin was 30.0%, flat year over year and down from 34.7% in Q2. The sequential comparison reflects the $564 million contingent-consideration expense; the company's adjusted margin removes that item along with other specified acquisition-related and noncash expenses.
Capital and pipeline
- Shareholder returns: BlackRock repurchased $550 million of shares during the quarter and paid a $5.73 per-share dividend, the same amount as in Q2 and up from $5.21 a year earlier.
- Private markets: The company said it raised $68 billion for private markets over the trailing twelve months. Its AI Infrastructure Partnership made its first deployment during the quarter.
- Management outlook: BlackRock described a broad pipeline spanning whole-portfolio solutions, private markets, retirement and international platforms, and said it was entering its seasonally strongest fourth quarter with accelerating momentum.
