One of the world's largest investment managers, BlackRock looks after money for pensions, governments, and everyday savers through funds and its famous iShares exchange-traded products, and also sells its Aladdin software to other financial firms. It began in 1988 as a risk-focused offshoot of Blackstone, founded by Larry Fink and partners. When the two split in 1994, Fink considered calling the new firm "Black Pebble," but a Blackstone leader thought that sounded too puny — so they settled on BlackRock instead.
BlackRock AUM reached $15.3T as GAAP operating margin rebounded to 34.7%, up 2.8 points year over year.
widened to 34.7%, a clear recovery from the acquisition-cost-driven lows of the prior year. rose 31% to $7.1 billion, powered by $1.3 trillion in market gains, organic base fee growth, and a $211 million increase in performance fees tied to alternative products. The underlying business is strengthening, but $12.7 billion in and $91 billion in unfunded private markets commitments remain a draw on liquidity.
Key takeaways
widened 2.8 points to 34.7%, as the noncash acquisition-related costs that depressed FY2025 results continued to subside; rose 2.6 points to 45.9%.
rose 31% to $7.1 billion, driven by market impacts, organic base fee growth, $230 million in fees from the , and a $211 million increase in performance fees to $305 million.
Investment advisory performance fees rose $211 million to $305 million, primarily from alternative products including the and long-only products.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 31% to $7.1B on market gains, organic growth, and HPS acquisition, driving GAAP operating margin to 34.7%.
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Total increased $1.7B (31%) to $7.1B, driven by market impacts, organic base fee growth, $230M in fees from the , and higher .
reached $15.3 trillion, up $1.5 trillion from March 2026, with $199 billion in long-term net inflows led by ETFs at $178 billion and $1.3 trillion in market appreciation.
Total expenses rose 25% to $4.6 billion, driven by higher compensation tied to and performance fees, the , and higher sales and asset costs on increased .
Technology services and subscription grew $67 million to $566 million, reflecting sustained demand for and multi-product solutions.
What changed
rebounded to 34.7% from 31.9% a year ago, as the noncash acquisition-related costs flagged in prior quarters began to roll off, confirming the trajectory anticipated in Q1 2026.
Performance fees rose to $305 million from $94 million a year ago, driven by HPS and private markets, suggesting the new run rate flagged in Q1 2026 is holding.
ETF net inflows remained strong at $178 billion, sustaining the momentum from $132 billion in Q1 2026 and the $527 billion full-year 2025 pace.
Liquidity resources decreased to $15.7 billion in Q1 2026, and the filing does not provide an updated figure for Q2, leaving the draw against $12.7 billion in and $91 billion in unfunded commitments unresolved.
What to watch
Track whether sustains above 34% in Q3 2026 or whether residual acquisition-related costs and integration spending push it lower again.
Monitor performance fees in Q3 2026 to see if the $305 million level, now driven by HPS and private markets, represents a stable run rate or contains episodic contributions.
Watch liquidity resources against the $12.7 billion in and $91 billion in unfunded private markets commitments, particularly as the company continues share repurchases and dividends.
Track ETF net inflows after $178 billion led Q2, and whether institutional outflows continue to moderate or reaccelerate.
Investment advisory surged $211M to $305M, primarily from alternative products including the , and long-only products.
Technology services and subscription grew $67M to $566M, reflecting sustained demand for and multi-product solutions.
expanded 280 to 34.7%, while as-adjusted operating margin rose 260 bps to 45.9%, excluding acquisition-related costs and a prior-year .
Total expense increased $931M (25%) to $4.6B, driven by higher compensation tied to and , the , and higher sales and asset costs on increased .
reached $15.3T, up $1.5T from March 2026, with $199B in long-term net inflows led by ETFs ($178B) and positive market appreciation of $1.3T.
For a discussion of the Company’s legal proceedings, see Note 15, Commitments and Contingencies, in the notes to the condensed consolidated financial statements of this Form 10-Q. 73
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For a discussion of the Company’s legal proceedings, see Note 15, Commitments and Contingencies, in the notes to the condensed consolidated financial statements of this Form 10-Q.
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In addition to the other information set forth in this report, the risks discussed in BlackRock's Annual Report on Form 10-K for the year ended December 31, 2025 could materially affect our business, financial condition, operating results and nonoperating results. 74
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In addition to the other information set forth in this report, the risks discussed in BlackRock's Annual Report on Form 10-K for the year ended December 31, 2025 could materially affect our business, financial condition, operating results and nonoperating results.
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