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BLK shares gained almost 4% in pre-market trading on better-than-expected results, primarily driven by a record assets under management (AUM) balance.
Results benefited from higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on results.
Net income attributable to BlackRock (on a GAAP basis) was $1.66 billion, up 25% year over year.
BLK’s Revenues Improve, Expenses Rise
Quarterly revenues (on a GAAP basis) were $7.75 billion, surpassing the Zacks Consensus Estimate of $7.46 billion. The figure increased 19% year over year. The improvement was driven by organic base fee growth, favorable market conditions, higher performance fees and increased technology services revenues.
Investment advisory, administration fees and securities lending revenues were $6.04 billion, up 20% year over year. The increase was primarily driven by organic base fee growth and the positive impact of market movements on average AUM. Securities lending revenues climbed to $253 million from $203 million a year ago.
Investment advisory performance fees increased 22% year over year to $630 million, primarily reflecting higher revenues from liquid alternative products. Technology services and subscription revenues rose 14% to $588 million, supported by continued demand for Aladdin and multi-product solutions.
Distribution fees increased 17% to $414 million, while advisory and other revenues grew 9% to $84 million.
Total operating expenses amounted to $5.42 billion, up 19% year over year. The increase was primarily due to higher sales, asset and account expenses, employee compensation and benefits, and a rise in the fair value of contingent consideration related to prior acquisitions.
BLK's Adjusted Operating Income Grows
BlackRock's adjusted operating income was $3.33 billion, increasing 27% from the prior-year quarter. The adjusted operating margin expanded to 47.8% from 44.6% a year earlier, reflecting improved operating profitability.
Non-operating income (on a GAAP basis) was $316 million compared with $42 million in the prior-year quarter.
BlackRock's AUM Balance Climbs
As of Sept. 30, 2026, AUM was $15.49 trillion, up 15% year over year. The growth was driven by net inflows and favorable market movements over the trailing 12 months. The company recorded total net inflows of $205.47 billion in the reported quarter.
Average AUM was $15.46 trillion, rising 19% year over year. Equity AUM totaled $8.98 trillion, while fixed-income AUM was $3.35 trillion. Multi-asset AUM was $1.34 trillion, and alternatives AUM reached $466.28 billion. Cash management AUM was $1.10 trillion.
BLK's ETFs and Active Strategies Attract Inflows
BlackRock witnessed long-term net inflows of $174.81 billion in the reported quarter. Exchange-traded funds (ETFs) contributed $134.51 billion in net inflows, led by fixed-income and equity products. Retail net inflows totaled $23.30 billion, while institutional clients contributed $17.01 billion.
Active investment strategies recorded net inflows of $66.41 billion, reflecting demand across the company's investment offerings. Private markets generated $15.31 billion in net inflows, including $7.58 billion from infrastructure and $5.01 billion from private credit. However, institutional index products witnessed net outflows of $27.44 billion.
BLK’s Share Repurchases
BlackRock repurchased shares worth $550 million in the reported quarter.
Our View on BlackRock
BLK’s continued efforts to diversify offerings and improve its revenue mix are expected to continue to support its financials amid growing opportunities across private markets, infrastructure financing, retirement solutions and technology services. Strategic acquisitions continue to enhance the company’s position as a global asset manager. However, elevated expenses pose a challenge.
Blackstone Inc. (BX - Free Report) is slated to report third-quarter 2026 results on Oct. 22.
Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has been revised lower to $1.33. The figure implies a fall of 12.5% from the prior-year quarter.
Invesco (IVZ - Free Report) is scheduled to announce third-quarter 2026 numbers on Oct. 27.
Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been unchanged at 75 cents. The figure implies a jump of 23% from the prior-year quarter.
View the Zacks #1 Rank List
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BLK Q3 Earnings Beat, Stock Gains Pre-Market on Revenue & AUM Growth
Key Takeaways
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK shares gained almost 4% in pre-market trading on better-than-expected results, primarily driven by a record assets under management (AUM) balance.
Results benefited from higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on results.
Net income attributable to BlackRock (on a GAAP basis) was $1.66 billion, up 25% year over year.
BLK’s Revenues Improve, Expenses Rise
Quarterly revenues (on a GAAP basis) were $7.75 billion, surpassing the Zacks Consensus Estimate of $7.46 billion. The figure increased 19% year over year. The improvement was driven by organic base fee growth, favorable market conditions, higher performance fees and increased technology services revenues.
Investment advisory, administration fees and securities lending revenues were $6.04 billion, up 20% year over year. The increase was primarily driven by organic base fee growth and the positive impact of market movements on average AUM. Securities lending revenues climbed to $253 million from $203 million a year ago.
Investment advisory performance fees increased 22% year over year to $630 million, primarily reflecting higher revenues from liquid alternative products. Technology services and subscription revenues rose 14% to $588 million, supported by continued demand for Aladdin and multi-product solutions.
Distribution fees increased 17% to $414 million, while advisory and other revenues grew 9% to $84 million.
Total operating expenses amounted to $5.42 billion, up 19% year over year. The increase was primarily due to higher sales, asset and account expenses, employee compensation and benefits, and a rise in the fair value of contingent consideration related to prior acquisitions.
BLK's Adjusted Operating Income Grows
BlackRock's adjusted operating income was $3.33 billion, increasing 27% from the prior-year quarter. The adjusted operating margin expanded to 47.8% from 44.6% a year earlier, reflecting improved operating profitability.
Non-operating income (on a GAAP basis) was $316 million compared with $42 million in the prior-year quarter.
BlackRock's AUM Balance Climbs
As of Sept. 30, 2026, AUM was $15.49 trillion, up 15% year over year. The growth was driven by net inflows and favorable market movements over the trailing 12 months. The company recorded total net inflows of $205.47 billion in the reported quarter.
Average AUM was $15.46 trillion, rising 19% year over year. Equity AUM totaled $8.98 trillion, while fixed-income AUM was $3.35 trillion. Multi-asset AUM was $1.34 trillion, and alternatives AUM reached $466.28 billion. Cash management AUM was $1.10 trillion.
BLK's ETFs and Active Strategies Attract Inflows
BlackRock witnessed long-term net inflows of $174.81 billion in the reported quarter. Exchange-traded funds (ETFs) contributed $134.51 billion in net inflows, led by fixed-income and equity products. Retail net inflows totaled $23.30 billion, while institutional clients contributed $17.01 billion.
Active investment strategies recorded net inflows of $66.41 billion, reflecting demand across the company's investment offerings. Private markets generated $15.31 billion in net inflows, including $7.58 billion from infrastructure and $5.01 billion from private credit. However, institutional index products witnessed net outflows of $27.44 billion.
BLK’s Share Repurchases
BlackRock repurchased shares worth $550 million in the reported quarter.
Our View on BlackRock
BLK’s continued efforts to diversify offerings and improve its revenue mix are expected to continue to support its financials amid growing opportunities across private markets, infrastructure financing, retirement solutions and technology services. Strategic acquisitions continue to enhance the company’s position as a global asset manager. However, elevated expenses pose a challenge.
BlackRock Price, Consensus and EPS Surprise
BlackRock price-consensus-eps-surprise-chart | BlackRock Quote
BlackRock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of BLK’s Peers
Blackstone Inc. (BX - Free Report) is slated to report third-quarter 2026 results on Oct. 22.
Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has been revised lower to $1.33. The figure implies a fall of 12.5% from the prior-year quarter.
Invesco (IVZ - Free Report) is scheduled to announce third-quarter 2026 numbers on Oct. 27.
Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been unchanged at 75 cents. The figure implies a jump of 23% from the prior-year quarter.