01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
BlackRock, Inc. reported strong financial performance for the first quarter of 2026, with total revenue increasing by 27% to $6.7 billiona compared to the same period in the prior year.
This growth was driven by higher average Assets Under Management (AUM) due to positive market movements and organic growth, alongside contributions from recent acquisitions like HPS and Preqin. Operating income surged by 65% to $2.8 billionb, resulting in a significant improvement in operating margin to 42.0% from 32.2% in Q1 2025. Diluted earnings per share (EPS) also saw substantial growth, rising 46% to $14.06.
The company's AUM reached $13.9 trillionc as of March 31, 2026, reflecting a robust increase from $11.6 trillion in the prior year, demonstrating continued client trust and market engagement. BlackRock's diversified revenue streams, including investment advisory fees, technology services, and performance fees, all contributed to the positive results. The company maintained a strong liquidity position, with total liquidity resources of $15.7 billion at quarter-end.
02—Key points
Key Highlights
- Total revenue increased 27% year-over-year to $6.7 billion in Q1 2026.
- Operating income grew significantly to $2.8 billion, with operating margin expanding to 42.0%.
- Diluted EPS rose 46% to $14.06 compared to Q1 2025.
- Assets Under Management (AUM) reached $13.9 trillion as of March 31, 2026, up from $11.6 trillion in the prior year.
- Strong performance in ETFs and long-term products contributed to AUM growth, with ETFs seeing $132 billion in net inflows.
- Technology services and subscription revenue increased by $94 million, driven by demand for Aladdin and Preqin.
- BlackRock maintained a healthy liquidity position with $15.7 billion in total liquidity resources.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.70B$5.28B | +27.0% |
| Operating Expenses | $3.88B$3.58B | +8.6% |
| Operating Income | $2.81B$1.70B | +65.7% |
| Net Income | $2.21B$1.51B | +46.5% |
| EPS (Basic) | $14.24$9.74 | +46.2% |
| EPS (Diluted) | $14.06$9.64 | +45.9% |
| Shares Outstanding (Basic) | 155.31M155.04M | +0.2% |
| Shares Outstanding (Diluted) | 165.00M156.63M | +5.3% |
05—Questions
Frequently Asked Questions
What was BlackRock's revenue performance in Q1 2026?
BlackRock's total revenue for the first quarter of 2026 was $6.7 billion, representing a 27% increase compared to $5.3 billion in the first quarter of 2025. This growth was primarily driven by higher investment advisory, administration fees, and securities lending revenue, which increased by $1.0 billion, supported by positive market performance and organic growth. Investment advisory performance fees also saw a significant jump to $272 million from $60 million in the prior year, mainly due to strong performance in private markets, including contributions from the HPS acquisition.
How did BlackRock's Assets Under Management (AUM) perform?
Assets Under Management (AUM) stood at $13.9 trillion as of March 31, 2026, an increase from $11.6 trillion as of March 31, 2025. For the first quarter of 2026, AUM experienced a decrease of $147 billion sequentially to $13.9 trillion, primarily due to net market depreciation and negative foreign exchange impacts, partially offset by net inflows. Long-term products saw net inflows of $136 billion, led by strong performance in ETFs and retail clients, while institutional clients experienced net outflows.
What is BlackRock's outlook on its financial condition and liquidity?
BlackRock reported a strong liquidity position with total liquidity resources of $15.7 billion at March 31, 2026, a decrease of $1.2 billion from the prior quarter. This decrease was attributed to year-end incentive payments, dividend payments, share repurchases, and investment purchases, partially offset by an increase in credit facility commitments and operating cash flows. The company believes its liquid assets, ongoing operating cash flows, and available borrowing capacity provide sufficient resources to meet its short-term and long-term obligations.
What were the key drivers of BlackRock's increased expenses?
Total expenses increased by 9% to $3.9 billion in the first quarter of 2026 compared to the prior year. This rise was primarily due to higher employee compensation and benefits, which increased by $484 million, reflecting higher operating income, performance fees, and the impact of acquisitions. General and administration expenses also rose, driven by occupancy, office-related, and technology costs. Amortization of intangible assets increased significantly due to acquisitions, while the change in fair value of contingent consideration decreased, impacting overall expense.
06—Continue