Strong Top-Line and Profit Growth
First-quarter revenue of $6.7 billion, up 27% year-over-year; operating income of $2.7 billion, up 31% year-over-year; as-adjusted EPS of $12.53, up 11% year-over-year.
BlackRock
· BLK
April 14th, 2026
Summary
- Earnings Call Date:
- 2026-04-14
- Change Since:
- -6.30%
- Next Earnings Date:
- 2026-07-21
Earnings Call Sentiment
PositiveThe call emphasized multiple strong operating metrics — double-digit revenue and operating income growth, margin expansion, robust organic base fee growth (8% Q1, 10% LTM), and record ETF inflows ($132B) — supported by successful acquisitions (HPS, Preqin) and technology services growth. Notable challenges include sizeable institutional index outflows ($35B), cash management redemptions, higher expenses tied to acquisitions and incentives, market volatility and geopolitical uncertainty, and potential moderation in some private-credit retail channels. On balance, the positive growth, broad-based inflows, margin expansion, and strategic private markets and technology momentum materially outweigh the noted headwinds.
Company Guidance
BlackRock reiterated several forward-looking targets: it plans to repurchase at least $450 million of shares per quarter for the balance of 2026; expects a ~25% tax run‑rate for the remainder of 2026 (Q1 as‑adjusted ~23%, including $57 million of discrete benefits); remains committed to low‑ to mid‑teens long‑term ACV growth; targets an adjusted operating margin of 45%+ (Q1 was 44.5%, and adjusted recurring‑FRE margin excluding performance fees was 45.6% with scope to trend toward >50% over time); pursues a 2030 objective of 5%+ organic base fee growth (saying it can consistently deliver 6–8% and 6–7% from structural growers in normal markets); and reiterated that active ETFs can be a $500 million+ revenue stream by 2030, already “more than halfway there.”
Margin Expansion and Operating Leverage
First-quarter as-adjusted operating margin expanded 130 basis points to 44.5%; adjusted margin excluding performance fees would have been 45.6%, up 180 basis points year-over-year; management reiterates ability to target 45%+ adjusted operating margin.
Strong Organic Fee Growth
Organic base fee growth of 8% in the quarter and 10% over the last twelve months; seven consecutive quarters at or above 5% organic base fee growth.
Robust Net Inflows and ETF Leadership
Total net inflows of $130 billion in Q1; record first-quarter iShares ETF net inflows of $132 billion (led by $41 billion into index bond ETFs and strong flows into precision/core/active ETFs); ETF net base fees doubled versus prior year for iShares.
Private Markets and Alternatives Momentum
Private markets net inflows of $9 billion (led by private credit and infrastructure); strong fundraising and deployment momentum for GIP and HPS (GIP V closed above $25 billion target); HPS contributed ~ $230 million of base fees and $121 million of performance fees in Q1.
Technology Services and Data Strength
Technology services and subscription revenue up 22% year-over-year; Preqin added approximately $65 million of revenue to Q1; annual contract value (ACV) growth described as mid-teens target long-term and tech services ACV grew 14% (management commentary).
Wealth Channel and Direct Indexing Traction
Retail net inflows of $15 billion driven by record Aperio direct indexing with $13 billion of net inflows (Aperio AUM more than tripled since acquisition) and Spider Rock adding over $1 billion; nine consecutive quarters of retail net inflows.
Capital Returns and Balance Sheet Actions
Share repurchases of $450 million in Q1 and plan to repurchase at least $450 million per quarter for the balance of the year (subject to conditions); generated $66 million of net investment gains in Q1 (equity method and minority investment valuation gains).
Christopher J. Meade
Good morning, everyone. I am Chris Meade, the General Counsel of BlackRock, Inc. Before we begin, I would like to remind you that during the course of this call, we may make a number of forward-looking statements. We call your attention to the fact that BlackRock, Inc.’s actual results may, of course, differ from these statements. As you know, BlackRock, Inc. has filed reports with the SEC which list some of the factors that may cause the results of BlackRock, Inc. to differ materially from what we say today. BlackRock, Inc.
assumes no duty and does not undertake to update any forward-looking statements. With that, I will turn it over to Martin.
Martin S. Small
Thanks, Chris. Good morning, everyone. It is my pleasure to present results for the first quarter of 2026. Before I turn it over to Larry, I will review our financial performance and business results. Our earnings release discloses both GAAP and as-adjusted results. A reconciliation between GAAP and our as-adjusted results has been included in the table attached to today’s press release. I will be focusing primarily on our as-adjusted results. It has been a standout start to the year for BlackRock, Inc.
Our first-quarter revenue, operating income, and earnings per share grew double digits. We expanded margins by over 100 basis points and we delivered 8% organic base fee growth. That is our seventh consecutive quarter at or above 5%, bringing the last twelve months’ organic base fee growth to 10%. What is driving that performance is deep engagement with clients. We are providing advice, insights, and access across the whole portfolio...
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