BlackRock Inc. (NYSE:BLK) stock rose in Wednesday’s premarket trading after the world’s largest asset manager reported second-quarter results that beat Wall Street expectations on stronger asset growth, record inflows and higher fee revenue.
Earnings Beat Estimates
Second-quarter revenue increased 31% year over year to $7.08 billion, topping the analyst consensus estimate of $6.70 billion.
Adjusted operating income climbed 39% to $2.92 billion. Adjusted operating margin expanded to 45.9% from 43.3% a year earlier, marking the company’s highest margin in nearly five years.
Adjusted earnings came in at $13.91 per share, ahead of the consensus estimate of $12.60.
Fee Revenue And Technology Growth
Investment advisory, administration fees and securities lending revenue rose to $5.73 billion from $4.45 billion a year earlier. The increase reflected higher average assets under management, 8% organic base fee growth and about $230 million in fees related to the HPS transaction.
Securities lending revenue increased to $239 million from $171 million as spreads improved.
Investment advisory performance fees jumped to $305 million from $94 million, driven by stronger alternative investment revenue, including contributions from the HPS transaction, and higher long-only product fees.
Technology services and subscription revenue rose to $566 million from $499 million. Growth was supported by continued demand for Aladdin products and multi-product solutions. Annual contract value for the segment increased 15% from a year earlier.
Record Inflows And Asset Growth
BlackRock reported total net inflows of $192 billion, up sharply from $68 billion a year ago.
Its active business generated $53 billion in net inflows, led by systematic strategies and a record $7 billion in liquid alternatives.
Assets under management increased 22% year over year to $15.34 trillion, while average assets under management rose 24% to $14.85 trillion. iShares assets under management surpassed $6 trillion, nearly doubling over the past three years.
The company repurchased $450 million of shares during the quarter. It also increased its quarterly share repurchase authorization to $550 million, raising its planned 2026 share repurchases to $2 billion.
Management Commentary
Chief Executive Officer Laurence Fink said strong market conditions, improving profitability and advances in technology continued to drive growth.
He added that deeper client relationships and rising demand for BlackRock’s investment capabilities helped deliver record financial performance, including $868 billion in net inflows, 10% organic base fee growth over the past year and more than double the inflows recorded in the first half of 2026 compared with a year earlier.
“The scale and depth of our client relationships globally have never been greater. Clients are turning to BlackRock for insights and opportunities,” he said.
Chief Financial Officer Martin Small reaffirmed the company’s expectation for a mid-single-digit percentage increase in full-year general and administrative expenses.
BLK Price Action: BlackRock shares were up 4.15% at $1068.00 during premarket trading on Wednesday, according to Benzinga Pro data.
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