BlackRock’s BLK second-quarter 2026 adjusted earnings of $13.91 per share handily surpassed the Zacks Consensus Estimate of $12.72. The figure reflects a 15% rise from the year-ago quarter.
Shares of the company gained 4.4% in the pre-market trading on better-than-expected results, primarily driven by record AUM balance. However, a full day’s trading session will depict a clearer picture.
Results benefited from a rise in revenues. The assets under management (AUM) balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses created a headwind.
Net income attributable to BlackRock (on a GAAP basis) was $1.91 billion, up 20% from the prior-year quarter.
BLK’s Revenues Improve, Expenses Rise
Quarterly revenues (on a GAAP basis) were $7.08 billion, outpacing the Zacks Consensus Estimate of $6.84 billion. Revenues increased 31% year over year. The rise was driven by an increase in all revenue components.
Total expenses amounted to $4.62 billion, up 25% year over year. The increase was due to a rise in all cost components, except for the change in fair value of contingent consideration. Also, the company did not record any restructuring charge in the reported quarter.
Non-operating income (on a GAAP basis) was $258 million, down 50% from the prior-year quarter.
BlackRock’s adjusted operating income was $2.92 billion, increasing 39% from the prior-year quarter.
BlackRock’s AUM Balance Rises
As of June 30, 2026, AUM was a record $15.34 trillion, reflecting a year-over-year rise of 22%. The company witnessed long-term net inflows of $199 billion in the reported quarter.
As of June 30, 2026, the average AUM of $14.85 trillion rose 24% year over year.
BLK’s Share Repurchases
BlackRock repurchased shares worth $450 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 despite the ongoing private credit headwinds. The acquisitions of Global Infrastructure Partners, Preqin ElmTree Funds and HPS Investment Partners are likely to enhance the company’s position as a global asset manager. However, elevated expenses pose a significant challenge for the company.
BlackRock Price, Consensus and EPS Surprise
BlackRock price-consensus-eps-surprise-chart | BlackRock Quote
BlackRock currently carries a Zacks Rank #2 (Buy). 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 is slated to report second-quarter 2026 results on July 23.
Over the past week, the Zacks Consensus Estimate for BX’s quarterly earnings has been unchanged at $1.33. The figure implies a rise of 9.9% from the prior-year quarter’s reported number.
Invesco IVZ is scheduled to announce second-quarter 2026 numbers on July 28.
Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised higher to 66 cents. The figure implies a surge of 83.3% from the prior-year quarter’s actual.
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This article originally published on Zacks Investment Research (zacks.com).