BlackRock, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This summary covers BlackRock, Inc.'s (BLK) Form 10-Q for the quarterly period ended June 30, 2026. BlackRock is a leading publicly traded investment management firm providing investment management and technology services to institutional and retail clients globally. As of June 30, 2026, the firm reported $15.3 trillion in Assets Under Management (AUM), a significant increase from $12.5 trillion at the end of 2025.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenue | $7.08 billion | $5.42 billion | $13.78 billion | $10.70 billion |
| Operating Income | $2.46 billion | $1.73 billion | $5.28 billion | $3.43 billion |
| Operating Margin | 34.7% | 31.9% | 38.3% | 32.0% |
| Net Income (Attributable to BLK) | $1.91 billion | $1.59 billion | $4.13 billion | $3.10 billion |
| Diluted EPS | $12.19 | $10.19 | $26.25 | $19.83 |
| Cash and Cash Equivalents | $10.49 billion | $11.47 billion (Dec 2025) | N/A | |
| Total Borrowings | $12.74 billion | $12.77 billion (Dec 2025) | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 31% year-over-year (Q2) and 29% year-over-year (YTD). Growth was driven by positive market impacts, organic base fee growth, higher performance fees, and revenue from the HPS Investment Partners acquisition.
- Performance Fees: Investment advisory performance fees surged to $305 million in Q2 2026 from $94 million in Q2 2025, primarily due to strong results in alternative products and long-only strategies.
- Expense Increases: Total expenses rose 25% in Q2 and 17% YTD. Increases were attributed to higher employee compensation (linked to performance), sales and account expenses, and amortization of intangible assets from recent acquisitions (HPS, Preqin, GIP).
- Nonoperating Income: Nonoperating income decreased compared to the prior year, largely due to the absence of a $330 million noncash pre-tax gain related to Circle Internet Group, Inc. recorded in Q2 2025.
- AUM Flows: Long-term net inflows for the quarter were $199 billion, led by ETFs ($178 billion) and retail clients ($19 billion). Market appreciation contributed $1.3 trillion to AUM growth in the quarter.
Guidance, Outlook, and Risks
- Acquisition Integration: The firm continues to integrate HPS Investment Partners (completed July 2025), which added $165 billion in client AUM. A portion of the contingent consideration for HPS ($2.6 billion) is expected to be reclassified from liabilities to equity in Q3 2026.
- Capital Allocation: The Board authorized an additional 7 million shares for repurchase in January 2026. During the first six months of 2026, the company repurchased approximately 0.8 million shares for $900 million. Approximately 8.4 million shares remain authorized.
- Dividends: Dividends declared and paid per share were $5.73 for Q2 2026 and $11.46 for the six months ended June 30, 2026.
- Risks and Contingencies:
- Legal Proceedings: BlackRock is defending a lawsuit filed by thirteen state Attorneys General alleging antitrust violations regarding coal supply. Management does not currently anticipate a material effect on results.
- Market Risk: AUM is sensitive to equity market prices, interest rates, and foreign exchange rates. A 10% adverse change in equity market prices could decrease the carrying value of corporate investments by approximately $125 million.
- Contingent Consideration: Total contingent consideration liabilities stood at $7.9 billion, subject to performance targets for the GIP and HPS transactions.
Key Facts for Investor Verification
- Non-GAAP Adjustments: Management reports "As Adjusted" operating income of $2.92 billion (Q2) and $5.59 billion (YTD), excluding acquisition-related costs, restructuring charges, and amortization of intangibles. Investors should reconcile these to GAAP figures.
- Subco Units: Diluted EPS calculations include the impact of 7.6 million Subco Units (from the HPS transaction) which are exchangeable for common stock. These units are currently classified as temporary equity but will be reclassified to permanent equity in Q3 2026.
- Deferred Carried Interest: The company holds $3.5 billion in deferred carried interest liabilities, which are subject to clawback provisions and future performance hurdles.
- Liquidity: Total liquidity resources (cash plus undrawn credit facility) were $16.5 billion as of June 30, 2026. The company maintains a $6.3 billion revolving credit facility with no outstanding balance.