BlackRock Q1 Earnings Call Highlights

Key Points

• BlackRock reported a strong Q1 with $6.7 billion revenue (up 27% YoY), operating income up 31%, EPS of $12.53, an as‑adjusted operating margin of 44.5%, and $450 million of share repurchases with guidance to continue at least that level per quarter.
• The firm logged $130 billion of net inflows led by record iShares ETF inflows of $132 billion (notably bond, precision exposures, core equity and active ETFs), even as institutional index products saw $35 billion of outflows; private markets added $9 billion and GIP V closed above its $25 billion target.
• Management emphasized growth drivers in technology services, private markets, model and tax‑aware solutions, plans to launch a "LifePath with privates" and an H Series for wealth in 2026, and described the DOL’s proposed private‑asset rule as “better than we expected.”

BlackRock NYSE: BLK executives said the firm delivered one of its strongest starts to a year on record, pointing to double-digit growth in revenue, operating income, and earnings per share, alongside record ETF inflows and continued momentum in technology services and private markets.

On the company’s first quarter 2026 earnings call, Chief Financial Officer Martin S. Small said BlackRock generated $130 billion of total net inflows and posted 8% organic base fee growth, marking its seventh consecutive quarter at or above 5%. Chairman and Chief Executive Officer Laurence D. Fink said the quarter reflected “accelerating momentum” driven by deepening client engagement globally and a platform that integrates public markets, private markets, and technology.

Financial results: revenue up 27% and margins expand

Small reported first quarter revenue of $6.7 billion, up 27% year-over-year, which he attributed to organic growth, higher markets on average AUM, the impact of the HPS and Preqin acquisitions, and higher technology services and subscription revenue. Operating income rose 31% to $2.7 billion, and earnings per share increased 11% to $12.53.

BlackRock’s as-adjusted operating margin was 44.5%, up 130 basis points from a year ago. Excluding performance fees and related compensation, Small said adjusted operating margin would have been 45.6%, up 180 basis points year-over-year. He also reiterated the firm’s long-term margin framework, saying BlackRock continues to target “a 45% or greater adjusted operating margin.”

On taxes, Small said the first quarter as-adjusted tax rate was approximately 23%, reflecting $57 million of discrete tax benefits tied to vesting stock-based compensation awards. He added that management continues to estimate a 25% projected tax run rate for the remainder of 2026, subject to discrete items and potential legislative changes.

BlackRock repurchased $450 million of shares during the quarter. Small said the firm still anticipates repurchasing at least $450 million per quarter for the balance of the year, consistent with guidance provided in January.

Flows: record ETF inflows offset by institutional index outflows

Small said BlackRock’s $130 billion of net inflows in the quarter were “led by strength across ETFs, active and private markets.” He highlighted record first quarter iShares ETF net inflows of $132 billion, driven by:

• $41 billion of index bond ETF net inflows
• $39 billion into “precision exposures”
• $32 billion into core equity
• $19 billion into active ETFs

Small said ETF organic base fee growth was double-digit in the quarter, citing demand for “premium exposures that are specific to iShares” and growing client interest in international diversification, including emerging markets and single-country exposures. Fink added that iShares’ breadth across global equity and bond markets helped capture demand as clients rotated toward international exposures, and he said record iShares inflows came with net base fees that were “double what they were compared to this time last year.”

Elsewhere, institutional active net inflows were $24 billion, driven by LifePath target-date strategies, private markets, and systematic offerings, though Small noted this was partially offset by “a few client-specific active fixed income redemptions.” Institutional index net outflows were $35 billion and were “concentrated in low-fee index equities.” BlackRock’s cash management platform saw $6 billion of net outflows, which Small attributed to seasonal redemptions from U.S. government funds.

Private markets and private credit: institutional demand emphasized

In private markets overall, Small said BlackRock delivered $9 billion of net inflows, led by private credit and infrastructure and “primarily driven by deployment activity.” Fink said the combinations with GIP and HPS were “surpassing the highest expectations we underwrote,” and he noted GIP V closed above its $25 billion target and was “already majority committed” through recently announced deals including TCR, AES, and Aligned.

Addressing private credit more broadly, Fink said headlines around the segment “do not reflect what clients are telling us,” emphasizing that demand is structural and that private credit plays a necessary role as banks, governments, and public markets cannot fully meet global financing needs. He said new direct lending opportunities were being quoted 25 to 50 basis points wider than the fourth quarter, with select opportunities more than 100 basis points wider, describing dislocations as potentially compelling periods for investment.

Small distinguished BlackRock’s private credit footprint as predominantly institutional. He said the business is “generally about 10% retail private markets” at BlackRock and that roughly 85% to 90% of the base is institutional, where demand and deployment have been strong. While acknowledging the possibility of moderation in retail flows, he said BlackRock’s broader 2030 strategy is not dependent on any one product and aims for 5%+ organic base fee growth through a diversified platform.

Small also provided detail on HPS’s non-traded BDC, noting that HLEND had “logged 10.4% annualized total return since inception” and was “one of the only funds among major peers with positive performance in 2026.” He said HLEND recorded $840 million of first quarter subscriptions, including DRIP, with about $150 million in subscriptions for the April window.

Wealth channel: focus on after-tax strategies, models, and evergreen privates

In response to questions about wealth channel penetration, Small said BlackRock manages “more than a trillion dollars of assets for wealth managers” across models, SMAs, ETFs, and private markets, and also provides advisor technology through Aladdin. He said the firm has “the largest client-facing team in the industry” across wirehouses, independent broker-dealers, RIAs, and private banks globally.

Retail net inflows were $15 billion in the quarter, which Small said was driven by a record $13 billion into Aperio, $3 billion into liquid alternative strategies, and demand for Strategic Income Opportunities and other active fixed income and evergreen private markets strategies. Small said the firm has now delivered nine consecutive quarters of retail net inflows.

Small highlighted growth in tax-aware investing, pointing to continued acceleration in direct indexing and options overlays. He said, of Aperio’s $13 billion in net inflows, about $9 billion was in long-only direct indexing and $4 billion was in long-short strategies aimed at expanding tax-loss harvesting opportunities. SpiderRock added more than $1 billion of net inflows in the quarter, according to Small.

Small also discussed model portfolios as a key growth lever, stating that roughly 40%+ of iShares flows in the U.S. come from model portfolios, and he said BlackRock is expanding those solutions to include private markets allocations. On evergreen products, he said BlackRock expects to broaden its lineup and is “on track to bring an H Series of vehicles to market for private wealth over the course of 2026,” adding that certain registration statements can be found on the SEC’s EDGAR database.

Policy and retirement: DOL proposal seen as “better than we expected”

Executives spent part of the Q&A discussing retirement policy and the Department of Labor’s proposed rule tied to private assets in defined contribution plans. Small said the proposed rule “is better than we expected it to be” and praised engagement from the Department of Labor with the industry.

Small said the proposal emphasizes ERISA and a process-based review of factors including performance, fees and expenses, liquidity, valuation, benchmarking, and complexity. He argued that delivering private market exposure within target-date funds is the “best way to do it for DC plans,” given that most 401(k) inflows come through QDIA structures such as target-date funds. Small said BlackRock plans to launch “a LifePath with privates” and referenced a product coming to market with Great Gray in 2026 to begin building a track record, with broader momentum potentially accelerating in 2027.

Fink added that retirement system development is a global theme he is discussing with government leaders across regions, tying retirement investing to deeper capital markets and national goals around self-reliance.

Looking ahead, management repeatedly emphasized share gains during volatile periods. Small noted March 2026 was the worst month for broad markets since September 2022, and said BlackRock is “getting better and better at through-market environments of taking share,” citing structural growth areas including ETFs, private markets, models, tax-aware strategies, and systematic offerings, as well as growing demand for “whole portfolio relationships” as clients consolidate providers.

In closing remarks, Fink said the firm is aligning its platform with “long-term client needs and structural growth drivers,” adding that BlackRock’s “breadth, our scale, our connectivity” positions it to continue delivering value for clients and long-term growth for shareholders.

About BlackRock NYSE: BLK

BlackRock, Inc is a global investment management firm that provides a broad range of products and services to institutional, intermediary and individual investors. Its core activities include portfolio management across active and index strategies, exchange-traded funds (ETFs) under the iShares brand, fixed income, equity and multi-asset solutions, as well as alternatives such as private equity, real estate and infrastructure. The firm also offers cash management and liquidity solutions and retirement-focused products designed for defined contribution and defined benefit investors.

In addition to traditional investment management, BlackRock is known for its technology and risk management capabilities, most prominently its Aladdin platform, which combines portfolio management, trading and risk analytics and is used both internally and licensed to external clients.

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