2026 08 06 Edgar BLK 10Q 000119312526337177
10-Q filed 2026-08-06 via EDGAR.
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Summary
10-Q filed 2026-08-06 via EDGAR. Official document: https://www.sec.gov/Archives/edgar/data/2012383/000119312526337177/blk-20260630.htm
Filing
10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 2026
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to .
Commission file number 001-42297
BlackRock, Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
99-1116001
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer Identification No.)
50 Hudson Yards, New York, NY 10001
(Address of Principal Executive Offices) (Zip Code)
(212) 810-5800
(Registrant’s Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange on which registered
Common Stock, $.01 par value
 
BLK
 
New York Stock Exchange
3.750% Notes due 2035
 
BLK 35
 
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
 
X
 
No
 
 
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
 
X
 
No
 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
 
Accelerated filer
☐
Non-accelerated filer
☐
 
Smaller reporting company
☐
 
 
 
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
 
 
 
No
 
X
As of July 31, 2026, there were 154,869,259 shares of the registrant’s common stock outstanding (162,476,186 on a fully diluted basis, including 7,606,927 Class B-2 common units of a consolidated subsidiary, BlackRock Saturn Subco, LLC, which are exchangeable on a one-for-one basis into common stock of the registrant).
BlackRock, Inc.
Index to Form 10-Q
PART I
FINANCIAL INFORMATION
Page
 
 
 
Item 1.
Financial Statements (unaudited)
 
 
 
 
Condensed Consolidated Statements of Financial Condition
1
 
 
 
Condensed Consolidated Statements of Income
2
 
 
 
Condensed Consolidated Statements of Comprehensive Income
3
 
 
 
Condensed Consolidated Statements of Changes in Equity
4
 
 
 
Condensed Consolidated Statements of Cash Flows
6
 
 
 
Notes to Condensed Consolidated Financial Statements
7
 
 
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
37
 
 
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
71
 
 
 
Item 4.
Controls and Procedures
72
PART II
OTHER INFORMATION
Item 1.
Legal Proceedings
73
 
 
 
Item 1A.
Risk Factors
74
 
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
75
 
Item 6.
Exhibits
76
 
Signatures
77
i
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
BlackRock, Inc.
Condensed Consolidated Statements of Financial Condition
(unaudited)
 
 
June 30,
 
 
December 31,
 
(in millions, except shares and per share data)
 
2026
 
 
2025
 
Assets
 
 
 
 
 
 
Cash and cash equivalents(1)
 
$
10,492
 
 
$
11,468
 
Accounts receivable
 
 
5,444
 
 
 
5,158
 
Investments(1)
 
 
15,144
 
 
 
13,271
 
Separate account assets
 
 
65,267
 
 
 
60,098
 
Separate account collateral held under securities lending agreements
 
 
6,269
 
 
 
7,922
 
Property and equipment (net of accumulated depreciation and amortization of $1,852 and
$1,692 at June 30, 2026 and December 31, 2025, respectively)
 
 
1,305
 
 
 
1,256
 
Intangible assets (net of accumulated amortization of $1,989 and $1,482 at
June 30, 2026 and December 31, 2025, respectively)
 
 
27,415
 
 
 
27,968
 
Goodwill
 
 
35,203
 
 
 
35,283
 
Operating lease right-of-use assets
 
 
1,848
 
 
 
1,874
 
Other assets(1)
 
 
7,488
 
 
 
5,700
 
Total assets
 
$
175,875
 
 
$
169,998
 
Liabilities
 
 
 
 
 
 
Accrued compensation and benefits
 
$
2,432
 
 
$
3,830
 
Accounts payable and accrued liabilities
 
 
2,012
 
 
 
1,740
 
Borrowings
 
 
12,744
 
 
 
12,768
 
Separate account liabilities
 
 
65,267
 
 
 
60,098
 
Separate account collateral liabilities under securities lending agreements
 
 
6,269
 
 
 
7,922
 
Contingent consideration liabilities
 
 
7,875
 
 
 
8,429
 
Deferred income tax liabilities
 
 
4,488
 
 
 
4,618
 
Operating lease liabilities
 
 
2,224
 
 
 
2,228
 
Other liabilities(1)
 
 
8,024
 
 
 
6,823
 
Total liabilities
 
 
111,335
 
 
 
108,456
 
Commitments and contingencies (Note 15)
 
 
 
 
 
 
Temporary equity
 
 
 
 
 
 
Redeemable noncontrolling interests ("NCI") - consolidated sponsored investment
products ("CIPs")
 
 
3,872
 
 
 
2,636
 
Redeemable NCI - BlackRock Saturn Subco, LLC ("Subco")
 
 
2,828
 
 
 
2,791
 
Permanent equity
 
 
 
 
 
 
BlackRock, Inc. stockholders’ equity
 
 
 
 
 
 
Common stock, $0.01 par value;
 
 
2
 
 
 
2
 
Shares authorized: 500,000,000 at June 30, 2026 and December 31, 2025;
Shares issued: 156,276,289 at both June 30, 2026 and December 31, 2025 Shares outstanding: 154,996,807 and 155,069,171 at June 30, 2026 and December 31, 2025, respectively
 
 
 
 
 
 
Additional paid-in capital
 
 
19,414
 
 
 
19,748
 
Retained earnings
 
 
40,205
 
 
 
37,899
 
Accumulated other comprehensive loss
 
 
(653
)
 
 
(545
)
Treasury stock, common, at cost (1,279,482 and 1,207,118 shares held at June 30, 2026
and December 31, 2025, respectively)
 
 
(1,355
)
 
 
(1,216
)
Total BlackRock, Inc. stockholders’ equity
 
 
57,613
 
 
 
55,888
 
Nonredeemable NCI - CIPs
 
 
227
 
 
 
227
 
Total permanent equity
 
 
57,840
 
 
 
56,115
 
Total liabilities, temporary equity and permanent equity
 
$
175,875
 
 
$
169,998
 
(1)At June 30, 2026, cash and cash equivalents, investments, other assets and other liabilities include $180 million, $9.5 billion, $42 million and $3.7 billion, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2025, cash and cash equivalents, investments, other assets and other liabilities include $428 million, $8.5 billion, $76 million and $4.1 billion, respectively, related to consolidated VIEs. See accompanying notes to condensed consolidated financial statements.
1
BlackRock, Inc.
Condensed Consolidated Statements of Income
(unaudited)
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
June 30,
 
 
June 30,
 
(in millions, except per share data)
 
2026
 
 
2025
 
 
2026
 
 
2025
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
Investment advisory, administration fees
and securities lending revenue:
 
 
 
 
 
 
 
 
 
 
 
 
Investment advisory and administration fees
 
$
5,487
 
 
$
4,283
 
 
$
10,746
 
 
$
8,527
 
Securities lending revenue
 
 
239
 
 
 
171
 
 
 
418
 
 
 
328
 
Total investment advisory, administration fees
and securities lending revenue
 
 
5,726
 
 
 
4,454
 
 
 
11,164
 
 
 
8,855
 
Investment advisory performance fees
 
 
305
 
 
 
94
 
 
 
577
 
 
 
154
 
Technology services and subscription revenue
 
 
566
 
 
 
499
 
 
 
1,096
 
 
 
935
 
Distribution fees
 
 
395
 
 
 
320
 
 
 
784
 
 
 
641
 
Advisory and other revenue
 
 
92
 
 
 
56
 
 
 
161
 
 
 
114
 
Total revenue
 
 
7,084
 
 
 
5,423
 
 
 
13,782
 
 
 
10,699
 
Expense
 
 
 
 
 
 
 
 
 
 
 
 
Employee compensation and benefits
 
 
2,274
 
 
 
1,764
 
 
 
4,499
 
 
 
3,505
 
Sales, asset and account expense:
 
 
 
 
 
 
 
 
 
 
 
 
Distribution and servicing costs
 
 
732
 
 
 
576
 
 
 
1,437
 
 
 
1,146
 
Direct fund expense
 
 
543
 
 
 
441
 
 
 
1,024
 
 
 
833
 
Sub-advisory and other
 
 
67
 
 
 
46
 
 
 
138
 
 
 
93
 
Total sales, asset and account expense
 
 
1,342
 
 
 
1,063
 
 
 
2,599
 
 
 
2,072
 
General and administration expense
 
 
720
 
 
 
613
 
 
 
1,394
 
 
 
1,228
 
Change in fair value of contingent consideration
 
 
11
 
 
 
76
 
 
 
(538
)
 
 
172
 
Restructuring charge
 
 
—
 
 
 
39
 
 
 
—
 
 
 
39
 
Amortization of intangible assets
 
 
276
 
 
 
137
 
 
 
553
 
 
 
254
 
Total expense
 
 
4,623
 
 
 
3,692
 
 
 
8,507
 
 
 
7,270
 
Operating income
 
 
2,461
 
 
 
1,731
 
 
 
5,275
 
 
 
3,429
 
Nonoperating income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on investments
 
 
283
 
 
 
550
 
 
 
355
 
 
 
608
 
Interest and dividend income
 
 
109
 
 
 
144
 
 
 
199
 
 
 
317
 
Interest expense
 
 
(134
)
 
 
(173
)
 
 
(268
)
 
 
(339
)
Dividend income and net interest income (expense)
 
 
(25
)
 
 
(29
)
 
 
(69
)
 
 
(22
)
Total nonoperating income (expense)
 
 
258
 
 
 
521
 
 
 
286
 
 
 
586
 
Income before income taxes
 
 
2,719
 
 
 
2,252
 
 
 
5,561
 
 
 
4,015
 
Income tax expense
 
 
677
 
 
 
587
 
 
 
1,193
 
 
 
835
 
Net income
 
 
2,042
 
 
 
1,665
 
 
 
4,368
 
 
 
3,180
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to NCI - CIPs
 
 
35
 
 
 
72
 
 
 
41
 
 
 
77
 
Net income (loss) attributable to NCI - Subco
 
 
93
 
 
 
—
 
 
 
201
 
 
 
—
 
Net income attributable to BlackRock, Inc.
 
$
1,914
 
 
$
1,593
 
 
$
4,126
 
 
$
3,103
 
Earnings per share attributable to BlackRock, Inc.
common stockholders:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
12.34
 
 
$
10.29
 
 
$
26.58
 
 
$
20.03
 
Diluted
 
$
12.19
 
 
$
10.19
 
 
$
26.25
 
 
$
19.83
 
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
155.2
 
 
 
154.9
 
 
 
155.2
 
 
 
155.0
 
Diluted (including Subco Units)
 
 
164.6
 
 
 
156.3
 
 
 
164.8
 
 
 
156.4
 
See accompanying notes to condensed consolidated financial statements.
2
BlackRock, Inc.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
June 30,
 
 
June 30,
 
(in millions)
 
2026
 
 
2025
 
 
2026
 
 
2025
 
Net income
 
$
2,042
 
 
$
1,665
 
 
$
4,368
 
 
$
3,180
 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments(1)
 
 
28
 
 
 
436
 
 
 
(111
)
 
 
663
 
Comprehensive income (loss)
 
 
2,070
 
 
 
2,101
 
 
 
4,257
 
 
 
3,843
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to
NCI - CIPs
 
 
35
 
 
 
72
 
 
 
41
 
 
 
77
 
Comprehensive income (loss) attributable to
NCI - Subco
 
 
93
 
 
 
—
 
 
 
201
 
 
 
—
 
Comprehensive income attributable to
BlackRock, Inc.
 
$
1,942
 
 
$
2,029
 
 
$
4,015
 
 
$
3,766
 
(1)Amounts for the three months ended June 30, 2026 and 2025 include a gain from a net investment hedge of $7 million (net of tax expense of $2 million) and a loss from a net investment hedge of $62 million (net of tax benefit of $19 million), respectively. Amounts for the six months ended June 30, 2026 and 2025 include a gain from a net investment hedge of $24 million (net of tax expense of $7 million) and a loss from a net investment hedge of $96 million (net of tax benefit of $30 million), respectively.See accompanying notes to condensed consolidated financial statements.
3
BlackRock, Inc.
Condensed Consolidated Statements of Changes in Equity
(unaudited)
For the Six Months Ended June 30, 2026
(in millions, except per share data)
Additional
Paid-in Capital(1)
 
 
Retained
Earnings
 
 
Accumulated
Other Comprehensive Income (Loss)
 
 
Treasury
Stock Common
 
 
Total
BlackRock Stockholders’ Equity
 
 
Nonredeemable
Noncontrolling Interests - CIPs
 
 
Total
Permanent Equity
 
 
Redeemable
Noncontrolling Interests / Temporary Equity - CIPs
 
 
Redeemable
Noncontrolling Interests / Temporary Equity - Subco
 
December 31, 2025
$
19,750
 
 
$
37,899
 
 
$
(545
)
 
$
(1,216
)
 
$
55,888
 
 
$
227
 
 
$
56,115
 
 
$
2,636
 
 
$
2,791
 
Net income
 
—
 
 
 
4,126
 
 
 
—
 
 
 
—
 
 
 
4,126
 
 
 
7
 
 
 
4,133
 
 
 
34
 
 
 
201
 
Dividends/distributions declared
($11.46 per share/Subco Unit)
 
—
 
 
 
(1,820
)
 
 
—
 
 
 
—
 
 
 
(1,820
)
 
 
—
 
 
 
(1,820
)
 
 
—
 
 
 
(86
)
Stock-based compensation
 
621
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
621
 
 
 
—
 
 
 
621
 
 
 
—
 
 
 
—
 
Issuance of common shares related to
employee stock transactions
 
(867
)
 
 
—
 
 
 
—
 
 
 
969
 
 
 
102
 
 
 
—
 
 
 
102
 
 
 
—
 
 
 
—
 
Employee tax withholdings related to
employee stock transactions
 
—
 
 
 
—
 
 
 
—
 
 
 
(371
)
 
 
(371
)
 
 
—
 
 
 
(371
)
 
 
—
 
 
 
—
 
Shares/Subco Units repurchased
 
(111
)
 
 
—
 
 
 
—
 
 
 
(737
)
 
 
(848
)
 
 
—
 
 
 
(848
)
 
 
—
 
 
 
(52
)
Subscriptions (redemptions/distributions)
— noncontrolling interest holders
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(7
)
 
 
(7
)
 
 
2,543
 
 
 
—
 
Net consolidations (deconsolidations)
of sponsored investment funds
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(1,341
)
 
 
—
 
Other comprehensive income (loss)
 
—
 
 
 
—
 
 
 
(111
)
 
 
—
 
 
 
(111
)
 
 
—
 
 
 
(111
)
 
 
—
 
 
 
—
 
Change in BlackRock, Inc's
ownership interest
 
23
 
 
 
—
 
 
 
3
 
 
 
—
 
 
 
26
 
 
 
—
 
 
 
26
 
 
 
—
 
 
 
(26
)
June 30, 2026
$
19,416
 
 
$
40,205
 
 
$
(653
)
 
$
(1,355
)
 
$
57,613
 
 
$
227
 
 
$
57,840
 
 
$
3,872
 
 
$
2,828
 
(1)Amounts include $2 million of common stock at both June 30, 2026 and December 31, 2025. For the Three Months Ended June 30, 2026
(in millions, except per share data)
Additional
Paid-in Capital(1)
 
 
Retained
Earnings
 
 
Accumulated
Other Comprehensive Income (Loss)
 
 
Treasury
Stock Common
 
 
Total
BlackRock Stockholders’ Equity
 
 
Nonredeemable
Noncontrolling Interests - CIPs
 
 
Total
Permanent Equity
 
 
Redeemable
Noncontrolling Interests / Temporary Equity - CIPs
 
 
Redeemable
Noncontrolling Interests / Temporary Equity - Subco
 
March 31, 2026
$
19,148
 
 
$
39,182
 
 
$
(678
)
 
$
(964
)
 
$
56,688
 
 
$
217
 
 
$
56,905
 
 
$
3,622
 
 
$
2,789
 
Net income
 
—
 
 
 
1,914
 
 
 
—
 
 
 
—
 
 
 
1,914
 
 
 
9
 
 
 
1,923
 
 
 
26
 
 
 
93
 
Dividends/distributions declared
($5.73 per share/Subco Unit)
 
—
 
 
 
(891
)
 
 
—
 
 
 
—
 
 
 
(891
)
 
 
—
 
 
 
(891
)
 
 
—
 
 
 
(42
)
Stock-based compensation
 
302
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
302
 
 
 
—
 
 
 
302
 
 
 
—
 
 
 
—
 
Issuance of common shares related to
employee stock transactions
 
(49
)
 
 
—
 
 
 
—
 
 
 
70
 
 
 
21
 
 
 
—
 
 
 
21
 
 
 
—
 
 
 
—
 
Employee tax withholdings related to
employee stock transactions
 
—
 
 
 
—
 
 
 
—
 
 
 
(11
)
 
 
(11
)
 
 
—
 
 
 
(11
)
 
 
—
 
 
 
—
 
Shares/Subco Units repurchased
 
—
 
 
 
—
 
 
 
—
 
 
 
(450
)
 
 
(450
)
 
 
—
 
 
 
(450
)
 
 
—
 
 
 
—
 
Subscriptions (redemptions/distributions)
— noncontrolling interest holders
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
1
 
 
 
1
 
 
 
1,317
 
 
 
—
 
Net consolidations (deconsolidations)
of sponsored investment funds
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(1,093
)
 
 
—
 
Other comprehensive income (loss)
 
—
 
 
 
—
 
 
 
28
 
 
 
—
 
 
 
28
 
 
 
—
 
 
 
28
 
 
 
—
 
 
 
—
 
Change in BlackRock, Inc's
ownership interest
 
15
 
 
 
—
 
 
 
(3
)
 
 
—
 
 
 
12
 
 
 
—
 
 
 
12
 
 
 
—
 
 
 
(12
)
June 30, 2026
$
19,416
 
 
$
40,205
 
 
$
(653
)
 
$
(1,355
)
 
$
57,613
 
 
$
227
 
 
$
57,840
 
 
$
3,872
 
 
$
2,828
 
(1)Amounts include $2 million of common stock at both June 30, 2026 and March 31, 2026.See accompanying notes to condensed consolidated financial statements.
4
BlackRock, Inc.
Condensed Consolidated Statements of Changes in Equity
(unaudited)
For the Six Months Ended June 30, 2025
(in millions, except per share data)
Additional
Paid-in Capital(1)
 
 
Retained
Earnings
 
 
Accumulated
Other Comprehensive Income (Loss)
 
 
Treasury
Stock Common
 
 
Total
BlackRock Stockholders’ Equity
 
 
Nonredeemable
Noncontrolling Interests
 
 
Total
Permanent Equity
 
 
Redeemable
Noncontrolling Interests / Temporary Equity
 
December 31, 2024
$
13,448
 
 
$
35,611
 
 
$
(1,178
)
 
$
(386
)
 
$
47,495
 
 
$
169
 
 
$
47,664
 
 
$
1,691
 
Net income
 
—
 
 
 
3,103
 
 
 
—
 
 
 
—
 
 
 
3,103
 
 
 
(2
)
 
 
3,101
 
 
 
79
 
Dividends declared ($10.42 per share)
 
—
 
 
 
(1,646
)
 
 
—
 
 
 
—
 
 
 
(1,646
)
 
 
—
 
 
 
(1,646
)
 
 
—
 
Stock-based compensation
 
467
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
467
 
 
 
—
 
 
 
467
 
 
 
—
 
Issuance of common shares related to
employee stock transactions
 
(42
)
 
 
—
 
 
 
—
 
 
 
154
 
 
 
112
 
 
 
—
 
 
 
112
 
 
 
—
 
Employee tax withholdings related to
employee stock transactions
 
—
 
 
 
—
 
 
 
—
 
 
 
(303
)
 
 
(303
)
 
 
—
 
 
 
(303
)
 
 
—
 
Shares repurchased
 
—
 
 
 
—
 
 
 
—
 
 
 
(750
)
 
 
(750
)
 
 
—
 
 
 
(750
)
 
 
—
 
Subscriptions (redemptions/distributions)
— noncontrolling interest holders
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(2
)
 
 
(2
)
 
 
1,718
 
Net consolidations (deconsolidations)
of sponsored investment funds
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(1,192
)
Other comprehensive income (loss)
 
—
 
 
 
—
 
 
 
663
 
 
 
—
 
 
 
663
 
 
 
—
 
 
 
663
 
 
 
—
 
June 30, 2025
$
13,873
 
 
$
37,068
 
 
$
(515
)
 
$
(1,285
)
 
$
49,141
 
 
$
165
 
 
$
49,306
 
 
$
2,296
 
(1)Amounts include $2 million of common stock at both June 30, 2025 and December 31, 2024. For the Three Months Ended June 30, 2025
(in millions, except per share data)
Additional
Paid-in Capital(1)
 
 
Retained
Earnings
 
 
Accumulated
Other Comprehensive Income (Loss)
 
 
Treasury
Stock Common
 
 
Total
BlackRock Stockholders’ Equity
 
 
Nonredeemable
Noncontrolling Interests
 
 
Total
Permanent Equity
 
 
Redeemable
Noncontrolling Interests / Temporary Equity
 
March 31, 2025
$
13,746
 
 
$
36,283
 
 
$
(951
)
 
$
(1,042
)
 
$
48,036
 
 
$
170
 
 
$
48,206
 
 
$
1,984
 
Net income
 
—
 
 
 
1,593
 
 
 
—
 
 
 
—
 
 
 
1,593
 
 
 
(1
)
 
 
1,592
 
 
 
73
 
Dividends declared ($5.21 per share)
 
—
 
 
 
(808
)
 
 
—
 
 
 
—
 
 
 
(808
)
 
 
—
 
 
 
(808
)
 
 
—
 
Stock-based compensation
 
226
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
226
 
 
 
—
 
 
 
226
 
 
 
—
 
Issuance of common shares related to
employee stock transactions
 
(99
)
 
 
—
 
 
 
—
 
 
 
153
 
 
 
54
 
 
 
—
 
 
 
54
 
 
 
—
 
Employee tax withholdings related to
employee stock transactions
 
—
 
 
 
—
 
 
 
—
 
 
 
(21
)
 
 
(21
)
 
 
—
 
 
 
(21
)
 
 
—
 
Shares repurchased
 
—
 
 
 
—
 
 
 
—
 
 
 
(375
)
 
 
(375
)
 
 
—
 
 
 
(375
)
 
 
—
 
Subscriptions (redemptions/distributions)
— noncontrolling interest holders
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(4
)
 
 
(4
)
 
 
909
 
Net consolidations (deconsolidations)
of sponsored investment funds
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(670
)
Other comprehensive income (loss)
 
—
 
 
 
—
 
 
 
436
 
 
 
—
 
 
 
436
 
 
 
—
 
 
 
436
 
 
 
—
 
June 30, 2025
$
13,873
 
 
$
37,068
 
 
$
(515
)
 
$
(1,285
)
 
$
49,141
 
 
$
165
 
 
$
49,306
 
 
$
2,296
 
(1)Amounts include $2 million of common stock at both June 30, 2025 and March 31, 2025.See accompanying notes to condensed consolidated financial statements.
5
BlackRock, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
 
 
Six Months Ended
 
 
 
June 30,
 
(in millions)
 
2026
 
 
2025
 
Operating activities
 
 
 
 
 
 
Net income
 
$
4,368
 
 
$
3,180
 
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
 
 
 
 
 
 
Depreciation and amortization
 
 
765
 
 
 
411
 
Noncash lease expense
 
 
86
 
 
 
69
 
Stock-based compensation
 
 
621
 
 
 
467
 
Deferred income tax expense (benefit)
 
 
(18
)
 
 
(78
)
Change in fair value of contingent consideration
 
 
(538
)
 
 
172
 
Other investment gains
 
 
(62
)
 
 
(433
)
Net (gains) losses within CIPs
 
 
(162
)
 
 
(183
)
Net (purchases) proceeds within CIPs
 
 
(3,107
)
 
 
(1,984
)
(Earnings) losses from equity method investees
 
 
(147
)
 
 
(93
)
Distributions of earnings from equity method investees
 
 
42
 
 
 
147
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
Accounts receivable
 
 
(333
)
 
 
114
 
Investments, trading
 
 
190
 
 
 
78
 
Other assets
 
 
(1,718
)
 
 
(2,480
)
Accrued compensation and benefits
 
 
(1,411
)
 
 
(1,186
)
Accounts payable and accrued liabilities
 
 
256
 
 
 
182
 
Other liabilities
 
 
1,415
 
 
 
1,853
 
Net cash provided by/(used in) operating activities
 
 
247
 
 
 
236
 
Investing activities
 
 
 
 
 
 
Purchases of investments
 
 
(753
)
 
 
(434
)
Proceeds from sales and maturities of investments
 
 
183
 
 
 
230
 
Distributions of capital from equity method investees
 
 
114
 
 
 
262
 
Net consolidations (deconsolidations) of sponsored investment funds
 
 
(54
)
 
 
(68
)
Acquisitions, net of cash acquired
 
 
(15
)
 
 
(3,106
)
Purchases of property and equipment
 
 
(215
)
 
 
(167
)
Net cash provided by/(used in) investing activities
 
 
(740
)
 
 
(3,283
)
Financing activities
 
 
 
 
 
 
Repayments of long-term borrowings
 
 
—
 
 
 
(796
)
Proceeds from long-term borrowings
 
 
—
 
 
 
1,080
 
Dividends/Subco distributions paid
 
 
(1,906
)
 
 
(1,646
)
Proceeds from stock options exercised
 
 
88
 
 
 
98
 
Shares/Subco Units repurchased
 
 
(1,271
)
 
 
(1,053
)
Net proceeds from (repayments of) borrowings by CIPs
 
 
132
 
 
 
(29
)
Net subscriptions received/(redemptions/distributions paid) from noncontrolling interest holders
 
 
2,536
 
 
 
1,716
 
Other financing activities
 
 
—
 
 
 
(5
)
Net cash provided by/(used in) financing activities
 
 
(421
)
 
 
(635
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
 
(62
)
 
 
398
 
Net increase/(decrease) in cash, cash equivalents and restricted cash
 
 
(976
)
 
 
(3,284
)
Cash, cash equivalents and restricted cash, beginning of period
 
 
11,490
 
 
 
12,779
 
Cash, cash equivalents and restricted cash, end of period
 
$
10,514
 
 
$
9,495
 
Supplemental schedule of noncash investing and financing transactions:
 
 
 
 
 
 
Issuance of common shares related to employee stock transactions
 
$
867
 
 
$
42
 
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of
sponsored investment funds
 
$
(1,341
)
 
$
(1,192
)
See accompanying notes to condensed consolidated financial statements.
6
BlackRock, Inc.
Notes to the Condensed Consolidated Financial Statements
(unaudited)
- Business Overview
BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm providing a broad range of investment management and technology services to institutional and retail clients worldwide.
BlackRock’s diverse platform of alpha-seeking active, private markets, index and cash management investment strategies across asset classes enables the Company to offer choice and tailor investment and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, private markets, liquid alternatives, digital assets, currencies and commodities, and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares® exchange-traded funds (“ETFs”), separate accounts, collective trust funds and other pooled investment vehicles. BlackRock also offers technology and subscription services, including the investment and risk management technology platform, Aladdin®, Aladdin WealthTM, eFront®, Preqin and Cachematrix®, as well as advisory services and solutions to a broad base of institutional and wealth management clients.
- Significant Accounting Policies
Basis of Presentation
These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its controlled subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates.
Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, is not required for interim reporting purposes and has been condensed or omitted herein. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and footnotes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (“SEC”) on February 25, 2026 (“2025 Form 10-K”).
The interim financial information at June 30, 2026 and for the three and six months ended June 30, 2026 and 2025 is unaudited. However, in the opinion of management, the interim information includes all normal recurring adjustments necessary for the fair presentation of the Company’s results for the periods presented. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year.
Certain prior period presentations were reclassified to ensure comparability with current period classifications.
Recent Accounting Pronouncements Not Yet Adopted
Disaggregation of Income Statement Expenses. In November 2024, the Financial Accounting Standards Board ("FASB") issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires entities to disaggregate in a tabular presentation disclosures about specific types of expenses included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses. The requirements are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, and are required to be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company does not expect the additional disclosure requirements to have a material impact on BlackRock's condensed consolidated financial statements.
Accounting for Internal-Use Software Costs. In September 2025, the FASB issued ASU 2025-06, Target Improvements to Accounting for Internal-Use Software ("ASU 2025-06"), to better align the guidance (1) for development of software to be sold via software as a service and software to be sold via license by introducing new capitalization considerations and (2) with agile software development by eliminating the existing software project staging guidance. ASU 2025-06 is effective for annual and interim periods in fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company does not expect the adoption of ASU 2025-06 to have a material impact on BlackRock's condensed consolidated financial statements.
7
Fair Value Measurements
Hierarchy of Fair Value Inputs. The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories:
Level 1 Inputs:
Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date.
•Level 1 assets may include listed mutual funds, ETFs, listed equities, commodities and certain exchange-traded derivatives. Level 2 Inputs:
Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies.
•Level 2 assets may include debt securities, collateralized loan obligations (“CLOs”), short-term floating-rate notes, asset-backed securities, as well as over-the-counter derivatives, including interest rate swaps and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs:
Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation.
•Level 3 assets may include direct private equity investments, including those held within CIPs and investments in CLOs.•Level 3 liabilities include contingent liabilities related to acquisitions valued using the income approach based on unobservable market data, or other valuation techniques. Significance of Inputs. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.
Valuation Approaches. The fair values of certain Level 3 assets and liabilities were determined using various valuation approaches as appropriate, including third-party pricing vendors, broker quotes and market and income approaches.
A significant number of inputs used to value equity and debt securities are sourced from third-party pricing vendors. Generally, prices obtained from pricing vendors are categorized as Level 1 inputs for identical securities traded in active markets and as Level 2 for other similar securities if the vendor uses observable inputs in determining the price.
In addition, quotes obtained from brokers generally are nonbinding and categorized as Level 3 inputs. However, if the Company is able to determine that market participants have transacted for the asset in an orderly manner near the quoted price or if the Company can determine that the inputs used by the broker are observable, the quote is classified as a Level 2 input.
Investments Measured at Net Asset Value. As a practical expedient, the Company uses net asset value (“NAV”) as the fair value for certain investments. The inputs to value these investments may include the Company’s capital accounts for its partnership interests in various alternative investments, including hedge funds, real assets and private equity funds. The various partnerships are investment companies, which record their underlying investments at fair value based on fair value policies established by management of the underlying fund. Fair value policies at the underlying fund generally require the fund to utilize pricing/valuation information from third-party sources, including independent appraisals. However, in some instances, current valuation information for illiquid securities or securities in markets that are not active may not be available from any third-party source or fund management may conclude that the valuations that are available from third-party sources are not reliable. In these instances, fund management may perform model-based analytical valuations that could be used as an input to value these investments.
8
Derivatives and Hedging Activities. The Company does not use derivative financial instruments for trading or speculative purposes. The Company uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in foreign currency exchange rates of certain assets and liabilities, and market price and interest rate exposures with respect to its total portfolio of seed investments in sponsored investment products. In addition, certain CIPs also utilize derivatives as a part of their investment strategies.
In addition, the Company uses derivatives and makes investments to economically hedge market valuation changes on certain deferred cash compensation plans, for which the final value of the deferred amount distributed to employees in cash upon vesting is determined based on the returns of specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense). See Note 5, Investments, and Note 9, Derivatives and Hedging, for further information on the Company’s investments and derivatives, respectively, used to economically hedge these deferred cash compensation plans.
The Company records all derivative financial instruments as either assets or liabilities at fair value on a gross basis in the condensed consolidated statements of financial condition. Credit risks are managed through master netting and collateral support agreements. The amounts related to the right to reclaim or the obligation to return cash collateral may not be used to offset amounts due under the derivative instruments in the normal course of settlement. Therefore, such amounts are not offset against fair value amounts recognized for derivative instruments with the same counterparty and are included in other assets and other liabilities. Changes in the fair value of the Company’s derivative financial instruments are recognized in earnings and, where applicable, are offset by the corresponding gain or loss on the related foreign-denominated or hedged assets or liabilities, on the condensed consolidated statements of income.
The Company may also use financial instruments designated as net investment hedges for accounting purposes to hedge net investments in international subsidiaries, the functional currency of which is not United States ("US") dollars. The gain or loss from revaluing net investment hedges at the spot rate is deferred and reported within accumulated other comprehensive income (loss) (“AOCI”) on the condensed consolidated statements of financial condition. The Company reassesses the effectiveness of its net investment hedge at least quarterly.
Separate Account Assets and Liabilities. Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company, which is a registered life insurance company in the United Kingdom (“UK”), and represent segregated assets held for purposes of funding individual and group pension contracts. The life insurance company does not underwrite any insurance contracts that involve any insurance risk transfer from the insured to the life insurance company. The separate account assets primarily include equity securities, debt securities, money market funds and derivatives. The separate account assets are not subject to general claims of the creditors of BlackRock. These separate account assets and the related equal and offsetting liabilities are recorded as separate account assets and separate account liabilities on the condensed consolidated statements of financial condition.
The net investment income attributable to separate account assets supporting individual and group pension contracts accrues directly to the contract owner and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these separate account assets and liabilities, BlackRock earns policy administration and management fees associated with these products, which are included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income.
Separate Account Collateral Assets Held and Liabilities Under Securities Lending Agreements. The Company facilitates securities lending arrangements whereby securities held by separate accounts maintained by BlackRock Life Limited are lent to third parties under global master securities lending agreements. In exchange, the Company obtains either (1) the legal title, or (2) a first ranking priority security interest, in the collateral. The minimum collateral values generally range from approximately 102% to 112% of the value of the securities lent in order to reduce counterparty risk. The required collateral value is calculated on a daily basis. The global master securities lending agreements provide the Company with the right to request additional collateral or, in the event of borrower default, the right to liquidate collateral. The securities lending transactions entered into by the Company are accompanied by an agreement that entitles the Company to request the borrower to return the securities at any time; therefore, these transactions are not reported as sales.
9
In situations where the Company obtains the legal title to collateral under these securities lending arrangements, the Company records an asset on the condensed consolidated statements of financial condition in addition to an equal collateral liability for the obligation to return the collateral. Additionally, in situations where the Company obtains a first ranking priority security interest in the collateral, the Company does not have the ability to pledge or resell the collateral and therefore does not record the collateral on the condensed consolidated statements of financial condition. At June 30, 2026 and December 31, 2025, the fair value of loaned securities held by separate accounts was approximately $12.6 billion and $13.3 billion, respectively, and the fair value of the collateral under these securities lending agreements was approximately $13.9 billion and $14.4 billion, respectively, of which approximately $6.3 billion as of June 30, 2026 and $7.9 billion as of December 31, 2025 was recognized on the condensed consolidated statements of financial condition. During the six months ended June 30, 2026 and 2025, the Company had not resold or repledged any of the collateral obtained under these arrangements. The securities lending revenue earned from lending securities held by the separate accounts is included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income.
Goodwill and Intangible Assets. Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. The Company has determined that it has one reporting unit for goodwill impairment testing purposes, the consolidated BlackRock single operating segment, which is consistent with internal management reporting and management's oversight of operations. The Company performs an impairment assessment of its goodwill at least annually, as of July 31. In its assessment of goodwill for impairment, the Company considers such factors as the book value and market capitalization of the Company as well as other qualitative factors. See Note 10, Goodwill, for further information on the Company's goodwill.
Intangible assets are comprised of indefinite-lived intangible assets and finite-lived intangible assets acquired in a business acquisition. The value of contracts to manage assets in proprietary open-end funds and collective trust funds and certain other commingled products without a specified termination date is generally classified as indefinite-lived intangible assets. In addition, trade names/trademarks are considered indefinite-lived intangible assets when they are expected to generate cash flows indefinitely.
Indefinite-lived intangible assets and goodwill are not amortized. Finite-lived investor/customer relationships, technology-related assets, and management contracts, which relate to acquired separate accounts and funds, that are expected to contribute to the future cash flows of the Company for a specified period of time, are amortized over their estimated useful lives. On a quarterly basis, the Company considers whether the indefinite-lived and finite-lived classifications are still appropriate.
The Company performs assessments to determine if any intangible assets are potentially impaired at least annually, as of July 31. The carrying value of finite-lived assets and their remaining useful lives are reviewed to determine if circumstances exist which may indicate a potential impairment or revisions to the amortization period.
In evaluating whether it is more likely than not that the fair value of indefinite-lived intangibles is less than its carrying value, BlackRock assesses various significant quantitative factors, including assets under management (“AUM”), revenue basis points, projected AUM growth rates, operating margins, tax rates and discount rates. If an indefinite-lived intangible is determined to be more likely than not impaired, then the fair value of the asset is compared with its carrying value and any excess of the carrying value over the fair value would be recognized as an expense in the period in which the impairment occurs. See Note 11, Intangible Assets, for further information on the Company’s intangible assets.
For finite-lived intangible assets, if potential impairment circumstances are considered to exist, the Company will perform a recoverability test using an undiscounted cash flow analysis. If the carrying value of the asset is determined not to be recoverable based on the undiscounted cash flow test, the excess of the carrying value of the asset over its fair value would be recognized as an expense in the period in which the impairment occurs.
Noncontrolling Interests. NCI consists of third-party ownership interests in the Company’s CIPs (“NCI – CIPs”) and 49.9% of an asset management company in China - BlackRock CCB Wealth Management Company Ltd. ("WMC"). The Company consolidates the WMC, which it deems to be a voting rights entity ("VRE"), because it exerts control over the financial and operating policies of the entity, based on the Company's 50.1% ownership and voting rights.
In addition, NCI (redeemable) also represents Subco Units that were issued to former equityholders of HPS Investment Partners ("HPS"), which are exchangeable on a one-for-one basis into BlackRock's common stock. NCI - Subco is measured based on the Class B-2 common units' proportionate ownership in Subco.
10
NCI that are redeemable at the option of the holders are classified as temporary equity at estimated redemption value or carrying value if it is not probable that they will become redeemable. Temporary equity will be reclassified to permanent equity (nonredeemable NCI) when triggers that may require the Company to settle an amount in cash expire. On July 1, 2026, a contractual provision that could have required cash settlement of the Subco Units expired. As a result, in the third quarter, the Company will reclassify a portion of NCI, which represents Subco Units, from temporary equity (redeemable NCI) to permanent equity (nonredeemable NCI).
Nonredeemable NCI are classified as a component of permanent equity in the condensed consolidated statements of financial condition. The Company reports net income (loss) attributable to redeemable and nonredeemable NCI holders on the condensed consolidated statements of income.
- Acquisitions
HPS Investment Partners
On July 1, 2025, BlackRock completed the acquisition of 100% of the business and assets of HPS (the "HPS Transaction"), a leading global credit investment manager, with substantially all consideration paid in Class B-2 common units ("Subco Units") of Subco a consolidated subsidiary of the Company. Concurrent with the acquisition, BlackRock Finance, Inc., Global Infrastructure Management, LLC ("GIP"), HPS, and their respective subsidiaries became wholly owned subsidiaries of Subco. The HPS Transaction, which added $165 billion of client AUM and $118 billion of fee-paying AUM, positioned the Company to provide an integrated private credit platform with both public and private income solutions for clients across their whole portfolios.
At close, approximately 8.5 million Subco Units were delivered to former equityholders of HPS and valued at $8.5 billion, based on the price of BlackRock's common stock on June 30, 2025 of approximately $1,049 and discounted for a one-year lack of marketability before exchange rights begin. Such Subco Units are exchangeable on a one-for-one basis into BlackRock common stock (accordingly, the value of each unit delivered was based on the price of a share of BlackRock’s common stock and the specific terms of the Subco Units). Subco Units are also eligible to receive distributions at an amount equal to the dividend amount paid on each share of BlackRock common stock.
In addition, as part of the purchase consideration, a contingent consideration payment, all in Subco Units, may be due subject to the achievement of certain post-closing conditions and financial performance milestones. The contingent consideration, if any, ranges from approximately 2.8 million to 4.4 million Subco Units and is expected to be payable approximately five years following the closing of the HPS Transaction. The fair value of the contingent consideration payment, which was determined by using the income approach with the assistance of a third-party valuation specialist, was $3.4 billion at close, and was recorded within contingent consideration liabilities in the condensed consolidated statements of financial condition. Certain significant inputs were used to determine the fair value, including assumptions on discount rates as well as estimates of the timing and amounts of fundraising and fee-related earnings forecasts, cost of equity, and stock price performance (Level 3 inputs). From the acquisition date through June 30, 2026, the entire amount of contingent consideration was classified as a liability, as the value of the consideration to be delivered in Subco Units was predominantly based on achieving certain performance targets or certain settlement provisions of the Subco Units. On July 1, 2026, a contractual provision that could have required cash settlement of the contingent consideration associated with the HPS Transaction expired. As a result, during the third quarter of 2026, the Company will reclassify a portion of the contingent consideration, consisting of 2.8 million Subco Units (with a fair value of approximately $2.6 billion) and subject to the achievement of a specified post-closing condition, from liabilities to equity. See Note 8, Fair Value Disclosures, and Note 15, Commitments and Contingencies, for additional information on the contingent consideration related to HPS.
In addition, at the time of close, the Company granted incentive retention awards to certain employees of approximately 680,000 RSUs that vest in increasing yearly increments over five years valued at $675 million and approximately 270,000 RSUs valued at $260 million that cliff vested 100% at December 31, 2025. See Note 17, Stock-Based Compensation, for additional information on the incentive retention awards issued in connection with the HPS Transaction.
In general, if (i) the maximum amount of contingent consideration is achieved, (ii) all Subco Units are exchanged for shares of the Company’s common stock (including those issued on the closing date), and (iii) all RSUs vest and are settled in the form of shares of the Company’s common stock, the Company does not expect to issue more than approximately 13.8 million shares of common stock in the aggregate.
11
The HPS Transaction was accounted for as a business combination under the acquisition method of accounting. Accordingly, the purchase price of the HPS Transaction was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the transaction. The goodwill recognized in connection with the acquisition is non-deductible for tax purposes and includes future benefits for BlackRock as a result of scale and anticipated synergies from combining the Company's and HPS's capabilities by creating one integrated private financing solutions platform.
The following table summarizes the consideration paid for HPS and the fair values of the assets acquired and liabilities assumed recognized at the acquisition date:
(in millions)
 
Fair Value Estimate
 
Investments
 
$
1,972
 
Finite-lived intangible assets:
 
 
 
Management contracts(1)
 
 
2,660
 
Investor relationships(1)
 
 
965
 
Indefinite-lived intangible assets - management contracts(2)
 
 
3,000
 
Goodwill
 
 
6,747
 
Operating lease right-of-use ("ROU") assets
 
 
178
 
Other assets
 
 
638
 
Accrued compensation and benefits
 
 
(262
)
Accounts payable and accrued liabilities
 
 
(162
)
Operating lease liabilities
 
 
(150
)
Deferred income tax liabilities
 
 
(1,485
)
Other liabilities assumed(3)
 
 
(1,880
)
Total consideration, net of cash acquired
 
$
12,221
 
 
 
 
 
Summary of consideration, net of cash acquired:
 
 
 
Closing consideration at fair value - Subco Units(4)
 
$
8,452
 
Cash acquired
 
 
(244
)
Deferred consideration at fair value - Subco Units(4)
 
 
3,400
 
Debt repayment
 
 
613
 
Total consideration, net of cash acquired
 
$
12,221
 
 
(1)The fair value for finite-lived management contracts and investor relationships was determined using the excess earnings method (Level 3 inputs), have weighted-average estimated useful lives of approximately 8 years and 12 years, respectively, and are amortized based on the straight-line method.(2)The fair value for indefinite-lived management contracts was determined using the excess earnings method (Level 3 inputs).(3)Other liabilities assumed primarily included deferred carried interest.(4)The fair value for the closing consideration was determined based on approximately 8.5 million of Subco Units, which were delivered to former equityholders of HPS. The fair value of the deferred consideration was determined based on approximately 2.8 million to 4.4 million of Subco Units, and is subject to the achievement of certain post-closing conditions and financial performance milestones. At this time, the Company does not expect material changes to the value of the assets acquired or liabilities assumed in conjunction with the HPS Transaction.
Preqin Holding Limited
On March 3, 2025, BlackRock completed the acquisition of 100% of the shares of Preqin Holding Limited (the "Preqin Transaction" or "Preqin"), a leading provider of private markets data, for £2.5 billion (or approximately $3.2 billion) in cash.
The purchase price for the Preqin Transaction was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the transaction. The goodwill recognized in connection with the acquisition is non-deductible for tax purposes and includes anticipated synergies from incorporating Preqin data, insight and analytics into BlackRock’s investment technology, presenting an opportunity for Aladdin to bridge a transparency gap between public and private markets.
12
The following table summarizes the consideration paid for Preqin and the fair values of the assets acquired and liabilities assumed recognized at the acquisition date:
(in millions)
 
Fair Value
 
Finite-lived intangible assets:
 
 
 
Customer relationships(1)
 
$
1,050
 
Technology-related(2)
 
 
125
 
Trade name
 
 
7
 
Goodwill
 
 
2,377
 
Other assets
 
 
59
 
Deferred revenue
 
 
(104
)
Deferred income tax liabilities
 
 
(298
)
Other liabilities assumed
 
 
(93
)
Total consideration, net of cash acquired
 
$
3,123
 
 
 
 
 
Summary of consideration, net of cash acquired:
 
 
 
Cash paid
 
$
3,219
 
Cash acquired
 
 
(96
)
Total consideration, net of cash acquired
 
$
3,123
 
 
(1)The fair value was determined using an income approach (Level 3 inputs), has a weighted-average estimated useful life of approximately 8 years and is amortized based on its expected pattern of economic benefit.(2)The fair value was determined using a replacement cost approach (Level 3 inputs), has a weighted-average estimated useful life of approximately 5 years and is amortized based on the straight-line method.Unaudited Pro Forma Information
The following unaudited pro forma information presents combined results of operations of the Company as if the HPS Transaction had occurred on January 1, 2024. The unaudited pro forma financial information is not indicative of the actual results of operations that would have been achieved nor is it indicative of future results of operations of the combined Company. The pro forma combined provision for income taxes may not represent the amount that would have resulted had BlackRock and HPS filed consolidated tax returns during the years presented.
 
 
Three Months Ended
 
 
Six Months Ended
 
(Unaudited) (in millions)
 
June 30, 2025
 
 
June 30, 2025
 
Total revenue
 
$
5,781
 
 
$
11,466
 
Net income attributable to BlackRock, Inc.
 
$
1,489
 
 
$
2,898
 
Pro forma adjustments related to HPS include compensation expense for retention-related deferred compensation awards, amortization of finite-lived intangible assets, acquisition-related transaction costs, related tax effects, and the allocation of net income to NCI - Subco. See Note 3, Acquisitions, in the 2025 Form 10-K for more information regarding the Company’s pro forma adjustments.
Pro forma financial information for Preqin has not been presented, as the effects were not material to net income attributable to BlackRock, Inc.
- Cash, Cash Equivalents, and Restricted Cash
The following table provides a reconciliation of cash and cash equivalents reported within the condensed consolidated statements of financial condition to the cash, cash equivalents, and restricted cash reported within the condensed consolidated statements of cash flows.
 
 
June 30,
 
 
December 31,
 
(in millions)
 
2026
 
 
2025
 
Cash and cash equivalents
 
$
10,492
 
 
$
11,468
 
Restricted cash included in other assets
 
 
22
 
 
 
22
 
Total cash, cash equivalents and restricted cash
 
$
10,514
 
 
$
11,490
 
 
13
- Investments
A summary of the carrying value of total investments is as follows:
 
June 30,
 
 
December 31,
 
(in millions)
2026
 
 
2025
 
Debt securities:
 
 
 
 
 
Trading securities (including $3,355 and $2,782 held by CIPs at
June 30, 2026 and December 31, 2025, respectively)(1)
$
3,378
 
 
$
2,789
 
Held-to-maturity investments
 
487
 
 
 
507
 
Total debt securities
 
3,865
 
 
 
3,296
 
Equity securities at FVTNI (including $2,102 and $1,681 held by CIPs at
June 30, 2026 and December 31, 2025, respectively)(1)
 
2,896
 
 
 
2,282
 
Equity method investments:
 
 
 
 
 
Equity method investments(2)
 
2,004
 
 
 
1,833
 
Investments related to deferred cash compensation plans(1)
 
446
 
 
 
300
 
Total equity method investments
 
2,450
 
 
 
2,133
 
CLOs held at fair value
 
538
 
 
 
568
 
Federal Reserve Bank stock(3)
 
88
 
 
 
87
 
Carried interest(4)
 
3,594
 
 
 
3,710
 
Other investments(5)
 
1,713
 
 
 
1,195
 
Total investments
$
15,144
 
 
$
13,271
 
 
(1)Amounts include investments held to economically hedge the impact of market valuation changes on certain deferred cash compensation plans. Amounts related to deferred cash compensation plans included within debt securities comprised $27 million as of June 30, 2026, and amounts included within equity securities held at fair value recorded through net income ("FVTNI") comprised $34 million and $37 million at June 30, 2026 and December 31, 2025, respectively.(2)Equity method investments include BlackRock’s direct investments in certain BlackRock sponsored investment funds.(3)Federal Reserve Bank stock is held for regulatory purposes and is restricted from sale.(4)Carried interest represents allocations to BlackRock’s general partner capital accounts from certain sponsored investment funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds.(5)Other investments include private equity, private credit, real asset, commodity, and digital asset investments held by CIPs, which are measured at fair value.Held-to-Maturity Investments
Held-to-maturity investments included certain investments in BlackRock sponsored CLOs. The amortized cost (carrying value) of these investments approximated fair value (primarily a Level 2 input). At June 30, 2026, $31 million mature between one and five years, $233 million mature between five and ten years and $223 million mature after ten years.
Trading Debt Securities and Equity Securities at FVTNI
A summary of the cost and carrying value of trading debt securities and equity securities at FVTNI is as follows:
 
 
 
 
 
 
 
 
 
 
June 30, 2026
 
 
December 31, 2025
 
(in millions)
Cost
 
 
Carrying
Value
 
 
Cost
 
 
Carrying
Value
 
Trading debt securities:
 
 
 
 
 
 
 
 
 
 
 
Corporate debt
$
1,723
 
 
$
1,792
 
 
$
1,153
 
 
$
1,185
 
Government debt
 
498
 
 
 
496
 
 
 
430
 
 
 
430
 
Asset/mortgage-backed debt
 
1,131
 
 
 
1,090
 
 
 
1,185
 
 
 
1,174
 
Total trading debt securities
$
3,352
 
 
$
3,378
 
 
$
2,768
 
 
$
2,789
 
Equity securities at FVTNI:
 
 
 
 
 
 
 
 
 
 
 
Equity securities/mutual funds
$
2,585
 
 
$
2,896
 
 
$
2,049
 
 
$
2,282
 
 
14
- Consolidated Sponsored Investment Products
In the normal course of business, the Company is the manager of various types of sponsored investment products, which may be considered VIEs or VREs. The Company consolidates certain sponsored investment funds accounted for as VREs because it is deemed to control such funds. In addition, the Company may from time to time provide financial support to certain sponsored investment products. Capital support may be in the form of investments, derivatives, loan or contingent investment commitments, each of which are considered variable interests. The Company’s involvement in financing the operations of the VIEs is generally limited to its economic interest in the entity. The Company’s consolidated VIEs include certain sponsored investment products in which BlackRock has an economic interest and as the investment manager, is deemed to have both the power to direct the most significant activities of the products and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these sponsored investment products. The assets of these VIEs are not available to creditors of the Company. In addition, the investors in these VIEs have no recourse to the general credit of the Company.
The following table presents the balances related to these CIPs accounted for as VIEs and VREs that were recorded on the condensed consolidated statements of financial condition, including BlackRock’s net interest in these products:
 
 
June 30, 2026
 
 
December 31, 2025
 
(in millions)
 
VIEs
 
 
VREs
 
 
Total
 
 
VIEs
 
 
VREs
 
 
Total
 
Cash and cash equivalents(1)
 
$
180
 
 
$
155
 
 
$
335
 
 
$
428
 
 
$
33
 
 
$
461
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading debt securities
 
 
2,702
 
 
 
653
 
 
 
3,355
 
 
 
2,350
 
 
 
432
 
 
 
2,782
 
Equity securities at FVTNI
 
 
1,740
 
 
 
362
 
 
 
2,102
 
 
 
1,537
 
 
 
144
 
 
 
1,681
 
Other investments
 
 
1,482
 
 
 
46
 
 
 
1,528
 
 
 
946
 
 
 
68
 
 
 
1,014
 
Carried interest
 
 
3,540
 
 
 
—
 
 
 
3,540
 
 
 
3,654
 
 
 
—
 
 
 
3,654
 
Total investments
 
 
9,464
 
 
 
1,061
 
 
 
10,525
 
 
 
8,487
 
 
 
644
 
 
 
9,131
 
Other assets
 
 
42
 
 
 
13
 
 
 
55
 
 
 
76
 
 
 
111
 
 
 
187
 
Other liabilities(2)
 
 
(3,698
)
 
 
(304
)
 
 
(4,002
)
 
 
(4,052
)
 
 
(60
)
 
 
(4,112
)
Noncontrolling interest - CIPs
 
 
(3,732
)
 
 
(268
)
 
 
(4,000
)
 
 
(2,521
)
 
 
(236
)
 
 
(2,757
)
BlackRock's net interest in CIPs
 
$
2,256
 
 
$
657
 
 
$
2,913
 
 
$
2,418
 
 
$
492
 
 
$
2,910
 
 
(1)The Company generally cannot readily access cash and cash equivalents held by CIPs to use in its operating activities.(2)At both June 30, 2026 and December 31, 2025, other liabilities of VIEs primarily include deferred carried interest liabilities.BlackRock’s total exposure to CIPs represents the value of its economic interest in these CIPs. Valuation changes associated with financial instruments held at fair value by these CIPs are reflected in nonoperating income (expense) and partially offset in net income (loss) attributable to NCI for the portion not attributable to BlackRock.
Net gain (loss) related to consolidated VIEs is presented in the following table:
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
June 30,
 
 
June 30,
 
(in millions)
 
2026
 
 
2025
 
 
2026
 
 
2025
 
Nonoperating net gain (loss) on consolidated VIEs
 
$
93
 
 
$
144
 
 
$
93
 
 
$
156
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to NCI on consolidated VIEs
 
$
22
 
 
$
71
 
 
$
32
 
 
$
79
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15
- Variable Interest Entities
Nonconsolidated VIEs. At June 30, 2026 and December 31, 2025, the Company’s carrying value of assets and liabilities included on the condensed consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss related to VIEs in which it held a variable interest, but for which it was not the primary beneficiary, was as follows:
 
 
 
 
Advisory Fee
 
 
Other Net Assets
 
 
Maximum
 
(in millions)
Investments
 
Receivables
 
(Liabilities)
 
Risk of Loss(1)
 
June 30, 2026
 
 
 
 
 
 
 
 
 
 
 
 Sponsored investment
products
$
2,755
 
$
133
 
$
(12
)
$
2,905
 
December 31, 2025
 
 
 
 
 Sponsored investment
products
$
2,325
 
$
101
 
$
(12
)
$
2,443
 
 
(1)At both June 30, 2026 and December 31, 2025, BlackRock’s maximum risk of loss associated with these VIEs primarily related to BlackRock’s investments and the collection of receivables. The net assets of sponsored investment products that are nonconsolidated VIEs approximated $71 billion and $53 billion at June 30, 2026 and December 31, 2025, respectively.
16
- Fair Value Disclosures
Fair Value Hierarchy
Assets and liabilities measured at fair value on a recurring basis
June 30, 2026
(in millions)
Quoted Prices
in Active Markets for Identical Assets (Level 1)
 
 
Significant
Other Observable Inputs (Level 2)
 
 
Significant
Unobservable Inputs (Level 3)
 
 
Investments
Measured at NAV(1)
 
 
Other(2)
 
 
June 30,
2026
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading securities
$
—
 
 
$
3,332
 
 
$
46
 
 
$
—
 
 
$
—
 
 
$
3,378
 
Held-to-maturity investments
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
487
 
 
 
487
 
Total debt securities
 
—
 
 
 
3,332
 
 
 
46
 
 
 
—
 
 
 
487
 
 
 
3,865
 
Equity securities at FVTNI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities/mutual funds
 
2,872
 
 
 
—
 
 
 
24
 
 
 
—
 
 
 
—
 
 
 
2,896
 
Equity method:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity, fixed income, and
multi-asset mutual funds
 
276
 
 
 
159
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
435
 
Hedge funds/funds of hedge
funds/other
 
—
 
 
 
—
 
 
 
—
 
 
 
428
 
 
 
—
 
 
 
428
 
Private equity funds
 
—
 
 
 
—
 
 
 
—
 
 
 
543
 
 
 
—
 
 
 
543
 
Real assets funds
 
—
 
 
 
—
 
 
 
—
 
 
 
598
 
 
 
—
 
 
 
598
 
Investments related to deferred
cash compensation plans
 
—
 
 
 
—
 
 
 
—
 
 
 
446
 
 
 
—
 
 
 
446
 
Total equity method
 
276
 
 
 
159
 
 
 
—
 
 
 
2,015
 
 
 
—
 
 
 
2,450
 
CLOs held at fair value
 
—
 
 
 
482
 
 
 
56
 
 
 
—
 
 
 
—
 
 
 
538
 
Federal Reserve Bank stock
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
88
 
 
 
88
 
Carried interest
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
3,594
 
 
 
3,594
 
Other investments
 
458
 
 
 
—
 
 
 
—
 
 
 
1,133
 
 
 
122
 
 
 
1,713
 
Total investments
 
3,606
 
 
 
3,973
 
 
 
126
 
 
 
3,148
 
 
 
4,291
 
 
 
15,144
 
Other assets(3)
 
98
 
 
 
5
 
 
 
149
 
 
 
—
 
 
 
—
 
 
 
252
 
Separate account assets
 
43,255
 
 
 
21,389
 
 
 
—
 
 
 
—
 
 
 
623
 
 
 
65,267
 
Separate account collateral held under
securities lending agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
 
3,478
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
3,478
 
Debt securities
 
—
 
 
 
2,791
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
2,791
 
Total separate account collateral held
under securities lending agreements
 
3,478
 
 
 
2,791
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
6,269
 
Total
$
50,437
 
 
$
28,158
 
 
$
275
 
 
$
3,148
 
 
$
4,914
 
 
$
86,932
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Separate account collateral
liabilities under securities lending agreements
$
3,478
 
 
$
2,791
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
6,269
 
Contingent consideration liabilities
 
—
 
 
 
—
 
 
 
7,875
 
 
 
—
 
 
 
—
 
 
 
7,875
 
Other liabilities(4)
 
—
 
 
 
134
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
134
 
Total
$
3,478
 
 
$
2,925
 
 
$
7,875
 
 
$
—
 
 
$
—
 
 
$
14,278
 
 
(1)Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.(2)Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, and carried interest.(3)Level 1 amount primarily includes a minority investment in a publicly traded company. Level 3 amount includes corporate minority private debt investments with changes in fair value recorded in AOCI, net of tax.(4)Level 2 amount includes fair value of derivatives (See Note 9, Derivatives and Hedging, for more information) and other liabilities held by a CIP. 17
December 31, 2025
(in millions)
Quoted Prices
in Active Markets for Identical Assets (Level 1)
 
 
Significant
Other Observable Inputs (Level 2)
 
 
Significant
Unobservable Inputs (Level 3)
 
 
Investments
Measured at NAV(1)
 
 
Other(2)
 
 
December 31,
2025
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading securities
$
—
 
 
$
2,782
 
 
$
7
 
 
$
—
 
 
$
—
 
 
$
2,789
 
Held-to-maturity investments
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
507
 
 
 
507
 
Total debt securities
 
—
 
 
 
2,782
 
 
 
7
 
 
 
—
 
 
 
507
 
 
 
3,296
 
Equity securities at FVTNI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities/mutual funds
 
2,146
 
 
 
—
 
 
 
136
 
 
 
—
 
 
 
—
 
 
 
2,282
 
Equity method:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity, fixed income, and
multi-asset mutual funds
 
205
 
 
 
148
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
353
 
Hedge funds/funds of hedge
funds/other
 
—
 
 
 
—
 
 
 
—
 
 
 
446
 
 
 
—
 
 
 
446
 
Private equity funds
 
—
 
 
 
—
 
 
 
—
 
 
 
510
 
 
 
—
 
 
 
510
 
Real assets funds
 
—
 
 
 
—
 
 
 
—
 
 
 
524
 
 
 
—
 
 
 
524
 
Investments related to deferred
cash compensation plans
 
—
 
 
 
—
 
 
 
—
 
 
 
300
 
 
 
—
 
 
 
300
 
Total equity method
 
205
 
 
 
148
 
 
 
—
 
 
 
1,780
 
 
 
—
 
 
 
2,133
 
CLOs held at fair value
 
—
 
 
 
495
 
 
 
73
 
 
 
—
 
 
 
—
 
 
 
568
 
Federal Reserve Bank stock
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
87
 
 
 
87
 
Carried interest
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
3,710
 
 
 
3,710
 
Other investments
 
—
 
 
 
—
 
 
 
—
 
 
 
1,078
 
 
 
117
 
 
 
1,195
 
Total investments
 
2,351
 
 
 
3,425
 
 
 
216
 
 
 
2,858
 
 
 
4,421
 
 
 
13,271
 
Other assets(3)
 
113
 
 
 
10
 
 
 
151
 
 
 
—
 
 
 
—
 
 
 
274
 
Separate account assets
 
38,688
 
 
 
20,895
 
 
 
—
 
 
 
—
 
 
 
515
 
 
 
60,098
 
Separate account collateral held under
securities lending agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
 
4,194
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
4,194
 
Debt securities
 
—
 
 
 
3,728
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
3,728
 
Total separate account collateral held
under securities lending agreements
 
4,194
 
 
 
3,728
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
7,922
 
Total
$
45,346
 
 
$
28,058
 
 
$
367
 
 
$
2,858
 
 
$
4,936
 
 
$
81,565
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Separate account collateral
liabilities under securities lending agreements
$
4,194
 
 
$
3,728
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
7,922
 
Contingent consideration liabilities
 
—
 
 
 
—
 
 
 
8,429
 
 
 
—
 
 
 
—
 
 
 
8,429
 
Other liabilities(4)
 
—
 
 
 
13
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
13
 
Total
$
4,194
 
 
$
3,741
 
 
$
8,429
 
 
$
—
 
 
$
—
 
 
$
16,364
 
 
(1)Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2)Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, and carried interest.(3)Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes corporate minority private debt investments with changes in fair value recorded in AOCI, net of tax. (4)Level 2 amount primarily includes fair value of derivatives (See Note 9, Derivatives and Hedging, for more information).Level 3 Assets. Level 3 assets predominantly include investments in CLOs and corporate minority private debt investments. Investments in CLOs were valued based on single-broker nonbinding quotes or quotes from pricing services which use significant unobservable inputs. BlackRock's corporate minority private debt investments were primarily valued using the income approach by discounting the expected cash flows to a single present value and other valuation techniques. For investments utilizing a discounted cash flow valuation technique, an increase (decrease) in the discount rate or risk premium in isolation could have resulted in a significantly lower (higher) fair value measurement as of June 30, 2026 and December 31, 2025.
Level 3 Liabilities. Level 3 liabilities primarily include contingent consideration liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses including using unobservable market data inputs or other valuation techniques.
18
At June 30, 2026 and December 31, 2025, the contingent consideration liability related to the acquisition of Global Infrastructure Management, LLC in October 2024 (the "GIP Transaction") was estimated using the income approach, with certain significant inputs including risk-free discount rates of approximately 4.1% and 3.5%, respectively, as well as current estimates of the timing and amounts of fundraising forecasts, stock and AUM volatility, and correlation between stock price and AUM (Level 3 inputs). At June 30, 2026 and December 31, 2025, the contingent consideration liability related to the HPS Transaction was estimated using the income approach, with certain significant inputs including a risk-free discount rate of approximately 4.1% and 3.7%, respectively, as well as estimates of the timing and amounts of fundraising and fee-related earnings forecasts, cost of equity, and future stock price performance (Level 3 inputs). Accordingly, changes in key inputs and assumptions described will impact the amount of contingent consideration expense recorded in a reporting period until the contingency is resolved.
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended June 30, 2026
(in millions)
 
March 31,
2026
 
 
Realized
and Unrealized Gains (Losses)
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2026
 
 
Total Net
Unrealized Gains (Losses) Included in Earnings(1)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading debt securities
 
$
35
 
 
$
—
 
 
$
30
 
 
$
(26
)
 
$
—
 
 
$
7
 
 
$
—
 
 
$
46
 
 
$
—
 
Equity securities/mutual funds
 
 
136
 
 
 
4
 
 
 
6
 
 
 
(136
)
 
 
—
 
 
 
14
 
 
 
—
 
 
 
24
 
 
 
4
 
CLOs held at fair value
 
 
57
 
 
 
5
 
 
 
3
 
 
 
(6
)
 
 
—
 
 
 
2
 
 
 
(5
)
 
 
56
 
 
 
5
 
Total investments
 
 
228
 
 
 
9
 
 
 
39
 
 
 
(168
)
 
 
—
 
 
 
23
 
 
 
(5
)
 
 
126
 
 
 
9
 
Other assets
 
 
149
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
149
 
 
 
—
 
Total assets
 
$
377
 
 
$
9
 
 
$
39
 
 
$
(168
)
 
$
—
 
 
$
23
 
 
$
(5
)
 
$
275
 
 
$
9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
March 31,
2026
 
 
Realized
and Unrealized (Gains) Losses(2)
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2026
 
 
Total Net
Unrealized (Gains) Losses Included in Earnings(2)(3)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
liabilities
 
$
7,865
 
 
$
10
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
7,875
 
 
$
10
 
 
(1)Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.(2)Amount includes changes in fair value of contingent consideration recorded within expense on the condensed consolidated statements of income.Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 30, 2026
(in millions)
 
December 31,
2025
 
 
Realized
and Unrealized Gains (Losses)
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements(1)
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2026
 
 
Total Net
Unrealized Gains (Losses) Included in Earnings(2)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading debt securities
 
$
7
 
 
$
—
 
 
$
58
 
 
$
(26
)
 
$
—
 
 
$
7
 
 
$
—
 
 
$
46
 
 
$
—
 
Equity securities/mutual funds
 
 
136
 
 
 
4
 
 
 
6
 
 
 
(136
)
 
 
—
 
 
 
14
 
 
 
—
 
 
 
24
 
 
 
4
 
CLOs held at fair value
 
 
73
 
 
 
(2
)
 
 
3
 
 
 
(15
)
 
 
—
 
 
 
2
 
 
 
(5
)
 
 
56
 
 
 
(2
)
Total investments
 
 
216
 
 
 
2
 
 
 
67
 
 
 
(177
)
 
 
—
 
 
 
23
 
 
 
(5
)
 
 
126
 
 
 
2
 
Other assets
 
 
151
 
 
 
(2
)
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
149
 
 
 
(2
)
Total assets
 
$
367
 
 
$
—
 
 
$
67
 
 
$
(177
)
 
$
—
 
 
$
23
 
 
$
(5
)
 
$
275
 
 
$
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
December 31,
2025
 
 
Realized
and Unrealized (Gains) Losses(3)
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements(1)
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2026
 
 
Total Net
Unrealized (Gains) Losses Included in Earnings(2)(3)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
liabilities
 
$
8,429
 
 
$
(541
)
 
$
—
 
 
$
—
 
 
$
(13
)
 
$
—
 
 
$
—
 
 
$
7,875
 
 
$
(541
)
 
(1)Issuances and other settlements amounts include a contingent liability payment related to a previous acquisition. (2)Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.(3)Amount includes changes in fair value of contingent consideration recorded within expense on the condensed consolidated statements of income. 19
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended June 30, 2025
(in millions)
 
March 31,
2025
 
 
Realized
and Unrealized Gains (Losses)
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements(1)
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2025
 
 
Total Net
Unrealized Gains (Losses) Included in Earnings(2)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading debt securities
 
$
79
 
 
$
(3
)
 
$
1
 
 
$
(1
)
 
$
—
 
 
$
—
 
 
$
(1
)
 
$
75
 
 
$
(3
)
Loans
 
 
107
 
 
 
2
 
 
 
4
 
 
 
(18
)
 
 
—
 
 
 
—
 
 
 
1
 
 
 
96
 
 
 
2
 
Total investments
 
 
186
 
 
 
(1
)
 
 
5
 
 
 
(19
)
 
 
—
 
 
 
—
 
 
 
—
 
 
 
171
 
 
 
(1
)
Other assets
 
 
152
 
 
 
12
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
164
 
 
 
12
 
Total assets
 
$
338
 
 
$
11
 
 
$
5
 
 
$
(19
)
 
$
—
 
 
$
—
 
 
$
—
 
 
$
335
 
 
$
11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
March 31,
2025
 
 
Realized
and Unrealized (Gains) Losses
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements(1)
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2025
 
 
Total Net
Unrealized (Gains) Losses Included in Earnings(2)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
liabilities
 
$
4,390
 
 
$
82
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
—
 
 
$
4,472
 
 
$
82
 
Other liabilities
 
 
102
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
(5
)
 
 
—
 
 
 
—
 
 
 
97
 
 
 
—
 
Total liabilities
 
$
4,492
 
 
$
82
 
 
$
—
 
 
$
—
 
 
$
(5
)
 
$
—
 
 
$
—
 
 
$
4,569
 
 
$
82
 
 
(1)Issuances and other settlements amount includes repayments of borrowings of a consolidated CLO.(2)Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 30, 2025
(in millions)
 
December 31,
2024
 
 
Realized
and Unrealized Gains (Losses)
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements(1)
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2025
 
 
Total Net
Unrealized Gains (Losses) Included in Earnings(2)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading debt securities
 
$
79
 
 
$
(5
)
 
$
5
 
 
$
(3
)
 
$
—
 
 
$
—
 
 
$
(1
)
 
$
75
 
 
$
(5
)
Loans
 
 
135
 
 
 
(9
)
 
 
15
 
 
 
(46
)
 
 
—
 
 
 
—
 
 
 
1
 
 
 
96
 
 
 
(9
)
Total investments
 
 
214
 
 
 
(14
)
 
 
20
 
 
 
(49
)
 
 
—
 
 
 
—
 
 
 
—
 
 
 
171
 
 
 
(14
)
Other assets
 
 
149
 
 
 
15
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
164
 
 
 
15
 
Total assets
 
$
363
 
 
$
1
 
 
$
20
 
 
$
(49
)
 
$
—
 
 
$
—
 
 
$
—
 
 
$
335
 
 
$
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
December 31,
2024
 
 
Realized
and Unrealized (Gains) Losses
 
 
Purchases
 
 
Sales and
Maturities
 
 
Issuances and
Other Settlements(1)
 
 
Transfers
into Level 3
 
 
Transfers
out of Level 3
 
 
June 30,
2025
 
 
Total Net
Unrealized (Gains) Losses Included in Earnings(2)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
liabilities
 
$
4,302
 
 
$
181
 
 
$
—
 
 
$
—
 
 
$
(11
)
 
$
—
 
 
$
—
 
 
$
4,472
 
 
$
181
 
Other liabilities
 
 
129
 
 
 
(3
)
 
 
—
 
 
 
—
 
 
 
(29
)
 
 
—
 
 
 
—
 
 
 
97
 
 
 
(3
)
Total liabilities
 
$
4,431
 
 
$
178
 
 
$
—
 
 
$
—
 
 
$
(40
)
 
$
—
 
 
$
—
 
 
$
4,569
 
 
$
178
 
 
(1)Issuances and other settlements amounts include a contingent liability payment related to a previous acquisition and repayments of borrowings of a consolidated CLO.(2)Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.Realized and Unrealized Gains (Losses) for Level 3 Assets and Liabilities. Realized and unrealized gains (losses) recorded for Level 3 assets and liabilities are reported in operating income, nonoperating income (expense) or AOCI for corporate minority private debt investments. A portion of net income (loss) related to securities held by CIPs is allocated to NCI - CIPs to reflect net income (loss) not attributable to the Company.
Transfers in and/or out of Levels. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable.
20
Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At June 30, 2026 and December 31, 2025, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:
 
June 30, 2026
 
 
December 31, 2025
 
 
 
 
(in millions)
Carrying
Amount
 
 
Estimated
Fair Value
 
 
Carrying
Amount
 
 
Estimated
Fair Value
 
 
Fair Value
Hierarchy
 
Financial assets(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
10,492
 
 
$
10,492
 
 
$
11,468
 
 
$
11,468
 
 
Level 1
(2)(3)
Other assets
$
147
 
 
$
147
 
 
$
103
 
 
$
103
 
 
Level 1
(2)(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowings
$
12,744
 
 
$
12,343
 
 
$
12,768
 
 
$
12,546
 
 
Level 2
(5)
Other liabilities
$
428
 
 
$
428
 
 
$
302
 
 
$
302
 
 
Level 2
(6)
 
(1)See Note 5, Investments, for further information on investments not held at fair value.(2)Cash and cash equivalents, other than money market funds, are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities. (3)At June 30, 2026 and December 31, 2025, approximately $3.9 billion and $5.3 billion, respectively, of money market funds were recorded within cash and cash equivalents on the condensed consolidated statements of financial condition. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund. (4)At June 30, 2026 and December 31, 2025, other assets included cash collateral of approximately $125 million and $81 million, respectively. See Note 9, Derivatives and Hedging for further information on derivatives held by the Company. In addition, other assets included $22 million of restricted cash at both June 30, 2026 and December 31, 2025.(5)Long-term borrowings are recorded at amortized cost, net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is determined using market prices and the EUR/USD foreign exchange rate at the end of June 2026 and December 2025, respectively. See Note 14, Borrowings, for the fair value of each of the Company’s long-term borrowings.(6)Other liabilities primarily include repurchase agreements related to CIPs as well as CLO financing arrangements to finance portions of investments in certain CLOs managed by the Company. Repurchase agreements were recorded at amortized cost, which approximates fair value, with maturity dates primarily ranging from 2034 to 2039. 21
Investments in Certain Entities that Calculate NAV Per Share
As a practical expedient to value certain investments that do not have a readily determinable fair value and have attributes of an investment company, the Company uses NAV as the fair value. The following tables list information regarding all investments that use a fair value measurement to account for both their financial assets and financial liabilities in their calculation of a NAV per share (or equivalent).
June 30, 2026
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
Ref
 
Fair Value
 
 
Total
Unfunded Commitments
 
 
Redemption
Frequency
 
Redemption
Notice Period
Equity method(1):
 
 
 
 
 
 
 
 
 
 
 
 
Hedge funds/funds of hedge
funds/other
 
(a)
 
$
428
 
 
$
164
 
 
Daily/Monthly (2%)
Quarterly (13%) N/R (85%)
 
1 – 90 days
Private equity funds
 
(b)
 
 
543
 
 
 
203
 
 
N/R
 
N/R
Real assets funds
 
(c)
 
 
598
 
 
 
1,950
 
 
Quarterly (6%)
N/R (94%)
 
60 days
Investments related to deferred
cash compensation plans
 
(d)
 
 
446
 
 
 
—
 
 
Monthly
 
1 – 90 days
Other investments:
 
 
 
 
 
 
 
 
 
 
 
 
Private credit funds
 
(a)
 
 
145
 
 
 
—
 
 
Quarterly
 
30 days
Consolidated sponsored
investment products:
 
 
 
 
 
 
 
 
 
 
 
 
Real assets funds
 
(c)
 
 
327
 
 
 
24
 
 
N/R
 
N/R
Private equity funds
 
(e)
 
 
317
 
 
 
28
 
 
N/R
 
N/R
Hedge funds/other
 
(a)
 
 
344
 
 
 
37
 
 
Quarterly (88%)
N/R (12%)
 
60 – 90 days
Total
 
 
 
$
3,148
 
 
$
2,406
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2025
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
Ref
 
Fair Value
 
 
Total
Unfunded Commitments
 
 
Redemption
Frequency
 
Redemption
Notice Period
Equity method(1):
 
 
 
 
 
 
 
 
 
 
 
 
Hedge funds/funds of hedge
funds/other
 
(a)
 
$
446
 
 
$
150
 
 
Quarterly (12%)
N/R (88%)
 
1 – 90 days
Private equity funds
 
(b)
 
 
510
 
 
 
225
 
 
N/R
 
N/R
Real assets funds
 
(c)
 
 
524
 
 
 
1,870
 
 
Quarterly (7%)
N/R (93%)
 
60 days
Investments related to deferred
cash compensation plans
 
(d)
 
 
300
 
 
 
—
 
 
Monthly
 
1 – 90 days
Other investments:
 
 
 
 
 
 
 
 
 
 
 
 
Private credit funds
 
(a)
 
 
140
 
 
 
—
 
 
Quarterly
 
30 days
Consolidated sponsored
investment products:
 
 
 
 
 
 
 
 
 
 
 
 
Real assets funds
 
(c)
 
 
372
 
 
 
29
 
 
N/R
 
N/R
Private equity funds
 
(e)
 
 
181
 
 
 
34
 
 
N/R
 
N/R
Hedge funds/other
 
(a)
 
 
385
 
 
 
48
 
 
Quarterly (89%)
N/R (11%)
 
60 – 90 days
Total
 
 
 
$
2,858
 
 
$
2,356
 
 
 
 
 
 
N/R – Not Redeemable
(1)Comprised of equity method investments, which include investment companies that account for their financial assets and most financial liabilities under fair value measures; therefore, the Company’s investment in such equity method investees approximates fair value.(a)This category includes hedge funds, funds of hedge funds, and other funds that invest primarily in equities, fixed income securities, private credit, opportunistic and mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. The liquidation period for the investments in the funds that are not subject to redemption is unknown at both June 30, 2026 and December 31, 2025.(b)This category includes private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these investments have been estimated using capital accounts representing the Company’s ownership interest in the funds and may also include other performance inputs. The Company’s investment in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. The liquidation period for the investments in these funds is unknown at both June 30, 2026 and December 31, 2025. 22
(c)This category includes several real assets funds that invest directly and indirectly in real estate or infrastructure. The fair values of the investments have been estimated using capital accounts representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through distributions and realizations of the underlying assets of the funds. The liquidation period for the investments in the funds that are not subject to redemptions is unknown at both June 30, 2026 and December 31, 2025. (d)This category includes hedge funds and funds of hedge funds that invest primarily in equities, fixed income securities, mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company's ownership interest in partners' capital. The investments in hedge funds will be redeemed upon settlement of certain deferred cash compensation liabilities.(e)This category includes the underlying third-party private equity funds within consolidated BlackRock sponsored private equity funds of funds. These investments are not subject to redemption or are not currently redeemable; however, for certain funds, the Company may sell or transfer its interest, which may need approval by the general partner of the underlying funds. Due to the nature of the investments in this category, the Company reduces its investment by distributions that are received through the realization of the underlying assets of the funds. The liquidation period for the underlying assets of these funds is unknown.Fair Value Option
At June 30, 2026 and December 31, 2025, the Company elected the fair value option for certain investments in CLOs of approximately $538 million and $568 million, respectively, reported within investments on the condensed consolidated statements of financial condition.
- Derivatives and Hedging
The Company maintains a program to enter into exchange-traded futures as a macro hedging strategy to hedge market price and interest rate exposures with respect to its total portfolio of seed investments in sponsored investment products. The Company had outstanding exchange-traded futures related to this macro hedging strategy with aggregate notional values of approximately $1.9 billion and $1.7 billion at June 30, 2026 and December 31, 2025, with expiration dates during the third and first quarter of 2026, respectively.
In addition, the Company enters into exchange-traded futures to economically hedge the exposure to market movements on certain deferred cash compensation plans. At June 30, 2026 and December 31, 2025, the Company had outstanding exchange-traded futures with aggregate notional values related to its deferred cash compensation hedging program of approximately $302 million and $231 million, with expiration dates during the third and first quarter of 2026, respectively.
Changes in the value of the futures contracts are recognized as gains or losses within nonoperating income (expense). Variation margin payments, which represent settlements of profit/loss, are generally received or made daily, and are reflected in other assets and other liabilities on the condensed consolidated statements of financial condition. These amounts were not material as of June 30, 2026 and December 31, 2025.
The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange movements. The Company had outstanding forward foreign currency exchange contracts with aggregate notional values of approximately $2.5 billion at June 30, 2026 with expiration dates during the third quarter of 2026, and $3.0 billion at December 31, 2025 with expiration dates during the first quarter of 2026.
At both June 30, 2026 and December 31, 2025, the Company had a derivative providing credit protection with a notional amount of approximately $17 million to a counterparty, representing the Company’s maximum risk of loss with respect to the derivative. The Company carries the derivative at fair value based on the expected discounted future cash outflows under the arrangement.
23
The following table presents the fair values of derivative instruments recognized in the condensed consolidated statements of financial condition at June 30, 2026 and December 31, 2025:
 
Assets
 
 
Liabilities
 
(in millions)
Statement of
Financial Condition Classification
 
June 30, 2026
 
 
December 31, 2025
 
 
Statement of
Financial Condition Classification
 
June 30, 2026
 
 
December 31, 2025
 
Derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forward foreign currency
exchange contracts
Other assets
 
$
5
 
 
$
10
 
 
Other liabilities
 
$
20
 
 
$
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents realized and unrealized gains (losses) recognized in the condensed consolidated statements of income on derivative instruments:
 
 
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
 
 
June 30,
 
 
June 30,
 
 
 
Statement of Income
 
2026
 
 
2025
 
 
2026
 
 
2025
 
(in millions)
 
Classification
 
Gains (Losses)
 
 
Gains (Losses)
 
Derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-traded futures(1)
 
Net gain (loss) on investments
 
$
(93
)
 
$
(106
)
 
$
(79
)
 
$
(102
)
Forward foreign currency
exchange contracts
 
General and administration expense
 
 
18
 
 
 
61
 
 
 
(17
)
 
 
108
 
Total gain (loss) from derivative
instruments
 
 
 
$
(75
)
 
$
(45
)
 
$
(96
)
 
$
6
 
 
(1)Amounts for the three months ended June 30, 2026 and 2025 include $125 million and $125 million of losses on futures used in a macro hedging strategy of seed investments, respectively, and $32 million and $19 million of gains on futures used to economically hedge certain deferred cash compensation plans, respectively. Amounts for the six months ended June 30, 2026 and 2025 include $100 million and $115 million of losses on futures used in a macro hedging strategy of seed investments, respectively, and $21 million and $13 million of gains on futures used to economically hedge certain deferred cash compensation plans, respectively.The Company's CIPs may utilize derivative instruments as a part of the funds' investment strategies. The change in fair value of such derivatives, which is recorded in nonoperating income (expense), was not material for the three and six months ended June 30, 2026 and 2025.
See Note 14, Borrowings in this filing and Note 15, Borrowings, in the 2025 Form 10-K, for more information on the Company’s net investment hedge.
- Goodwill
Goodwill activity during the six months ended June 30, 2026 was as follows:
 (in millions)
 
 
 December 31, 2025
$
35,283
 
Goodwill adjustment related to HPS(1)
 
(94
)
Other
 
14
 
 June 30, 2026
$
35,203
 
 
(1)Amount relates to a purchase price allocation adjustment related to deferred income tax liabilities.11. Intangible Assets
The carrying amounts of identifiable intangible assets are summarized as follows:
 (in millions)
Indefinite-lived
 
 
Finite-lived
 
 
Total
 
 December 31, 2025
$
20,428
 
 
$
7,540
 
 
$
27,968
 
Amortization expense
 
—
 
 
 
(553
)
 
 
(553
)
 June 30, 2026
$
20,428
 
 
$
6,987
 
 
$
27,415
 
 
24
- Leases
The following table presents components of lease cost included in general and administration expense on the condensed consolidated statements of income:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Lease cost:
 
 
 
 
 
 
 
 
 
 
 
Operating lease cost(1)
$
65
 
 
$
55
 
 
$
131
 
 
$
105
 
Variable lease cost(2)
 
27
 
 
 
16
 
 
 
45
 
 
 
33
 
Total lease cost
$
92
 
 
$
71
 
 
$
176
 
 
$
138
 
 
(1)Amounts include short-term leases, which are immaterial for the three and six months ended June 30, 2026 and 2025.(2)Amounts include operating lease payments, which may be adjusted based on usage, changes in an index or market rate, as well as common area maintenance charges and other variable costs not included in the measurement of ROU assets and operating lease liabilities.Supplemental information related to operating leases is summarized below:
 
 
Six Months Ended
 
 
 
June 30,
 
(in millions)
 
2026
 
 
2025
 
Supplemental cash flow information:
 
 
 
 
 
 
Operating cash flows from operating leases included in the measurement
of operating lease liabilities
 
$
101
 
 
$
98
 
 
 
 
 
 
 
 
Supplemental noncash information:
 
 
 
 
 
 
ROU assets in exchange for operating lease liabilities
 
$
67
 
 
$
83
 
 
 
June 30,
 
December 31,
 
2026
 
2025
Lease term and discount rate:
 
 
 
 
 
 
 
Weighted-average remaining lease term
 
13
 
years
 
 
13
 
years
Weighted-average discount rate
 
4
 
%
 
 
4
 
%
 
13. Other Assets
The Company records certain corporate investments, which exclude seed and co-investments in the Company's sponsored investment products, within other assets on the condensed consolidated statements of financial condition.
At both June 30, 2026 and December 31, 2025, the Company had $1.6 billion of corporate equity method investments, recorded within other assets. At June 30, 2026 and December 31, 2025, the Company's ownership interest in its minority investment in iCapital Network Inc. ("iCapital") was approximately 21% and 22%, respectively. The carrying value of the Company's interest at both June 30, 2026 and December 31, 2025 was $0.7 billion. In accordance with GAAP, certain equity method investees, including iCapital, do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.
At June 30, 2026 and December 31, 2025, the Company had $1.1 billion and $0.8 billion, respectively, of other non-equity method corporate minority investments recorded within other assets. These investments include equity securities, generally measured at fair value or under the measurement alternative to fair value for nonmarketable securities, and corporate minority private debt investments measured at fair value. Changes in the value of the equity securities are recorded in nonoperating income (expense), and changes in value of the debt securities are recorded in AOCI, net of tax. See Note 2, Significant Accounting Policies, in the notes to the consolidated financial statements contained in the 2025 Form 10-K for further information.
25
- Borrowings
Short-Term Borrowings
2026 Revolving Credit Facility. The Company maintains an unsecured revolving credit facility, which is available for working capital and general corporate purposes (the “2026 Credit Facility”). In March 2026, the 2026 Credit Facility was amended to, among other things, (1) increase the aggregate commitment amount by $400 million to $6.3 billion, (2) extend the maturity date to March 2031 for lenders pursuant to the Company's option to request extensions of the maturity date available under the 2026 Credit Facility and (3) remove the secured overnight financing rate ("SOFR") adjustment for all SOFR-based loans. The amended 2026 Credit Facility permits the Company to request up to an additional $1.4 billion of borrowing capacity, subject to lender credit approval, which could increase the overall size of the 2026 Credit Facility to an aggregate principal amount of up to $7.7 billion. Interest on outstanding borrowings accrues at an applicable benchmark rate for the denominated currency of the loan, plus a spread. The 2026 Credit Facility requires the Company not to exceed a maximum consolidated leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3.5 to 1, which was satisfied with a ratio of less than 1 to 1 at June 30, 2026. At June 30, 2026, the Company had no amount outstanding under the 2026 Credit Facility.
Commercial Paper Program. The Company may issue short-term unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $5 billion. The payments of the CP Notes have been unconditionally guaranteed by BlackRock Finance, Inc. (formerly known as BlackRock, Inc.) ("Old BlackRock") (the "CP Notes Guarantee"). The CP Notes will rank equal in right of payment with all of BlackRock's other unsubordinated indebtedness, and the obligations of Old BlackRock under the CP Notes Guarantee will rank equal in right of payment with all of Old BlackRock's other unsubordinated indebtedness. Net proceeds of issuances of the CP Notes are expected to be used for general corporate purposes. The commercial paper program is currently supported by the 2026 Credit Facility. At June 30, 2026, BlackRock had no CP Notes outstanding.
Subsidiary Credit Facility. BlackRock Investment Management (UK) Limited ("BIM UK"), a consolidated wholly owned subsidiary of the Company, maintains a revolving credit facility (the “Subsidiary Credit Facility”) in the amount of £25 million (or approximately $33 million based on the GBP/USD foreign exchange rate at June 30, 2026) with a rolling 364-day term structure. The Subsidiary Credit Facility is available for BIM UK's general corporate and working capital purposes. At June 30, 2026, there was no amount outstanding.
26
Long-Term Borrowings
The carrying value and fair value of long-term borrowings determined using market prices and EUR/USD foreign exchange rate at June 30, 2026 were as follows:
(in millions)
Maturity
Amount
 
 
Unamortized
Discount and Debt Issuance Costs(1)
 
 
Carrying Value
 
 
Fair Value
 
3.20% Notes due 2027(2)
$
700
 
 
$
—
 
 
$
700
 
 
$
695
 
4.60% Notes due 2027
 
800
 
 
 
(1
)
 
 
799
 
 
 
803
 
4.70% Notes due 2029
 
500
 
 
 
(1
)
 
 
499
 
 
 
505
 
3.25% Notes due 2029(2)
 
1,000
 
 
 
(4
)
 
 
996
 
 
 
970
 
2.40% Notes due 2030(2)
 
1,000
 
 
 
(2
)
 
 
998
 
 
 
924
 
1.90% Notes due 2031(2)
 
1,250
 
 
 
(5
)
 
 
1,245
 
 
 
1,112
 
2.10% Notes due 2032(2)
 
1,000
 
 
 
(9
)
 
 
991
 
 
 
873
 
4.75% Notes due 2033(2)
 
1,250
 
 
 
(15
)
 
 
1,235
 
 
 
1,251
 
5.00% Notes due 2034
 
1,000
 
 
 
(6
)
 
 
994
 
 
 
1,005
 
4.90% Notes due 2035
 
500
 
 
 
(5
)
 
 
495
 
 
 
499
 
3.75% Notes due 2035
 
1,143
 
 
 
(7
)
 
 
1,136
 
 
 
1,156
 
5.25% Notes due 2054
 
1,500
 
 
 
(30
)
 
 
1,470
 
 
 
1,408
 
5.35% Notes due 2055
 
1,200
 
 
 
(14
)
 
 
1,186
 
 
 
1,142
 
Total long-term borrowings
$
12,843
 
 
$
(99
)
 
$
12,744
 
 
$
12,343
 
 
(1)The unamortized discount and debt issuance costs are amortized over the term of the notes.(2)Issued by Old BlackRock and guaranteed by BlackRock, Inc.
Long-term borrowings at December 31, 2025 had a carrying value of $12.8 billion and a fair value of $12.5 billion, determined using market prices at the end of December 31, 2025.
See Note 15, Borrowings, in the 2025 Form 10-K for more information regarding the Company’s borrowings.
- Commitments and Contingencies
Investment Commitments. At June 30, 2026, the Company had $2.8 billion of various capital commitments to fund sponsored investment products, including CIPs. These products include various private market products, including private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the condensed consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients.
27
Contingencies
Contingent Consideration Liabilities. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to the achievement of specified performance targets or satisfaction of certain post-closing events. The fair value of any contingent consideration is estimated at the time of acquisition closing and is included in contingent consideration liabilities on the condensed consolidated statements of financial condition. The fair value of the remaining aggregate contingent payments at June 30, 2026 totaled $7.9 billion, including $4.3 billion and $3.4 billion related to the GIP and HPS Transactions, respectively. The contingent payments related to the GIP Transaction, if any, will be settled all in stock, for a number of shares ranging from 4.0 million to 5.2 million shares, subject to achieving certain performance targets. The contingent payments related to the HPS Transaction, if any, will be delivered all in Subco Units of approximately 2.8 million to 4.4 million, subject to achieving certain post-closing conditions and financial performance milestones. On July 1, 2026, a contractual provision that could have required cash settlement of the contingent consideration associated with the HPS Transaction expired. As a result, during the third quarter of 2026, the Company will reclassify a portion of the contingent consideration, consisting of 2.8 million Subco Units (with a fair value of approximately $2.6 billion) and subject to the achievement of a specified post-closing condition, from liabilities to equity. Upon reclassification, this equity-classified contingent consideration will not be subject to fair value remeasurement and therefore will not impact the Company's condensed consolidated statements of income.
Legal Proceedings. From time to time, BlackRock receives subpoenas or other requests for information from various US federal and state governmental and regulatory authorities and international governmental and regulatory authorities in connection with industry-wide or other investigations or proceedings. It is BlackRock’s policy to cooperate fully with such matters. The Company, certain of its subsidiaries and employees have been named as defendants in various legal actions, including arbitrations and other litigations arising in connection with BlackRock’s activities. Additionally, BlackRock-advised investment portfolios may be subject to lawsuits, any of which potentially could harm the investment returns of the applicable portfolio or result in the Company being liable to the portfolios for any resulting damages.
BlackRock is currently defending a lawsuit filed by thirteen state Attorneys General in Federal Court in the Eastern District of Texas against BlackRock, State Street, and Vanguard, alleging antitrust violations on the theory that the three companies conspired to artificially suppress coal supply. Four states are also pursuing alleged violations of state consumer protection laws regarding statements on BlackRock fund websites. In 2025, the court largely denied defendants' motion to dismiss.
Management, after consultation with legal counsel, currently does not anticipate that the aggregate liability arising out of regulatory matters or lawsuits will have a material effect on BlackRock’s results of operations, financial position, or cash flows. However, there is no assurance as to whether any such pending or threatened matters will have a material effect on BlackRock’s results of operations, financial position or cash flows in any future reporting period. Due to uncertainties surrounding the outcome of these matters, management cannot reasonably estimate the possible loss or range of loss that may arise from these matters.
Indemnifications. In the ordinary course of business or in connection with certain acquisition agreements, BlackRock enters into contracts pursuant to which it may agree to indemnify third parties in certain circumstances. The terms of these indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined or the likelihood of any liability is considered remote. Consequently, no liability has been recorded on the condensed consolidated statements of financial condition.
In connection with securities lending transactions, BlackRock has agreed to indemnify certain securities lending clients against potential loss resulting from a borrower’s failure to fulfill its obligations under the securities lending agreement should the value of the collateral pledged by the borrower at the time of default be insufficient to cover the borrower’s obligation under the securities lending agreement. The amount of securities on loan as of June 30, 2026 and subject to this type of indemnification was approximately $458 billion. In the Company’s capacity as lending agent, cash and securities totaling approximately $491 billion were held as collateral for indemnified securities on loan at June 30, 2026. The fair value of these indemnifications was not material at June 30, 2026.
28
- Revenue
The table below presents details of revenue for the three and six months ended June 30, 2026 and 2025, and includes the product type mix of investment advisory, administration fees and securities lending revenue, and performance fees.
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
Investment advisory, administration fees and
securities lending revenue:
 
 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
Active
$
626
 
 
$
507
 
 
$
1,219
 
 
$
1,025
 
ETFs
 
1,989
 
 
 
1,401
 
 
 
3,782
 
 
 
2,750
 
Equity subtotal
 
2,615
 
 
 
1,908
 
 
 
5,001
 
 
 
3,775
 
Fixed income:
 
 
 
 
 
 
 
 
 
 
 
Active
 
539
 
 
 
487
 
 
 
1,070
 
 
 
979
 
ETFs
 
443
 
 
 
366
 
 
 
877
 
 
 
718
 
Fixed income subtotal
 
982
 
 
 
853
 
 
 
1,947
 
 
 
1,697
 
Active multi-asset
 
387
 
 
 
312
 
 
 
758
 
 
 
625
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
639
 
 
 
499
 
 
 
1,297
 
 
 
1,034
 
Liquid alternatives
 
212
 
 
 
157
 
 
 
409
 
 
 
307
 
Alternatives subtotal
 
851
 
 
 
656
 
 
 
1,706
 
 
 
1,341
 
Non-ETF index
 
385
 
 
 
313
 
 
 
727
 
 
 
620
 
Digital assets, commodities and multi-asset ETFs(1)
 
163
 
 
 
108
 
 
 
342
 
 
 
200
 
Long-term
 
5,383
 
 
 
4,150
 
 
 
10,481
 
 
 
8,258
 
Cash management
 
343
 
 
 
304
 
 
 
683
 
 
 
597
 
Total investment advisory, administration fees
and securities lending revenue(2)
 
5,726
 
 
 
4,454
 
 
 
11,164
 
 
 
8,855
 
Investment advisory performance fees:
 
 
 
 
 
 
 
 
 
 
 
Equity
 
60
 
 
 
12
 
 
 
82
 
 
 
22
 
Fixed income
 
3
 
 
 
2
 
 
 
5
 
 
 
14
 
Multi-asset
 
5
 
 
 
6
 
 
 
14
 
 
 
10
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
137
 
 
 
39
 
 
 
369
 
 
 
63
 
Liquid alternatives
 
100
 
 
 
35
 
 
 
107
 
 
 
45
 
Alternatives subtotal
 
237
 
 
 
74
 
 
 
476
 
 
 
108
 
Total investment advisory performance fees
 
305
 
 
 
94
 
 
 
577
 
 
 
154
 
Technology services and subscription revenue
 
566
 
 
 
499
 
 
 
1,096
 
 
 
935
 
Distribution fees
 
395
 
 
 
320
 
 
 
784
 
 
 
641
 
Advisory and other revenue:
 
 
 
 
 
 
 
 
 
 
 
Advisory
 
8
 
 
 
13
 
 
 
20
 
 
 
27
 
Other
 
84
 
 
 
43
 
 
 
141
 
 
 
87
 
Total advisory and other revenue
 
92
 
 
 
56
 
 
 
161
 
 
 
114
 
Total revenue
$
7,084
 
 
$
5,423
 
 
$
13,782
 
 
$
10,699
 
 
(1)Amounts include commodity ETFs and exchange-traded products ("ETPs"). (2)Amounts include securities lending revenue of $239 million and $171 million for the three months ended June 30, 2026 and 2025, respectively, and $418 million and $328 million for the six months ended June 30, 2026 and 2025, respectively.
29
The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment style:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
By client type:
 
 
 
 
 
 
 
 
 
 
 
Retail
$
1,323
 
 
$
1,053
 
 
$
2,586
 
 
$
2,114
 
ETFs
 
2,595
 
 
 
1,875
 
 
 
5,001
 
 
 
3,668
 
Institutional:
 
 
 
 
 
 
 
 
 
 
 
Active
 
1,176
 
 
 
981
 
 
 
2,350
 
 
 
1,997
 
Index
 
289
 
 
 
241
 
 
 
544
 
 
 
479
 
Institutional subtotal
 
1,465
 
 
 
1,222
 
 
 
2,894
 
 
 
2,476
 
Long-term
 
5,383
 
 
 
4,150
 
 
 
10,481
 
 
 
8,258
 
Cash management
 
343
 
 
 
304
 
 
 
683
 
 
 
597
 
Total
$
5,726
 
 
$
4,454
 
 
$
11,164
 
 
$
8,855
 
 
 
 
 
 
 
 
 
 
 
 
 
By investment style:
 
 
 
 
 
 
 
 
 
 
 
Active
$
2,403
 
 
$
1,962
 
 
$
4,753
 
 
$
3,970
 
ETFs
 
2,595
 
 
 
1,875
 
 
 
5,001
 
 
 
3,668
 
Non-ETF index
 
385
 
 
 
313
 
 
 
727
 
 
 
620
 
Long-term
 
5,383
 
 
 
4,150
 
 
 
10,481
 
 
 
8,258
 
Cash management
 
343
 
 
 
304
 
 
 
683
 
 
 
597
 
Total
$
5,726
 
 
$
4,454
 
 
$
11,164
 
 
$
8,855
 
 
Investment Advisory and Administration Fees and Technology Services and Subscription Revenue – Remaining Performance Obligation
The tables below present estimated investment advisory and administration fees and technology services and subscription revenue expected to be recognized in the future related to the unsatisfied portion of performance obligations at June 30, 2026 and 2025:
June 30, 2026
 
Remainder of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
2026
 
 
2027
 
 
2028
 
 
2029
 
 
Thereafter
 
 
Total
 
Investment advisory and
administration fees:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alternatives(1)(2)
$
223
 
 
$
421
 
 
$
229
 
 
$
43
 
 
$
35
 
 
$
951
 
Technology services and
subscription revenue(2)(3)
$
141
 
 
$
193
 
 
$
124
 
 
$
78
 
 
$
89
 
 
$
625
 
June 30, 2025
 
Remainder of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
2025
 
 
2026
 
 
2027
 
 
2028
 
 
Thereafter
 
 
Total
 
Investment advisory and
administration fees:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alternatives(1)(2)
$
257
 
 
$
473
 
 
$
441
 
 
$
219
 
 
$
36
 
 
$
1,426
 
Technology services and
subscription revenue(2)(3)
$
133
 
 
$
161
 
 
$
86
 
 
$
45
 
 
$
61
 
 
$
486
 
 
(1)Investment advisory and administration fees include management fees related to certain private markets products, which are determined based on known contractual committed capital outstanding at June 30, 2026 and 2025. Revenue attributed to future periods could be subject to change due to a change in business activities (e.g., post-investment period) and actual amounts could differ from amounts disclosed.(2)The Company elected practical expedients to exclude amounts related to (a) performance obligations with an original duration of one year or less, and (b) variable consideration related to future service periods. 30
(3)Technology services and subscription revenue includes upfront payments from customers, which the Company recognizes as services are performed. Revenue attributed to future periods could be subject to change due to a change in business activities and actual amounts could differ from amounts disclosed.
In addition to amounts disclosed in the tables above, certain technology services and subscription contracts require fixed minimum fees, which are billed on a monthly or quarterly basis in arrears. The Company recognizes such revenue as services are performed. As of June 30, 2026, the estimated fixed minimum fees for the remainder of the year approximated $685 million. The term for these contracts, which are either in their initial or renewal period, ranges from one to five years.
Change in Deferred Carried Interest Liability
The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the condensed consolidated statements of financial condition, for the three and six months ended June 30, 2026 and 2025:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Beginning balance
$
3,560
 
 
$
1,932
 
 
$
3,515
 
 
$
1,860
 
Net increase (decrease) in unrealized allocations
 
—
 
 
 
204
 
 
 
169
 
 
 
308
 
Performance fee revenue recognized
 
(39
)
 
 
(36
)
 
 
(163
)
 
 
(68
)
Ending balance
$
3,521
 
 
$
2,100
 
 
$
3,521
 
 
$
2,100
 
 
Change in Technology Services and Subscription Deferred Revenue Liability
The table below presents changes in the technology services and subscription deferred revenue liability for the three and six months ended June 30, 2026 and 2025, which is included in other liabilities on the condensed consolidated statements of financial condition:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Beginning balance
$
252
 
 
$
232
 
 
$
260
 
 
$
124
 
Acquisition(1)
 
—
 
 
 
—
 
 
 
—
 
 
 
48
 
Additions(2)
 
87
 
 
 
79
 
 
 
141
 
 
 
113
 
Revenue recognized that was included
in the beginning balance
 
(76
)
 
 
(69
)
 
 
(138
)
 
 
(43
)
Ending balance
$
263
 
 
$
242
 
 
$
263
 
 
$
242
 
 
(1)Amount for 2025 includes deferred revenue acquired in connection with the Preqin Transaction, net of revenue recognized. See Note 3, Acquisitions, for information on the Preqin Transaction. (2)Amounts are net of revenue recognized.17. Stock-Based Compensation
Restricted Stock Units ("RSUs")
Time-Based RSUs
RSU activity for the six months ended June 30, 2026 is summarized below.
Outstanding at
RSUs
 
 
Weighted-
Average Grant Date Fair Value
 
December 31, 2025
 
3,237,707
 
 
$
896.41
 
Granted
 
591,276
 
 
$
1,166.33
 
Converted
 
(597,473
)
 
$
813.87
 
Forfeited
 
(106,565
)
 
$
909.19
 
June 30, 2026
 
3,124,945
 
 
$
962.82
 
 
31
In January 2026, pursuant to the BlackRock, Inc. Third Amended and Restated 1999 Stock Award and Incentive Plan (the "Award Plan"), the Company granted as part of the 2025 annual incentive compensation approximately 342,000 RSUs to employees that vest ratably over three years from the grant date and approximately 183,000 RSUs to employees that cliff vest 100% on January 31, 2029. The Company values RSUs at their grant-date fair value as measured by BlackRock’s common stock price. For certain incentive retention RSUs, which were granted in connection with the HPS Transaction in July 2025, and which are subject to a mandatory holding period post vesting, the grant-date fair value was discounted for the lack of marketability. For certain incentive retention RSUs, which were granted in connection with the GIP Transaction in October of 2024, and which are not entitled to participate in dividends until they vest, the grant-date fair value was reduced by the present value of the dividends expected to be paid on the common shares during the vesting period (present value was determined using a risk-free interest rate). The grant-date fair market value of RSUs granted to employees during the six months ended June 30, 2026 was $690 million.
At June 30, 2026, the intrinsic value of outstanding RSUs was $3.0 billion, reflecting a closing stock price of $962.
At June 30, 2026, total unrecognized stock-based compensation expense related to unvested RSUs was $1.5 billion. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 2 years.
Performance-Based RSUs
Performance-based RSU activity for the six months ended June 30, 2026 is summarized below.
Outstanding at
Performance-
Based RSUs
 
 
Weighted-
Average Grant Date Fair Value
 
 
Performance-
Based RSUs in Connection with the GIP Transaction
 
 
Weighted-
Average Grant Date Fair Value
 
 
Total Performance-
Based RSUs
 
 
Weighted-
Average Grant Date Fair Value
 
December 31, 2025
 
478,236
 
 
$
848.08
 
 
 
199,744
 
 
$
845.89
 
 
 
677,980
 
 
$
847.43
 
Granted
 
137,429
 
 
$
1,170.18
 
 
 
—
 
 
$
—
 
 
 
137,429
 
 
$
1,170.18
 
Additional shares due to
attainment of performance measures
 
24,996
 
 
$
743.60
 
 
 
—
 
 
$
—
 
 
 
24,996
 
 
$
743.60
 
Converted
 
(175,588
)
 
$
743.60
 
 
 
—
 
 
$
—
 
 
 
(175,588
)
 
$
743.60
 
Forfeited
 
(3,790
)
 
$
914.57
 
 
 
(27,094
)
 
$
845.48
 
 
 
(30,884
)
 
$
853.96
 
June 30, 2026
 
461,283
 
 
$
977.60
 
 
 
172,650
 
 
$
845.95
 
 
 
633,933
 
 
$
941.75
 
In January 2026, the Company granted approximately 137,000 performance-based RSUs to certain employees that cliff vest 100% on January 31, 2029. These awards are amortized over a service period of three years. The number of shares distributed at vesting could be higher or lower than the original grant based on the level of attainment of predetermined Company performance measures. In January 2026, the Company granted 24,996 additional RSUs related to the original 2023 award based on the level of attainment of Company performance measures during the performance period.
The Company values performance-based RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The incentive retention performance-based RSUs granted in connection with the GIP Transaction in October 2024 are not entitled to participate in dividends until they vest, hence the grant-date fair value of the awards was reduced by the present value of the dividends expected to be paid on the common shares during the vesting period (present value was determined using a risk-free interest rate). The total grant-date fair market value of performance-based RSUs granted (including impact of additional shares due to attainment of performance measures) to employees during the six months ended June 30, 2026 was $179 million.
At June 30, 2026, the intrinsic value of outstanding performance-based RSUs was $610 million, reflecting a closing stock price of $962.
At June 30, 2026, total unrecognized stock-based compensation expense related to unvested performance-based awards was $354 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 2 years.
32
Stock Options
Stock option activity and ending balances for the six months ended June 30, 2026 is summarized below.
 
2017 Performance-based
Options
 
 
2023 Performance-based
Options
 
 
2023 Time-based
Options
 
 
Shares
Under Option
 
 
Weighted
Average Exercise Price
 
 
Shares
Under Option
 
 
Weighted
Average Exercise Price
 
 
Shares
Under Option
 
 
Weighted
Average Exercise Price
 
Outstanding at December 31, 2025
 
300,356
 
 
$
513.50
 
 
 
678,732
 
 
$
673.58
 
 
 
281,377
 
 
$
673.58
 
Exercised
 
(173,856
)
 
$
513.50
 
 
 
—
 
 
$
—
 
 
 
—
 
 
$
—
 
Forfeited
 
—
 
 
$
—
 
 
 
(13,575
)
 
$
673.58
 
 
 
—
 
 
$
—
 
Outstanding at June 30, 2026
 
126,500
 
 
$
513.50
 
 
 
665,157
 
 
$
673.58
 
 
 
281,377
 
 
$
673.58
 
 
 
 
Options Outstanding
 
 
Options Exercisable
 
Option Type
 
Exercise Prices
 
 
Options Outstanding
 
 
Weighted Average Remaining Life (years)
 
 
Aggregate
Intrinsic Value (in millions)
 
 
Exercise Prices
 
 
Options
Exercisable
 
 
Weighted Average Remaining Life (years)
 
 
Aggregate
Intrinsic Value (in millions)
 
2017 Performance-based
 
$
513.50
 
 
 
126,500
 
 
 
0.4
 
 
$
57
 
 
$
513.50
 
 
 
126,500
 
 
 
0.4
 
 
$
57
 
2023 Performance-based
 
$
673.58
 
 
 
665,157
 
 
 
5.9
 
 
 
192
 
 
$
673.58
 
 
 
—
 
 
 
—
 
 
 
—
 
2023 Time-based
 
$
673.58
 
 
 
281,377
 
 
 
5.9
 
 
 
81
 
 
$
673.58
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
 
 
 
 
1,073,034
 
 
 
5.3
 
 
$
330
 
 
 
 
 
 
126,500
 
 
 
0.4
 
 
$
57
 
 
At June 30, 2026, total unrecognized stock-based compensation expense related to unvested performance-based and time-based stock options was $57 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 2.2 years.
Performance-Based Stock Options
In 2017, pursuant to the Award Plan, the Company awarded performance-based stock options to certain employees ("2017 Performance-based Options"). Vesting of the 2017 Performance-based Options was contingent upon (i) the achievement of a stock price equal to at least 125% of the grant-date stock price, maintained for 20 trading days, within five years from the grant date and (ii) the attainment of a Company performance measure during the four-year performance period from January 1, 2018 to December 31, 2021. Both hurdles have been achieved, and each of the three tranches of the awards vested in equal installments at the end of 2022, 2023 and 2024, respectively. Vested 2017 Performance-based Options are exercisable for up to nine years following the grant date. The expense for each tranche has been amortized over the respective requisite service period. The aggregate intrinsic value of 2017 Performance-based Options exercised during the six months ended June 30, 2026 was $103 million.
In 2023, pursuant to the Award Plan, the Company awarded performance-based stock options to certain employees ("2023 Performance-based Options"). Vesting of the 2023 Performance-based Options is contingent upon (i) the achievement of a stock price equal to at least 130% of the grant-date stock price, maintained for 60 calendar days, within four years from the grant date and (ii) the attainment of a predetermined Company performance measure during the three-year performance period from January 1, 2024 to December 31, 2026. As of June 30, 2026, the price hurdle was achieved and the Company assumes that the performance measure will be achieved. Accordingly, the awards are expected to vest in three tranches of 25%, 25% and 50% in May 2027, 2028 and 2029, respectively. Vested 2023 Performance-based Options will be exercisable for up to nine years following the grant date, and the awards are forfeited if the employee resigns before the respective vesting date. The expense for each tranche is amortized over the respective requisite service period.
Time-Based Stock Options
In 2023, pursuant to the Award Plan, the Company awarded time-based stock options to certain employees ("2023 Time-based Options"). These awards will vest in three tranches of 25%, 25% and 50% in May 2027, 2028 and 2029, respectively. Vested 2023 Time-based Options can be exercised up to nine years following the grant date, and the awards are forfeited if the employee resigns before the respective vesting date. The expense is amortized over the respective requisite service period.
See Note 18, Stock-Based Compensation, in the 2025 Form 10-K for more information on RSUs, performance-based RSUs and stock options.
33
- Related Party Transactions
The Company derives a significant portion of its investment advisory, administration fees and investment advisory performance fees from investment products that it manages. In addition, equity method investments are considered related parties, due to the Company’s influence over the financial and operating policies of the investee. As a result, a majority of BlackRock's investment advisory, administration fees and investment advisory performance fees as well as accounts receivable related to such revenue are from related parties.
Due from Related Parties
Due from related parties, which is included within other assets on the condensed consolidated statements of financial condition, was $524 million and $377 million at June 30, 2026 and December 31, 2025, respectively, and represented receivables from certain investment products managed by BlackRock.
- Net Capital Requirements
The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions. As a result, such subsidiaries of the Company may be restricted in their ability to transfer cash between different jurisdictions and to their parents. Additionally, transfers of cash between international jurisdictions may have adverse tax consequences that could discourage such transfers.
At June 30, 2026, the Company was required to maintain approximately $2.2 billion in net capital in certain regulated subsidiaries, including BlackRock Institutional Trust Company, N.A. (a consolidated subsidiary of the Company, which is chartered as a national bank whose operations are limited to trust and other fiduciary activities and which is subject to regulatory capital requirements administered by the US Office of the Comptroller of the Currency), entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the UK, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.
- Accumulated Other Comprehensive Income (Loss)
The following table presents changes in AOCI for the three and six months ended June 30, 2026 and 2025:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
 (in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
 Beginning balance
$
(678
)
 
$
(951
)
 
$
(545
)
 
$
(1,178
)
Foreign currency translation adjustments(1)
 
28
 
 
 
436
 
 
 
(111
)
 
 
663
 
Change in BlackRock, Inc.'s ownership interest
 
(3
)
 
 
—
 
 
 
3
 
 
 
—
 
 Ending balance
$
(653
)
 
$
(515
)
 
$
(653
)
 
$
(515
)
 
(1)Amounts for the three months ended June 30, 2026 and 2025 include a gain from a net investment hedge of $7 million (net of tax expense of $2 million) and a loss from a net investment hedge of $62 million (net of tax benefit of $19 million), respectively. Amounts for the six months ended June 30, 2026 and 2025 include a gain from a net investment hedge of $24 million (net of tax expense of $7 million) and a loss from a net investment hedge of $96 million (net of tax benefit of $30 million), respectively.21. Capital Stock
Share Repurchases. In January 2026, the Company announced that the Board of Directors authorized the repurchase of an additional seven million shares under the Company's existing share repurchase program for a total of up to approximately 9.2 million shares of BlackRock common stock.
During the six months ended June 30, 2026, under the Company’s existing share repurchase program, the Company repurchased an aggregate of 0.8 million shares and share equivalents for approximately $900 million. At June 30, 2026, there were approximately 8.4 million shares still authorized to be repurchased under the program. The timing and actual number of shares repurchased will depend on a variety of factors, including legal limitations, price and market conditions.
- Income Taxes
Income tax expense for the six months ended June 30, 2026 includes a $62 million discrete tax benefit related to stock-based compensation awards that vested in 2026.
Income tax expense for the six months ended June 30, 2025 included a $149 million discrete tax benefit from realized changes in the Company's organizational entity structure and a $50 million discrete tax benefit related to stock-based compensation awards that vested in 2025.
34
- Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and six months ended June 30, 2026 and 2025:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions, except shares and per share data)
2026
 
 
2025
 
 
2026
 
 
2025
 
Basic net income attributable to
BlackRock, Inc.
$
1,914
 
 
$
1,593
 
 
$
4,126
 
 
$
3,103
 
Add: Incremental net income from dilutive
securities - NCI - Subco
 
93
 
 
 
—
 
 
 
201
 
 
 
—
 
Diluted net income attributable to
BlackRock, Inc.
$
2,007
 
 
$
1,593
 
 
$
4,327
 
 
$
3,103
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares outstanding
 
155,152,875
 
 
 
154,868,992
 
 
 
155,230,412
 
 
 
154,953,413
 
Dilutive effect of:
 
 
 
 
 
 
 
 
 
 
 
   Nonparticipating RSUs
 
1,547,797
 
 
 
987,101
 
 
 
1,606,160
 
 
 
1,049,052
 
   Stock options
 
340,167
 
 
 
397,762
 
 
 
363,028
 
 
 
440,004
 
   Subco Units
 
7,606,927
 
 
 
—
 
 
 
7,624,315
 
 
 
—
 
Total diluted weighted-average shares
outstanding
 
164,647,766
 
 
 
156,253,855
 
 
 
164,823,915
 
 
 
156,442,469
 
Basic earnings per share
$
12.34
 
 
$
10.29
 
 
$
26.58
 
 
$
20.03
 
Diluted earnings per share
$
12.19
 
 
$
10.19
 
 
$
26.25
 
 
$
19.83
 
The Company applies the treasury stock method to determine the dilutive weighted-average common shares outstanding for RSUs and stock options. The Company applies the “if-converted” method to the Subco Units to determine the dilutive impact, if any, of the exchange right included in the Subco Units.
For the three and six months ended June 30, 2026, 311,121 and 285,368 shares, respectively, primarily related to RSUs, were excluded from the calculation of diluted EPS because to include them would have an anti-dilutive effect. The amount of anti-dilutive shares was immaterial for both the three and six months ended June 30, 2025. Certain performance-based awards, contingently issuable shares and Subco Units were excluded from the diluted EPS calculation because the designated contingencies were not met.
- Segment Information
The Company’s management directs BlackRock’s operations as one business, the asset management business. As such, the Company operates in one asset management operating segment. The Company's chief operating decision maker ("CODM") is its Chairman and Chief Executive Officer, who reviews financial information presented, including significant expenses on a consolidated basis, as presented in the condensed consolidated statements of income. The CODM utilizes a consolidated approach to assess performance and allocates resources using key financial metrics, including total revenue, operating income and net income attributable to BlackRock, Inc. These financial metrics are used by the CODM to make key operating decisions, including capital allocation, determining annual and long-term compensation and managing costs in relation to revenue. Furthermore, these financial metrics are used to evaluate financial performance based on consolidated specific business objectives, contributions to the total firm operating margin and to evaluate the Company's relative performance against industry peers. See the condensed consolidated financial statements for key financial metrics used by the CODM and for more financial information regarding the Company’s operating segment. The measure of segment assets is reported on the condensed consolidated statements of financial condition as total consolidated assets.
35
The following table illustrates total revenue for the three and six months ended June 30, 2026 and 2025 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the customer resides, or affiliated services are provided.
 
 
Three Months Ended
 
 
Six Months Ended
 
 
 
June 30,
 
 
June 30,
 
(in millions)
 
2026
 
 
2025
 
 
2026
 
 
2025
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
Americas
 
$
4,694
 
 
$
3,563
 
 
$
9,066
 
 
$
7,040
 
Europe
 
 
2,054
 
 
 
1,604
 
 
 
4,013
 
 
 
3,161
 
Asia-Pacific
 
 
336
 
 
 
256
 
 
 
703
 
 
 
498
 
Total revenue
 
$
7,084
 
 
$
5,423
 
 
$
13,782
 
 
$
10,699
 
 
See Note 16, Revenue, for further information on the Company’s sources of revenue.
The following table illustrates long-lived assets that consist of goodwill and property and equipment at June 30, 2026 and December 31, 2025 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located.
 
 
June 30,
 
 
December 31,
 
(in millions)
 
2026
 
 
2025
 
Long-lived Assets
 
 
 
 
 
 
Americas
 
$
32,436
 
 
$
32,492
 
Europe
 
 
3,923
 
 
 
3,921
 
Asia-Pacific
 
 
149
 
 
 
126
 
Total long-lived assets
 
$
36,508
 
 
$
36,539
 
 
Americas is primarily comprised of the US, and also includes Latin America and Canada. Europe is primarily comprised of the UK, Luxembourg and the Netherlands, and also includes Switzerland, Ireland and France. Asia-Pacific is primarily comprised of Hong Kong, Japan, India, Singapore and Australia.
- Subsequent Events
The Company conducted a review for additional subsequent events and determined that no subsequent events had occurred that would require accrual or additional disclosures.
36
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
This report, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
BlackRock has previously disclosed risk factors in its Securities and Exchange Commission reports. These risk factors and those identified elsewhere in this report, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management (“AUM”); (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of Global Infrastructure Management, LLC (“GIP” or the “GIP Transaction”), Preqin Holding Limited (“Preqin” or the “Preqin Transaction”) and HPS Investment Partners (“HPS” or the “HPS Transaction” and together with the GIP Transaction and the Preqin Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) the unfavorable resolution of legal proceedings; (9) the extent and timing of any share repurchases; (10) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (11) the failure to effectively manage the development and use of artificial intelligence; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) increasing focus from stakeholders regarding environmental- and social-related matters; (18) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, global trade tensions, tariffs, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (19) climate-related risks to BlackRock’s business, products, operations and clients; (20) the ability to attract, train and retain highly qualified professionals; (21) fluctuations in the carrying value of BlackRock’s economic investments; (22) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (23) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (24) the failure by key third-party providers to fulfill their obligations to BlackRock; (25) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (26) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded products (“ETPs”) platform; (27) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (28) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.
37
OVERVIEW
BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm with $15.3 trillion of AUM at June 30, 2026. With approximately 26,200 employees in more than 30 countries, BlackRock provides a broad range of investment management and technology and subscription services to institutional and retail clients in more than 100 countries across the globe.
BlackRock’s diverse platform of alpha-seeking active, private markets, index and cash management investment strategies across asset classes enables the Company to offer choice and tailor investment and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, private markets, liquid alternatives, digital assets, currencies and commodities, and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares® ETFs, separate accounts, collective trust funds and other pooled investment vehicles. BlackRock also offers technology and subscription services, including the investment and risk management technology platform, Aladdin®, Aladdin WealthTM, eFront®, Preqin and Cachematrix®, as well as advisory services and solutions to a broad base of institutional and wealth management clients. The Company is highly regulated and manages its clients’ assets as a fiduciary. The Company does not engage in proprietary trading activities that could conflict with the interests of its clients.
BlackRock serves a diverse mix of institutional and retail clients across the globe. Clients include tax-exempt institutions, such as defined benefit and defined contribution pension plans, charities, foundations and endowments; official institutions, such as central banks, sovereign wealth funds, supranationals and other government entities; taxable institutions, including insurance companies, financial institutions, corporations and third-party fund sponsors, and retail intermediaries.
BlackRock maintains a significant global sales and marketing presence that is focused on establishing and maintaining retail and institutional investment management and technology service relationships by marketing its services to investors directly and through third-party distribution relationships, including financial professionals and pension consultants.
Certain prior period presentations were reclassified to ensure comparability with current period classifications.
38
EXECUTIVE SUMMARY
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions, except per share data)
2026
 
 
2025
 
 
2026
 
 
2025
 
GAAP basis(1):
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$
7,084
 
 
$
5,423
 
 
$
13,782
 
 
$
10,699
 
Total expense
 
4,623
 
 
 
3,692
 
 
 
8,507
 
 
 
7,270
 
Operating income
$
2,461
 
 
$
1,731
 
 
$
5,275
 
 
$
3,429
 
Operating margin
 
34.7
%
 
 
31.9
%
 
 
38.3
%
 
 
32.0
%
Nonoperating income (expense), less net income
(loss) attributable to noncontrolling interests ("NCI") - consolidated sponsored investment products ("CIPs")
 
223
 
 
 
449
 
 
 
245
 
 
 
509
 
Income tax expense
 
677
 
 
 
587
 
 
 
1,193
 
 
 
835
 
Less: Net income (loss) attributable to NCI - Subco
 
93
 
 
 
—
 
 
 
201
 
 
 
—
 
Net income attributable to BlackRock
$
1,914
 
 
$
1,593
 
 
$
4,126
 
 
$
3,103
 
Diluted earnings per common share
$
12.19
 
 
$
10.19
 
 
$
26.25
 
 
$
19.83
 
Effective tax rate
 
25.2
%
 
 
26.9
%
 
 
21.6
%
 
 
21.2
%
As adjusted(2):
 
 
 
 
 
 
 
 
 
 
 
Operating income
$
2,916
 
 
$
2,099
 
 
$
5,585
 
 
$
4,131
 
Operating margin
 
45.9
%
 
 
43.3
%
 
 
45.2
%
 
 
43.2
%
Nonoperating income (expense), less net income
(loss) attributable to NCI - CIPs
$
145
 
 
$
404
 
 
$
167
 
 
$
479
 
Net income attributable to BlackRock(3)
$
2,291
 
 
$
1,883
 
 
$
4,359
 
 
$
3,653
 
Diluted earnings per common share(3)
$
13.91
 
 
$
12.05
 
 
$
26.45
 
 
$
23.35
 
Effective tax rate
 
25.2
%
 
 
24.8
%
 
 
24.2
%
 
 
20.8
%
Other:
 
 
 
 
 
 
 
 
 
 
 
Assets under management (end of period)
$
15,344,624
 
 
$
12,527,590
 
 
$
15,344,624
 
 
$
12,527,590
 
Diluted weighted-average common shares
outstanding (including Subco Units)
 
164.6
 
 
 
156.3
 
 
 
164.8
 
 
 
156.4
 
Shares outstanding including Subco Units(4)
 
162.6
 
 
 
154.8
 
 
 
162.6
 
 
 
154.8
 
Book value per share(5)
$
371.70
 
 
$
317.55
 
 
$
371.70
 
 
$
317.55
 
Cash dividends declared and paid per share
$
5.73
 
 
$
5.21
 
 
$
11.46
 
 
$
10.42
 
(1)Accounting principles generally accepted in the United States (“GAAP”).(2)As adjusted items are described in more detail in Non-GAAP Financial Measures.(3)Net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, assume all Subco Units have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock. Accordingly, the noncontrolling interest allocated to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. See Non-GAAP Financial Measures for further information.(4)As of June 30, 2026, there were 155.0 million shares of common stock and 7.6 million Subco Units outstanding.(5)Total BlackRock stockholders’ equity divided by total shares of common stock outstanding at June 30 of the respective period-end. Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
GAAP. Operating income of $2.5 billion increased $730 million and operating margin of 34.7% increased 280 bps from the three months ended June 30, 2025. Increases in operating income and operating margin were driven by higher revenue, reflecting the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, higher performance fees, and higher technology services and subscription revenue, partially offset by higher expense, including the impact of the HPS Transaction primarily related to noncash acquisition-related costs, as well as higher sales, asset and account expense. In addition, during the second quarter of 2025, BlackRock recorded a $39 million restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify the Company's organization to fit more closely with strategic priorities.
Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs decreased $226 million from the three months ended June 30, 2025, driven primarily by a $330 million noncash pre-tax gain in the second quarter of 2025 related to Circle Internet Group, Inc. ("Circle"), partially offset by higher equity method earnings and noncash gains on revaluation of investments.
39
Earnings per diluted common share increased $2.00, or 20%, from the three months ended June 30, 2025, reflecting higher operating income and a lower effective tax rate, partially offset by lower nonoperating income and a higher diluted share count in connection with the HPS Transaction.
As Adjusted. Operating income of $2.9 billion increased $817 million and operating margin of 45.9% increased 260 bps from the three months ended June 30, 2025. The acquisition-related expenses and restructuring charge described above have been excluded from as adjusted results. Earnings per diluted common share increased $1.86, or 15%, from the three months ended June 30, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income and a higher diluted share count in connection with the HPS Transaction.
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
GAAP. Operating income of $5.3 billion increased $1.8 billion, while operating margin of 38.3% increased 630 bps from the six months ended June 30, 2025. Operating income and operating margin reflected higher revenue, driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, and higher technology services and subscription revenue. GAAP operating income and operating margin were also impacted by noncash acquisition-related items in connection with the HPS and GIP Transactions as well as the restructuring charge described above.
Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs decreased $264 million from the six months ended June 30, 2025, driven by the previously mentioned $330 million noncash pre-tax gain related to Circle recorded in 2025 and lower net interest income (expense), partially offset by higher equity method earnings and noncash gains on revaluation of investments.
Income tax expense for the six months ended June 30, 2026 and 2025, included $62 million and $50 million of discrete tax benefits, respectively, related to vested stock-based compensation awards. In addition, income tax expense for the six months ended June 30, 2025 included a $149 million discrete tax benefit realized from changes in the Company's organizational entity structure.
Earnings per diluted common share increased $6.42, or 32%, from the six months ended June 30, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income, a higher diluted share count in connection with the HPS Transaction, and a higher effective tax rate.
As Adjusted. Operating income of $5.6 billion increased $1.5 billion and operating margin of 45.2% increased 200 bps from the six months ended June 30, 2025. The acquisition-related expenses and restructuring charge described above have been excluded from as adjusted results. Earnings per diluted common share increased $3.10, or 13%, from the six months ended June 30, 2025, reflecting higher operating income, partially offset by lower nonoperating income, a higher effective tax rate, and a higher diluted share count in connection with the HPS Transaction.
See Non-GAAP Financial Measures for further information on as adjusted items and the reconciliation to GAAP.
For further discussion of BlackRock’s revenue, expense, nonoperating results and income tax expense, see Discussion of Financial Results herein.
NON-GAAP FINANCIAL MEASURES
BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
40
Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Operating income, GAAP basis
$
2,461
 
 
$
1,731
 
 
$
5,275
 
 
$
3,429
 
Non-GAAP expense adjustments:
 
 
 
 
 
 
 
 
 
 
 
Compensation expense related to appreciation
(depreciation) on deferred cash compensation plans (a)
 
60
 
 
 
30
 
 
 
65
 
 
 
27
 
Amortization of intangible assets (b)
 
276
 
 
 
137
 
 
 
553
 
 
 
254
 
Acquisition-related compensation costs (b)
 
95
 
 
 
76
 
 
 
202
 
 
 
161
 
Acquisition-related transaction costs (b)(1)
 
13
 
 
 
10
 
 
 
28
 
 
 
49
 
Change in fair value of contingent consideration (b)
 
11
 
 
 
76
 
 
 
(538
)
 
 
172
 
Restructuring charge (c)
 
—
 
 
 
39
 
 
 
—
 
 
 
39
 
Operating income, as adjusted
$
2,916
 
 
$
2,099
 
 
$
5,585
 
 
$
4,131
 
Revenue, GAAP basis
$
7,084
 
 
$
5,423
 
 
$
13,782
 
 
$
10,699
 
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
 
Distribution fees
 
(395
)
 
 
(320
)
 
 
(784
)
 
 
(641
)
Investment advisory fees
 
(337
)
 
 
(256
)
 
 
(653
)
 
 
(505
)
Revenue used for operating margin measurement
$
6,352
 
 
$
4,847
 
 
$
12,345
 
 
$
9,553
 
Operating margin, GAAP basis
 
34.7
%
 
 
31.9
%
 
 
38.3
%
 
 
32.0
%
Operating margin, as adjusted
 
45.9
%
 
 
43.3
%
 
 
45.2
%
 
 
43.2
%
 
 
 
 
 
 
 
 
 
 
 
 
(1)Amounts included within general and administration expense.(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Nonoperating income (expense), GAAP basis
$
258
 
 
$
521
 
 
$
286
 
 
$
586
 
Less: Net income (loss) attributable to NCI - CIPs
 
35
 
 
 
72
 
 
 
41
 
 
 
77
 
Nonoperating income (expense), net of NCI - CIPs
 
223
 
 
 
449
 
 
 
245
 
 
 
509
 
Less: Hedge gain (loss) on deferred cash compensation
plans (a)
 
78
 
 
 
45
 
 
 
78
 
 
 
30
 
Nonoperating income (expense), less net income (loss)
attributable to NCI - CIPs, as adjusted
$
145
 
 
$
404
 
 
$
167
 
 
$
479
 
(3) Net income attributable to BlackRock, Inc., as adjusted:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions, except per share data)
2026
 
 
2025
 
 
2026
 
 
2025
 
Net income attributable to BlackRock, Inc., GAAP basis
$
1,914
 
 
$
1,593
 
 
$
4,126
 
 
$
3,103
 
Noncontrolling interest - Subco
 
93
 
 
 
—
 
 
 
201
 
 
 
—
 
Net income attributable to BlackRock, Inc., (for diluted EPS)
 
2,007
 
 
 
1,593
 
 
 
4,327
 
 
 
3,103
 
Non-GAAP adjustments(1):
 
 
 
 
 
 
 
 
 
 
 
Net impact of hedged deferred cash compensation plans (a)
 
(13
)
 
 
(11
)
 
 
(9
)
 
 
(2
)
Amortization of intangible assets (b)
 
206
 
 
 
102
 
 
 
413
 
 
 
189
 
Acquisition-related compensation costs (b)
 
71
 
 
 
57
 
 
 
151
 
 
 
120
 
Acquisition-related transaction costs (b)
 
9
 
 
 
9
 
 
 
20
 
 
 
38
 
Change in fair value of contingent consideration (b)
 
11
 
 
 
97
 
 
 
(543
)
 
 
169
 
Restructuring charge (c)
 
—
 
 
 
29
 
 
 
—
 
 
 
29
 
Income tax matters
 
—
 
 
 
7
 
 
 
—
 
 
 
7
 
Net income attributable to BlackRock, Inc., as adjusted
$
2,291
 
 
$
1,883
 
 
$
4,359
 
 
$
3,653
 
Diluted weighted-average common shares outstanding
 
164.6
 
 
 
156.3
 
 
 
164.8
 
 
 
156.4
 
Diluted earnings per common share, GAAP basis
$
12.19
 
 
$
10.19
 
 
$
26.25
 
 
$
19.83
 
Diluted earnings per common share, as adjusted
$
13.91
 
 
$
12.05
 
 
$
26.45
 
 
$
23.35
 
(1)Non-GAAP adjustments, excluding income tax matters, are net of tax. 41
(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.
•Operating income, as adjusted, includes the following non-GAAP expense adjustments:(a)Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.(b)Acquisition-related costs. Acquisition-related costs include adjustments related to amortization of intangible assets, change in fair value of contingent consideration (primarily associated with noncash contingent consideration) incurred in connection with certain acquisitions and other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation and general and administration expense primarily related to professional services. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.(c)Restructuring charge. In the second quarter of 2025, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify BlackRock's organization to fit more closely with strategic priorities. Management believes excluding the impact of this restructuring charge when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented. •Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries. 42
(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.
(3) Net income attributable to BlackRock, Inc., as adjusted:
•Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. The non-GAAP adjustments in 2025 and 2026 related to the change in fair value of contingent consideration are primarily not deductible for income tax purposes.
•In addition, beginning in the third quarter of 2025, in connection with the HPS Transaction, the Company updated its definition of net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, to assume all outstanding Subco Units issued as part of the consideration for the HPS Transaction have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock, as Subco Units are exchangeable at the option of the holder. Accordingly, the noncontrolling interest related to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. Management believes that these updated non-GAAP measures are useful indicators of BlackRock’s profitability and enhance comparability among periods presented, and therefore are useful to investors.•Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares including Subco Units. 43
ASSETS UNDER MANAGEMENT
AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.
AUM and Net Inflows (Outflows) by Product Type
 
 
AUM
 
 
Net inflows (outflows)
 
 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 
 
Three Months
Ended June 30,
 
 
Six Months
Ended June 30,
 
 
Twelve Months
Ended June 30,
 
(in millions)
2026
 
 
2026
 
 
2025
 
 
2025
 
 
2026
 
 
2026
 
 
2026
 
Equity
$
8,888,234
 
 
$
7,661,385
 
 
$
7,793,875
 
 
$
6,905,438
 
 
$
71,597
 
 
$
143,440
 
 
$
315,471
 
Fixed income
 
3,390,161
 
 
 
3,270,863
 
 
 
3,272,021
 
 
 
3,087,297
 
 
 
92,096
 
 
 
126,410
 
 
 
257,735
 
Multi-asset
 
1,347,299
 
 
 
1,222,612
 
 
 
1,223,625
 
 
 
1,076,709
 
 
 
16,784
 
 
 
34,610
 
 
 
105,077
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
329,083
 
 
 
320,431
 
 
 
322,624
 
 
 
215,244
 
 
 
15,432
 
 
 
24,509
 
 
 
50,379
 
Liquid alternatives
 
120,312
 
 
 
108,639
 
 
 
100,990
 
 
 
86,670
 
 
 
6,595
 
 
 
12,147
 
 
 
18,187
 
Alternatives subtotal
 
449,395
 
 
 
429,070
 
 
 
423,614
 
 
 
301,914
 
 
 
22,027
 
 
 
36,656
 
 
 
68,566
 
Digital assets
 
48,839
 
 
 
60,671
 
 
 
78,435
 
 
 
79,551
 
 
 
(3,116
)
 
 
(2,182
)
 
 
15,088
 
Currency and
commodities(1)
 
151,849
 
 
 
176,676
 
 
 
169,216
 
 
 
106,980
 
 
 
(254
)
 
 
(3,898
)
 
 
11,443
 
Long-term
 
14,275,777
 
 
 
12,821,277
 
 
 
12,960,786
 
 
 
11,557,889
 
 
 
199,134
 
 
 
335,036
 
 
 
773,380
 
Cash management
 
1,068,847
 
 
 
1,073,323
 
 
 
1,080,732
 
 
 
969,701
 
 
 
(7,434
)
 
 
(13,611
)
 
 
94,398
 
Total
$
15,344,624
 
 
$
13,894,600
 
 
$
14,041,518
 
 
$
12,527,590
 
 
$
191,700
 
 
$
321,425
 
 
$
867,778
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUM and Net Inflows (Outflows) by Client Type and Product Type
 
 
AUM
 
 
Net inflows (outflows)
 
 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 
 
Three Months
Ended June 30,
 
 
Six Months
Ended June 30,
 
 
Twelve Months
Ended June 30,
 
(in millions)
2026
 
 
2026
 
 
2025
 
 
2025
 
 
2026
 
 
2026
 
 
2026
 
Retail
$
1,396,257
 
 
$
1,262,374
 
 
$
1,278,732
 
 
$
1,100,997
 
 
$
18,862
 
 
$
34,094
 
 
$
125,578
 
ETFs
 
6,246,070
 
 
 
5,485,544
 
 
 
5,467,710
 
 
 
4,748,768
 
 
 
177,934
 
 
 
309,626
 
 
 
644,067
 
Institutional:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active
 
2,687,174
 
 
 
2,509,266
 
 
 
2,518,170
 
 
 
2,277,877
 
 
 
43,792
 
 
 
67,508
 
 
 
105,898
 
Index
 
3,946,276
 
 
 
3,564,093
 
 
 
3,696,174
 
 
 
3,430,247
 
 
 
(41,454
)
 
 
(76,192
)
 
 
(102,163
)
Institutional subtotal
 
6,633,450
 
 
 
6,073,359
 
 
 
6,214,344
 
 
 
5,708,124
 
 
 
2,338
 
 
 
(8,684
)
 
 
3,735
 
Long-term
 
14,275,777
 
 
 
12,821,277
 
 
 
12,960,786
 
 
 
11,557,889
 
 
 
199,134
 
 
 
335,036
 
 
 
773,380
 
Cash management
 
1,068,847
 
 
 
1,073,323
 
 
 
1,080,732
 
 
 
969,701
 
 
 
(7,434
)
 
 
(13,611
)
 
 
94,398
 
Total
$
15,344,624
 
 
$
13,894,600
 
 
$
14,041,518
 
 
$
12,527,590
 
 
$
191,700
 
 
$
321,425
 
 
$
867,778
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUM and Net Inflows (Outflows) by Investment Style and Product Type
 
 
AUM
 
 
Net inflows (outflows)
 
 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 
 
Three Months
Ended June 30,
 
 
Six Months
Ended June 30,
 
 
Twelve Months
Ended June 30,
 
(in millions)
2026
 
 
2026
 
 
2025
 
 
2025
 
 
2026
 
 
2026
 
 
2026
 
Active
$
3,665,405
 
 
$
3,410,923
 
 
$
3,432,743
 
 
$
3,051,873
 
 
$
53,313
 
 
$
82,934
 
 
$
207,305
 
ETFs
 
6,246,070
 
 
 
5,485,544
 
 
 
5,467,710
 
 
 
4,748,768
 
 
 
177,934
 
 
 
309,626
 
 
 
644,067
 
Non-ETF index
 
4,364,302
 
 
 
3,924,810
 
 
 
4,060,333
 
 
 
3,757,248
 
 
 
(32,113
)
 
 
(57,524
)
 
 
(77,992
)
Long-term
 
14,275,777
 
 
 
12,821,277
 
 
 
12,960,786
 
 
 
11,557,889
 
 
 
199,134
 
 
 
335,036
 
 
 
773,380
 
Cash management
 
1,068,847
 
 
 
1,073,323
 
 
 
1,080,732
 
 
 
969,701
 
 
 
(7,434
)
 
 
(13,611
)
 
 
94,398
 
Total
$
15,344,624
 
 
$
13,894,600
 
 
$
14,041,518
 
 
$
12,527,590
 
 
$
191,700
 
 
$
321,425
 
 
$
867,778
 
(1)Amounts include commodity ETFs and ETPs. 44
Component Changes in AUM for the Three Months Ended June 30, 2026
The following table presents the component changes in AUM by product type for the three months ended June 30, 2026.
 
March 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2026
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Equity
$
7,661,385
 
 
$
71,597
 
 
$
—
 
 
$
1,167,280
 
 
$
(12,028
)
$
8,888,234
 
$
8,467,690
 
Fixed income
 
3,270,863
 
 
 
92,096
 
 
 
(915
)
 
 
32,155
 
 
 
(4,038
)
 
3,390,161
 
 
3,339,692
 
Multi-asset
 
1,222,612
 
 
 
16,784
 
 
 
—
 
 
 
109,665
 
 
 
(1,762
)
 
1,347,299
 
 
1,299,289
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
320,431
 
 
 
15,432
 
 
 
(6,209
)
 
 
(469
)
 
 
(102
)
 
329,083
 
 
324,696
 
Liquid alternatives
 
108,639
 
 
 
6,595
 
 
 
(70
)
 
 
5,062
 
 
 
86
 
 
120,312
 
 
114,686
 
Alternatives subtotal
 
429,070
 
 
22,027
 
 
 
(6,279
)
 
 
4,593
 
 
(16
)
 
449,395
 
 
439,382
 
Digital assets
 
60,671
 
 
 
(3,116
)
 
 
—
 
 
 
(8,710
)
 
 
(6
)
 
 
48,839
 
 
 
61,479
 
Currency and
commodities(4)
 
176,676
 
 
 
(254
)
 
 
—
 
 
 
(24,483
)
 
 
(90
)
 
 
151,849
 
 
 
171,774
 
Long-term
 
12,821,277
 
 
199,134
 
 
 
(7,194
)
 
 
1,280,500
 
 
(17,940
)
 
14,275,777
 
 
13,779,306
 
Cash management
 
1,073,323
 
 
 
(7,434
)
 
 
—
 
 
 
3,138
 
 
 
(180
)
 
 
1,068,847
 
 
 
1,074,690
 
Total
$
13,894,600
 
 
$
191,700
 
 
$
(7,194
)
 
$
1,283,638
 
 
$
(18,120
)
 
$
15,344,624
 
 
$
14,853,996
 
The following table presents the component changes in AUM by client type and product type for the three months ended June 30, 2026.
 
March 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2026
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Retail:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
$
615,043
 
 
$
7,992
 
 
$
—
 
 
$
90,962
 
 
$
(249
)
 
$
713,748
 
 
$
679,470
 
Fixed income
 
382,823
 
 
 
9,325
 
 
 
—
 
 
 
5,131
 
 
 
790
 
 
 
398,069
 
 
 
392,520
 
Multi-asset
 
195,980
 
 
 
(2,336
)
 
 
—
 
 
 
18,052
 
 
 
44
 
 
 
211,740
 
 
 
206,508
 
Private markets
 
31,190
 
 
 
86
 
 
 
(238
)
 
 
(220
)
 
 
(30
)
 
 
30,788
 
 
 
31,233
 
Liquid alternatives
 
37,338
 
 
 
3,795
 
 
 
(7
)
 
 
777
 
 
 
9
 
 
 
41,912
 
 
 
39,832
 
Retail subtotal
 
1,262,374
 
 
 
18,862
 
 
 
(245
)
 
 
114,702
 
 
 
564
 
 
 
1,396,257
 
 
 
1,349,563
 
ETFs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
4,001,533
 
 
 
110,035
 
 
 
—
 
 
 
615,561
 
 
 
(4,572
)
 
 
4,722,557
 
 
 
4,455,626
 
Fixed income
 
1,239,025
 
 
 
66,388
 
 
 
—
 
 
 
4,531
 
 
 
(1,317
)
 
 
1,308,627
 
 
 
1,274,752
 
Multi-asset
 
15,086
 
 
 
5,552
 
 
 
—
 
 
 
1,246
 
 
 
(117
)
 
 
21,767
 
 
 
18,275
 
Digital assets
 
60,671
 
 
 
(3,116
)
 
 
—
 
 
 
(8,710
)
 
 
(6
)
 
 
48,839
 
 
 
61,479
 
Commodities
 
169,229
 
 
 
(925
)
 
 
—
 
 
 
(23,968
)
 
 
(56
)
 
 
144,280
 
 
 
164,009
 
ETFs subtotal
 
5,485,544
 
 
 
177,934
 
 
 
—
 
 
 
588,660
 
 
 
(6,068
)
 
 
6,246,070
 
 
 
5,974,141
 
Institutional:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
248,689
 
 
 
2,083
 
 
 
—
 
 
 
38,250
 
 
 
(293
)
 
 
288,729
 
 
 
275,621
 
Fixed income
 
892,131
 
 
 
10,293
 
 
 
(915
)
 
 
11,182
 
 
 
(613
)
 
 
912,078
 
 
 
902,982
 
Multi-asset
 
1,007,904
 
 
 
13,270
 
 
 
—
 
 
 
90,169
 
 
 
(1,671
)
 
 
1,109,672
 
 
 
1,070,376
 
Private markets
 
289,241
 
 
 
15,346
 
 
 
(5,971
)
 
 
(249
)
 
 
(72
)
 
 
298,295
 
 
 
293,463
 
Liquid alternatives
 
71,301
 
 
 
2,800
 
 
 
(63
)
 
 
4,285
 
 
 
77
 
 
 
78,400
 
 
 
74,854
 
Active subtotal
 
2,509,266
 
 
 
43,792
 
 
 
(6,949
)
 
 
143,637
 
 
 
(2,572
)
 
 
2,687,174
 
 
 
2,617,296
 
Index
 
3,564,093
 
 
 
(41,454
)
 
 
—
 
 
 
433,501
 
 
 
(9,864
)
 
 
3,946,276
 
 
 
3,838,306
 
Institutional subtotal
 
6,073,359
 
 
 
2,338
 
 
 
(6,949
)
 
 
577,138
 
 
 
(12,436
)
 
 
6,633,450
 
 
 
6,455,602
 
Long-term
 
12,821,277
 
 
 
199,134
 
 
 
(7,194
)
 
 
1,280,500
 
 
 
(17,940
)
 
 
14,275,777
 
 
 
13,779,306
 
Cash management
 
1,073,323
 
 
 
(7,434
)
 
 
—
 
 
 
3,138
 
 
 
(180
)
 
 
1,068,847
 
 
 
1,074,690
 
Total
$
13,894,600
 
 
$
191,700
 
 
$
(7,194
)
 
$
1,283,638
 
 
$
(18,120
)
 
$
15,344,624
 
 
$
14,853,996
 
(1)Realizations represent return of capital/return on investments. (2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into United States ("US") dollars for reporting purposes. (3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.(4)Amounts include commodity ETFs and ETPs. 45
The following table presents the component changes in AUM by investment style and product type for the three months ended June 30, 2026.
 
March 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2026
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Active:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
$
535,995
 
$
2,106
 
 
$
—
 
 
$
81,700
 
 
$
(562
)
$
619,239
 
$
591,272
 
Fixed income
 
1,241,991
 
 
18,246
 
 
 
(915
)
 
 
15,895
 
 
 
161
 
 
 
1,275,378
 
 
 
1,261,566
 
Multi-asset
 
1,203,867
 
 
10,934
 
 
 
—
 
 
 
108,219
 
 
 
(1,627
)
 
 
1,321,393
 
 
 
1,276,865
 
Private markets
 
320,431
 
 
 
15,432
 
 
 
(6,209
)
 
 
(469
)
 
 
(102
)
 
 
329,083
 
 
 
324,696
 
Liquid alternatives
 
108,639
 
 
6,595
 
 
 
(70
)
 
 
5,062
 
 
 
86
 
 
 
120,312
 
 
 
114,686
 
Active subtotal
 
3,410,923
 
 
53,313
 
 
 
(7,194
)
 
 
210,407
 
 
 
(2,044
)
 
 
3,665,405
 
 
 
3,569,085
 
ETFs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
4,001,533
 
 
 
110,035
 
 
 
—
 
 
 
615,561
 
 
 
(4,572
)
 
 
4,722,557
 
 
 
4,455,626
 
Fixed income
 
1,239,025
 
 
66,388
 
 
 
—
 
 
 
4,531
 
 
 
(1,317
)
 
 
1,308,627
 
 
 
1,274,752
 
Multi-asset
 
15,086
 
 
5,552
 
 
 
—
 
 
 
1,246
 
 
 
(117
)
 
 
21,767
 
 
 
18,275
 
Digital assets
 
60,671
 
 
(3,116
)
 
 
—
 
 
 
(8,710
)
 
 
(6
)
 
 
48,839
 
 
 
61,479
 
Commodities
 
169,229
 
 
(925
)
 
 
—
 
 
 
(23,968
)
 
 
(56
)
 
 
144,280
 
 
 
164,009
 
ETFs subtotal
 
5,485,544
 
 
177,934
 
 
 
—
 
 
 
588,660
 
 
 
(6,068
)
 
 
6,246,070
 
 
 
5,974,141
 
Non-ETF index
 
3,924,810
 
 
(32,113
)
 
 
—
 
 
 
481,433
 
 
 
(9,828
)
 
 
4,364,302
 
 
 
4,236,080
 
Long-term
 
12,821,277
 
 
199,134
 
 
 
(7,194
)
 
 
1,280,500
 
 
 
(17,940
)
 
 
14,275,777
 
 
 
13,779,306
 
Cash management
 
1,073,323
 
 
 
(7,434
)
 
 
—
 
 
 
3,138
 
 
 
(180
)
 
 
1,068,847
 
 
 
1,074,690
 
Total
$
13,894,600
 
 
$
191,700
 
 
$
(7,194
)
 
$
1,283,638
 
 
$
(18,120
)
 
$
15,344,624
 
 
$
14,853,996
 
The following table presents the component changes in AUM by private markets product type for the three months ended June 30, 2026.
 
March 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2026
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Private markets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Infrastructure
$
111,867
 
 
$
5,233
 
 
$
(3,006
)
 
$
(648
)
 
$
42
 
 
$
113,488
 
 
$
112,172
 
Private equity
 
30,231
 
 
 
2,677
 
 
 
(769
)
 
 
147
 
 
 
(25
)
 
 
32,261
 
 
 
31,663
 
Private credit
 
147,045
 
 
 
6,004
 
 
 
(1,833
)
 
 
(184
)
 
 
(95
)
 
 
150,937
 
 
 
148,997
 
Real estate
 
21,654
 
 
 
237
 
 
 
(133
)
 
 
221
 
 
 
(26
)
 
 
21,953
 
 
 
21,943
 
Multi-alternatives
 
9,634
 
 
 
1,281
 
 
 
(468
)
 
 
(5
)
 
 
2
 
 
 
10,444
 
 
 
9,921
 
Total private markets
$
320,431
 
 
$
15,432
 
 
$
(6,209
)
 
$
(469
)
 
$
(102
)
 
$
329,083
 
 
$
324,696
 
(1)Realizations represent return of capital/return on investments. (2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. (3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months. 46
AUM increased $1.5 trillion to $15.3 trillion at June 30, 2026 from $13.9 trillion at March 31, 2026, driven by net market appreciation and net inflows.
Long-term net inflows of $199 billion were comprised of $178 billion, $19 billion and $2 billion from ETFs, retail clients and institutional clients, respectively. Net flows in long-term products are described below.
•ETFs net inflows of $178 billion were led by core equity and index bond ETFs net inflows of $85 billion and $61 billion, respectively. Active ETFs contributed $20 billion of net inflows.•Retail net inflows of $19 billion were driven by net inflows into active fixed income products and continued demand for Aperio and BlackRock's liquid alternatives funds.•Institutional active net inflows of $44 billion were driven by strength in private markets, fixed income, systematic equity strategies, as well as outsourcing and target-date offerings.•Institutional index net outflows of $41 billion were concentrated in low-fee index equity offerings.Cash management net outflows of $7 billion were driven by redemptions from US government funds.
Net market appreciation of $1.3 trillion was primarily driven by global equity market appreciation.
AUM decreased $18 billion due to the impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the Japanese yen and the euro.
47
Component Changes in AUM for the Six Months Ended June 30, 2026
The following table presents the component changes in AUM by product type for the six months ended June 30, 2026.
 
December 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Equity
$
7,793,875
 
 
$
143,440
 
 
$
—
 
 
$
987,657
 
 
$
(36,738
)
$
8,888,234
 
$
8,275,937
 
Fixed income
 
3,272,021
 
 
 
126,410
 
 
 
(1,871
)
 
 
12,505
 
 
 
(18,904
)
 
3,390,161
 
 
3,328,895
 
Multi-asset
 
1,223,625
 
 
 
34,610
 
 
 
—
 
 
 
96,952
 
 
 
(7,888
)
 
1,347,299
 
 
1,280,725
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
322,624
 
 
 
24,509
 
 
 
(14,681
)
 
 
(2,458
)
 
 
(911
)
 
329,083
 
 
323,993
 
Liquid alternatives
 
100,990
 
 
 
12,147
 
 
 
(765
)
 
 
7,767
 
 
 
173
 
 
120,312
 
 
110,531
 
Alternatives subtotal
 
423,614
 
 
36,656
 
 
 
(15,446
)
 
 
5,309
 
 
(738
)
 
449,395
 
 
434,524
 
Digital assets
 
78,435
 
 
 
(2,182
)
 
 
—
 
 
 
(27,403
)
 
 
(11
)
 
 
48,839
 
 
 
65,172
 
Currency and
commodities(4)
 
169,216
 
 
 
(3,898
)
 
 
—
 
 
 
(13,178
)
 
 
(291
)
 
 
151,849
 
 
 
181,688
 
Long-term
 
12,960,786
 
 
335,036
 
 
 
(17,317
)
 
 
1,061,842
 
 
(64,570
)
 
14,275,777
 
 
13,566,941
 
Cash management
 
1,080,732
 
 
 
(13,611
)
 
 
—
 
 
 
5,344
 
 
 
(3,618
)
 
 
1,068,847
 
 
 
1,073,788
 
Total
$
14,041,518
 
 
$
321,425
 
 
$
(17,317
)
 
$
1,067,186
 
 
$
(68,188
)
 
$
15,344,624
 
 
$
14,640,729
 
The following table presents the component changes in AUM by client type and product type for the six months ended June 30, 2026.
 
December 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Retail:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
$
629,081
 
 
$
15,426
 
 
$
—
 
 
$
72,254
 
 
$
(3,013
)
 
$
713,748
 
 
$
665,257
 
Fixed income
 
384,887
 
 
 
12,141
 
 
 
—
 
 
 
1,316
 
 
 
(275
)
 
 
398,069
 
 
 
390,475
 
Multi-asset
 
199,655
 
 
 
(1,337
)
 
 
—
 
 
 
13,604
 
 
 
(182
)
 
 
211,740
 
 
 
205,415
 
Private markets
 
30,681
 
 
 
1,347
 
 
 
(533
)
 
 
(559
)
 
 
(148
)
 
 
30,788
 
 
 
31,217
 
Liquid alternatives
 
34,428
 
 
 
6,517
 
 
 
(192
)
 
 
1,191
 
 
 
(32
)
 
 
41,912
 
 
 
38,107
 
Retail subtotal
 
1,278,732
 
 
 
34,094
 
 
 
(725
)
 
 
87,806
 
 
 
(3,650
)
 
 
1,396,257
 
 
 
1,330,471
 
ETFs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
4,006,014
 
 
 
198,148
 
 
 
—
 
 
 
529,796
 
 
 
(11,401
)
 
 
4,722,557
 
 
 
4,324,286
 
Fixed income
 
1,205,953
 
 
 
111,827
 
 
 
—
 
 
 
(4,832
)
 
 
(4,321
)
 
 
1,308,627
 
 
 
1,256,084
 
Multi-asset
 
14,402
 
 
 
6,435
 
 
 
—
 
 
 
1,157
 
 
 
(227
)
 
 
21,767
 
 
 
16,861
 
Digital assets
 
78,435
 
 
 
(2,182
)
 
 
—
 
 
 
(27,403
)
 
 
(11
)
 
 
48,839
 
 
 
65,172
 
Commodities
 
162,906
 
 
 
(4,602
)
 
 
—
 
 
 
(13,811
)
 
 
(213
)
 
 
144,280
 
 
 
174,350
 
ETFs subtotal
 
5,467,710
 
 
 
309,626
 
 
 
—
 
 
 
484,907
 
 
 
(16,173
)
 
 
6,246,070
 
 
 
5,836,753
 
Institutional:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
247,993
 
 
 
6,468
 
 
 
—
 
 
 
36,012
 
 
 
(1,744
)
 
 
288,729
 
 
 
268,130
 
Fixed income
 
905,566
 
 
 
3,101
 
 
 
(1,871
)
 
 
8,812
 
 
 
(3,530
)
 
 
912,078
 
 
 
905,950
 
Multi-asset
 
1,006,106
 
 
 
29,147
 
 
 
—
 
 
 
81,874
 
 
 
(7,455
)
 
 
1,109,672
 
 
 
1,054,559
 
Private markets
 
291,943
 
 
 
23,162
 
 
 
(14,148
)
 
 
(1,899
)
 
 
(763
)
 
 
298,295
 
 
 
292,776
 
Liquid alternatives
 
66,562
 
 
 
5,630
 
 
 
(573
)
 
 
6,576
 
 
 
205
 
 
 
78,400
 
 
 
72,424
 
Active subtotal
 
2,518,170
 
 
 
67,508
 
 
 
(16,592
)
 
 
131,375
 
 
 
(13,287
)
 
 
2,687,174
 
 
 
2,593,839
 
Index
 
3,696,174
 
 
 
(76,192
)
 
 
—
 
 
 
357,754
 
 
 
(31,460
)
 
 
3,946,276
 
 
 
3,805,878
 
Institutional subtotal
 
6,214,344
 
 
 
(8,684
)
 
 
(16,592
)
 
 
489,129
 
 
 
(44,747
)
 
 
6,633,450
 
 
 
6,399,717
 
Long-term
 
12,960,786
 
 
 
335,036
 
 
 
(17,317
)
 
 
1,061,842
 
 
 
(64,570
)
 
 
14,275,777
 
 
 
13,566,941
 
Cash management
 
1,080,732
 
 
 
(13,611
)
 
 
—
 
 
 
5,344
 
 
 
(3,618
)
 
 
1,068,847
 
 
 
1,073,788
 
Total
$
14,041,518
 
 
$
321,425
 
 
$
(17,317
)
 
$
1,067,186
 
 
$
(68,188
)
 
$
15,344,624
 
 
$
14,640,729
 
(1)Realizations represent return of capital/return on investments. (2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. (3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing seven months.(4)Amounts include commodity ETFs and ETPs.
48
The following table presents the component changes in AUM by investment style and product type for the six months ended June 30, 2026.
 
December 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Active:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
$
546,028
 
$
5,255
 
 
$
—
 
 
$
71,209
 
 
$
(3,253
)
$
619,239
 
$
580,183
 
Fixed income
 
1,257,358
 
 
13,213
 
 
 
(1,871
)
 
 
10,027
 
 
 
(3,349
)
 
 
1,275,378
 
 
 
1,262,392
 
Multi-asset
 
1,205,743
 
 
27,810
 
 
 
—
 
 
 
95,477
 
 
 
(7,637
)
 
 
1,321,393
 
 
 
1,259,956
 
Private markets
 
322,624
 
 
 
24,509
 
 
 
(14,681
)
 
 
(2,458
)
 
 
(911
)
 
 
329,083
 
 
 
323,993
 
Liquid alternatives
 
100,990
 
 
12,147
 
 
 
(765
)
 
 
7,767
 
 
 
173
 
 
 
120,312
 
 
 
110,531
 
Active subtotal
 
3,432,743
 
 
82,934
 
 
 
(17,317
)
 
 
182,022
 
 
 
(14,977
)
 
 
3,665,405
 
 
 
3,537,055
 
ETFs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
4,006,014
 
 
 
198,148
 
 
 
—
 
 
 
529,796
 
 
 
(11,401
)
 
 
4,722,557
 
 
 
4,324,286
 
Fixed income
 
1,205,953
 
 
111,827
 
 
 
—
 
 
 
(4,832
)
 
 
(4,321
)
 
 
1,308,627
 
 
 
1,256,084
 
Multi-asset
 
14,402
 
 
6,435
 
 
 
—
 
 
 
1,157
 
 
 
(227
)
 
 
21,767
 
 
 
16,861
 
Digital assets
 
78,435
 
 
(2,182
)
 
 
—
 
 
 
(27,403
)
 
 
(11
)
 
 
48,839
 
 
 
65,172
 
Commodities
 
162,906
 
 
(4,602
)
 
 
—
 
 
 
(13,811
)
 
 
(213
)
 
 
144,280
 
 
 
174,350
 
ETFs subtotal
 
5,467,710
 
 
309,626
 
 
 
—
 
 
 
484,907
 
 
 
(16,173
)
 
 
6,246,070
 
 
 
5,836,753
 
Non-ETF index
 
4,060,333
 
 
(57,524
)
 
 
—
 
 
 
394,913
 
 
 
(33,420
)
 
 
4,364,302
 
 
 
4,193,133
 
Long-term
 
12,960,786
 
 
335,036
 
 
 
(17,317
)
 
 
1,061,842
 
 
 
(64,570
)
 
 
14,275,777
 
 
 
13,566,941
 
Cash management
 
1,080,732
 
 
 
(13,611
)
 
 
—
 
 
 
5,344
 
 
 
(3,618
)
 
 
1,068,847
 
 
 
1,073,788
 
Total
$
14,041,518
 
 
$
321,425
 
 
$
(17,317
)
 
$
1,067,186
 
 
$
(68,188
)
 
$
15,344,624
 
 
$
14,640,729
 
The following table presents the component changes in AUM by private markets product type for the six months ended June 30, 2026.
 
December 31,
 
 
Net
inflows
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
change
 
 
impact(2)
 
 
2026
 
 
AUM(3)
 
Private markets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Infrastructure
$
112,116
 
 
$
6,467
 
 
$
(3,325
)
 
$
(1,551
)
 
$
(219
)
 
$
113,488
 
 
$
112,190
 
Private equity
 
30,623
 
 
 
3,076
 
 
 
(1,348
)
 
 
(16
)
 
 
(74
)
 
 
32,261
 
 
 
31,165
 
Private credit
 
145,385
 
 
 
12,624
 
 
 
(5,741
)
 
 
(893
)
 
 
(438
)
 
 
150,937
 
 
 
147,993
 
Real estate
 
25,062
 
 
 
692
 
 
 
(3,627
)
 
 
(41
)
 
 
(133
)
 
 
21,953
 
 
 
22,915
 
Multi-alternatives
 
9,438
 
 
 
1,650
 
 
 
(640
)
 
 
43
 
 
 
(47
)
 
 
10,444
 
 
 
9,730
 
Total private markets
$
322,624
 
 
$
24,509
 
 
$
(14,681
)
 
$
(2,458
)
 
$
(911
)
 
$
329,083
 
 
$
323,993
 
(1)Realizations represent return of capital/return on investments. (2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. (3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing seven months.
49
AUM increased $1.3 trillion to $15.3 trillion at June 30, 2026 from $14.0 trillion at December 31, 2025, driven by net market appreciation and net inflows, partially offset by the negative impact of foreign exchange movements.
Long-term net inflows of $335 billion were comprised of $310 billion and $34 billion from ETFs and retail clients, respectively, partially offset by net outflows of $9 billion from institutional clients. Net flows in long-term products are described below.
•ETFs net inflows of $310 billion were led by core equity and index bond ETFs net inflows of $117 billion and $102 billion, respectively. Active ETFs contributed $39 billion of net inflows.•Retail net inflows of $34 billion were driven by net inflows into equity products, largely reflecting net inflows in Aperio, and continued strength in the Company's systematic liquid alternatives and active fixed income offerings.•Institutional active net inflows of $68 billion were driven by BlackRock's LifePath® target-date franchise, private markets, systematic equity strategies and outsourcing mandates.•Institutional index net outflows of $76 billion were concentrated in low-fee index equity offerings.Cash management net outflows of $14 billion were driven by net outflows from US government money market funds.
Net market appreciation of $1.1 trillion was primarily driven by global equity market appreciation.
AUM decreased $68 billion due to the impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the Japanese yen, the euro, the British pound and the Canadian dollar.
50
Component Changes in AUM for the Twelve Months Ended June 30, 2026
The following table presents the component changes in AUM by product type for the twelve months ended June 30, 2026.
 
June 30,
 
 
Net
inflows
 
 
 
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
Acquisitions(2)
 
 
change
 
 
impact(3)
 
 
2026
 
 
AUM(4)
 
Equity
$
6,905,438
 
 
$
315,471
 
 
$
—
 
 
$
—
 
 
$
1,725,405
 
 
$
(58,080
)
$
8,888,234
 
$
7,826,258
 
Fixed income
 
3,087,297
 
 
 
257,735
 
 
 
(3,362
)
 
 
13,567
 
 
 
70,604
 
 
 
(35,680
)
 
3,390,161
 
 
3,246,979
 
Multi-asset
 
1,076,709
 
 
 
105,077
 
 
 
—
 
 
 
—
 
 
 
176,329
 
 
 
(10,816
)
 
1,347,299
 
 
1,215,620
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
215,244
 
 
 
50,379
 
 
 
(31,383
)
 
 
101,017
 
 
 
(5,139
)
 
 
(1,035
)
 
329,083
 
 
313,356
 
Liquid alternatives
 
86,670
 
 
 
18,187
 
 
 
(931
)
 
 
6,377
 
 
 
9,791
 
 
 
218
 
 
120,312
 
 
103,399
 
Alternatives subtotal
 
301,914
 
 
68,566
 
 
 
(32,314
)
 
 
107,394
 
 
 
4,652
 
 
(817
)
 
449,395
 
 
416,755
 
Digital assets
 
79,551
 
 
 
15,088
 
 
 
—
 
 
 
—
 
 
 
(45,790
)
 
 
(10
)
 
 
48,839
 
 
 
78,692
 
Currency and
commodities(5)
 
106,980
 
 
 
11,443
 
 
 
—
 
 
 
—
 
 
 
33,884
 
 
 
(458
)
 
 
151,849
 
 
 
156,496
 
Long-term
 
11,557,889
 
 
773,380
 
 
 
(35,676
)
 
 
120,961
 
 
 
1,965,084
 
 
(105,861
)
 
14,275,777
 
 
12,940,800
 
Cash management
 
969,701
 
 
 
94,398
 
 
 
—
 
 
 
—
 
 
 
9,856
 
 
 
(5,108
)
 
 
1,068,847
 
 
 
1,039,777
 
Total
$
12,527,590
 
 
$
867,778
 
 
$
(35,676
)
 
$
120,961
 
 
$
1,974,940
 
 
$
(110,969
)
 
$
15,344,624
 
 
$
13,980,577
 
The following table presents the component changes in AUM by client type and product type for the twelve months ended June 30, 2026.
 
June 30,
 
 
Net
inflows
 
 
 
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
Acquisitions(2)
 
 
change
 
 
impact(3)
 
 
2026
 
 
AUM(4)
 
Retail:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
$
557,833
 
 
$
32,750
 
 
$
—
 
 
$
—
 
 
$
127,779
 
 
$
(4,614
)
 
$
713,748
 
 
$
627,810
 
Fixed income
 
333,624
 
 
 
55,304
 
 
 
—
 
 
 
—
 
 
 
8,213
 
 
 
928
 
 
 
398,069
 
 
 
367,653
 
Multi-asset
 
162,852
 
 
 
22,315
 
 
 
—
 
 
 
—
 
 
 
26,751
 
 
 
(178
)
 
 
211,740
 
 
 
188,039
 
Private markets
 
16,823
 
 
 
4,158
 
 
 
(1,267
)
 
 
11,674
 
 
 
(424
)
 
 
(176
)
 
 
30,788
 
 
 
29,566
 
Liquid alternatives
 
29,865
 
 
 
11,051
 
 
 
(223
)
 
 
—
 
 
 
1,289
 
 
 
(70
)
 
 
41,912
 
 
 
35,305
 
Retail subtotal
 
1,100,997
 
 
 
125,578
 
 
 
(1,490
)
 
 
11,674
 
 
 
163,608
 
 
 
(4,110
)
 
 
1,396,257
 
 
 
1,248,373
 
ETFs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
3,455,117
 
 
 
400,347
 
 
 
—
 
 
 
—
 
 
 
880,389
 
 
 
(13,296
)
 
 
4,722,557
 
 
 
4,033,738
 
Fixed income
 
1,101,224
 
 
 
209,764
 
 
 
—
 
 
 
—
 
 
 
2,419
 
 
 
(4,780
)
 
 
1,308,627
 
 
 
1,205,001
 
Multi-asset
 
11,926
 
 
 
8,105
 
 
 
—
 
 
 
—
 
 
 
1,969
 
 
 
(233
)
 
 
21,767
 
 
 
15,014
 
Digital assets
 
79,551
 
 
 
15,088
 
 
 
—
 
 
 
—
 
 
 
(45,790
)
 
 
(10
)
 
 
48,839
 
 
 
78,692
 
Commodities
 
100,950
 
 
 
10,763
 
 
 
—
 
 
 
—
 
 
 
32,791
 
 
 
(224
)
 
 
144,280
 
 
 
149,716
 
ETFs subtotal
 
4,748,768
 
 
 
644,067
 
 
 
—
 
 
 
—
 
 
 
871,778
 
 
 
(18,543
)
 
 
6,246,070
 
 
 
5,482,161
 
Institutional:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
242,098
 
 
 
(15,783
)
 
 
—
 
 
 
—
 
 
 
65,940
 
 
 
(3,526
)
 
 
288,729
 
 
 
255,587
 
Fixed income
 
881,932
 
 
 
(5,974
)
 
 
(3,362
)
 
 
13,567
 
 
 
32,204
 
 
 
(6,289
)
 
 
912,078
 
 
 
900,391
 
Multi-asset
 
898,621
 
 
 
74,298
 
 
 
—
 
 
 
—
 
 
 
147,106
 
 
 
(10,353
)
 
 
1,109,672
 
 
 
1,008,898
 
Private markets
 
198,421
 
 
 
46,221
 
 
 
(30,116
)
 
 
89,343
 
 
 
(4,715
)
 
 
(859
)
 
 
298,295
 
 
 
283,790
 
Liquid alternatives
 
56,805
 
 
 
7,136
 
 
 
(708
)
 
 
6,377
 
 
 
8,502
 
 
 
288
 
 
 
78,400
 
 
 
68,094
 
Active subtotal
 
2,277,877
 
 
 
105,898
 
 
 
(34,186
)
 
 
109,287
 
 
 
249,037
 
 
 
(20,739
)
 
 
2,687,174
 
 
 
2,516,760
 
Index
 
3,430,247
 
 
 
(102,163
)
 
 
—
 
 
 
—
 
 
 
680,661
 
 
 
(62,469
)
 
 
3,946,276
 
 
 
3,693,506
 
Institutional subtotal
 
5,708,124
 
 
 
3,735
 
 
 
(34,186
)
 
 
109,287
 
 
 
929,698
 
 
 
(83,208
)
 
 
6,633,450
 
 
 
6,210,266
 
Long-term
 
11,557,889
 
 
 
773,380
 
 
 
(35,676
)
 
 
120,961
 
 
 
1,965,084
 
 
 
(105,861
)
 
 
14,275,777
 
 
 
12,940,800
 
Cash management
 
969,701
 
 
 
94,398
 
 
 
—
 
 
 
—
 
 
 
9,856
 
 
 
(5,108
)
 
 
1,068,847
 
 
 
1,039,777
 
Total
$
12,527,590
 
 
$
867,778
 
 
$
(35,676
)
 
$
120,961
 
 
$
1,974,940
 
 
$
(110,969
)
 
$
15,344,624
 
 
$
13,980,577
 
(1)Realizations represent return of capital/return on investments. (2)Amounts include AUM attributable to the HPS and ElmTree Transactions.(3)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. (4)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.(5)Amounts include commodity ETFs and ETPs. 51
The following table presents the component changes in AUM by investment style and product type for the twelve months ended June 30, 2026.
 
June 30,
 
 
Net
inflows
 
 
 
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
Acquisitions(2)
 
 
change
 
 
impact(3)
 
 
2026
 
 
AUM(4)
 
Active:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
$
504,554
 
$
(4,079
)
 
$
—
 
 
$
—
 
 
$
124,323
 
 
$
(5,559
)
$
619,239
 
$
548,591
 
Fixed income
 
1,183,948
 
 
46,205
 
 
 
(3,362
)
 
 
13,567
 
 
 
39,647
 
 
 
(4,627
)
 
 
1,275,378
 
 
 
1,234,874
 
Multi-asset
 
1,061,457
 
 
96,613
 
 
 
—
 
 
 
—
 
 
 
173,855
 
 
 
(10,532
)
 
 
1,321,393
 
 
 
1,196,919
 
Private markets
 
215,244
 
 
 
50,379
 
 
 
(31,383
)
 
 
101,017
 
 
 
(5,139
)
 
 
(1,035
)
 
 
329,083
 
 
 
313,356
 
Liquid alternatives
 
86,670
 
 
18,187
 
 
 
(931
)
 
 
6,377
 
 
 
9,791
 
 
 
218
 
 
 
120,312
 
 
 
103,399
 
Active subtotal
 
3,051,873
 
 
207,305
 
 
 
(35,676
)
 
 
120,961
 
 
 
342,477
 
 
 
(21,535
)
 
 
3,665,405
 
 
 
3,397,139
 
ETFs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
3,455,117
 
 
 
400,347
 
 
 
—
 
 
 
—
 
 
 
880,389
 
 
 
(13,296
)
 
 
4,722,557
 
 
 
4,033,738
 
Fixed income
 
1,101,224
 
 
209,764
 
 
 
—
 
 
 
—
 
 
 
2,419
 
 
 
(4,780
)
 
 
1,308,627
 
 
 
1,205,001
 
Multi-asset
 
11,926
 
 
8,105
 
 
 
—
 
 
 
—
 
 
 
1,969
 
 
 
(233
)
 
 
21,767
 
 
 
15,014
 
Digital assets
 
79,551
 
 
15,088
 
 
 
—
 
 
 
—
 
 
 
(45,790
)
 
 
(10
)
 
 
48,839
 
 
 
78,692
 
Commodities
 
100,950
 
 
10,763
 
 
 
—
 
 
 
—
 
 
 
32,791
 
 
 
(224
)
 
 
144,280
 
 
 
149,716
 
ETFs subtotal
 
4,748,768
 
 
644,067
 
 
 
—
 
 
 
—
 
 
 
871,778
 
 
 
(18,543
)
 
 
6,246,070
 
 
 
5,482,161
 
Non-ETF index
 
3,757,248
 
 
(77,992
)
 
 
—
 
 
 
—
 
 
 
750,829
 
 
 
(65,783
)
 
 
4,364,302
 
 
 
4,061,500
 
Long-term
 
11,557,889
 
 
773,380
 
 
 
(35,676
)
 
 
120,961
 
 
 
1,965,084
 
 
 
(105,861
)
 
 
14,275,777
 
 
 
12,940,800
 
Cash management
 
969,701
 
 
 
94,398
 
 
 
—
 
 
 
—
 
 
 
9,856
 
 
 
(5,108
)
 
 
1,068,847
 
 
 
1,039,777
 
Total
$
12,527,590
 
 
$
867,778
 
 
$
(35,676
)
 
$
120,961
 
 
$
1,974,940
 
 
$
(110,969
)
 
$
15,344,624
 
 
$
13,980,577
 
The following table presents the component changes in AUM by private markets product type for the twelve months ended June 30, 2026.
 
June 30,
 
 
Net
inflows
 
 
 
 
 
 
 
 
Market
 
 
FX
 
 
June 30,
 
 
Average
 
(in millions)
2025
 
 
(outflows)
 
 
Realizations(1)
 
 
Acquisitions(2)
 
 
change
 
 
impact(3)
 
 
2026
 
 
AUM(4)
 
Private markets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Infrastructure
$
112,323
 
 
$
14,337
 
 
$
(8,660
)
 
$
—
 
 
$
(4,276
)
 
$
(236
)
 
$
113,488
 
 
$
111,458
 
Private equity
 
33,743
 
 
 
4,082
 
 
 
(5,738
)
 
 
—
 
 
 
246
 
 
 
(72
)
 
 
32,261
 
 
 
32,208
 
Private credit
 
35,985
 
 
 
27,745
 
 
 
(11,899
)
 
 
101,017
 
 
 
(1,455
)
 
 
(456
)
 
 
150,937
 
 
 
136,321
 
Real estate
 
25,276
 
 
 
844
 
 
 
(4,158
)
 
 
—
 
 
 
188
 
 
 
(197
)
 
 
21,953
 
 
 
23,963
 
Multi-alternatives
 
7,917
 
 
 
3,371
 
 
 
(928
)
 
 
—
 
 
 
158
 
 
 
(74
)
 
 
10,444
 
 
 
9,406
 
Total private markets
$
215,244
 
 
$
50,379
 
 
$
(31,383
)
 
$
101,017
 
 
$
(5,139
)
 
$
(1,035
)
 
$
329,083
 
 
$
313,356
 
(1)Realizations represent return of capital/return on investments.(2)Amounts include AUM attributable to the HPS and ElmTree Transactions.(3)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.(4)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months. 52
AUM increased $2.8 trillion to $15.3 trillion at June 30, 2026 from $12.5 trillion at June 30, 2025, driven by net market appreciation, net inflows and AUM added from the HPS and ElmTree Transactions, partially offset by the negative impact of foreign exchange movements.
Long-term net inflows of $773 billion were comprised of net inflows of $644 billion, $126 billion and $4 billion from ETFs, retail clients and institutional clients, respectively. Net flows in long-term products are described below.
•ETFs net inflows of $644 billion were led by core equity and index bond ETFs net inflows of $240 billion and $191 billion, respectively. Precision and other, and Active ETFs contributed $124 billion and $73 billion of net inflows, respectively.•Retail net inflows of $126 billion were led by net inflows into fixed income, equity and multi-asset strategies, driven by the onboarding of a significant separately managed account ("SMA") assignment in the fourth quarter of 2025 as well as demand for Aperio. Liquid alternatives and private markets added $11 billion and $4 billion, respectively.•Institutional active net inflows of $106 billion were led by $74 billion in multi-asset net inflows reflecting continued growth from significant outsourcing mandates and Lifepath target-date offerings. Private markets net inflows of $46 billion were led by private credit and infrastructure. Multi-asset and private markets net inflows were partially offset by net outflows from equity and fixed income products, including a single-client transfer to institutional index equity in the third quarter of 2025.•Institutional index net outflows of $102 billion were concentrated in low-fee index equity offerings.Cash management net inflows of $94 billion were primarily due to net inflows into US government, international and prime money market funds.
Net market appreciation of $2.0 trillion was primarily driven by US and global equity market appreciation.
AUM decreased $111 billion due to the impact of foreign exchange movements, primarily resulting from the strengthening of the US dollar, largely against the Japanese yen, the British pound, the euro and the Canadian dollar.
53
DISCUSSION OF FINANCIAL RESULTS
The Company’s results of operations for the three and six months ended June 30, 2026 and 2025 are discussed below. For a further description of the Company’s revenue and expense, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on February 25, 2026 ("2025 Form 10-K").
Revenue
The table below presents detail of revenue for the three and six months ended June 30, 2026 and 2025 and includes the product type mix of base fees and securities lending revenue and performance fees.
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
Investment advisory, administration fees and
securities lending revenue:
 
 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
Active
$
626
 
 
$
507
 
 
$
1,219
 
 
$
1,025
 
ETFs
 
1,989
 
 
 
1,401
 
 
 
3,782
 
 
 
2,750
 
Equity subtotal
 
2,615
 
 
 
1,908
 
 
 
5,001
 
 
 
3,775
 
Fixed income:
 
 
 
 
 
 
 
 
 
 
 
Active
 
539
 
 
 
487
 
 
 
1,070
 
 
 
979
 
ETFs
 
443
 
 
 
366
 
 
 
877
 
 
 
718
 
Fixed income subtotal
 
982
 
 
 
853
 
 
 
1,947
 
 
 
1,697
 
Active multi-asset
 
387
 
 
 
312
 
 
 
758
 
 
 
625
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
639
 
 
 
499
 
 
 
1,297
 
 
 
1,034
 
Liquid alternatives
 
212
 
 
 
157
 
 
 
409
 
 
 
307
 
Alternatives subtotal
 
851
 
 
 
656
 
 
 
1,706
 
 
 
1,341
 
Non-ETF index
 
385
 
 
 
313
 
 
 
727
 
 
 
620
 
Digital assets, commodities and multi-asset ETFs(1)
 
163
 
 
 
108
 
 
 
342
 
 
 
200
 
Long-term
 
5,383
 
 
 
4,150
 
 
 
10,481
 
 
 
8,258
 
Cash management
 
343
 
 
 
304
 
 
 
683
 
 
 
597
 
Total investment advisory, administration fees
and securities lending revenue(2)
 
5,726
 
 
 
4,454
 
 
 
11,164
 
 
 
8,855
 
Investment advisory performance fees:
 
 
 
 
 
 
 
 
 
 
 
Equity
 
60
 
 
 
12
 
 
 
82
 
 
 
22
 
Fixed income
 
3
 
 
 
2
 
 
 
5
 
 
 
14
 
Multi-asset
 
5
 
 
 
6
 
 
 
14
 
 
 
10
 
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
137
 
 
 
39
 
 
 
369
 
 
 
63
 
Liquid alternatives
 
100
 
 
 
35
 
 
 
107
 
 
 
45
 
Alternatives subtotal
 
237
 
 
 
74
 
 
 
476
 
 
 
108
 
Total investment advisory performance fees
 
305
 
 
 
94
 
 
 
577
 
 
 
154
 
Technology services and subscription revenue
 
566
 
 
 
499
 
 
 
1,096
 
 
 
935
 
Distribution fees
 
395
 
 
 
320
 
 
 
784
 
 
 
641
 
Advisory and other revenue:
 
 
 
 
 
 
 
 
 
 
 
Advisory
 
8
 
 
 
13
 
 
 
20
 
 
 
27
 
Other
 
84
 
 
 
43
 
 
 
141
 
 
 
87
 
Total advisory and other revenue
 
92
 
 
 
56
 
 
 
161
 
 
 
114
 
Total revenue
$
7,084
 
 
$
5,423
 
 
$
13,782
 
 
$
10,699
 
(1)Amounts include commodity ETFs and ETPs.(2)Amounts include securities lending revenue of $239 million and $171 million for the three months ended June 30, 2026 and 2025, respectively, and $418 million and $328 million for the six months ended June 30, 2026 and 2025, respectively. 54
The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product type:
 
Three Months Ended June 30,
 
 
Six Months Ended June 30,
 
 
Percentage of Base
Fees and Securities Lending Revenue
 
 
 
Percentage
of Average AUM by Product Type(1)
 
 
Percentage of Base
Fees and Securities Lending Revenue
 
 
 
Percentage
of Average AUM by Product Type(2)
 
 
2026
 
 
2025
 
 
 
2026
 
 
2025
 
 
2026
 
 
2025
 
 
 
2026
 
 
2025
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active
 
11
%
 
 
11
%
 
 
 
4
%
 
 
4
%
 
 
11
%
 
 
12
%
 
 
 
4
%
 
 
4
%
ETFs
 
34
%
 
 
31
%
 
 
 
30
%
 
 
28
%
 
 
34
%
 
 
31
%
 
 
 
30
%
 
 
28
%
Equity subtotal
 
45
%
 
 
42
%
 
 
 
34
%
 
 
32
%
 
 
45
%
 
 
43
%
 
 
 
34
%
 
 
32
%
Fixed income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active
 
9
%
 
 
11
%
 
 
 
8
%
 
 
10
%
 
 
9
%
 
 
11
%
 
 
 
8
%
 
 
10
%
ETFs
 
8
%
 
 
8
%
 
 
 
9
%
 
 
8
%
 
 
8
%
 
 
8
%
 
 
 
9
%
 
 
9
%
Fixed income subtotal
 
17
%
 
 
19
%
 
 
 
17
%
 
 
18
%
 
 
17
%
 
 
19
%
 
 
 
17
%
 
 
19
%
Active multi-asset
 
7
%
 
 
7
%
 
 
 
8
%
 
 
8
%
 
 
6
%
 
 
7
%
 
 
 
8
%
 
 
7
%
Alternatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private markets
 
11
%
 
 
11
%
 
 
 
2
%
 
 
2
%
 
 
12
%
 
 
12
%
 
 
 
2
%
 
 
2
%
Liquid alternatives
 
4
%
 
 
4
%
 
 
 
1
%
 
 
1
%
 
 
4
%
 
 
3
%
 
 
 
1
%
 
 
1
%
Alternatives subtotal
 
15
%
 
 
15
%
 
 
 
3
%
 
 
3
%
 
 
16
%
 
 
15
%
 
 
 
3
%
 
 
3
%
Non-ETF index
 
7
%
 
 
7
%
 
 
 
29
%
 
 
30
%
 
 
7
%
 
 
7
%
 
 
 
29
%
 
 
30
%
Digital assets, commodities
and multi-asset ETFs(3)
 
3
%
 
 
3
%
 
 
 
2
%
 
 
1
%
 
 
3
%
 
 
2
%
 
 
 
2
%
 
 
1
%
Long-term
 
94
%
 
 
93
%
 
 
 
93
%
 
 
92
%
 
 
94
%
 
 
93
%
 
 
 
93
%
 
 
92
%
Cash management
 
6
%
 
 
7
%
 
 
 
7
%
 
 
8
%
 
 
6
%
 
 
7
%
 
 
 
7
%
 
 
8
%
Total AUM
 
100
%
 
 
100
%
 
 
 
100
%
 
 
100
%
 
 
100
%
 
 
100
%
 
 
 
100
%
 
 
100
%
(1)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.(2)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing seven months.(3)Amounts include commodity ETFs and ETPs.Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
Revenue increased $1.7 billion, or 31%, from the three months ended June 30, 2025, primarily driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, higher performance fees and higher technology services and subscription revenue.
Investment advisory, administration fees (collectively "base fees") and securities lending revenue of $5.7 billion increased $1.3 billion from $4.5 billion for the three months ended June 30, 2025, primarily driven by the positive impact of market beta on average AUM, organic base fee growth and approximately $230 million of fees related to the HPS Transaction. Securities lending revenue of $239 million increased from $171 million for the three months ended June 30, 2025, primarily reflecting higher spreads.
Investment advisory performance fees of $305 million increased $211 million from $94 million for the three months ended June 30, 2025, primarily reflecting higher revenue from alternative products, including the impact of the HPS Transaction, and higher revenue from long-only products.
Technology services and subscription revenue of $566 million increased $67 million from $499 million for the three months ended June 30, 2025, reflecting the sustained demand for Aladdin and multi-product solutions.
Distribution fees of $395 million increased $75 million from $320 million for the three months ended June 30, 2025, primarily reflecting higher average AUM.
55
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
Revenue increased $3.1 billion, or 29%, from the six months ended June 30, 2025, primarily driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, higher performance fees and higher technology services and subscription revenue.
Investment advisory, administration fees and securities lending revenue of $11.2 billion increased $2.3 billion from $8.9 billion for the six months ended June 30, 2025, primarily driven by the impact of market beta on average AUM, organic base fee growth and approximately $460 million of fees related to the HPS Transaction. Securities lending revenue of $418 million increased from $328 million for the six months ended June 30, 2025, primarily reflecting higher spreads.
Investment advisory performance fees of $577 million increased $423 million from $154 million for the six months ended June 30, 2025, primarily reflecting higher revenue from alternative products, including the impact of the HPS Transaction, and higher revenue from long-only products.
Technology services and subscription revenue of $1.1 billion increased $161 million from $935 million for the six months ended June 30, 2025, reflecting the sustained demand for Aladdin, multi-product solutions and the impact related to the Preqin Transaction, which was completed in March of 2025.
Distribution fees of $784 million increased $143 million from $641 million for the six months ended June 30, 2025, primarily reflecting higher average AUM.
Expense
The following table presents expense for the three and six months ended June 30, 2026 and 2025.
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Expense
 
 
 
 
 
 
 
 
 
 
 
Employee compensation and benefits
$
2,274
 
 
$
1,764
 
 
$
4,499
 
 
$
3,505
 
Sales, asset and account expense:
 
 
 
 
 
 
 
 
 
 
 
Distribution and servicing costs
 
732
 
 
 
576
 
 
 
1,437
 
 
 
1,146
 
Direct fund expense
 
543
 
 
 
441
 
 
 
1,024
 
 
 
833
 
Sub-advisory and other
 
67
 
 
 
46
 
 
 
138
 
 
 
93
 
Total sales, asset and account expense
 
1,342
 
 
 
1,063
 
 
 
2,599
 
 
 
2,072
 
General and administration expense:
 
 
 
 
 
 
 
 
 
 
 
Marketing and promotional
 
94
 
 
 
93
 
 
 
195
 
 
 
190
 
Occupancy and office related
 
153
 
 
 
120
 
 
 
300
 
 
 
234
 
Portfolio services
 
68
 
 
 
62
 
 
 
138
 
 
 
126
 
Technology
 
227
 
 
 
198
 
 
 
433
 
 
 
387
 
Professional services
 
80
 
 
 
51
 
 
 
155
 
 
 
124
 
Communications
 
11
 
 
 
11
 
 
 
21
 
 
 
21
 
Foreign exchange remeasurement
 
—
 
 
 
4
 
 
 
(4
)
 
 
(4
)
Other general and administration
 
87
 
 
 
74
 
 
 
156
 
 
 
150
 
Total general and administration expense
 
720
 
 
 
613
 
 
 
1,394
 
 
 
1,228
 
Change in fair value of contingent consideration
 
11
 
 
 
76
 
 
 
(538
)
 
 
172
 
Restructuring charge
 
—
 
 
 
39
 
 
 
—
 
 
 
39
 
Amortization of intangible assets
 
276
 
 
 
137
 
 
 
553
 
 
 
254
 
Total expense
$
4,623
 
 
$
3,692
 
 
$
8,507
 
 
$
7,270
 
56
Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
Expense increased $931 million, or 25%, from the three months ended June 30, 2025, reflecting higher employee compensation and benefits expense, sales, asset and account expense, and general and administration expense. Expense for the three months ended June 30, 2026 was impacted by the HPS Transaction(1), including noncash acquisition-related expenses.
Employee compensation and benefits expense of $2.3 billion increased $510 million from $1.8 billion for the three months ended June 30, 2025, primarily reflecting the impact of higher operating income and performance fees, and the impact of the HPS Transaction.
Sales, asset and account expense of $1.3 billion increased $279 million from $1.1 billion for the three months ended June 30, 2025, driven by higher direct fund expense and distribution and servicing costs, primarily reflecting higher average AUM.
General and administration expense of $720 million increased $107 million from $613 million for the three months ended June 30, 2025, primarily driven by occupancy and office related expense, technology expense and professional services expense.
Change in fair value of contingent consideration(1) of $11 million decreased $65 million as compared to the change in the three months ended June 30, 2025, primarily in connection with the fair value of contingent consideration for the GIP Transaction, which is impacted by the share price of BlackRock common stock at the end of the period.
Amortization of intangible assets(1) of $276 million increased $139 million from $137 million for the three months ended June 30, 2025, primarily reflecting amortization of intangible assets acquired in the HPS Transaction.
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
Expense increased $1.2 billion, or 17%, from the six months ended June 30, 2025, reflecting higher employee compensation and benefits expense, sales, asset and account expense, and general and administration expense. Expense for the six months ended June 30, 2026 was impacted by the HPS, GIP and Preqin Transactions(1), including noncash change in fair value of contingent consideration and amortization of intangible assets.
Employee compensation and benefits expense of $4.5 billion increased $994 million from $3.5 billion for the six months ended June 30, 2025, primarily reflecting the impact of higher operating income and performance fees, and the impact of the HPS and Preqin Transactions.
Sales, asset and account expense of $2.6 billion increased $527 million from $2.1 billion for the six months ended June 30, 2025, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
General and administration expense of $1.4 billion increased $166 million from $1.2 billion for the six months ended June 30, 2025, primarily driven by occupancy and office related expense, technology expense and professional services expense.
Change in fair value of contingent consideration(1) decreased $710 million as compared to the change in the six months ended June 30, 2025, primarily in connection with the fair value of contingent consideration for the GIP and HPS Transactions, which is impacted by the share price of BlackRock common stock at the end of the period.
Amortization of intangible assets(1) of $553 million increased $299 million from $254 million for the six months ended June 30, 2025, primarily reflecting amortization of intangible assets acquired in the HPS and Preqin Transactions.
(1)These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustment for acquisition-related costs. See Non-GAAP Financial Measures for further information on as adjusted items. 57
Nonoperating Results
The summary of nonoperating income (expense), less net income (loss) attributable to NCI - CIPs for the three and six months ended June 30, 2026 and 2025 was as follows:
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Nonoperating income (expense), GAAP basis
$
258
 
 
$
521
 
 
$
286
 
 
$
586
 
Less: Net income (loss) attributable to NCI - CIPs
 
35
 
 
 
72
 
 
 
41
 
 
 
77
 
Nonoperating income (expense), net of NCI - CIPs
 
223
 
 
 
449
 
 
 
245
 
 
 
509
 
Less: Hedge gain (loss) on deferred cash compensation plans(1)
 
78
 
 
 
45
 
 
 
78
 
 
 
30
 
Nonoperating income (expense), net of NCI - CIPs, as adjusted(2)
$
145
 
 
$
404
 
 
$
167
 
 
$
479
 
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
Net gain (loss) on investments, net of NCI - CIPs
 
 
 
 
 
 
 
 
 
 
 
Private equity
$
34
 
 
$
25
 
 
$
43
 
 
$
73
 
Real assets
 
18
 
 
 
1
 
 
 
23
 
 
 
(1
)
Other alternatives(3)
 
8
 
 
 
3
 
 
 
23
 
 
 
12
 
Other investments(4)
 
55
 
 
 
11
 
 
 
42
 
 
 
1
 
Hedge gain (loss) on deferred cash compensation plans(1)
 
78
 
 
 
45
 
 
 
78
 
 
 
30
 
Subtotal
 
193
 
 
 
85
 
 
 
209
 
 
 
115
 
Other income/gain (expense/loss)(5)
 
55
 
 
 
393
 
 
 
105
 
 
 
416
 
Total net gain (loss) on investments, net of NCI - CIPs
 
248
 
 
 
478
 
 
 
314
 
 
 
531
 
Dividend income and net interest income (expense)
 
(25
)
 
 
(29
)
 
 
(69
)
 
 
(22
)
Nonoperating income (expense), net of NCI - CIPs
 
223
 
 
 
449
 
 
 
245
 
 
 
509
 
Less: Hedge gain (loss) on deferred cash compensation plans(1)
 
78
 
 
 
45
 
 
 
78
 
 
 
30
 
Nonoperating income (expense), net of NCI - CIPs, as adjusted(2)
$
145
 
 
$
404
 
 
$
167
 
 
$
479
 
(1)Amount relates to the gain (loss) from economically hedging BlackRock's deferred cash compensation plans.(2)Management believes nonoperating income (expense), net of NCI - CIPs, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. See Non-GAAP Financial Measures for further information on other non-GAAP financial measures.(3)Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions. (4)Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.(5)Amounts for the three months ended June 30, 2026 and 2025, include noncash pre-tax losses of approximately $37 million and gains of approximately $330 million, respectively, in connection with Circle. Additional amounts include earnings (losses) from certain equity method minority investments and noncash pre-tax gains (losses) related to the revaluation of certain other minority investments. 58
Income Tax Expense
 
GAAP
 
 
As Adjusted(1)
 
 
Three Months Ended
 
 
Six Months Ended
 
 
Three Months Ended
 
 
Six Months Ended
 
 
June 30,
 
 
June 30,
 
 
June 30,
 
 
June 30,
 
(in millions)
2026
 
 
2025
 
 
2026
 
 
2025
 
 
2026
 
 
2025
 
 
2026
 
 
2025
 
Operating income
$
2,461
 
 
$
1,731
 
 
$
5,275
 
 
$
3,429
 
 
$
2,916
 
 
$
2,099
 
 
$
5,585
 
 
$
4,131
 
Total nonoperating
income (expense)(2)
$
223
 
 
$
449
 
 
$
245
 
 
$
509
 
 
$
145
 
 
$
404
 
 
$
167
 
 
$
479
 
Income before income
taxes(2)
$
2,684
 
 
$
2,180
 
 
$
5,520
 
 
$
3,938
 
 
$
3,061
 
 
$
2,503
 
 
$
5,752
 
 
$
4,610
 
Income tax expense
$
677
 
 
$
587
 
 
$
1,193
 
 
$
835
 
 
$
770
 
 
$
620
 
 
$
1,393
 
 
$
957
 
Effective tax rate
 
25.2
%
 
 
26.9
%
 
 
21.6
%
 
 
21.2
%
 
 
25.2
%
 
 
24.8
%
 
 
24.2
%
 
 
20.8
%
(1)As adjusted items are described in more detail in Non-GAAP Financial Measures. (2)Net of net income (loss) attributable to NCI - CIPs.2026. Income tax expense for the six months ended June 30, 2026 includes a $62 million discrete tax benefit related to stock-based compensation awards that vested in 2026.
- Income tax expense for the six months ended June 30, 2025 included a $149 million discrete tax benefit from realized changes in the Company's organizational entity structure and a $50 million discrete tax benefit related to stock-based compensation awards that vested in 2025.
59
STATEMENT OF FINANCIAL CONDITION OVERVIEW
As Adjusted Statement of Financial Condition
The following table presents a reconciliation of the condensed consolidated statement of financial condition presented on a GAAP basis to the condensed consolidated statement of financial condition, excluding the impact of separate account assets and separate account collateral held under securities lending agreements (directly related to lending separate account securities) and separate account liabilities and separate account collateral liabilities under securities lending agreements and CIPs.
The Company presents the as adjusted statement of financial condition as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or NCI - CIPs that ultimately do not have an impact on stockholders’ equity or cash flows. Management views the as adjusted statement of financial condition, which contains non-GAAP financial measures, as an economic presentation of the Company’s total assets and liabilities; however, it does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Separate Account Assets and Liabilities and Separate Account Collateral Held under Securities Lending Agreements
Separate account assets are maintained by BlackRock Life Limited, a consolidated wholly owned subsidiary of the Company that is a registered life insurance company in the UK, and represent segregated assets held for purposes of funding individual and group pension contracts. The Company records equal and offsetting separate account liabilities. The separate account assets are not available to creditors of the Company and the holders of the pension contracts have no recourse to the Company’s assets. The net investment income attributable to separate account assets accrues directly to the contract owners and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these assets or liabilities, BlackRock earns an investment advisory fee for the service of managing these assets on behalf of its clients.
In addition, the Company records on its condensed consolidated statements of financial condition the separate account collateral obtained under BlackRock Life Limited securities lending arrangements for which it has legal title as its own asset in addition to an equal and offsetting separate account collateral liability for the obligation to return the collateral. The collateral is not available to creditors of the Company, and the borrowers under the securities lending arrangements have no recourse to the Company’s assets.
Consolidated Sponsored Investment Products
The Company consolidates certain sponsored investment products accounted for as variable interest entities (“VIEs”) and voting rights entities (“VREs”). See Note 2, Significant Accounting Policies, in the notes to the consolidated financial statements contained in the 2025 Form 10-K for more information on the Company’s consolidation policy.
60
The Company cannot readily access cash and cash equivalents, or other assets held by CIPs to use in its operating activities. In addition, the Company cannot readily sell investments held by CIPs in order to obtain cash for use in the Company’s operations.
 
 
June 30, 2026
 
(in millions)
 
GAAP
Basis
 
 
Separate
Account Assets/ Collateral(1)
 
 
CIPs(2)
 
 
As
Adjusted
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
10,492
 
 
$
—
 
 
$
335
 
 
$
10,157
 
Accounts receivable
 
 
5,444
 
 
 
—
 
 
 
—
 
 
 
5,444
 
Investments
 
 
15,144
 
 
 
—
 
 
 
4,072
 
 
 
11,072
 
Separate account assets and collateral held
under securities lending agreements
 
 
71,536
 
 
 
71,536
 
 
 
—
 
 
 
—
 
Operating lease right-of-use assets
 
 
1,848
 
 
 
—
 
 
 
—
 
 
 
1,848
 
Other assets(3)
 
 
8,793
 
 
 
—
 
 
 
55
 
 
 
8,738
 
Subtotal
 
 
113,257
 
 
 
71,536
 
 
 
4,462
 
 
 
37,259
 
Goodwill and intangible assets, net
 
 
62,618
 
 
 
—
 
 
 
—
 
 
 
62,618
 
Total assets
 
$
175,875
 
 
$
71,536
 
 
$
4,462
 
 
$
99,877
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Accrued compensation and benefits
 
$
2,432
 
 
$
—
 
 
$
—
 
 
$
2,432
 
Accounts payable and accrued liabilities
 
 
2,012
 
 
 
—
 
 
 
—
 
 
 
2,012
 
Borrowings
 
 
12,744
 
 
 
—
 
 
 
—
 
 
 
12,744
 
Separate account liabilities and collateral
liabilities under securities lending agreements
 
 
71,536
 
 
 
71,536
 
 
 
—
 
 
 
—
 
Contingent consideration liabilities
 
 
7,875
 
 
 
—
 
 
 
—
 
 
 
7,875
 
Deferred income tax liabilities(4)
 
 
4,488
 
 
 
—
 
 
 
—
 
 
 
4,488
 
Operating lease liabilities
 
 
2,224
 
 
 
—
 
 
 
—
 
 
 
2,224
 
Other liabilities
 
 
8,024
 
 
 
—
 
 
 
462
 
 
 
7,562
 
Total liabilities
 
 
111,335
 
 
 
71,536
 
 
 
462
 
 
 
39,337
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
Total BlackRock, Inc. stockholders’ equity
 
 
57,613
 
 
 
—
 
 
 
—
 
 
 
57,613
 
Noncontrolling interests
 
 
6,927
 
 
 
—
 
 
 
4,000
 
 
 
2,927
 
Total equity
 
 
64,540
 
 
 
—
 
 
 
4,000
 
 
 
60,540
 
Total liabilities and equity
 
$
175,875
 
 
$
71,536
 
 
$
4,462
 
 
$
99,877
 
(1)Amounts represent segregated client assets and related liabilities, in which BlackRock has no economic interest. BlackRock earns an investment advisory fee for the service of managing these assets on behalf of its clients.(2)Amounts represent the impact of consolidating CIPs. (3)Amount includes property and equipment and other assets. (4)Amount includes approximately $6.0 billion of deferred income tax liabilities related to goodwill and intangibles.The following discussion summarizes the significant changes in assets and liabilities on a GAAP basis. Please see the condensed consolidated statements of financial condition as of June 30, 2026 and December 31, 2025 contained in Part I, Item 1 of this filing. The discussion does not include changes related to assets and liabilities that are equal and offsetting and have no impact on BlackRock’s stockholders’ equity.
Assets. Cash and cash equivalents at June 30, 2026 included $335 million of cash held by CIPs (see Liquidity and Capital Resources for details on the change in cash and cash equivalents during the six months ended June 30, 2026). Accounts receivable at June 30, 2026 increased $286 million from December 31, 2025, primarily due to higher base fee and technology services and subscriptions receivables. Investments at June 30, 2026 increased $1.9 billion from December 31, 2025 (for more information see Investments herein). Goodwill and intangible assets at June 30, 2026 decreased $633 million from December 31, 2025, primarily due to amortization of intangible assets. Other assets at June 30, 2026 increased $1.8 billion from December 31, 2025, primarily related to an increase in unit trust receivables (substantially offset by an increase in unit trust payables recorded within other liabilities) and an increase in certain minority investments.
61
Liabilities. Accrued compensation and benefits at June 30, 2026 decreased $1.4 billion from December 31, 2025, primarily due to 2025 incentive compensation cash payments in the first quarter of 2026, partially offset by 2026 incentive compensation accruals. Accounts payable and accrued liabilities at June 30, 2026 increased $272 million from December 31, 2025, primarily due to increased accruals. Contingent consideration liabilities at June 30, 2026 decreased $554 million from December 31, 2025, largely due to a change in fair value of contingent consideration in connection with the GIP and HPS Transactions, primarily impacted by the share price of BlackRock stock at the end of the period. Other liabilities at June 30, 2026 increased $1.2 billion from December 31, 2025, primarily due to higher unit trust payables (substantially offset by an increase in unit trust receivables recorded within other assets). Net deferred income tax liabilities at June 30, 2026 decreased $130 million from December 31, 2025, primarily due to the effects of temporary differences associated with acquired intangible assets.
Investments
The Company’s investments were $15.1 billion and $13.3 billion at June 30, 2026 and December 31, 2025, respectively. Investments include CIPs accounted for as VIEs and VREs. Management reviews BlackRock’s investments on an “economic” basis, which eliminates the NCI - CIPs portion of investments that does not impact BlackRock’s book value or net income attributable to BlackRock. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
The Company presents investments, as adjusted, to enable investors to understand the economic portion of investments that is owned by the Company as a gauge to measure the impact of changes in net nonoperating income (expense) on investments to net income (loss) attributable to BlackRock.
The Company further presents net “economic” investment exposure, net of deferred cash compensation investments and hedged exposures, to reflect another helpful measure for investors. The economic impact of investments held pursuant to deferred cash compensation plans is substantially offset by a change in associated compensation expense, and the impact of the portfolio of seed investments is mitigated by futures entered into as part of the Company's macro hedging strategy. Carried interest capital allocations are excluded as there is no impact to BlackRock’s stockholders’ equity until such amounts are realized as performance fees. Finally, the Company’s regulatory investment in Federal Reserve Bank stock, which is not subject to market or interest rate risk, is excluded from the Company’s net economic investment exposure.
 
 
June 30,
 
 
December 31,
 
(in millions)
 
2026
 
 
2025
 
Investments, GAAP
 
$
15,144
 
 
$
13,271
 
Investments held by CIPs
 
 
(10,525
)
 
 
(9,131
)
Net interest in CIPs(1)
 
 
6,453
 
 
 
6,564
 
Investments, as adjusted
 
 
11,072
 
 
 
10,704
 
Investments related to deferred cash compensation plans
 
 
(507
)
 
 
(337
)
Hedged exposures
 
 
(1,919
)
 
 
(1,682
)
Federal Reserve Bank stock
 
 
(88
)
 
 
(87
)
Carried interest
 
 
(3,594
)
 
 
(3,710
)
Total “economic” investment exposure(2)
 
$
4,964
 
 
$
4,888
 
(1)Amounts include $3.5 billion and $3.7 billion of carried interest (VIEs) at June 30, 2026 and December 31, 2025, respectively, which has no impact on the Company’s “economic” investment exposure.(2)Amounts do not include corporate minority investments included in other assets on the condensed consolidated statements of financial condition. 62
The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at June 30, 2026 and December 31, 2025:
 
 
June 30,
 
 
December 31,
 
(in millions)
 
2026
 
 
2025
 
Equity/Fixed income/Multi-asset(1)
 
$
4,398
 
 
$
4,212
 
Alternatives:
 
 
 
 
 
 
Private equity
 
 
767
 
 
 
761
 
Real assets
 
 
797
 
 
 
687
 
Other alternatives(2)
 
 
921
 
 
 
910
 
Alternatives subtotal
 
 
2,485
 
 
 
2,358
 
Hedged exposures
 
 
(1,919
)
 
 
(1,682
)
Total “economic” investment exposure
 
$
4,964
 
 
$
4,888
 
(1)Amounts include seed investments in equity, fixed income, and multi-asset ETFs/mutual funds/strategies.(2)Other alternatives primarily include co-investments in credit funds, direct hedge fund strategies, and hedge fund solutions.As adjusted investment activity for the six months ended June 30, 2026 was as follows:
(in millions)
Six Months
Ended June 30, 2026
 
Investments, as adjusted, beginning balance
$
10,704
 
Purchases/capital contributions
 
1,111
 
Sales/maturities
 
(652
)
Distributions(1)
 
(187
)
Market appreciation(depreciation)/earnings from equity method investments
 
217
 
Carried interest capital allocations/(distributions)
 
(116
)
Other(2)
 
(5
)
Investments, as adjusted, ending balance
$
11,072
 
(1)Amount includes distributions representing return of capital and return on investments. (2)Amount includes the impact of foreign exchange movements. 63
LIQUIDITY AND CAPITAL RESOURCES
BlackRock Cash Flows Excluding the Impact of CIPs
The condensed consolidated statements of cash flows include the cash flows of the CIPs. The Company uses an adjusted cash flow statement, which excludes the impact of CIPs, as a supplemental non-GAAP measure to assess liquidity and capital requirements. The Company believes that its cash flows, excluding the impact of the CIPs, provide investors with useful information on the cash flows of BlackRock relating to its ability to fund additional operating, investing and financing activities. BlackRock’s management does not advocate that investors consider such non-GAAP measures in isolation from, or as a substitute for, its cash flows presented in accordance with GAAP.
The following table presents a reconciliation of the condensed consolidated statements of cash flows presented on a GAAP basis to the condensed consolidated statements of cash flows, excluding the impact of the cash flows of CIPs:
(in millions)
GAAP
Basis
 
 
Impact on
Cash Flows of CIPs
 
 
Cash Flows
Excluding Impact of CIPs
 
Cash, cash equivalents and restricted cash, December 31, 2025
$
11,490
 
 
$
461
 
 
$
11,029
 
Net cash provided by/(used in) operating activities
 
247
 
 
 
(2,859
)
 
 
3,106
 
Net cash provided by/(used in) investing activities
 
(740
)
 
 
66
 
 
 
(806
)
Net cash provided by/(used in) financing activities
 
(421
)
 
 
2,667
 
 
 
(3,088
)
Effect of exchange rate changes on cash, cash equivalents
and restricted cash
 
(62
)
 
 
—
 
 
 
(62
)
Net increase/(decrease) in cash, cash equivalents and restricted
cash
 
(976
)
 
 
(126
)
 
 
(850
)
Cash, cash equivalents and restricted cash, June 30, 2026
$
10,514
 
 
$
335
 
 
$
10,179
 
Sources of BlackRock’s operating cash primarily include base fees and securities lending revenue, performance fees, technology services and subscription revenue, advisory and other revenue and distribution fees. BlackRock uses its cash to pay all operating expenses, interest and principal on borrowings, income taxes, dividends/Subco distributions and repurchases of shares and share equivalents, acquisitions, capital expenditures and purchases of co-investments and seed investments.
For details of the Company’s GAAP cash flows from operating, investing and financing activities, see the condensed consolidated statements of cash flows contained in Part I, Item 1 of this filing.
Cash flows provided by/(used in) operating activities, excluding the impact of CIPs, primarily include the receipt of base fees, securities lending revenue, performance fees and technology services and subscription revenue, offset by the payment of operating expenses incurred in the normal course of business, including year-end incentive and deferred cash compensation accrued during prior years, and income tax payments.
Cash flows used in investing activities, excluding the impact of CIPs, for the six months ended June 30, 2026 were $806 million, primarily reflecting $690 million of net purchases of investments and $215 million of purchases of property and equipment, partially offset by $114 million of distributions of capital from equity method investees.
Cash flows used in financing activities, excluding the impact of CIPs, for the six months ended June 30, 2026 were $3.1 billion, primarily resulting from $1.9 billion of dividends/Subco distributions, $1.3 billion worth of share and share equivalents repurchases, including $0.4 billion of employee tax withholdings related to employee stock transactions.
64
The Company manages its financial condition and funding to maintain appropriate liquidity for the business. Management believes that the Company’s liquid assets, continuing cash flows from operations, borrowing capacity under the Company’s existing revolving credit facility and uncommitted commercial paper private placement program, provide sufficient resources to meet the Company’s short-term and long-term cash needs, including operating, debt and other obligations as they come due and anticipated future capital requirements. Liquidity resources at June 30, 2026 and December 31, 2025 were as follows:
 
June 30,
 
 
December 31,
 
(in millions)
2026
 
 
2025
 
Cash and cash equivalents(1)
$
10,492
 
 
$
11,468
 
Cash and cash equivalents held by CIPs(2)
 
(335
)
 
 
(461
)
Subtotal(3)
 
10,157
 
 
 
11,007
 
Credit facility – undrawn(4)
 
6,300
 
 
 
5,900
 
Total liquidity resources
$
16,457
 
 
$
16,907
 
(1)Amounts exclude restricted cash.(2)The Company cannot readily access such cash and cash equivalents to use in its operating activities.(3)The percentage of cash and cash equivalents held by the Company’s US subsidiaries was approximately 50% at both June 30, 2026 and December 31, 2025. See Net Capital Requirements herein for more information on net capital requirements in certain regulated subsidiaries.(4)In March 2026, the aggregate commitment of the credit facility was increased from $5.9 billion to $6.3 billion. See Short-Term Borrowings herein for more information.Total liquidity resources decreased $450 million during the six months ended June 30, 2026, primarily reflecting payments of 2025 year-end incentive awards, dividends/distributions of $1.9 billion, share and share equivalent repurchases of $1.3 billion, and $690 million of net purchases of investments, partially offset by a $400 million increase in the aggregate commitment amount under the credit facility and cash flows from other operating activities.
A significant portion of the Company’s $11.1 billion of investments, as adjusted, is illiquid in nature and, as such, cannot be readily convertible to cash.
Share Repurchases. In January 2026, the Company announced that the Board of Directors authorized the repurchase of an additional seven million shares under the Company's existing share repurchase program for a total of up to approximately 9.2 million shares of BlackRock common stock.
During the six months ended June 30, 2026, under the Company’s existing share repurchase program, the Company repurchased an aggregate of 0.8 million shares and share equivalents for approximately $900 million. At June 30, 2026, there were approximately 8.4 million shares still authorized to be repurchased under the program. The timing and actual number of shares repurchased will depend on a variety of factors, including legal limitations, price and market conditions.
Net Capital Requirements. The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions. As a result, such subsidiaries of the Company may be restricted in their ability to transfer cash between different jurisdictions and to their parents. Additionally, transfers of cash between international jurisdictions may have adverse tax consequences that could discourage such transfers.
BlackRock Institutional Trust Company, N.A. (“BTC”) is chartered as a national bank that does not accept deposits or make commercial loans and whose operations are limited to trust and other fiduciary activities. BTC provides investment management and other fiduciary services, including investment advisory and securities lending agency services, to institutional clients. BTC is subject to regulatory capital and liquid asset requirements administered by the US Office of the Comptroller of the Currency.
At both June 30, 2026 and December 31, 2025, the Company was required to maintain approximately $2.2 billion in net capital in certain regulated subsidiaries, including BTC, entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the UK, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.
65
Short-Term Borrowings
2026 Revolving Credit Facility. The Company maintains an unsecured revolving credit facility, which is available for working capital and general corporate purposes (the “2026 Credit Facility”). In March 2026, the 2026 Credit Facility was amended to, among other things, (1) increase the aggregate commitment amount by $400 million to $6.3 billion, (2) extend the maturity date to March 2031 for lenders pursuant to the Company's option to request extensions of the maturity date available under the 2026 Credit Facility and (3) remove the secured overnight financing rate ("SOFR") adjustment for all SOFR-based loans. The amended 2026 Credit Facility permits the Company to request up to an additional $1.4 billion of borrowing capacity, subject to lender credit approval, which could increase the overall size of the 2026 Credit Facility to an aggregate principal amount of up to $7.7 billion. Interest on outstanding borrowings accrues at an applicable benchmark rate for the denominated currency of the loan, plus a spread. The 2026 Credit Facility requires the Company not to exceed a maximum consolidated leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3.5 to 1, which was satisfied with a ratio of less than 1 to 1 at June 30, 2026. At June 30, 2026, the Company had no amount outstanding under the 2026 Credit Facility.
Commercial Paper Program. The Company may issue short-term unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $5 billion. The payments of the CP Notes have been unconditionally guaranteed by BlackRock Finance, Inc. (formerly known as BlackRock, Inc.) ("Old BlackRock") (the "CP Notes Guarantee"). The CP Notes will rank equal in right of payment with all of BlackRock's other unsubordinated indebtedness, and the obligations of Old BlackRock under the CP Notes Guarantee will rank equal in right of payment with all of Old BlackRock's other unsubordinated indebtedness. Net proceeds of issuances of the CP Notes are expected to be used for general corporate purposes. The commercial paper program is currently supported by the 2026 Credit Facility. At June 30, 2026, BlackRock had no CP Notes outstanding.
Subsidiary Credit Facility. BlackRock Investment Management (UK) Limited ("BIM UK"), a consolidated wholly owned subsidiary of the Company, maintains a revolving credit facility (the “Subsidiary Credit Facility”) in the amount of £25 million (or approximately $33 million based on the GBP/USD foreign exchange rate at June 30, 2026) with a rolling 364-day term structure. The Subsidiary Credit Facility is available for BIM UK's general corporate and working capital purposes. At June 30, 2026, there was no amount outstanding.
Long-Term Borrowings
At June 30, 2026, the principal amount of long-term notes outstanding was $12.8 billion. See Note 15, Borrowings, in the 2025 Form 10-K for more information on overall borrowings outstanding as of December 31, 2025.
During the six months ended June 30, 2026, the Company paid approximately $230 million of interest on long-term notes. Future principal repayments and interest requirements at June 30, 2026 were as follows:
(in millions)
 
 
 
 
 
 
 
 
 
Year
 
Principal
 
 
Interest(1)
 
 
Total
Payments
 
Remainder of 2026
 
$
—
 
 
$
274
 
 
$
274
 
2027
 
 
1,500
 
 
 
493
 
 
 
1,993
 
2028
 
 
—
 
 
 
445
 
 
 
445
 
2029
 
 
1,500
 
 
 
417
 
 
 
1,917
 
2030
 
 
1,000
 
 
 
377
 
 
 
1,377
 
2031
 
 
1,250
 
 
 
353
 
 
 
1,603
 
Thereafter(1)
 
 
7,593
 
 
 
3,765
 
 
 
11,358
 
Total
 
$
12,843
 
 
$
6,124
 
 
$
18,967
 
(1)The amounts related to the 3.75% Notes due 2035 are calculated using the EUR/USD foreign exchange rate as of June 30, 2026. 66
Supplemental Guarantor Information
BlackRock, Inc. (“New BlackRock”) is the issuer of 4.6% Notes due 2027, 4.7% Notes due 2029, 5.0% Notes due 2034, 4.9% Notes due 2035, 3.75% Notes due 2035, 5.25% Notes due 2054 and 5.35% Notes due 2055 (collectively the "New BlackRock Notes"), which are fully and unconditionally guaranteed on a senior unsecured basis by Old BlackRock ("Notes Guarantees"). The New BlackRock Notes and the Notes Guarantees rank equally in right of payment with all of BlackRock's and Old BlackRock's other unsubordinated indebtedness, respectively. No other subsidiary of New BlackRock or Old BlackRock guarantees the New BlackRock Notes. The Notes Guarantees will be automatically and unconditionally released and discharged, and Old BlackRock will be released from all obligations under the indenture in its capacity as guarantor, in certain circumstances as described in the separate indentures governing the New BlackRock Notes. See Note 14, Borrowings, in the notes to the condensed consolidated financial statements and Note 15, Borrowings, in the 2025 Form 10-K for further information on New BlackRock Notes.
In October 2024, in connection with the closing of the GIP Transaction, New BlackRock also entered into a guarantee (the “New BlackRock Guarantee”) pursuant to which New BlackRock fully and unconditionally guaranteed, on a senior unsecured basis, the remaining obligations of Old BlackRock with respect to its previously issued senior unsecured notes. The New BlackRock Guarantee ranks equally in right of payment with all of New BlackRock's other unsubordinated indebtedness. In certain circumstances as described in the New BlackRock Guarantee, the New BlackRock Guarantee will be automatically and unconditionally released and discharged, and New BlackRock will be released from all obligations under the New BlackRock Guarantee.
The following presents unaudited summarized financial information of New BlackRock and Old BlackRock (together with New BlackRock, the "Obligor Group") on a combined basis as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026. Intercompany balances and transactions between New BlackRock and Old BlackRock have been eliminated, and balances and transactions with subsidiaries, which are not part of the Obligor Group, have been separately presented, and investments in and equity in earnings related to subsidiaries of New BlackRock and Old BlackRock, which are not members of the Obligor Group, have been excluded.
Summarized Balance Sheet (unaudited)
 
June 30,
 
 
December 31,
 
(in millions)
2026
 
 
2025
 
Assets
 
 
 
 
 
Receivables from non-guarantor subsidiaries
$
4
 
 
$
2,655
 
Goodwill and intangible assets
 
27,102
 
 
 
27,274
 
Other assets
 
1,291
 
 
 
1,228
 
Total assets
$
28,397
 
 
$
31,157
 
Liabilities
 
 
 
 
 
Borrowings
$
12,744
 
 
$
12,769
 
Payables to non-guarantor subsidiaries
 
4,026
 
 
 
5,485
 
Other liabilities
 
3,920
 
 
 
3,806
 
Total liabilities
$
20,690
 
 
$
22,060
 
Summarized Income Statement (unaudited)
For the three months ended June 30, 2026, net loss of the Obligor Group was $188 million, primarily comprised of $130 million of interest expense and $85 million of intangible amortization expense. Revenue during this period was not material.
For the six months ended June 30, 2026, net income of the Obligor Group was $164 million, primarily comprised of a noncash gain of $500 million related to a change in fair value of contingent consideration, partially offset by $261 million of interest expense and $171 million of intangible amortization expense. Revenue during this period was not material.
67
Commitments and Contingencies
Contingent Consideration Liabilities. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to the achievement of specified performance targets or satisfaction of certain post-closing events. The fair value of any contingent consideration is estimated at the time of acquisition closing and is included in contingent consideration liabilities on the condensed consolidated statements of financial condition. The fair value of the remaining aggregate contingent payments at June 30, 2026 totaled $7.9 billion, including $4.3 billion and $3.4 billion related to the GIP and HPS Transactions, respectively. The contingent payments related to the GIP Transaction, if any, will be settled all in stock, for a number of shares ranging from 4.0 million to 5.2 million shares, subject to achieving certain performance targets. The contingent payments related to the HPS Transaction, if any, will be delivered all in Subco Units of approximately 2.8 million to 4.4 million, subject to achieving certain post-closing conditions and financial performance milestones. On July 1, 2026, a contractual provision that could have required cash settlement of the contingent consideration associated with the HPS Transaction expired. As a result, during the third quarter of 2026, the Company will reclassify a portion of the contingent consideration, consisting of 2.8 million Subco Units (with a fair value of approximately $2.6 billion) and subject to the achievement of a specified post-closing condition, from liabilities to equity.
Investment Commitments. At June 30, 2026, the Company had $2.8 billion of various capital commitments to fund sponsored investment products, including CIPs. These products include various private market products, including private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the condensed consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients.
Critical Accounting Policies and Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ significantly from those estimates. These estimates, judgments and assumptions are affected by the Company’s application of accounting policies. Management considers the following accounting policies and estimates critical to understanding the condensed consolidated financial statements. These policies and estimates are considered critical because they had a material impact, or are reasonably likely to have a material impact on the Company’s condensed consolidated financial statements and because they require management to make significant judgments, assumptions or estimates. For a summary of these and additional accounting policies as well as recent accounting developments, see Note 2, Significant Accounting Policies, in the notes to the condensed consolidated financial statements. In addition, see Critical Accounting Policies and Estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2, Significant Accounting Policies, in the 2025 Form 10-K for further information.
Consolidation. The Company consolidates entities in which the Company has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the VRE or is a primary beneficiary (“PB”) of a VIE. Assessing whether an entity is a VIE or a VRE involves judgment and analysis on a structure-by-structure basis. Factors considered in this assessment include the entity’s legal organization, the entity’s capital structure, the rights of equity investment holders, the Company’s contractual involvement with and economic interest in the entity and any related party or de facto agent implications of the Company’s involvement with the entity. Entities that are determined to be VREs are consolidated if the Company can exert absolute control over the financial and operating policies of the investee, which generally exists if there is greater than 50% voting interest. Entities that are determined to be VIEs are consolidated if the Company is the PB of the entity. BlackRock is deemed to be the PB of a VIE if it (1) has the power to direct the activities that most significantly impact the entities’ economic performance and (2) has the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. There is judgment involved in assessing whether the Company is the PB of a VIE. In addition, the Company’s ownership interest in VIEs is subject to variability and is impacted by actions of other investors such as ongoing redemptions and contributions. The Company generally consolidates VIEs in which it holds an economic interest of 10% or greater and deconsolidates such VIEs once its economic interest falls below 10%. As of June 30, 2026, the Company was deemed to be the PB of approximately 140 VIEs, which are BlackRock sponsored investment products. See Note 6, Consolidated Sponsored Investment Products, in the notes to the condensed consolidated financial statements for more information.
68
Fair Value Measurements. The Company’s assessment of the significance of a particular input to the fair value measurement according to the fair value hierarchy (i.e., Level 1, 2 and 3 inputs, as defined) in its entirety requires judgment and considers factors specific to the financial instrument. See Note 2, Significant Accounting Policies, and Note 8, Fair Value Disclosures, in the notes to the condensed consolidated financial statements for more information on fair value measurements.
Goodwill and Intangible Assets. The Company accounts for business combinations using the acquisition method of accounting, where the purchase price is allocated to the assets acquired and liabilities assumed based on their fair values at the date of the transaction. Any excess purchase consideration over the fair value of net assets acquired is recorded as goodwill.
The Company determines the fair value of identifiable intangible assets acquired using the best available information which incorporates various estimates and assumptions, including, but not limited to, future expected cash flows, fundraising assumptions, useful lives, and discount rates. These estimates are based on historical data, internal estimates, or external sources. Changes in economic conditions, capital markets, client behavior, regulatory environments, or other factors could cause actual results to differ materially from these estimates and assumptions.
Contingent Consideration Liabilities. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to the achievement of specified performance targets or satisfaction of certain post-closing events. The fair value of this contingent consideration is estimated at the time of acquisition closing and is included in contingent consideration liabilities on the condensed consolidated statements of financial condition. The fair value of the remaining aggregate contingent payments at June 30, 2026 totaled $7.9 billion, including $4.3 billion and $3.4 billion related to the GIP and HPS Transactions, respectively.
The contingent payments related to the GIP Transaction, if any, will be settled all in stock, ranging from 4.0 million to 5.2 million shares, subject to achieving certain performance targets. The fair value of the GIP Transaction contingent consideration is estimated using the income approach, which included certain significant inputs such as a risk-free discount rate of approximately 4.1% as of June 30, 2026, as well as current estimates of the timing and amounts of fundraising forecasts, stock and AUM volatility, and correlation between stock price and AUM (Level 3 inputs).
The payments related to the HPS Transaction, if any, will be delivered all in Subco Units of approximately 2.8 million to 4.4 million, subject to achieving certain post-closing conditions and financial performance milestones. The fair value of the HPS Transaction contingent consideration is estimated using the income approach, which included certain significant inputs such as a risk-free discount rate of approximately 4.1% as of June 30, 2026, as well as estimates of the timing and amounts of fundraising and fee-related earnings forecasts, cost of equity, and stock price performance (Level 3 inputs).
Subsequent changes of estimated fair value of contingent consideration are recorded within change in fair value of contingent consideration expense on the condensed consolidated statements of income. Accordingly, changes in the key inputs and assumptions described will impact the amount of contingent consideration expense recorded in a reporting period. A portion of the contingent consideration is subject to reclassification to equity when certain contingencies are resolved or when triggers that may require the Company to settle an amount in cash expire. On July 1, 2026, a contractual provision that could have required cash settlement of the contingent consideration associated with the HPS Transaction expired. As a result, during the third quarter of 2026, the Company will reclassify a portion of the contingent consideration, consisting of 2.8 million Subco Units (with a fair value of approximately $2.6 billion) and subject to the achievement of a specified post-closing condition, from liabilities to equity. Upon reclassification, this equity-classified contingent consideration will not be subject to fair value remeasurement and therefore will not impact the Company's condensed consolidated statements of income.
69
Investment Advisory Performance Fees / Carried Interest. The Company receives investment advisory performance fees, including incentive allocations (carried interest) from certain actively managed investment funds and certain SMAs. These performance fees are dependent upon exceeding specified relative or absolute investment return thresholds, which vary by product or account, and include monthly, quarterly, annual or longer measurement periods.
Performance fees, including carried interest, are generated on certain management contracts when performance hurdles are achieved. Such performance fees are recognized when the contractual performance criteria have been met and when it is determined that they are no longer probable of significant reversal. Given the unique nature of each fee arrangement, contracts with customers are evaluated on an individual basis to determine the timing of revenue recognition. Significant judgment is involved in making such determination. Performance fees typically arise from investment management services that began in prior reporting periods. Consequently, a portion of the fees the Company recognizes may be partially related to the services performed in prior periods that meet the recognition criteria in the current period. At each reporting date, the Company considers various factors in estimating performance fees to be recognized, including carried interest. These factors include but are not limited to whether: (1) the amounts are dependent on the financial markets and, thus, are highly susceptible to factors outside the Company’s influence; (2) the ultimate payments have a large number and a broad range of possible amounts; and (3) the funds or SMAs have the ability to (a) invest or reinvest their sales proceeds or (b) distribute their sales proceeds and determine the timing of such distributions.
The Company is allocated/distributed carried interest from certain alternative investment products upon exceeding performance thresholds. The Company may be required to reverse/return all, or part, of such carried interest allocations/distributions depending upon future performance of these products. Carried interest subject to such clawback provisions is recorded in investments or cash and cash equivalents to the extent that it is distributed, on its condensed consolidated statements of financial condition. The Company records a liability for deferred carried interest to the extent it receives cash or capital allocations related to carried interest prior to meeting the revenue recognition criteria. At both June 30, 2026 and December 31, 2025, the Company had $3.5 billion of deferred carried interest recorded in other liabilities on the condensed consolidated statements of financial condition. A portion of the deferred carried interest may also be paid to certain employees and other third parties. The ultimate timing of the recognition of performance fee revenue and related compensation expense, if any, is unknown. See Note 16, Revenue, in the notes to the condensed consolidated financial statements for detailed changes in the deferred carried interest liability balance for the three and six months ended June 30, 2026 and 2025.
70
Item 3. Quantitative and Qualitative Disclosures About Market Risk
AUM Market Price Risk. BlackRock’s investment advisory and administration fees are primarily comprised of fees based on a percentage of the value of AUM and, in some cases, performance fees expressed as a percentage of the returns realized on AUM. At June 30, 2026, the majority of the Company’s investment advisory and administration fees were based on average or period end AUM of the applicable investment funds or separate accounts. Movements in equity market prices, interest rates/credit spreads, foreign exchange rates or all three could cause the value of AUM to decline, which would result in lower investment advisory and administration fees.
Corporate Investments Portfolio Risks. As a leading investment management firm, BlackRock devotes significant resources across all of its operations to identifying, measuring, monitoring, managing and analyzing market and operating risks, including the management and oversight of its own investment portfolio. The Board of Directors of the Company has adopted guidelines for the review of investments (or commitments to invest) to be made by the Company, requiring, among other things, that certain investments be referred to the Board of Directors, depending on the circumstances, for notification or approval.
In the normal course of its business, BlackRock is exposed to equity market price risk, interest rate/credit spread risk and foreign exchange rate risk associated with its corporate investments.
BlackRock has investments primarily in sponsored investment products that invest in a variety of asset classes, including real assets, private equity and hedge funds. Investments generally are made for co-investment purposes, to establish a performance track record, to hedge exposure to certain deferred cash compensation plans or for regulatory purposes. The Company has a seed capital hedging program in which it enters into futures to hedge market and interest rate exposure with respect to its total portfolio of seed investments in sponsored investment products. The Company had outstanding futures related to its seed capital hedging program with an aggregate notional value of approximately $1.9 billion and $1.7 billion at June 30, 2026 and December 31, 2025, respectively.
At June 30, 2026, approximately $10.5 billion of BlackRock's investments were held in consolidated sponsored investment products accounted for as variable interest entities or voting rights entities. Excluding the impact of the Federal Reserve Bank stock, carried interest, investments made to hedge exposure to certain deferred cash compensation plans and certain investments that are hedged via the seed capital hedging program, the Company’s economic exposure to its investment portfolio is $5.0 billion. See Statement of Financial Condition Overview - Investments in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information on the Company’s investments.
Equity Market Price Risk. At June 30, 2026, the Company’s net exposure to equity market price risk in its investment portfolio was approximately $1.3 billion of the Company’s total economic investment exposure. Investments subject to market price risk include public and private equity and real assets investments, hedge funds and funds of funds as well as mutual funds. The Company estimates that a hypothetical exposure to a 10% adverse change in market prices would result in a decrease of approximately $125 million in the carrying value of such investments.
Interest Rate/Credit Spread Risk. At June 30, 2026, the Company was exposed to interest rate risk and credit spread risk as a result of approximately $3.7 billion of investments in debt securities and sponsored investment products that invest primarily in debt securities. Management considered a hypothetical exposure to an adverse 100 basis point fluctuation in interest rates or credit spreads and estimates that the impact of such a fluctuation on these investments, in the aggregate, would result in a decrease, or increase, of approximately $88 million in the carrying value of such investments.
Foreign Exchange Rate Risk. As discussed above, the Company invests in sponsored investment products that invest in a variety of asset classes. The carrying value of the total economic investment exposure denominated in foreign currencies, primarily based in the British pound and euro, was approximately $1.5 billion at June 30, 2026. A hypothetical exposure to a 10% adverse change in the applicable foreign exchange rates would result in approximately a $155 million decline in the carrying value of such investments.
Other Market Risks. The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange risk movements. At June 30, 2026, the Company had outstanding forward foreign currency exchange contracts with an aggregate notional value of approximately $2.5 billion, with expiration dates primarily during the third quarter of 2026. In addition, the Company entered into futures to hedge economically the exposure to market movements on certain deferred cash compensation plans. At June 30, 2026, the Company had outstanding exchange-traded futures with aggregate notional values related to its deferred cash compensation hedging program of approximately $302 million, with expiration dates during the third quarter of 2026.
71
Item 4. Controls and Procedures
Disclosure Controls and Procedures. Under the direction of BlackRock’s Chief Executive Officer and Chief Financial Officer, BlackRock evaluated the effectiveness of its disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, BlackRock’s Chief Executive Officer and Chief Financial Officer have concluded that BlackRock’s disclosure controls and procedures were effective.
Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2026 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
72
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
For a discussion of the Company’s legal proceedings, see Note 15, Commitments and Contingencies, in the notes to the condensed consolidated financial statements of this Form 10-Q.
73
Item 1A. Risk Factors
In addition to the other information set forth in this report, the risks discussed in BlackRock's Annual Report on Form 10-K for the year ended December 31, 2025 could materially affect our business, financial condition, operating results and nonoperating results.
74
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the three months ended June 30, 2026, the Company made the following purchases of its common stock, which is registered pursuant to Section 12(b) of the Exchange Act.
 
 
Total Number
of Shares Purchased(1)
 
 
Average
Price Paid per Share
 
 
Total
Number of Shares Purchased as Part of Publicly Announced Plans or Programs
 
 
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or Programs(1)
 
April 1, 2026 through April 30, 2026
 
 
152,183
 
 
$
1,050.18
 
 
 
151,112
 
 
 
8,681,203
 
May 1, 2026 through May 31, 2026
 
 
253,608
 
 
$
1,070.00
 
 
 
247,183
 
 
 
8,434,020
 
June 1, 2026 through June 30, 2026
 
 
29,833
 
 
$
1,019.16
 
 
 
25,858
 
 
 
8,408,162
 
Total
 
 
435,624
 
 
$
1,059.60
 
 
 
424,153
 
 
 
 
(1)Consists of purchases of common stock made by the Company primarily to satisfy income tax withholding obligations of employees and members of the Company’s Board of Directors related to the vesting of certain restricted stock unit awards and purchases of common stock and/or Subco Units made by the Company pursuant to the share repurchase plan. The Company announced its share repurchase plan in July 2010, which initially authorized the repurchase of 5.1 million shares with no stated expiration. In January 2026, the Company announced that the Board of Directors authorized the repurchase of an additional seven million shares under the Company’s existing share repurchase program, for a total of up to approximately 9.2 million shares of BlackRock common stock.
75
Item 6. Exhibits
Exhibit No.
 
Description
 
 
 
31.1
 
Section 302 Certification of Chief Executive Officer
 
 
 
31.2
 
Section 302 Certification of Chief Financial Officer
 
 
 
32.1
 
Section 906 Certification of Chief Executive Officer and Chief Financial Officer
 
 
 
101.INS
 
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
 
 
 
101.SCH
 
Inline XBRL Taxonomy Extension Schema with Embedded Linkbases Document
 
 
 
104
 
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
 
 
 
76
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
BLACKROCK, INC.
 
 
(Registrant)
 
 
 
 
 
 
By:
/s/ Martin S. Small
Date: August 6, 2026
 
 
Martin S. Small
 
 
 
Senior Managing Director & Chief Financial Officer
(Principal Financial Officer)
77