[10-Q] BlackRock, Inc. Quarterly Earnings Report
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
OR
For the transition period from to .
Commission file number
(Exact name of registrant as specified in its charter)
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(State or Other Jurisdiction of Incorporation or Organization) |
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(I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
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(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 |
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Name of each exchange on which registered |
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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.
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No |
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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).
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No |
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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.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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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 |
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As of April 30, 2026, there were
BlackRock, Inc.
Index to Form 10-Q
PART I
FINANCIAL INFORMATION
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Page |
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Item 1. |
Financial Statements (unaudited) |
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Condensed Consolidated Statements of Financial Condition |
1 |
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Condensed Consolidated Statements of Income |
2 |
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Condensed Consolidated Statements of Comprehensive Income |
3 |
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Condensed Consolidated Statements of Changes in Equity |
4 |
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Condensed Consolidated Statements of Cash Flows |
5 |
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Notes to Condensed Consolidated Financial Statements |
6 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
34 |
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
63 |
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Item 4. |
Controls and Procedures |
64 |
PART II
OTHER INFORMATION
Item 1. |
Legal Proceedings |
65 |
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Item 1A. |
Risk Factors |
66 |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
67 |
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Item 5. |
Other Information |
68 |
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Item 6. |
Exhibits |
69 |
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Signatures |
70 |
i
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
BlackRock, Inc.
Condensed Consolidated Statements of Financial Condition
(unaudited)
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March 31, |
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December 31, |
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(in millions, except shares and per share data) |
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2026 |
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2025 |
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Assets |
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Cash and cash equivalents(1) |
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$ |
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$ |
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Accounts receivable |
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Investments(1) |
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Separate account assets |
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Separate account collateral held under securities lending agreements |
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Property and equipment (net of accumulated depreciation and amortization of $ |
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Intangible assets (net of accumulated amortization of $ |
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Goodwill |
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Operating lease right-of-use assets |
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Other assets(1) |
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Total assets |
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$ |
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$ |
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Liabilities |
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Accrued compensation and benefits |
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$ |
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$ |
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Accounts payable and accrued liabilities |
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Borrowings |
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Separate account liabilities |
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Separate account collateral liabilities under securities lending agreements |
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Contingent consideration liabilities |
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Deferred income tax liabilities |
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Operating lease liabilities |
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Other liabilities(1) |
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Total liabilities |
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(Note 15) |
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Temporary equity |
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Redeemable noncontrolling interests ("NCI") - consolidated sponsored investment |
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Redeemable NCI - Subco |
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Permanent equity |
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BlackRock, Inc. stockholders’ equity |
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Common stock, $ |
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Shares authorized: |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
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( |
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( |
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Treasury stock, common, at cost ( |
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( |
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( |
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Total BlackRock, Inc. stockholders’ equity |
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Nonredeemable NCI - CIPs |
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Total permanent equity |
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Total liabilities, temporary equity and permanent equity |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
1
BlackRock, Inc.
Condensed Consolidated Statements of Income
(unaudited)
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Three Months Ended |
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March 31, |
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(in millions, except per share data) |
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2026 |
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2025 |
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Revenue |
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Investment advisory, administration fees |
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Investment advisory and administration fees |
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$ |
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$ |
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Securities lending revenue |
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Total investment advisory, administration fees |
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Investment advisory performance fees |
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Technology services and subscription revenue |
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Distribution fees |
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Advisory and other revenue |
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Total revenue |
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Expense |
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Employee compensation and benefits |
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Sales, asset and account expense: |
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Distribution and servicing costs |
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Direct fund expense |
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Sub-advisory and other |
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Total sales, asset and account expense |
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General and administration expense |
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Change in fair value of contingent consideration |
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Amortization of intangible assets |
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Total expense |
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Operating income |
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Nonoperating income (expense) |
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Net gain (loss) on investments |
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Interest and dividend income |
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Interest expense |
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Dividend income and net interest income (expense) |
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Total nonoperating income (expense) |
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Income before income taxes |
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Income tax expense |
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Net income |
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Less: |
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Net income (loss) attributable to NCI - CIPs |
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Net income (loss) attributable to NCI - Subco |
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Net income attributable to BlackRock, Inc. |
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$ |
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$ |
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Earnings per share attributable to BlackRock, Inc. |
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Basic |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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Weighted-average common shares outstanding: |
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Basic |
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Diluted (including Subco Units) |
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See accompanying notes to condensed consolidated financial statements.
2
BlackRock, Inc.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
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Three Months Ended |
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March 31, |
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(in millions) |
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2026 |
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2025 |
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Net income |
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$ |
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$ |
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Other comprehensive income (loss): |
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Foreign currency translation adjustments(1) |
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( |
) |
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Comprehensive income (loss) |
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Less: |
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Comprehensive income (loss) attributable to |
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Comprehensive income (loss) attributable to |
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Comprehensive income attributable to |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
3
BlackRock, Inc.
Condensed Consolidated Statements of Changes in Equity
(unaudited)
For the Three Months Ended March 31, 2026
(in millions, except per share data) |
Additional |
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Retained |
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Accumulated |
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Treasury |
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Total |
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Nonredeemable |
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Total |
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Redeemable |
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Redeemable |
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December 31, 2025 |
$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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( |
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Dividends/distributions |
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( |
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( |
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( |
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( |
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Stock-based compensation |
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Issuance of common shares related to |
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( |
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Employee tax withholdings related to |
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( |
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( |
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( |
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Shares/Subco Units repurchased |
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( |
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( |
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( |
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( |
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( |
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Subscriptions (redemptions/distributions) |
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( |
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( |
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Net consolidations (deconsolidations) |
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( |
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Other comprehensive income (loss) |
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( |
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( |
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( |
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Change in BlackRock, Inc's |
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( |
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March 31, 2026 |
$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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$ |
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For the Three Months Ended March 31, 2025
(in millions, except per share data) |
Additional |
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Retained |
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Accumulated |
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Treasury |
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Total |
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Nonredeemable |
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Total |
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Redeemable |
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December 31, 2024 |
$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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Net income |
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( |
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Dividends ($ |
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( |
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( |
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Stock-based compensation |
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Issuance of common shares related to |
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Employee tax withholdings related to |
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( |
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( |
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( |
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Shares repurchased |
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( |
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( |
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( |
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Subscriptions (redemptions/distributions) |
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Net consolidations (deconsolidations) |
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( |
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Other comprehensive income (loss) |
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March 31, 2025 |
$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
4
BlackRock, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
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Three Months Ended |
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March 31, |
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(in millions) |
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2026 |
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2025 |
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Operating activities |
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Net income |
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$ |
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$ |
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Adjustments to reconcile net income to net cash provided by/(used in) operating activities: |
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Depreciation and amortization |
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Noncash lease expense |
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Stock-based compensation |
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Deferred income tax expense (benefit) |
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Change in fair value of contingent consideration |
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( |
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Other investment gains |
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( |
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( |
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Net (gains) losses within CIPs |
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( |
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( |
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Net (purchases) proceeds within CIPs |
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( |
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( |
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(Earnings) losses from equity method investees |
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( |
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( |
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Distributions of earnings from equity method investees |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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( |
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Investments, trading |
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Other assets |
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( |
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( |
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Accrued compensation and benefits |
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( |
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( |
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Accounts payable and accrued liabilities |
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Other liabilities |
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Net cash provided by/(used in) operating activities |
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( |
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( |
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Investing activities |
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Purchases of investments |
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( |
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( |
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Proceeds from sales and maturities of investments |
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Distributions of capital from equity method investees |
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Net consolidations (deconsolidations) of sponsored investment funds |
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( |
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( |
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Acquisitions, net of cash acquired |
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( |
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( |
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Purchases of property and equipment |
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( |
) |
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( |
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Net cash provided by/(used in) investing activities |
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( |
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( |
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Financing activities |
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Dividends/Subco distributions paid |
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( |
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( |
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Proceeds from stock options exercised |
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Shares/Subco Units repurchased |
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( |
) |
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( |
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Net proceeds from (repayments of) borrowings by CIPs |
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( |
) |
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Net subscriptions received/(redemptions/distributions paid) from noncontrolling interest holders |
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Other financing activities |
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( |
) |
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( |
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Net cash provided by/(used in) financing activities |
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( |
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( |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
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( |
) |
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|
|
|
Net increase/(decrease) in cash, cash equivalents and restricted cash |
|
|
( |
) |
|
|
( |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash, end of period |
|
$ |
|
|
$ |
|
||
Supplemental schedule of noncash investing and financing transactions: |
|
|
|
|
|
|
||
Issuance of common shares related to employee stock transactions |
|
$ |
|
|
$ |
|
||
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of |
|
$ |
( |
) |
|
$ |
( |
) |
See accompanying notes to condensed consolidated financial statements.
5
BlackRock, Inc.
Notes to the Condensed Consolidated Financial Statements
(unaudited)
1. 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.
2. 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 March 31, 2026 and for the three months ended March 31, 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 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 is evaluating the impact on BlackRock's condensed consolidated financial statements.
6
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 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 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.
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.
7
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.
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.
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
8
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 March 31, 2026 and December 31, 2025, the fair value of loaned securities held by separate accounts was approximately $
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
In addition, NCI (redeemable) also represents Subco Units that were issued to former equityholders of HPS Investment Partners ("HPS"), and will be exchangeable on a one-for-one basis into BlackRock common stock at the option of the holders when exchange rights begin, which is on the one year anniversary of the acquisition. NCI - Subco is measured based on the Class B-2 common units' proportionate ownership in Subco.
9
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 expires.
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 within net income (loss) attributable to NCI in the condensed consolidated statements of income.
3. Acquisitions
HPS Investment Partners
On
At close, approximately
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
In addition, at the time of close, the Company granted incentive retention awards to certain employees of approximately
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
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.
10
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 |
|
$ |
|
|
Finite-lived intangible assets: |
|
|
|
|
Management contracts(1) |
|
|
|
|
Investor relationships(1) |
|
|
|
|
Indefinite-lived intangible assets - management contracts(2) |
|
|
|
|
Goodwill |
|
|
|
|
Operating lease right-of-use ("ROU") assets |
|
|
|
|
Other assets |
|
|
|
|
Accrued compensation and benefits |
|
|
( |
) |
Accounts payable and accrued liabilities |
|
|
( |
) |
Operating lease liabilities |
|
|
( |
) |
Deferred income tax liabilities |
|
|
( |
) |
Other liabilities assumed(3) |
|
|
( |
) |
Total consideration, net of cash acquired |
|
$ |
|
|
|
|
|
|
|
Summary of consideration, net of cash acquired: |
|
|
|
|
Closing consideration at fair value - Subco Units(4) |
|
$ |
|
|
Cash acquired |
|
|
( |
) |
Deferred consideration at fair value - Subco Units(4) |
|
|
|
|
Debt repayment |
|
|
|
|
Total consideration, net of cash acquired |
|
$ |
|
|
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
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.
11
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 Estimate |
|
|
Finite-lived intangible assets: |
|
|
|
|
Customer relationships(1) |
|
$ |
|
|
Technology-related(2) |
|
|
|
|
Trade name |
|
|
|
|
Goodwill |
|
|
|
|
Other assets |
|
|
|
|
Deferred revenue |
|
|
( |
) |
Deferred income tax liabilities |
|
|
( |
) |
Other liabilities assumed |
|
|
( |
) |
Total consideration, net of cash acquired |
|
$ |
|
|
|
|
|
|
|
Summary of consideration, net of cash acquired: |
|
|
|
|
Cash paid |
|
$ |
|
|
Cash acquired |
|
|
( |
) |
Total consideration, net of cash acquired |
|
$ |
|
|
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 |
|
|
|
(Unaudited) (in millions) |
|
March 31, 2025 |
|
|
|
Total revenue |
|
$ |
|
|
|
Net income attributable to BlackRock, Inc. |
|
$ |
|
|
|
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.
4. 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.
|
|
March 31, |
|
|
December 31, |
|
||
(in millions) |
|
2026 |
|
|
2025 |
|
||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|||
Total cash, cash equivalents and restricted cash |
|
$ |
|
|
$ |
|
||
12
5. Investments
A summary of the carrying value of total investments is as follows:
|
March 31, |
|
|
December 31, |
|
||
(in millions) |
2026 |
|
|
2025 |
|
||
Debt securities: |
|
|
|
|
|
||
Trading securities (including $ |
$ |
|
|
$ |
|
||
Held-to-maturity investments |
|
|
|
|
|
||
Total debt securities |
|
|
|
|
|
||
Equity securities at FVTNI (including $ |
|
|
|
|
|
||
Equity method investments: |
|
|
|
|
|
||
Equity method investments(2) |
|
|
|
|
|
||
Investments related to deferred cash compensation plans(1) |
|
|
|
|
|
||
Total equity method investments |
|
|
|
|
|
||
CLOs held at fair value |
|
|
|
|
|
||
Federal Reserve Bank stock(3) |
|
|
|
|
|
||
Carried interest(4) |
|
|
|
|
|
||
Other investments(5) |
|
|
|
|
|
||
Total investments |
$ |
|
|
$ |
|
||
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 March 31, 2026, $
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:
|
|
|
|
|
|
|
|
|
|||||||
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||||||||||
(in millions) |
Cost |
|
|
Carrying |
|
|
Cost |
|
|
Carrying |
|
||||
Trading debt securities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Government debt |
|
|
|
|
|
|
|
|
|
|
|
||||
Asset/mortgage-backed debt |
|
|
|
|
|
|
|
|
|
|
|
||||
Total trading debt securities |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Equity securities at FVTNI: |
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities/mutual funds |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
13
6. 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 voting rights entities ("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 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:
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||||||||||||||||||
(in millions) |
|
VIEs |
|
|
VREs |
|
|
Total |
|
|
VIEs |
|
|
VREs |
|
|
Total |
|
||||||
Cash and cash equivalents(1) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities at FVTNI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Carried interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other liabilities(2) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Noncontrolling interest - CIPs |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
BlackRock's net interest in CIPs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
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 was not material for both the three months ended March 31, 2026 and March 31, 2025.
7. Variable Interest Entities
Nonconsolidated VIEs.
|
|
|
|
Advisory Fee |
|
|
Other Net Assets |
|
|
Maximum |
|
||||
(in millions) |
Investments |
|
|
Receivables |
|
|
(Liabilities) |
|
|
Risk of Loss(1) |
|
||||
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
||||
Sponsored investment |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
||||
Sponsored investment |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
The net assets of sponsored investment products that are nonconsolidated VIEs approximated $
14
8. Fair Value Disclosures
Fair Value Hierarchy
Assets and liabilities measured at fair value on a recurring basis
March 31, 2026 |
Quoted Prices |
|
|
Significant |
|
|
Significant |
|
|
Investments |
|
|
Other(2) |
|
|
March 31, |
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading securities |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Held-to-maturity investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities at FVTNI: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities/mutual funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity method: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity, fixed income, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Hedge funds/funds of hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Private equity funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real assets funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investments related to deferred |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total equity method |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
CLOs held at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Federal Reserve Bank stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Carried interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other assets(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Separate account assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Separate account collateral held under |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total separate account collateral held |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Separate account collateral |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Contingent consideration liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other liabilities(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
15
December 31, 2025 |
Quoted Prices |
|
|
Significant |
|
|
Significant |
|
|
Investments |
|
|
Other(2) |
|
|
December 31, |
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading securities |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Held-to-maturity investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities at FVTNI: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities/mutual funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity method: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity, fixed income, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Hedge funds/funds of hedge |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Private equity funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real assets funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investments related to deferred |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total equity method |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
CLOs held at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Federal Reserve Bank stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Carried interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other assets(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Separate account assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Separate account collateral held under |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total separate account collateral held |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Separate account collateral |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Contingent consideration liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other liabilities(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
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. 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 March 31, 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 using unobservable market data inputs or other valuation techniques.
16
At March 31, 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
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2026
(in millions) |
|
December 31, |
|
|
Realized |
|
|
Purchases |
|
|
Sales and |
|
|
Issuances and |
|
|
Transfers |
|
|
Transfers |
|
|
March 31, |
|
|
Total Net |
|
|||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||
Equity securities/mutual funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CLOs held at fair value |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||||
Total investments |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||||
Other assets |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||||
Total assets |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(in millions) |
|
December 31, |
|
|
Realized |
|
|
Purchases |
|
|
Sales and |
|
|
Issuances and |
|
|
Transfers |
|
|
Transfers |
|
|
March 31, |
|
|
Total Net |
|
|||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2025
(in millions) |
|
December 31, |
|
|
Realized |
|
|
Purchases |
|
|
Sales and |
|
|
Issuances and |
|
|
Transfers |
|
|
Transfers |
|
|
March 31, |
|
|
Total Net |
|
|||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|||||||
Loans |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||||
Total investments |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||||
Other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total assets |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(in millions) |
|
December 31, |
|
|
Realized |
|
|
Purchases |
|
|
Sales and |
|
|
Issuances and |
|
|
Transfers |
|
|
Transfers |
|
|
March 31, |
|
|
Total Net |
|
|||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||||
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||||
Total liabilities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
17
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.
Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At March 31, 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:
|
March 31, 2026 |
|
|
December 31, 2025 |
|
|
|
|
||||||||||
(in millions) |
Carrying |
|
|
Estimated |
|
|
Carrying |
|
|
Estimated |
|
|
Fair Value |
|
||||
Financial assets(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Level 1 |
(2)(3) |
||||
Other assets |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Level 1 |
(2)(4) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Long-term borrowings |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Level 2 |
(5) |
||||
Other liabilities |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Level 2 |
(6) |
||||
18
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.
March 31, 2026 |
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(in millions) |
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Ref |
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Fair Value |
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Total |
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Redemption |
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Redemption |
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Equity method(1): |
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Hedge funds/funds of hedge |
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(a) |
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$ |
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$ |
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Daily/Monthly ( |
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|||
Private equity funds |
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(b) |
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N/R |
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N/R |
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Real assets funds |
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(c) |
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Quarterly ( |
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|||
Investments related to deferred |
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(d) |
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Monthly |
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|||
Other investments: |
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Private credit funds |
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(a) |
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Quarterly |
|
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Consolidated sponsored |
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Real assets funds |
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(c) |
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N/R |
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N/R |
||
Private equity funds |
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(e) |
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N/R |
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N/R |
||
Hedge funds/other |
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(a) |
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Quarterly ( |
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|||
Total |
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$ |
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$ |
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December 31, 2025 |
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(in millions) |
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Ref |
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Fair Value |
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Total |
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Redemption |
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Redemption |
||
Equity method(1): |
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|
||
Hedge funds/funds of hedge |
|
(a) |
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$ |
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|
$ |
|
|
Quarterly ( |
|
|||
Private equity funds |
|
(b) |
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N/R |
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N/R |
||
Real assets funds |
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(c) |
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Quarterly ( |
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|||
Investments related to deferred |
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(d) |
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Monthly |
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|||
Other investments: |
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Private credit funds |
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(a) |
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Quarterly |
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Consolidated sponsored |
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Real assets funds |
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(c) |
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N/R |
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N/R |
||
Private equity funds |
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(e) |
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N/R |
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N/R |
||
Hedge funds/other |
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(a) |
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Quarterly ( |
|
|||
Total |
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|
|
$ |
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|
$ |
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|
||
N/R – Not Redeemable
19
Fair Value Option
At March 31, 2026 and December 31, 2025, the Company elected the fair value option for certain investments in CLOs of approximately $
9. 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 $
In addition, the Company enters into exchange-traded futures to economically hedge the exposure to market movements on certain deferred cash compensation plans. At March 31, 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 $
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 March 31, 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 $
At both March 31, 2026 and December 31, 2025, the Company had a derivative providing credit protection with a notional amount of approximately $
20
The following table presents the fair values of derivative instruments recognized in the condensed consolidated statements of financial condition at March 31, 2026 and December 31, 2025:
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Assets |
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Liabilities |
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||||||||||||||
(in millions) |
Statement of |
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March 31, 2026 |
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December 31, 2025 |
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Statement of |
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March 31, 2026 |
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December 31, 2025 |
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Derivative instruments |
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|
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Forward foreign currency |
Other assets |
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$ |
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$ |
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Other liabilities |
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$ |
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$ |
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The following table presents realized and unrealized gains (losses) recognized in the condensed consolidated statements of income on derivative instruments:
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Three Months Ended |
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|||||
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March 31, |
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|||||
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Statement of Income |
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2026 |
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2025 |
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(in millions) |
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Classification |
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Gains (Losses) |
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|||||
Derivative instruments |
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Exchange-traded futures(1) |
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$ |
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$ |
|
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Forward foreign currency |
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( |
) |
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Total gain (loss) from derivative |
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$ |
( |
) |
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$ |
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|
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 months ended March 31, 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.
10. Goodwill
Goodwill activity during the three months ended March 31, 2026 was as follows:
(in millions) |
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December 31, 2025 |
$ |
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Other |
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March 31, 2026 |
$ |
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|
11. Intangible Assets
The carrying amounts of identifiable intangible assets are summarized as follows:
(in millions) |
Indefinite-lived |
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Finite-lived |
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Total |
|
|||
December 31, 2025 |
$ |
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$ |
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$ |
|
|||
Amortization expense |
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( |
) |
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( |
) |
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March 31, 2026 |
$ |
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$ |
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$ |
|
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21
12. Leases
The following table presents components of lease cost included in general and administration expense on the condensed consolidated statements of income:
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Three Months Ended |
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|||||
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March 31, |
|
|||||
(in millions) |
2026 |
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2025 |
|
||
Lease cost: |
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Operating lease cost(1) |
$ |
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$ |
|
||
Variable lease cost(2) |
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Total lease cost |
$ |
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$ |
|
||
Supplemental information related to operating leases is summarized below:
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|
Three Months Ended |
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|||||
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March 31, |
|
|||||
(in millions) |
|
2026 |
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2025 |
|
||
Supplemental cash flow information: |
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|
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Operating cash flows from operating leases included in the measurement |
|
$ |
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$ |
|
||
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|
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Supplemental noncash information: |
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|
||
ROU assets in exchange for operating lease liabilities |
|
$ |
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$ |
|
||
|
March 31, |
|
December 31, |
||||||
|
2026 |
|
2025 |
||||||
Lease term and discount rate: |
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|
||
Weighted-average remaining lease term |
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|
years |
|
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|
years |
||
Weighted-average discount rate |
|
|
% |
|
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% |
||
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 March 31, 2026 and December 31, 2025, the Company had $
At both March 31, 2026 and December 31, 2025, the Company had $
22
14. 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 $
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 $
Subsidiary Credit Facility. BlackRock Investment Management (UK) Limited ("BIM UK"), a wholly owned subsidiary of the Company, maintains a revolving credit facility (the “Subsidiary Credit Facility”) in the amount of £
23
Long-Term Borrowings
The carrying value and fair value of long-term borrowings determined using market prices and EUR/USD foreign exchange rate at March 31, 2026 included the following:
(in millions) |
Maturity |
|
|
Unamortized |
|
|
Carrying Value |
|
|
Fair Value |
|
||||
3.20% Notes due 2027(2) |
$ |
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$ |
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|
$ |
|
|
$ |
|
||||
4.60% Notes due 2027 |
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( |
) |
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|
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4.70% Notes due 2029 |
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( |
) |
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|
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3.25% Notes due 2029(2) |
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( |
) |
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|
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2.40% Notes due 2030(2) |
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( |
) |
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|
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1.90% Notes due 2031(2) |
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( |
) |
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|
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2.10% Notes due 2032(2) |
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( |
) |
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|
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4.75% Notes due 2033(2) |
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( |
) |
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|
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5.00% Notes due 2034 |
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( |
) |
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|
|||
4.90% Notes due 2035 |
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( |
) |
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|
|||
3.75% Notes due 2035 |
|
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( |
) |
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|
|||
5.25% Notes due 2054 |
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( |
) |
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|
|||
5.35% Notes due 2055 |
|
|
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( |
) |
|
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|
|||
Total long-term borrowings |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||
Long-term borrowings at December 31, 2025 had a carrying value of $
See Note 15, Borrowings, in the 2025 Form 10-K for more information regarding the Company’s borrowings.
15. Commitments and Contingencies
Investment Commitments. At March 31, 2026, the Company had $
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 March 31, 2026 totaled $
24
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 March 31, 2026 and subject to this type of indemnification was approximately $
25
16. Revenue
The table below presents detail of revenue for the three months ended March 31, 2026 and 2025 and includes the product type mix of investment advisory, administration fees and securities lending revenue, and performance fees.
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Revenue |
|
|
|
|
|
||
Investment advisory, administration fees and |
|
|
|
|
|
||
Equity: |
|
|
|
|
|
||
Active |
$ |
|
|
$ |
|
||
ETFs |
|
|
|
|
|
||
Equity subtotal |
|
|
|
|
|
||
Fixed income: |
|
|
|
|
|
||
Active |
|
|
|
|
|
||
ETFs |
|
|
|
|
|
||
Fixed income subtotal |
|
|
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|
||
Active multi-asset |
|
|
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|
||
Alternatives: |
|
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|
||
Private markets |
|
|
|
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|
||
Liquid alternatives |
|
|
|
|
|
||
Alternatives subtotal |
|
|
|
|
|
||
Non-ETF index |
|
|
|
|
|
||
Digital assets, commodities and multi-asset ETFs(1) |
|
|
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|
||
Long-term |
|
|
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|
||
Cash management |
|
|
|
|
|
||
Total investment advisory, administration fees |
|
|
|
|
|
||
Investment advisory performance fees: |
|
|
|
|
|
||
Equity |
|
|
|
|
|
||
Fixed income |
|
|
|
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|
||
Multi-asset |
|
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|
||
Alternatives: |
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|
||
Private markets |
|
|
|
|
|
||
Liquid alternatives |
|
|
|
|
|
||
Alternatives subtotal |
|
|
|
|
|
||
Total investment advisory performance fees |
|
|
|
|
|
||
Technology services and subscription revenue |
|
|
|
|
|
||
Distribution fees |
|
|
|
|
|
||
Advisory and other revenue: |
|
|
|
|
|
||
Advisory |
|
|
|
|
|
||
Other |
|
|
|
|
|
||
Total advisory and other revenue |
|
|
|
|
|
||
Total revenue |
$ |
|
|
$ |
|
||
26
The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment style:
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
By client type: |
|
|
|
|
|
||
Retail |
$ |
|
|
$ |
|
||
ETFs |
|
|
|
|
|
||
Institutional: |
|
|
|
|
|
||
Active |
|
|
|
|
|
||
Index |
|
|
|
|
|
||
Institutional subtotal |
|
|
|
|
|
||
Long-term |
|
|
|
|
|
||
Cash management |
|
|
|
|
|
||
Total |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
By investment style: |
|
|
|
|
|
||
Active |
$ |
|
|
$ |
|
||
ETFs |
|
|
|
|
|
||
Non-ETF index |
|
|
|
|
|
||
Long-term |
|
|
|
|
|
||
Cash management |
|
|
|
|
|
||
Total |
$ |
|
|
$ |
|
||
Investment Advisory and Administration Fees – Remaining Performance Obligation
The tables below present estimated investment advisory and administration fees expected to be recognized in the future related to the unsatisfied portion of the performance obligations at March 31, 2026 and 2025:
March 31, 2026
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
Total |
|
|||||||||||
Investment advisory and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Alternatives(1)(2) |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
March 31, 2025
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
Total |
|
|||||||||||
Investment advisory and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Alternatives(1)(2) |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
27
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 months ended March 31, 2026 and 2025:
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Beginning balance |
$ |
|
|
$ |
|
||
Net increase (decrease) in unrealized allocations |
|
|
|
|
|
||
Performance fee revenue recognized |
|
( |
) |
|
|
( |
) |
Ending balance |
$ |
|
|
$ |
|
||
Technology Services and Subscription Revenue – Remaining Performance Obligation
The tables below present estimated technology services and subscription revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligations at March 31, 2026 and 2025:
March 31, 2026
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
Total |
|
|||||||||||
Technology services and |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
March 31, 2025
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
Total |
|
|||||||||||
Technology services and |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
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 March 31, 2026, the estimated fixed minimum fees for the remainder of the year approximated $
28
The table below presents changes in the technology services and subscription deferred revenue liability for the three months ended March 31, 2026 and 2025, which is included in other liabilities on the condensed consolidated statements of financial condition:
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Beginning balance |
$ |
|
|
$ |
|
||
Acquisition(1) |
|
|
|
|
|
||
Additions(2) |
|
|
|
|
|
||
Revenue recognized that was included |
|
( |
) |
|
|
( |
) |
Ending balance |
$ |
|
|
$ |
|
||
17. Stock-Based Compensation
Restricted Stock Units ("RSUs")
Time-Based RSUs
RSU activity for the three months ended March 31, 2026 is summarized below.
Outstanding at |
RSUs |
|
|
Weighted- |
|
||
December 31, 2025 |
|
|
|
$ |
|
||
Granted |
|
|
|
$ |
|
||
Converted |
|
( |
) |
|
$ |
|
|
Forfeited |
|
( |
) |
|
$ |
|
|
March 31, 2026 |
|
|
|
$ |
|
||
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
At March 31, 2026, the intrinsic value of outstanding RSUs was $
At March 31, 2026, total unrecognized stock-based compensation expense related to unvested RSUs was $
29
Performance-Based RSUs
Performance-based RSU activity for the three months ended March 31, 2026 is summarized below.
Outstanding at |
Performance- |
|
|
Weighted- |
|
|
Performance- |
|
|
Weighted- |
|
|
Total Performance- |
|
|
Weighted- |
|
||||||
December 31, 2025 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
Granted |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
Additional shares due to |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
Converted |
|
( |
) |
|
$ |
|
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
|
||||
Forfeited |
|
( |
) |
|
$ |
|
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
|
||||
March 31, 2026 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
In January 2026, the Company granted approximately
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 are 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 due to performance measures) to employees during the three months ended March 31, 2026 was $
At March 31, 2026, the intrinsic value of outstanding performance-based RSUs was $
At March 31, 2026, total unrecognized stock-based compensation expense related to unvested performance-based awards was $
Stock Options
Stock option activity and ending balance for the three months ended March 31, 2026 is summarized below.
|
2017 Performance-based |
|
|
2023 Performance-based |
|
|
2023 Time-based |
|
|||||||||||||||
|
Shares |
|
|
Weighted |
|
|
Shares |
|
|
Weighted |
|
|
Shares |
|
|
Weighted |
|
||||||
Outstanding at December 31, 2025 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
Exercised |
|
( |
) |
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|||||
Outstanding at March 31, 2026 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
|
|
Options Outstanding |
|
|
Options Exercisable |
|
||||||||||||||||||||||||||
Option Type |
|
Exercise Prices |
|
|
Options Outstanding |
|
|
Weighted Average Remaining Life (years) |
|
|
Aggregate |
|
|
Exercise Prices |
|
|
Options |
|
|
Weighted Average Remaining Life (years) |
|
|
Aggregate |
|
||||||||
2017 Performance-based |
|
$ |
|
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
$ |
|
||||||||
2023 Performance-based |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
||||||||
2023 Time-based |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||||
At March 31, 2026, total unrecognized stock-based compensation expense related to unvested performance-based and time-based stock options was $
30
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
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
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
See Note 18, Stock-Based Compensation, in the 2025 Form 10-K for more information on RSUs, performance-based RSUs and stock options.
18. 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 $
19. 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 March 31, 2026, the Company was required to maintain approximately $
31
20. Accumulated Other Comprehensive Income (Loss)
The following table presents changes in AOCI for the three months ended March 31, 2026 and 2025:
|
Three Months Ended |
|
|
|||||
|
March 31, |
|
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
|
||
Beginning balance |
$ |
( |
) |
|
$ |
( |
) |
|
Foreign currency translation adjustments(1) |
|
( |
) |
|
|
|
|
|
Change in BlackRock, Inc.'s ownership interest |
|
|
|
|
|
|
||
Ending balance |
$ |
( |
) |
|
$ |
( |
) |
|
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
During the three months ended March 31, 2026, under the Company’s existing share repurchase program, the Company repurchased an aggregate of
22. Income Taxes
Income tax expense for the three months ended March 31, 2026 includes a $
Income tax expense for the three months ended March 31, 2025 included a $
23. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three months ended March 31, 2026 and 2025:
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions, except shares and per share data) |
2026 |
|
|
2025 |
|
||
Basic net income attributable to BlackRock, Inc. |
$ |
|
|
$ |
|
||
Add: Incremental net income from dilutive securities - NCI - Subco |
|
|
|
|
|
||
Diluted net income attributable to BlackRock, Inc. |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
Basic weighted-average shares outstanding |
|
|
|
|
|
||
Dilutive effect of: |
|
|
|
|
|
||
Nonparticipating RSUs |
|
|
|
|
|
||
Stock options |
|
|
|
|
|
||
Subco Units |
|
|
|
|
|
||
Total diluted weighted-average shares outstanding |
|
|
|
|
|
||
Basic earnings per share |
$ |
|
|
$ |
|
||
Diluted earnings per share |
$ |
|
|
$ |
|
||
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.
32
For the three months ended March 31, 2026,
24. Segment Information
The Company’s management directs BlackRock’s operations as
The following table illustrates total revenue for the three months ended March 31, 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 |
|
|||||
|
|
March 31, |
|
|||||
(in millions) |
|
2026 |
|
|
2025 |
|
||
Revenue |
|
|
|
|
|
|
||
Americas |
|
$ |
|
|
$ |
|
||
Europe |
|
|
|
|
|
|
||
Asia-Pacific |
|
|
|
|
|
|
||
Total revenue |
|
$ |
|
|
$ |
|
||
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 March 31, 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.
|
|
March 31, |
|
|
December 31, |
|
||
(in millions) |
|
2026 |
|
|
2025 |
|
||
Long-lived Assets |
|
|
|
|
|
|
||
Americas |
|
$ |
|
|
$ |
|
||
Europe |
|
|
|
|
|
|
||
Asia-Pacific |
|
|
|
|
|
|
||
Total long-lived assets |
|
$ |
|
|
$ |
|
||
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.
25. 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.
33
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.
34
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 $13.9 trillion of AUM at March 31, 2026. With approximately 25,400 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.
35
EXECUTIVE SUMMARY
|
Three Months Ended |
|
|
|||||
|
March 31, |
|
|
|||||
(in millions, except per share data) |
2026 |
|
|
2025 |
|
|
||
GAAP basis(1): |
|
|
|
|
|
|
||
Total revenue |
$ |
6,698 |
|
|
$ |
5,276 |
|
|
Total expense |
|
3,884 |
|
|
|
3,578 |
|
|
Operating income |
$ |
2,814 |
|
|
$ |
1,698 |
|
|
Operating margin |
|
42.0 |
% |
|
|
32.2 |
% |
|
Nonoperating income (expense), less net income |
|
22 |
|
|
|
60 |
|
|
Income tax expense |
|
516 |
|
|
|
248 |
|
|
Less: Net income (loss) attributable to NCI - Subco |
|
108 |
|
|
|
— |
|
|
Net income attributable to BlackRock |
$ |
2,212 |
|
|
$ |
1,510 |
|
|
Diluted earnings per common share |
$ |
14.06 |
|
|
$ |
9.64 |
|
|
Effective tax rate |
|
18.2 |
% |
|
|
14.1 |
% |
|
As adjusted(2): |
|
|
|
|
|
|
||
Operating income |
$ |
2,669 |
|
|
$ |
2,032 |
|
|
Operating margin |
|
44.5 |
% |
|
|
43.2 |
% |
|
Nonoperating income (expense), less net income |
$ |
22 |
|
|
$ |
75 |
|
|
Net income attributable to BlackRock(3) |
$ |
2,068 |
|
|
$ |
1,770 |
|
|
Diluted earnings per common share(3) |
$ |
12.53 |
|
|
$ |
11.30 |
|
|
Effective tax rate |
|
23.2 |
% |
|
|
16.0 |
% |
|
Other: |
|
|
|
|
|
|
||
Assets under management (end of period) |
$ |
13,894,600 |
|
|
$ |
11,583,928 |
|
|
Diluted weighted-average common shares |
|
165.0 |
|
|
|
156.6 |
|
|
Shares outstanding including Subco Units(4) |
|
163.0 |
|
|
|
155.0 |
|
|
Book value per share(5) |
$ |
364.87 |
|
|
$ |
309.86 |
|
|
Cash dividends declared and paid per share |
$ |
5.73 |
|
|
$ |
5.21 |
|
|
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
GAAP. Operating income of $2.8 billion increased $1.1 billion and operating margin of 42.0% increased 980 bps from the three months ended March 31, 2025. Increases in operating income and operating margin were driven by higher revenue, reflecting organic base fee growth, the positive impact of markets, and fees related to the HPS Transaction. GAAP operating income and operating margin were also impacted by noncash acquisition-related items in connection with the HPS and GIP Transactions.
Nonoperating income (expense), net of NCI - CIPs decreased $38 million from the three months ended March 31, 2025, driven primarily by lower dividend income and net interest income (expense).
First quarter 2026 and 2025 income tax expense includes $57 million and $46 million of discrete tax benefits, respectively, related to vested stock-based compensation awards. In addition, first quarter 2025 income tax expense included $149 million of net discrete tax benefits realized from changes in the Company's organizational entity structure.
Earnings per diluted common share increased $4.42, or 46%, from the three months ended March 31, 2025, reflecting higher operating income, impacted by noncash acquisition-related items, partially offset by lower nonoperating income, a higher effective tax rate, and a higher diluted share count in connection with the HPS Transaction.
36
As Adjusted. Operating income of $2.7 billion increased $637 million and operating margin of 44.5% increased 130 bps from the three months ended March 31, 2025. The noncash acquisition-related items described above have been excluded from as adjusted results. Earnings per diluted common share increased $1.23, or 11%, from the three months ended March 31, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income, a higher effective tax rate, and a higher diluted share count in the current quarter.
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.
37
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 |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Operating income, GAAP basis |
$ |
2,814 |
|
|
$ |
1,698 |
|
Non-GAAP expense adjustments: |
|
|
|
|
|
||
Compensation expense related to appreciation |
|
5 |
|
|
|
(3 |
) |
Amortization of intangible assets (b) |
|
277 |
|
|
|
117 |
|
Acquisition-related compensation costs (b) |
|
107 |
|
|
|
85 |
|
Acquisition-related transaction costs (b)(1) |
|
15 |
|
|
|
39 |
|
Change in fair value of contingent consideration (b) |
|
(549 |
) |
|
|
96 |
|
Operating income, as adjusted |
$ |
2,669 |
|
|
$ |
2,032 |
|
Revenue, GAAP basis |
$ |
6,698 |
|
|
$ |
5,276 |
|
Non-GAAP adjustments: |
|
|
|
|
|
||
Distribution fees |
|
(389 |
) |
|
|
(321 |
) |
Investment advisory fees |
|
(316 |
) |
|
|
(249 |
) |
Revenue used for operating margin measurement |
$ |
5,993 |
|
|
$ |
4,706 |
|
Operating margin, GAAP basis |
|
42.0 |
% |
|
|
32.2 |
% |
Operating margin, as adjusted |
|
44.5 |
% |
|
|
43.2 |
% |
|
|
|
|
|
|
||
(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted:
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Nonoperating income (expense), GAAP basis |
$ |
28 |
|
|
$ |
65 |
|
Less: Net income (loss) attributable to NCI - CIPs |
|
6 |
|
|
|
5 |
|
Nonoperating income (expense), net of NCI - CIPs |
|
22 |
|
|
|
60 |
|
Less: Hedge gain (loss) on deferred cash compensation |
|
— |
|
|
|
(15 |
) |
Nonoperating income (expense), less net income (loss) |
$ |
22 |
|
|
$ |
75 |
|
(3) Net income attributable to BlackRock, Inc., as adjusted:
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions, except per share data) |
2026 |
|
|
2025 |
|
||
Net income attributable to BlackRock, Inc., GAAP basis |
$ |
2,212 |
|
|
$ |
1,510 |
|
Noncontrolling interest - Subco |
|
108 |
|
|
|
— |
|
Net income attributable to BlackRock, Inc., (for diluted EPS) |
|
2,320 |
|
|
|
1,510 |
|
Non-GAAP adjustments(1): |
|
|
|
|
|
||
Net impact of hedged deferred cash compensation plans (a) |
|
4 |
|
|
|
9 |
|
Amortization of intangible assets (b) |
|
207 |
|
|
|
87 |
|
Acquisition-related compensation costs (b) |
|
80 |
|
|
|
63 |
|
Acquisition-related transaction costs (b) |
|
11 |
|
|
|
29 |
|
Change in fair value of contingent consideration (b) |
|
(554 |
) |
|
|
72 |
|
Net income attributable to BlackRock, Inc., as adjusted |
$ |
2,068 |
|
|
$ |
1,770 |
|
Diluted weighted-average common shares outstanding |
|
165.0 |
|
|
|
156.6 |
|
Diluted earnings per common share, GAAP basis |
$ |
14.06 |
|
|
$ |
9.64 |
|
Diluted earnings per common share, as adjusted |
$ |
12.53 |
|
|
$ |
11.30 |
|
38
(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.
39
(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:
For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. In addition, the non-GAAP adjustment in 2025 and 2026 related to the change in fair value of contingent consideration is primarily not deductible for income tax purposes.
40
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) |
|
||||||||||||||
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
Three Months |
|
|
Twelve Months |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
|
2025 |
|
|
2026 |
|
|
2026 |
|
|||||
Equity |
$ |
7,661,385 |
|
|
$ |
7,793,875 |
|
|
$ |
6,204,549 |
|
|
$ |
71,842 |
|
|
$ |
272,656 |
|
Fixed income |
|
3,270,863 |
|
|
|
3,272,021 |
|
|
|
3,006,670 |
|
|
|
34,314 |
|
|
|
160,975 |
|
Multi-asset |
|
1,222,612 |
|
|
|
1,223,625 |
|
|
|
1,002,681 |
|
|
|
17,827 |
|
|
|
81,550 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Private markets |
|
320,431 |
|
|
|
322,624 |
|
|
|
212,354 |
|
|
|
9,076 |
|
|
|
41,766 |
|
Liquid alternatives |
|
108,639 |
|
|
|
100,990 |
|
|
|
79,356 |
|
|
|
5,551 |
|
|
|
14,539 |
|
Alternatives subtotal |
|
429,070 |
|
|
|
423,614 |
|
|
|
291,710 |
|
|
|
14,627 |
|
|
|
56,305 |
|
Digital assets |
|
60,671 |
|
|
|
78,435 |
|
|
|
50,329 |
|
|
|
935 |
|
|
|
32,343 |
|
Currency and |
|
176,676 |
|
|
|
169,216 |
|
|
|
97,355 |
|
|
|
(3,644 |
) |
|
|
16,206 |
|
Long-term |
|
12,821,277 |
|
|
|
12,960,786 |
|
|
|
10,653,294 |
|
|
|
135,901 |
|
|
|
620,035 |
|
Cash management |
|
1,073,323 |
|
|
|
1,080,732 |
|
|
|
930,634 |
|
|
|
(6,177 |
) |
|
|
123,780 |
|
Total |
$ |
13,894,600 |
|
|
$ |
14,041,518 |
|
|
$ |
11,583,928 |
|
|
$ |
129,724 |
|
|
$ |
743,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
AUM and Net Inflows (Outflows) by Client Type and Product Type |
|
||||||||||||||||||
|
AUM |
|
|
Net inflows (outflows) |
|
||||||||||||||
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
Three Months |
|
|
Twelve Months |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
|
2025 |
|
|
2026 |
|
|
2026 |
|
|||||
Retail |
$ |
1,262,374 |
|
|
$ |
1,278,732 |
|
|
$ |
1,022,880 |
|
|
$ |
15,233 |
|
|
$ |
108,673 |
|
ETFs |
|
5,485,544 |
|
|
|
5,467,710 |
|
|
|
4,302,761 |
|
|
|
131,692 |
|
|
|
550,994 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Active |
|
2,509,266 |
|
|
|
2,518,170 |
|
|
|
2,155,178 |
|
|
|
23,713 |
|
|
|
68,833 |
|
Index |
|
3,564,093 |
|
|
|
3,696,174 |
|
|
|
3,172,475 |
|
|
|
(34,737 |
) |
|
|
(108,465 |
) |
Institutional subtotal |
|
6,073,359 |
|
|
|
6,214,344 |
|
|
|
5,327,653 |
|
|
|
(11,024 |
) |
|
|
(39,632 |
) |
Long-term |
|
12,821,277 |
|
|
|
12,960,786 |
|
|
|
10,653,294 |
|
|
|
135,901 |
|
|
|
620,035 |
|
Cash management |
|
1,073,323 |
|
|
|
1,080,732 |
|
|
|
930,634 |
|
|
|
(6,177 |
) |
|
|
123,780 |
|
Total |
$ |
13,894,600 |
|
|
$ |
14,041,518 |
|
|
$ |
11,583,928 |
|
|
$ |
129,724 |
|
|
$ |
743,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
AUM and Net Inflows (Outflows) by Investment Style and Product Type |
|
||||||||||||||||||
|
AUM |
|
|
Net inflows (outflows) |
|
||||||||||||||
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
Three Months |
|
|
Twelve Months |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
|
2025 |
|
|
2026 |
|
|
2026 |
|
|||||
Active |
$ |
3,410,923 |
|
|
$ |
3,432,743 |
|
|
$ |
2,889,141 |
|
|
$ |
29,620 |
|
|
$ |
155,405 |
|
ETFs |
|
5,485,544 |
|
|
|
5,467,710 |
|
|
|
4,302,761 |
|
|
|
131,692 |
|
|
|
550,994 |
|
Non-ETF index |
|
3,924,810 |
|
|
|
4,060,333 |
|
|
|
3,461,392 |
|
|
|
(25,411 |
) |
|
|
(86,364 |
) |
Long-term |
|
12,821,277 |
|
|
|
12,960,786 |
|
|
|
10,653,294 |
|
|
|
135,901 |
|
|
|
620,035 |
|
Cash management |
|
1,073,323 |
|
|
|
1,080,732 |
|
|
|
930,634 |
|
|
|
(6,177 |
) |
|
|
123,780 |
|
Total |
$ |
13,894,600 |
|
|
$ |
14,041,518 |
|
|
$ |
11,583,928 |
|
|
$ |
129,724 |
|
|
$ |
743,815 |
|
41
Component Changes in AUM for the Three Months Ended March 31, 2026
The following table presents the component changes in AUM by product type for the three months ended March 31, 2026.
|
December 31, |
|
|
Net |
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
|||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
change |
|
|
impact(2) |
|
|
2026 |
|
|
AUM(3) |
|
|||||||
Equity |
$ |
7,793,875 |
|
|
$ |
71,842 |
|
|
$ |
— |
|
|
$ |
(179,623 |
) |
|
$ |
(24,709 |
) |
|
$ |
7,661,385 |
|
|
$ |
7,930,545 |
|
Fixed income |
|
3,272,021 |
|
|
|
34,314 |
|
|
|
(957 |
) |
|
|
(19,649 |
) |
|
|
(14,866 |
) |
|
|
3,270,863 |
|
|
|
3,303,591 |
|
Multi-asset |
|
1,223,625 |
|
|
|
17,827 |
|
|
|
— |
|
|
|
(12,714 |
) |
|
|
(6,126 |
) |
|
|
1,222,612 |
|
|
|
1,247,632 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Private markets |
|
322,624 |
|
|
|
9,076 |
|
|
|
(8,471 |
) |
|
|
(1,989 |
) |
|
|
(809 |
) |
|
|
320,431 |
|
|
|
322,399 |
|
Liquid alternatives |
|
100,990 |
|
|
|
5,551 |
|
|
|
(695 |
) |
|
|
2,707 |
|
|
|
86 |
|
|
|
108,639 |
|
|
|
105,904 |
|
Alternatives subtotal |
|
423,614 |
|
|
|
14,627 |
|
|
|
(9,166 |
) |
|
|
718 |
|
|
|
(723 |
) |
|
|
429,070 |
|
|
|
428,303 |
|
Digital assets |
|
78,435 |
|
|
|
935 |
|
|
|
— |
|
|
|
(18,694 |
) |
|
|
(5 |
) |
|
|
60,671 |
|
|
|
67,740 |
|
Currency and |
|
169,216 |
|
|
|
(3,644 |
) |
|
|
— |
|
|
|
11,305 |
|
|
|
(201 |
) |
|
|
176,676 |
|
|
|
190,349 |
|
Long-term |
|
12,960,786 |
|
|
|
135,901 |
|
|
|
(10,123 |
) |
|
|
(218,657 |
) |
|
|
(46,630 |
) |
|
|
12,821,277 |
|
|
|
13,168,160 |
|
Cash management |
|
1,080,732 |
|
|
|
(6,177 |
) |
|
|
— |
|
|
|
2,206 |
|
|
|
(3,438 |
) |
|
|
1,073,323 |
|
|
|
1,072,769 |
|
Total |
$ |
14,041,518 |
|
|
$ |
129,724 |
|
|
$ |
(10,123 |
) |
|
$ |
(216,451 |
) |
|
$ |
(50,068 |
) |
|
$ |
13,894,600 |
|
|
$ |
14,240,929 |
|
The following table presents the component changes in AUM by client type and product type for the three months ended March 31, 2026.
|
December 31, |
|
|
Net |
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
|||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
change |
|
|
impact(2) |
|
|
2026 |
|
|
AUM(3) |
|
|||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
$ |
629,081 |
|
|
$ |
7,434 |
|
|
$ |
— |
|
|
$ |
(18,708 |
) |
|
$ |
(2,764 |
) |
|
$ |
615,043 |
|
|
$ |
638,493 |
|
Fixed income |
|
384,887 |
|
|
|
2,816 |
|
|
|
— |
|
|
|
(3,815 |
) |
|
|
(1,065 |
) |
|
|
382,823 |
|
|
|
386,517 |
|
Multi-asset |
|
199,655 |
|
|
|
999 |
|
|
|
— |
|
|
|
(4,447 |
) |
|
|
(227 |
) |
|
|
195,980 |
|
|
|
201,964 |
|
Private markets |
|
30,681 |
|
|
|
1,261 |
|
|
|
(295 |
) |
|
|
(338 |
) |
|
|
(119 |
) |
|
|
31,190 |
|
|
|
31,195 |
|
Liquid alternatives |
|
34,428 |
|
|
|
2,723 |
|
|
|
(185 |
) |
|
|
414 |
|
|
|
(42 |
) |
|
|
37,338 |
|
|
|
36,190 |
|
Retail subtotal |
|
1,278,732 |
|
|
|
15,233 |
|
|
|
(480 |
) |
|
|
(26,894 |
) |
|
|
(4,217 |
) |
|
|
1,262,374 |
|
|
|
1,294,359 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
4,006,014 |
|
|
|
88,113 |
|
|
|
— |
|
|
|
(85,765 |
) |
|
|
(6,829 |
) |
|
|
4,001,533 |
|
|
|
4,112,258 |
|
Fixed income |
|
1,205,953 |
|
|
|
45,438 |
|
|
|
— |
|
|
|
(9,362 |
) |
|
|
(3,004 |
) |
|
|
1,239,025 |
|
|
|
1,233,149 |
|
Multi-asset |
|
14,402 |
|
|
|
884 |
|
|
|
— |
|
|
|
(90 |
) |
|
|
(110 |
) |
|
|
15,086 |
|
|
|
15,005 |
|
Digital assets |
|
78,435 |
|
|
|
935 |
|
|
|
— |
|
|
|
(18,694 |
) |
|
|
(5 |
) |
|
|
60,671 |
|
|
|
67,740 |
|
Commodities |
|
162,906 |
|
|
|
(3,678 |
) |
|
|
— |
|
|
|
10,158 |
|
|
|
(157 |
) |
|
|
169,229 |
|
|
|
183,413 |
|
ETFs subtotal |
|
5,467,710 |
|
|
|
131,692 |
|
|
|
— |
|
|
|
(103,753 |
) |
|
|
(10,105 |
) |
|
|
5,485,544 |
|
|
|
5,611,565 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
247,993 |
|
|
|
4,385 |
|
|
|
— |
|
|
|
(2,238 |
) |
|
|
(1,451 |
) |
|
|
248,689 |
|
|
|
255,779 |
|
Fixed income |
|
905,566 |
|
|
|
(7,192 |
) |
|
|
(957 |
) |
|
|
(2,368 |
) |
|
|
(2,918 |
) |
|
|
892,131 |
|
|
|
905,463 |
|
Multi-asset |
|
1,006,106 |
|
|
|
15,877 |
|
|
|
— |
|
|
|
(8,295 |
) |
|
|
(5,784 |
) |
|
|
1,007,904 |
|
|
|
1,027,077 |
|
Private markets |
|
291,943 |
|
|
|
7,815 |
|
|
|
(8,176 |
) |
|
|
(1,651 |
) |
|
|
(690 |
) |
|
|
289,241 |
|
|
|
291,204 |
|
Liquid alternatives |
|
66,562 |
|
|
|
2,828 |
|
|
|
(510 |
) |
|
|
2,293 |
|
|
|
128 |
|
|
|
71,301 |
|
|
|
69,714 |
|
Active subtotal |
|
2,518,170 |
|
|
|
23,713 |
|
|
|
(9,643 |
) |
|
|
(12,259 |
) |
|
|
(10,715 |
) |
|
|
2,509,266 |
|
|
|
2,549,237 |
|
Index |
|
3,696,174 |
|
|
|
(34,737 |
) |
|
|
— |
|
|
|
(75,751 |
) |
|
|
(21,593 |
) |
|
|
3,564,093 |
|
|
|
3,712,999 |
|
Institutional subtotal |
|
6,214,344 |
|
|
|
(11,024 |
) |
|
|
(9,643 |
) |
|
|
(88,010 |
) |
|
|
(32,308 |
) |
|
|
6,073,359 |
|
|
|
6,262,236 |
|
Long-term |
|
12,960,786 |
|
|
|
135,901 |
|
|
|
(10,123 |
) |
|
|
(218,657 |
) |
|
|
(46,630 |
) |
|
|
12,821,277 |
|
|
|
13,168,160 |
|
Cash management |
|
1,080,732 |
|
|
|
(6,177 |
) |
|
|
— |
|
|
|
2,206 |
|
|
|
(3,438 |
) |
|
|
1,073,323 |
|
|
|
1,072,769 |
|
Total |
$ |
14,041,518 |
|
|
$ |
129,724 |
|
|
$ |
(10,123 |
) |
|
$ |
(216,451 |
) |
|
$ |
(50,068 |
) |
|
$ |
13,894,600 |
|
|
$ |
14,240,929 |
|
42
The following table presents the component changes in AUM by investment style and product type for the three months ended March 31, 2026.
|
December 31, |
|
|
Net |
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
|||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
change |
|
|
impact(2) |
|
|
2026 |
|
|
AUM(3) |
|
|||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
$ |
546,028 |
|
|
$ |
3,150 |
|
|
$ |
— |
|
|
$ |
(10,493 |
) |
|
$ |
(2,690 |
) |
|
$ |
535,995 |
|
|
$ |
558,046 |
|
Fixed income |
|
1,257,358 |
|
|
|
(5,033 |
) |
|
|
(957 |
) |
|
|
(5,867 |
) |
|
|
(3,510 |
) |
|
|
1,241,991 |
|
|
|
1,258,117 |
|
Multi-asset |
|
1,205,743 |
|
|
|
16,876 |
|
|
|
— |
|
|
|
(12,741 |
) |
|
|
(6,011 |
) |
|
|
1,203,867 |
|
|
|
1,229,024 |
|
Private markets |
|
322,624 |
|
|
|
9,076 |
|
|
|
(8,471 |
) |
|
|
(1,989 |
) |
|
|
(809 |
) |
|
|
320,431 |
|
|
|
322,399 |
|
Liquid alternatives |
|
100,990 |
|
|
|
5,551 |
|
|
|
(695 |
) |
|
|
2,707 |
|
|
|
86 |
|
|
|
108,639 |
|
|
|
105,904 |
|
Active subtotal |
|
3,432,743 |
|
|
|
29,620 |
|
|
|
(10,123 |
) |
|
|
(28,383 |
) |
|
|
(12,934 |
) |
|
|
3,410,923 |
|
|
|
3,473,490 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
4,006,014 |
|
|
|
88,113 |
|
|
|
— |
|
|
|
(85,765 |
) |
|
|
(6,829 |
) |
|
|
4,001,533 |
|
|
|
4,112,258 |
|
Fixed income |
|
1,205,953 |
|
|
|
45,438 |
|
|
|
— |
|
|
|
(9,362 |
) |
|
|
(3,004 |
) |
|
|
1,239,025 |
|
|
|
1,233,149 |
|
Multi-asset |
|
14,402 |
|
|
|
884 |
|
|
|
— |
|
|
|
(90 |
) |
|
|
(110 |
) |
|
|
15,086 |
|
|
|
15,005 |
|
Digital assets |
|
78,435 |
|
|
|
935 |
|
|
|
— |
|
|
|
(18,694 |
) |
|
|
(5 |
) |
|
|
60,671 |
|
|
|
67,740 |
|
Commodities |
|
162,906 |
|
|
|
(3,678 |
) |
|
|
— |
|
|
|
10,158 |
|
|
|
(157 |
) |
|
|
169,229 |
|
|
|
183,413 |
|
ETFs subtotal |
|
5,467,710 |
|
|
|
131,692 |
|
|
|
— |
|
|
|
(103,753 |
) |
|
|
(10,105 |
) |
|
|
5,485,544 |
|
|
|
5,611,565 |
|
Non-ETF index |
|
4,060,333 |
|
|
|
(25,411 |
) |
|
|
— |
|
|
|
(86,521 |
) |
|
|
(23,591 |
) |
|
|
3,924,810 |
|
|
|
4,083,105 |
|
Long-term |
|
12,960,786 |
|
|
|
135,901 |
|
|
|
(10,123 |
) |
|
|
(218,657 |
) |
|
|
(46,630 |
) |
|
|
12,821,277 |
|
|
|
13,168,160 |
|
Cash management |
|
1,080,732 |
|
|
|
(6,177 |
) |
|
|
— |
|
|
|
2,206 |
|
|
|
(3,438 |
) |
|
|
1,073,323 |
|
|
|
1,072,769 |
|
Total |
$ |
14,041,518 |
|
|
$ |
129,724 |
|
|
$ |
(10,123 |
) |
|
$ |
(216,451 |
) |
|
$ |
(50,068 |
) |
|
$ |
13,894,600 |
|
|
$ |
14,240,929 |
|
The following table presents the component changes in AUM by private markets product type for the three months ended March 31, 2026.
|
December 31, |
|
|
Net |
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
|||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
change |
|
|
impact(2) |
|
|
2026 |
|
|
AUM(3) |
|
|||||||
Private markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Infrastructure |
$ |
112,116 |
|
|
$ |
1,234 |
|
|
$ |
(320 |
) |
|
$ |
(902 |
) |
|
$ |
(261 |
) |
|
$ |
111,867 |
|
|
$ |
112,127 |
|
Private equity |
|
30,623 |
|
|
|
399 |
|
|
|
(579 |
) |
|
|
(162 |
) |
|
|
(50 |
) |
|
|
30,231 |
|
|
|
30,434 |
|
Private credit |
|
145,385 |
|
|
|
6,619 |
|
|
|
(3,906 |
) |
|
|
(711 |
) |
|
|
(342 |
) |
|
|
147,045 |
|
|
|
146,753 |
|
Real estate |
|
25,062 |
|
|
|
455 |
|
|
|
(3,494 |
) |
|
|
(262 |
) |
|
|
(107 |
) |
|
|
21,654 |
|
|
|
23,570 |
|
Multi-alternatives |
|
9,438 |
|
|
|
369 |
|
|
|
(172 |
) |
|
|
48 |
|
|
|
(49 |
) |
|
|
9,634 |
|
|
|
9,515 |
|
Total private markets |
$ |
322,624 |
|
|
$ |
9,076 |
|
|
$ |
(8,471 |
) |
|
$ |
(1,989 |
) |
|
$ |
(809 |
) |
|
$ |
320,431 |
|
|
$ |
322,399 |
|
43
AUM decreased $147 billion to $13.9 trillion at March 31, 2026 from $14.0 trillion at December 31, 2025, driven by net market depreciation and the negative impact of foreign exchange movements, partially offset by net inflows.
Long-term net inflows of $136 billion were comprised of $132 billion and $15 billion from ETFs and retail clients, respectively, partially offset by net outflows of $11 billion from institutional clients. Net flows in long-term products are described below.
Cash management net outflows of $6 billion were driven by seasonal net outflows from US government money market funds.
Net market depreciation of $216 billion was primarily driven by global equity market depreciation.
AUM decreased $50 billion due to the impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the British pound, the euro and the Japanese yen.
44
Component Changes in AUM for the Twelve Months Ended March 31, 2026
The following table presents the component changes in AUM by product type for the twelve months ended March 31, 2026.
|
March 31, |
|
|
Net |
|
|
|
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
||||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
Acquisitions(2) |
|
|
change |
|
|
impact(3) |
|
|
2026 |
|
|
AUM(4) |
|
||||||||
Equity |
$ |
6,204,549 |
|
|
$ |
272,656 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,152,903 |
|
|
$ |
31,277 |
|
|
$ |
7,661,385 |
|
|
$ |
7,278,164 |
|
Fixed income |
|
3,006,670 |
|
|
|
160,975 |
|
|
|
(2,990 |
) |
|
|
13,567 |
|
|
|
69,382 |
|
|
|
23,259 |
|
|
|
3,270,863 |
|
|
|
3,164,014 |
|
Multi-asset |
|
1,002,681 |
|
|
|
81,550 |
|
|
|
— |
|
|
|
— |
|
|
|
126,819 |
|
|
|
11,562 |
|
|
|
1,222,612 |
|
|
|
1,144,988 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Private markets |
|
212,354 |
|
|
|
41,766 |
|
|
|
(31,648 |
) |
|
|
101,017 |
|
|
|
(5,738 |
) |
|
|
2,680 |
|
|
|
320,431 |
|
|
|
287,605 |
|
Liquid alternatives |
|
79,356 |
|
|
|
14,539 |
|
|
|
(889 |
) |
|
|
6,377 |
|
|
|
8,498 |
|
|
|
758 |
|
|
|
108,639 |
|
|
|
95,293 |
|
Alternatives subtotal |
|
291,710 |
|
|
|
56,305 |
|
|
|
(32,537 |
) |
|
|
107,394 |
|
|
|
2,760 |
|
|
|
3,438 |
|
|
|
429,070 |
|
|
|
382,898 |
|
Digital assets |
|
50,329 |
|
|
|
32,343 |
|
|
|
— |
|
|
|
— |
|
|
|
(22,002 |
) |
|
|
1 |
|
|
|
60,671 |
|
|
|
78,541 |
|
Currency and |
|
97,355 |
|
|
|
16,206 |
|
|
|
— |
|
|
|
— |
|
|
|
63,137 |
|
|
|
(22 |
) |
|
|
176,676 |
|
|
|
140,338 |
|
Long-term |
|
10,653,294 |
|
|
|
620,035 |
|
|
|
(35,527 |
) |
|
|
120,961 |
|
|
|
1,392,999 |
|
|
|
69,515 |
|
|
|
12,821,277 |
|
|
|
12,188,943 |
|
Cash management |
|
930,634 |
|
|
|
123,780 |
|
|
|
— |
|
|
|
— |
|
|
|
9,748 |
|
|
|
9,161 |
|
|
|
1,073,323 |
|
|
|
1,010,890 |
|
Total |
$ |
11,583,928 |
|
|
$ |
743,815 |
|
|
$ |
(35,527 |
) |
|
$ |
120,961 |
|
|
$ |
1,402,747 |
|
|
$ |
78,676 |
|
|
$ |
13,894,600 |
|
|
$ |
13,199,833 |
|
The following table presents the component changes in AUM by client type and product type for the twelve months ended March 31, 2026.
|
March 31, |
|
|
Net |
|
|
|
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
||||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
Acquisitions(2) |
|
|
change |
|
|
impact(3) |
|
|
2026 |
|
|
AUM(4) |
|
||||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity |
$ |
502,678 |
|
|
$ |
25,555 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
82,411 |
|
|
$ |
4,399 |
|
|
$ |
615,043 |
|
|
$ |
584,908 |
|
Fixed income |
|
323,508 |
|
|
|
46,548 |
|
|
|
— |
|
|
|
— |
|
|
|
6,907 |
|
|
|
5,860 |
|
|
|
382,823 |
|
|
|
351,337 |
|
Multi-asset |
|
153,420 |
|
|
|
22,806 |
|
|
|
— |
|
|
|
— |
|
|
|
19,144 |
|
|
|
610 |
|
|
|
195,980 |
|
|
|
175,265 |
|
Private markets |
|
16,017 |
|
|
|
4,839 |
|
|
|
(1,505 |
) |
|
|
11,674 |
|
|
|
(86 |
) |
|
|
251 |
|
|
|
31,190 |
|
|
|
26,160 |
|
Liquid alternatives |
|
27,257 |
|
|
|
8,925 |
|
|
|
(217 |
) |
|
|
— |
|
|
|
1,273 |
|
|
|
100 |
|
|
|
37,338 |
|
|
|
32,411 |
|
Retail subtotal |
|
1,022,880 |
|
|
|
108,673 |
|
|
|
(1,722 |
) |
|
|
11,674 |
|
|
|
109,649 |
|
|
|
11,220 |
|
|
|
1,262,374 |
|
|
|
1,170,081 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity |
|
3,111,438 |
|
|
|
312,379 |
|
|
|
— |
|
|
|
— |
|
|
|
563,717 |
|
|
|
13,999 |
|
|
|
4,001,533 |
|
|
|
3,703,511 |
|
Fixed income |
|
1,039,115 |
|
|
|
186,993 |
|
|
|
— |
|
|
|
— |
|
|
|
5,339 |
|
|
|
7,578 |
|
|
|
1,239,025 |
|
|
|
1,151,324 |
|
Multi-asset |
|
10,603 |
|
|
|
3,028 |
|
|
|
— |
|
|
|
— |
|
|
|
1,357 |
|
|
|
98 |
|
|
|
15,086 |
|
|
|
13,083 |
|
Digital assets |
|
50,329 |
|
|
|
32,343 |
|
|
|
— |
|
|
|
— |
|
|
|
(22,002 |
) |
|
|
1 |
|
|
|
60,671 |
|
|
|
78,541 |
|
Commodities |
|
91,276 |
|
|
|
16,251 |
|
|
|
— |
|
|
|
— |
|
|
|
61,650 |
|
|
|
52 |
|
|
|
169,229 |
|
|
|
133,994 |
|
ETFs subtotal |
|
4,302,761 |
|
|
|
550,994 |
|
|
|
— |
|
|
|
— |
|
|
|
610,061 |
|
|
|
21,728 |
|
|
|
5,485,544 |
|
|
|
5,080,453 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity |
|
217,390 |
|
|
|
(18,082 |
) |
|
|
— |
|
|
|
— |
|
|
|
47,323 |
|
|
|
2,058 |
|
|
|
248,689 |
|
|
|
241,606 |
|
Fixed income |
|
853,873 |
|
|
|
(11,272 |
) |
|
|
(2,990 |
) |
|
|
13,567 |
|
|
|
33,309 |
|
|
|
5,644 |
|
|
|
892,131 |
|
|
|
889,801 |
|
Multi-asset |
|
835,479 |
|
|
|
55,646 |
|
|
|
— |
|
|
|
— |
|
|
|
105,920 |
|
|
|
10,859 |
|
|
|
1,007,904 |
|
|
|
953,221 |
|
Private markets |
|
196,337 |
|
|
|
36,927 |
|
|
|
(30,143 |
) |
|
|
89,343 |
|
|
|
(5,652 |
) |
|
|
2,429 |
|
|
|
289,241 |
|
|
|
261,445 |
|
Liquid alternatives |
|
52,099 |
|
|
|
5,614 |
|
|
|
(672 |
) |
|
|
6,377 |
|
|
|
7,225 |
|
|
|
658 |
|
|
|
71,301 |
|
|
|
62,882 |
|
Active subtotal |
|
2,155,178 |
|
|
|
68,833 |
|
|
|
(33,805 |
) |
|
|
109,287 |
|
|
|
188,125 |
|
|
|
21,648 |
|
|
|
2,509,266 |
|
|
|
2,408,955 |
|
Index |
|
3,172,475 |
|
|
|
(108,465 |
) |
|
|
— |
|
|
|
— |
|
|
|
485,164 |
|
|
|
14,919 |
|
|
|
3,564,093 |
|
|
|
3,529,454 |
|
Institutional subtotal |
|
5,327,653 |
|
|
|
(39,632 |
) |
|
|
(33,805 |
) |
|
|
109,287 |
|
|
|
673,289 |
|
|
|
36,567 |
|
|
|
6,073,359 |
|
|
|
5,938,409 |
|
Long-term |
|
10,653,294 |
|
|
|
620,035 |
|
|
|
(35,527 |
) |
|
|
120,961 |
|
|
|
1,392,999 |
|
|
|
69,515 |
|
|
|
12,821,277 |
|
|
|
12,188,943 |
|
Cash management |
|
930,634 |
|
|
|
123,780 |
|
|
|
— |
|
|
|
— |
|
|
|
9,748 |
|
|
|
9,161 |
|
|
|
1,073,323 |
|
|
|
1,010,890 |
|
Total |
$ |
11,583,928 |
|
|
$ |
743,815 |
|
|
$ |
(35,527 |
) |
|
$ |
120,961 |
|
|
$ |
1,402,747 |
|
|
$ |
78,676 |
|
|
$ |
13,894,600 |
|
|
$ |
13,199,833 |
|
45
The following table presents the component changes in AUM by investment style and product type for the twelve months ended March 31, 2026.
|
March 31, |
|
|
Net |
|
|
|
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
||||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
Acquisitions(2) |
|
|
change |
|
|
impact(3) |
|
|
2026 |
|
|
AUM(4) |
|
||||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity |
$ |
458,656 |
|
|
$ |
(10,765 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
83,936 |
|
|
$ |
4,168 |
|
|
$ |
535,995 |
|
|
$ |
516,014 |
|
Fixed income |
|
1,149,891 |
|
|
|
31,413 |
|
|
|
(2,990 |
) |
|
|
13,567 |
|
|
|
39,448 |
|
|
|
10,662 |
|
|
|
1,241,991 |
|
|
|
1,209,113 |
|
Multi-asset |
|
988,884 |
|
|
|
78,452 |
|
|
|
— |
|
|
|
— |
|
|
|
125,063 |
|
|
|
11,468 |
|
|
|
1,203,867 |
|
|
|
1,128,470 |
|
Private markets |
|
212,354 |
|
|
|
41,766 |
|
|
|
(31,648 |
) |
|
|
101,017 |
|
|
|
(5,738 |
) |
|
|
2,680 |
|
|
|
320,431 |
|
|
|
287,605 |
|
Liquid alternatives |
|
79,356 |
|
|
|
14,539 |
|
|
|
(889 |
) |
|
|
6,377 |
|
|
|
8,498 |
|
|
|
758 |
|
|
|
108,639 |
|
|
|
95,293 |
|
Active subtotal |
|
2,889,141 |
|
|
|
155,405 |
|
|
|
(35,527 |
) |
|
|
120,961 |
|
|
|
251,207 |
|
|
|
29,736 |
|
|
|
3,410,923 |
|
|
|
3,236,495 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity |
|
3,111,438 |
|
|
|
312,379 |
|
|
|
— |
|
|
|
— |
|
|
|
563,717 |
|
|
|
13,999 |
|
|
|
4,001,533 |
|
|
|
3,703,511 |
|
Fixed income |
|
1,039,115 |
|
|
|
186,993 |
|
|
|
— |
|
|
|
— |
|
|
|
5,339 |
|
|
|
7,578 |
|
|
|
1,239,025 |
|
|
|
1,151,324 |
|
Multi-asset |
|
10,603 |
|
|
|
3,028 |
|
|
|
— |
|
|
|
— |
|
|
|
1,357 |
|
|
|
98 |
|
|
|
15,086 |
|
|
|
13,083 |
|
Digital assets |
|
50,329 |
|
|
|
32,343 |
|
|
|
— |
|
|
|
— |
|
|
|
(22,002 |
) |
|
|
1 |
|
|
|
60,671 |
|
|
|
78,541 |
|
Commodities |
|
91,276 |
|
|
|
16,251 |
|
|
|
— |
|
|
|
— |
|
|
|
61,650 |
|
|
|
52 |
|
|
|
169,229 |
|
|
|
133,994 |
|
ETFs subtotal |
|
4,302,761 |
|
|
|
550,994 |
|
|
|
— |
|
|
|
— |
|
|
|
610,061 |
|
|
|
21,728 |
|
|
|
5,485,544 |
|
|
|
5,080,453 |
|
Non-ETF index |
|
3,461,392 |
|
|
|
(86,364 |
) |
|
|
— |
|
|
|
— |
|
|
|
531,731 |
|
|
|
18,051 |
|
|
|
3,924,810 |
|
|
|
3,871,995 |
|
Long-term |
|
10,653,294 |
|
|
|
620,035 |
|
|
|
(35,527 |
) |
|
|
120,961 |
|
|
|
1,392,999 |
|
|
|
69,515 |
|
|
|
12,821,277 |
|
|
|
12,188,943 |
|
Cash management |
|
930,634 |
|
|
|
123,780 |
|
|
|
— |
|
|
|
— |
|
|
|
9,748 |
|
|
|
9,161 |
|
|
|
1,073,323 |
|
|
|
1,010,890 |
|
Total |
$ |
11,583,928 |
|
|
$ |
743,815 |
|
|
$ |
(35,527 |
) |
|
$ |
120,961 |
|
|
$ |
1,402,747 |
|
|
$ |
78,676 |
|
|
$ |
13,894,600 |
|
|
$ |
13,199,833 |
|
The following table presents the component changes in AUM by private markets product type for the twelve months ended March 31, 2026.
|
March 31, |
|
|
Net |
|
|
|
|
|
|
|
|
Market |
|
|
FX |
|
|
March 31, |
|
|
Average |
|
||||||||
(in millions) |
2025 |
|
|
(outflows) |
|
|
Realizations(1) |
|
|
Acquisitions(2) |
|
|
change |
|
|
impact(3) |
|
|
2026 |
|
|
AUM(4) |
|
||||||||
Private markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Infrastructure |
$ |
108,371 |
|
|
$ |
12,487 |
|
|
$ |
(6,428 |
) |
|
$ |
— |
|
|
$ |
(3,585 |
) |
|
$ |
1,022 |
|
|
$ |
111,867 |
|
|
$ |
110,867 |
|
Private equity |
|
36,562 |
|
|
|
2,450 |
|
|
|
(9,155 |
) |
|
|
— |
|
|
|
203 |
|
|
|
171 |
|
|
|
30,231 |
|
|
|
33,325 |
|
Private credit |
|
33,686 |
|
|
|
24,005 |
|
|
|
(11,162 |
) |
|
|
101,017 |
|
|
|
(1,303 |
) |
|
|
802 |
|
|
|
147,045 |
|
|
|
109,689 |
|
Real estate |
|
26,076 |
|
|
|
541 |
|
|
|
(4,391 |
) |
|
|
— |
|
|
|
(1,202 |
) |
|
|
630 |
|
|
|
21,654 |
|
|
|
24,840 |
|
Multi-alternatives |
|
7,659 |
|
|
|
2,283 |
|
|
|
(512 |
) |
|
|
— |
|
|
|
149 |
|
|
|
55 |
|
|
|
9,634 |
|
|
|
8,884 |
|
Total private markets |
$ |
212,354 |
|
|
$ |
41,766 |
|
|
$ |
(31,648 |
) |
|
$ |
101,017 |
|
|
$ |
(5,738 |
) |
|
$ |
2,680 |
|
|
$ |
320,431 |
|
|
$ |
287,605 |
|
46
AUM increased $2.3 trillion to $13.9 trillion at March 31, 2026 from $11.6 trillion at March 31, 2025, driven by net market appreciation, net inflows, AUM added from the HPS and ElmTree Transactions and the positive impact of foreign exchange movements.
Long-term net inflows of $620 billion were comprised of net inflows of $551 billion and $109 billion from ETFs and retail clients, respectively, partially offset by net outflows of $40 billion from institutional clients. Net flows in long-term products are described below.
Cash management net inflows of $124 billion were primarily due to net inflows into US government, international and prime money market funds.
Net market appreciation of $1.4 trillion was primarily driven by US and global equity market appreciation.
AUM increased $79 billion due to the impact of foreign exchange movements, primarily resulting from the weakening of the US dollar, largely against the euro, the British pound, and the Australian dollar, partially offset by the strengthening of the US dollar, primarily against the Japanese yen.
47
DISCUSSION OF FINANCIAL RESULTS
The Company’s results of operations for the three months ended March 31, 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 months ended March 31, 2026 and 2025 and includes the product type mix of base fees and securities lending revenue and performance fees.
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Revenue |
|
|
|
|
|
||
Investment advisory, administration fees and |
|
|
|
|
|
||
Equity: |
|
|
|
|
|
||
Active |
$ |
593 |
|
|
$ |
518 |
|
ETFs |
|
1,793 |
|
|
|
1,349 |
|
Equity subtotal |
|
2,386 |
|
|
|
1,867 |
|
Fixed income: |
|
|
|
|
|
||
Active |
|
531 |
|
|
|
492 |
|
ETFs |
|
434 |
|
|
|
352 |
|
Fixed income subtotal |
|
965 |
|
|
|
844 |
|
Active multi-asset |
|
371 |
|
|
|
313 |
|
Alternatives: |
|
|
|
|
|
||
Private markets |
|
658 |
|
|
|
535 |
|
Liquid alternatives |
|
197 |
|
|
|
150 |
|
Alternatives subtotal |
|
855 |
|
|
|
685 |
|
Non-ETF index |
|
342 |
|
|
|
307 |
|
Digital assets, commodities and multi-asset ETFs(1) |
|
179 |
|
|
|
92 |
|
Long-term |
|
5,098 |
|
|
|
4,108 |
|
Cash management |
|
340 |
|
|
|
293 |
|
Total investment advisory, administration fees |
|
5,438 |
|
|
|
4,401 |
|
Investment advisory performance fees: |
|
|
|
|
|
||
Equity |
|
22 |
|
|
|
10 |
|
Fixed income |
|
2 |
|
|
|
12 |
|
Multi-asset |
|
9 |
|
|
|
4 |
|
Alternatives: |
|
|
|
|
|
||
Private markets |
|
232 |
|
|
|
24 |
|
Liquid alternatives |
|
7 |
|
|
|
10 |
|
Alternatives subtotal |
|
239 |
|
|
|
34 |
|
Total investment advisory performance fees |
|
272 |
|
|
|
60 |
|
Technology services and subscription revenue |
|
530 |
|
|
|
436 |
|
Distribution fees |
|
389 |
|
|
|
321 |
|
Advisory and other revenue: |
|
|
|
|
|
||
Advisory |
|
12 |
|
|
|
14 |
|
Other |
|
57 |
|
|
|
44 |
|
Total advisory and other revenue |
|
69 |
|
|
|
58 |
|
Total revenue |
$ |
6,698 |
|
|
$ |
5,276 |
|
48
The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product type:
|
Three Months Ended March 31, |
|
||||||||||||||
|
Percentage of Base |
|
|
|
Percentage |
|
||||||||||
|
2026 |
|
|
2025 |
|
|
|
2026 |
|
|
2025 |
|
||||
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Active |
|
10 |
% |
|
|
12 |
% |
|
|
|
4 |
% |
|
|
4 |
% |
ETFs |
|
33 |
% |
|
|
31 |
% |
|
|
|
28 |
% |
|
|
28 |
% |
Equity subtotal |
|
43 |
% |
|
|
43 |
% |
|
|
|
32 |
% |
|
|
32 |
% |
Fixed income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Active |
|
10 |
% |
|
|
11 |
% |
|
|
|
9 |
% |
|
|
10 |
% |
ETFs |
|
8 |
% |
|
|
8 |
% |
|
|
|
9 |
% |
|
|
8 |
% |
Fixed income subtotal |
|
18 |
% |
|
|
19 |
% |
|
|
|
18 |
% |
|
|
18 |
% |
Active multi-asset |
|
7 |
% |
|
|
7 |
% |
|
|
|
9 |
% |
|
|
8 |
% |
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Private markets |
|
12 |
% |
|
|
12 |
% |
|
|
|
2 |
% |
|
|
2 |
% |
Liquid alternatives |
|
4 |
% |
|
|
4 |
% |
|
|
|
1 |
% |
|
|
1 |
% |
Alternatives subtotal |
|
16 |
% |
|
|
16 |
% |
|
|
|
3 |
% |
|
|
3 |
% |
Non-ETF index |
|
7 |
% |
|
|
6 |
% |
|
|
|
28 |
% |
|
|
30 |
% |
Digital assets, commodities |
|
3 |
% |
|
|
2 |
% |
|
|
|
2 |
% |
|
|
1 |
% |
Long-term |
|
94 |
% |
|
|
93 |
% |
|
|
|
92 |
% |
|
|
92 |
% |
Cash management |
|
6 |
% |
|
|
7 |
% |
|
|
|
8 |
% |
|
|
8 |
% |
Total AUM |
|
100 |
% |
|
|
100 |
% |
|
|
|
100 |
% |
|
|
100 |
% |
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
Revenue increased $1.4 billion, or 27%, from the three months ended March 31, 2025, primarily driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, and higher technology services and subscription revenue.
Investment advisory, administration fees (collectively "base fees") and securities lending revenue of $5.4 billion increased $1.0 billion from $4.4 billion for the three months ended March 31, 2025, primarily driven by organic base fee growth, the impact of market beta on average AUM, and approximately $230 million of fees related to the HPS Transaction. Securities lending revenue of $179 million increased from $157 million for the three months ended March 31, 2025.
Investment advisory performance fees of $272 million increased $212 million from $60 million for the three months ended March 31, 2025, primarily reflecting higher revenue from private markets, including the impact of the HPS Transaction.
Technology services and subscription revenue of $530 million increased $94 million from $436 million for the three months ended March 31, 2025, reflecting the sustained demand for Aladdin technology offerings and a full-quarter impact of approximately $65 million of revenue related to the Preqin Transaction.
49
Expense
The following table presents expense for the three months ended March 31, 2026 and 2025.
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Expense |
|
|
|
|
|
||
Employee compensation and benefits |
$ |
2,225 |
|
|
$ |
1,741 |
|
Sales, asset and account expense: |
|
|
|
|
|
||
Distribution and servicing costs |
|
705 |
|
|
|
570 |
|
Direct fund expense |
|
481 |
|
|
|
392 |
|
Sub-advisory and other |
|
71 |
|
|
|
47 |
|
Total sales, asset and account expense |
|
1,257 |
|
|
|
1,009 |
|
General and administration expense: |
|
|
|
|
|
||
Marketing and promotional |
|
101 |
|
|
|
97 |
|
Occupancy and office related |
|
147 |
|
|
|
114 |
|
Portfolio services |
|
70 |
|
|
|
64 |
|
Technology |
|
206 |
|
|
|
189 |
|
Professional services |
|
75 |
|
|
|
73 |
|
Communications |
|
10 |
|
|
|
10 |
|
Foreign exchange remeasurement |
|
(4 |
) |
|
|
(8 |
) |
Other general and administration |
|
69 |
|
|
|
76 |
|
Total general and administration expense |
|
674 |
|
|
|
615 |
|
Change in fair value of contingent consideration |
|
(549 |
) |
|
|
96 |
|
Amortization of intangible assets |
|
277 |
|
|
|
117 |
|
Total expense |
$ |
3,884 |
|
|
$ |
3,578 |
|
|
|
|
|
|
|
||
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
Expense increased $306 million, or 9%, from the three months ended March 31, 2025, reflecting higher employee compensation and benefits expense, general and administration expense, and sales, asset and account expense. Expense for the three months ended March 31, 2026 was impacted by the previously described noncash acquisition-related items incurred in connection with the HPS and Preqin Transactions(1), including the change in fair value of contingent consideration and amortization of intangible assets.
Employee compensation and benefits expense of $2.2 billion increased $484 million from $1.7 billion for the three months ended March 31, 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 $1.3 billion increased $248 million from $1.0 billion for the three months ended March 31, 2025, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
General and administration expense of $674 million increased $59 million from $615 million for the three months ended March 31, 2025, primarily driven by occupancy and office related expense, and technology expense.
Change in fair value of contingent consideration(1) of $549 million decreased $645 million as compared to the change in the three months ended March 31, 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.
Amortization and impairment of intangible assets(1) of $277 million increased $160 million from $117 million for the three months ended March 31, 2025, primarily reflecting amortization of intangible assets acquired in the HPS and Preqin Transactions.
50
Nonoperating Results
The summary of nonoperating income (expense), less net income (loss) attributable to NCI - CIPs for the three months ended March 31, 2026 and 2025 was as follows:
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Nonoperating income (expense), GAAP basis |
$ |
28 |
|
|
$ |
65 |
|
Less: Net income (loss) attributable to NCI - CIPs |
|
6 |
|
|
|
5 |
|
Nonoperating income (expense), net of NCI - CIPs |
|
22 |
|
|
|
60 |
|
Less: Hedge gain (loss) on deferred cash compensation plans(1) |
|
— |
|
|
|
(15 |
) |
Nonoperating income (expense), net of NCI - CIPs, as adjusted(2) |
$ |
22 |
|
|
$ |
75 |
|
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Net gain (loss) on investments, net of NCI - CIPs |
|
|
|
|
|
||
Private equity |
$ |
9 |
|
|
$ |
48 |
|
Real assets |
|
5 |
|
|
|
(2 |
) |
Other alternatives(3) |
|
15 |
|
|
|
9 |
|
Other investments(4) |
|
(13 |
) |
|
|
(10 |
) |
Hedge gain (loss) on deferred cash compensation plans(1) |
|
— |
|
|
|
(15 |
) |
Subtotal |
|
16 |
|
|
|
30 |
|
Other income/gain (expense/loss)(5) |
|
50 |
|
|
|
23 |
|
Total net gain (loss) on investments, net of NCI - CIPs |
|
66 |
|
|
|
53 |
|
Dividend income and net interest income (expense) |
|
(44 |
) |
|
|
7 |
|
Nonoperating income (expense), net of NCI - CIPs |
|
22 |
|
|
|
60 |
|
Less: Hedge gain (loss) on deferred cash compensation plans(1) |
|
— |
|
|
|
(15 |
) |
Nonoperating income (expense), net of NCI - CIPs, as adjusted(2) |
$ |
22 |
|
|
$ |
75 |
|
51
Income Tax Expense
|
GAAP |
As Adjusted(1) |
|
||||||||||||
|
Three Months Ended |
|
|
Three Months Ended |
|
||||||||||
|
March 31, |
|
|
March 31, |
|
||||||||||
(in millions) |
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Operating income |
$ |
2,814 |
|
|
$ |
1,698 |
|
|
$ |
2,669 |
|
|
$ |
2,032 |
|
Total nonoperating income (expense)(2) |
$ |
22 |
|
|
$ |
60 |
|
|
$ |
22 |
|
|
$ |
75 |
|
Income before income taxes(2) |
$ |
2,836 |
|
|
$ |
1,758 |
|
|
$ |
2,691 |
|
|
$ |
2,107 |
|
Income tax expense |
$ |
516 |
|
|
$ |
248 |
|
|
$ |
623 |
|
|
$ |
337 |
|
Effective tax rate |
|
18.2 |
% |
|
|
14.1 |
% |
|
|
23.2 |
% |
|
|
16.0 |
% |
2026. Income tax expense for the three months ended March 31, 2026 includes a $57 million discrete tax benefit related to vested stock-based compensation awards.
2025. Income tax expense for the three months ended March 31, 2025 included a $149 million discrete tax benefit related to the realization from changes in the Company's organizational structure and a $46 million discrete tax benefit related to vested stock-based compensation awards.
52
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 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.
53
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.
|
|
March 31, 2026 |
|
|||||||||||||
(in millions) |
|
GAAP |
|
|
Separate |
|
|
CIPs(2) |
|
|
As |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
9,841 |
|
|
$ |
— |
|
|
$ |
413 |
|
|
$ |
9,428 |
|
Accounts receivable |
|
|
5,219 |
|
|
|
— |
|
|
|
— |
|
|
|
5,219 |
|
Investments |
|
|
14,574 |
|
|
|
— |
|
|
|
3,782 |
|
|
|
10,792 |
|
Separate account assets and collateral held |
|
|
65,356 |
|
|
|
65,356 |
|
|
|
— |
|
|
|
— |
|
Operating lease right-of-use assets |
|
|
1,849 |
|
|
|
— |
|
|
|
— |
|
|
|
1,849 |
|
Other assets(3) |
|
|
10,411 |
|
|
|
— |
|
|
|
264 |
|
|
|
10,147 |
|
Subtotal |
|
|
107,250 |
|
|
|
65,356 |
|
|
|
4,459 |
|
|
|
37,435 |
|
Goodwill and intangible assets, net |
|
|
62,987 |
|
|
|
— |
|
|
|
— |
|
|
|
62,987 |
|
Total assets |
|
$ |
170,237 |
|
|
$ |
65,356 |
|
|
$ |
4,459 |
|
|
$ |
100,422 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued compensation and benefits |
|
$ |
1,588 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,588 |
|
Accounts payable and accrued liabilities |
|
|
2,097 |
|
|
|
— |
|
|
|
— |
|
|
|
2,097 |
|
Borrowings |
|
|
12,749 |
|
|
|
— |
|
|
|
— |
|
|
|
12,749 |
|
Separate account liabilities and collateral |
|
|
65,356 |
|
|
|
65,356 |
|
|
|
— |
|
|
|
— |
|
Contingent consideration liabilities |
|
|
7,865 |
|
|
|
— |
|
|
|
— |
|
|
|
7,865 |
|
Deferred income tax liabilities(4) |
|
|
4,660 |
|
|
|
— |
|
|
|
— |
|
|
|
4,660 |
|
Operating lease liabilities |
|
|
2,216 |
|
|
|
— |
|
|
|
— |
|
|
|
2,216 |
|
Other liabilities |
|
|
10,390 |
|
|
|
— |
|
|
|
721 |
|
|
|
9,669 |
|
Total liabilities |
|
|
106,921 |
|
|
|
65,356 |
|
|
|
721 |
|
|
|
40,844 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total BlackRock, Inc. stockholders’ equity |
|
|
56,688 |
|
|
|
— |
|
|
|
— |
|
|
|
56,688 |
|
Noncontrolling interests |
|
|
6,628 |
|
|
|
— |
|
|
|
3,738 |
|
|
|
2,890 |
|
Total equity |
|
|
63,316 |
|
|
|
— |
|
|
|
3,738 |
|
|
|
59,578 |
|
Total liabilities and equity |
|
$ |
170,237 |
|
|
$ |
65,356 |
|
|
$ |
4,459 |
|
|
$ |
100,422 |
|
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 March 31, 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 March 31, 2026 included $413 million of cash held by CIPs (see Liquidity and Capital Resources for details on the change in cash and cash equivalents during the three months ended March 31, 2026). Accounts receivable at March 31, 2026 increased $61 million from December 31, 2025, primarily due to higher base fee and technology services receivables. Investments at March 31, 2026 increased $1.3 billion from December 31, 2025 (for more information see Investments herein). Goodwill and intangible assets at March 31, 2026 decreased $264 million from December 31, 2025, due to amortization of intangible assets. Other assets at March 31, 2026 increased $3.5 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).
54
Liabilities. Accrued compensation and benefits at March 31, 2026 decreased $2.2 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 March 31, 2026 increased $357 million from March 31, 2025, primarily due to increased accruals. Contingent consideration liabilities at March 31, 2026 decreased $564 million from December 31, 2025, primarily 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. Other liabilities at March 31, 2026 increased $3.6 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 March 31, 2026 increased $42 million from December 31, 2025, primarily due to the effects of temporary differences associated with the stock-based compensation.
Investments
The Company’s investments were $14.6 billion and $13.3 billion at March 31, 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.
|
|
March 31, |
|
|
December 31, |
|
||
(in millions) |
|
2026 |
|
|
2025 |
|
||
Investments, GAAP |
|
$ |
14,574 |
|
|
$ |
13,271 |
|
Investments held by CIPs |
|
|
(10,402 |
) |
|
|
(9,131 |
) |
Net interest in CIPs(1) |
|
|
6,620 |
|
|
|
6,564 |
|
Investments, as adjusted |
|
|
10,792 |
|
|
|
10,704 |
|
Investments related to deferred cash compensation plans |
|
|
(458 |
) |
|
|
(337 |
) |
Hedged exposures |
|
|
(1,673 |
) |
|
|
(1,682 |
) |
Federal Reserve Bank stock |
|
|
(87 |
) |
|
|
(87 |
) |
Carried interest |
|
|
(3,670 |
) |
|
|
(3,710 |
) |
Total “economic” investment exposure(2) |
|
$ |
4,904 |
|
|
$ |
4,888 |
|
55
The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at March 31, 2026 and December 31, 2025:
|
|
March 31, |
|
|
December 31, |
|
||
(in millions) |
|
2026 |
|
|
2025 |
|
||
Equity/Fixed income/Multi-asset(1) |
|
$ |
4,044 |
|
|
$ |
4,212 |
|
Alternatives: |
|
|
|
|
|
|
||
Private equity |
|
|
794 |
|
|
|
761 |
|
Real assets |
|
|
820 |
|
|
|
687 |
|
Other alternatives(2) |
|
|
919 |
|
|
|
910 |
|
Alternatives subtotal |
|
|
2,533 |
|
|
|
2,358 |
|
Hedged exposures |
|
|
(1,673 |
) |
|
|
(1,682 |
) |
Total “economic” investment exposure |
|
$ |
4,904 |
|
|
$ |
4,888 |
|
As adjusted investment activity for the three months ended March 31, 2026 was as follows:
(in millions) |
Three Months |
|
|
Investments, as adjusted, beginning balance |
$ |
10,704 |
|
Purchases/capital contributions |
|
636 |
|
Sales/maturities |
|
(364 |
) |
Distributions(1) |
|
(114 |
) |
Market appreciation(depreciation)/earnings from equity method investments |
|
(3 |
) |
Carried interest capital allocations/(distributions) |
|
(40 |
) |
Other(2) |
|
(27 |
) |
Investments, as adjusted, ending balance |
$ |
10,792 |
|
56
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 |
|
|
Impact on |
|
|
Cash Flows |
|
|||
Cash, cash equivalents and restricted cash, December 31, 2025 |
$ |
11,490 |
|
|
$ |
461 |
|
|
$ |
11,029 |
|
Net cash provided by/(used in) operating activities |
|
(980 |
) |
|
|
(1,563 |
) |
|
|
583 |
|
Net cash provided by/(used in) investing activities |
|
(280 |
) |
|
|
104 |
|
|
|
(384 |
) |
Net cash provided by/(used in) financing activities |
|
(304 |
) |
|
|
1,411 |
|
|
|
(1,715 |
) |
Effect of exchange rate changes on cash, cash equivalents |
|
(63 |
) |
|
|
— |
|
|
|
(63 |
) |
Net increase/(decrease) in cash, cash equivalents and restricted |
|
(1,627 |
) |
|
|
(48 |
) |
|
|
(1,579 |
) |
Cash, cash equivalents and restricted cash, March 31, 2026 |
$ |
9,863 |
|
|
$ |
413 |
|
|
$ |
9,450 |
|
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 three months ended March 31, 2026 were $384 million, primarily reflecting $353 million of net purchases of investments and $106 million of purchases of property and equipment, partially offset by $90 million of distributions of capital from equity method investees.
Cash flows used in financing activities, excluding the impact of CIPs, for the three months ended March 31, 2026 were $1.7 billion, primarily resulting from $973 million of dividends/Subco distributions, $810 million worth of share and share equivalents repurchases, including $360 million of employee tax withholdings related to employee stock transactions, partially offset by $74 million from stock options exercised.
57
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 March 31, 2026 and December 31, 2025 were as follows:
|
March 31, |
|
|
December 31, |
|
||
(in millions) |
2026 |
|
|
2025 |
|
||
Cash and cash equivalents(1) |
$ |
9,841 |
|
|
$ |
11,468 |
|
Cash and cash equivalents held by CIPs(2) |
|
(413 |
) |
|
|
(461 |
) |
Subtotal(3) |
|
9,428 |
|
|
|
11,007 |
|
Credit facility – undrawn(4) |
|
6,300 |
|
|
|
5,900 |
|
Total liquidity resources |
$ |
15,728 |
|
|
$ |
16,907 |
|
Total liquidity resources decreased $1.2 billion during the three months ended March 31, 2026, primarily reflecting payments of 2025 year-end incentive awards, dividends/distributions of $973 million, share and share equivalent repurchases of $810 million, and $353 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 $10.8 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 three months ended March 31, 2026, under the Company’s existing share repurchase program, the Company repurchased an aggregate of 0.4 million shares and share equivalents for approximately $450 million. At March 31, 2026, there were approximately 8.8 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 March 31, 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.
58
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 March 31, 2026. At March 31, 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 March 31, 2026, BlackRock had no CP Notes outstanding.
Subsidiary Credit Facility. BlackRock Investment Management (UK) Limited ("BIM UK"), a 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 March 31, 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 March 31, 2026, there was no amount outstanding.
Long-Term Borrowings
At March 31, 2026, the principal amount of long-term notes outstanding was $12.9 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 three months ended March 31, 2026, the Company paid approximately $172 million of interest on long-term notes. Future principal repayments and interest requirements at March 31, 2026 were as follows:
(in millions) |
|
|
|
|
|
|
|
|
|
|||
Year |
|
Principal |
|
|
Interest(1) |
|
|
Total |
|
|||
Remainder of 2026 |
|
$ |
— |
|
|
$ |
332 |
|
|
$ |
332 |
|
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) |
|
|
7,603 |
|
|
|
3,765 |
|
|
|
11,368 |
|
Total |
|
$ |
12,853 |
|
|
$ |
6,182 |
|
|
$ |
19,035 |
|
59
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 March 31, 2026 and December 31, 2025 and for the three months ended March 31, 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)
|
March 31, |
|
|
December 31, |
|
||
(in millions) |
2026 |
|
|
2025 |
|
||
Assets |
|
|
|
|
|
||
Receivables from non-guarantor subsidiaries |
$ |
41 |
|
|
$ |
2,655 |
|
Goodwill and intangible assets |
|
27,187 |
|
|
|
27,274 |
|
Other assets |
|
1,283 |
|
|
|
1,228 |
|
Total assets |
$ |
28,511 |
|
|
$ |
31,157 |
|
Liabilities |
|
|
|
|
|
||
Borrowings |
$ |
12,749 |
|
|
$ |
12,769 |
|
Payables to non-guarantor subsidiaries |
|
3,524 |
|
|
|
5,485 |
|
Other liabilities |
|
3,875 |
|
|
|
3,806 |
|
Total liabilities |
$ |
20,148 |
|
|
$ |
22,060 |
|
Summarized Income Statement (unaudited)
For the three months ended March 31, 2026, net income of the Obligor Group was $352 million, primarily comprised of a noncash gain of $500 million related to a change in fair value of contingent consideration, partially offset by $131 million of interest expense, and $86 million of amortization expense. Revenue during this period was not material.
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 March 31, 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.
60
Investment Commitments. At March 31, 2026, the Company had $2.7 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 March 31, 2026, the Company was deemed to be the PB of approximately 135 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.
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 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.
61
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 March 31, 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 3.8% 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 3.8%, 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 general and administration expense of the condensed consolidated statements of income until the contingency is resolved. 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 expires.
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 separately managed accounts ("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 March 31, 2026 and December 31, 2025, the Company had $3.6 billion and $3.5 billion, respectfully, 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 months ended March 31, 2026 and 2025.
62
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 March 31, 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 $1.7 billion at both March 31, 2026 and December 31, 2025.
At March 31, 2026, approximately $10.4 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 $4.9 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 March 31, 2026, the Company’s net exposure to equity market price risk in its investment portfolio was approximately $1.2 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 $124 million in the carrying value of such investments.
Interest Rate/Credit Spread Risk. At March 31, 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 $74 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 March 31, 2026. A hypothetical exposure to a 10% adverse change in the applicable foreign exchange rates would result in approximately a $150 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 March 31, 2026, the Company had outstanding forward foreign currency exchange contracts with an aggregate notional value of approximately $3.3 billion, with expiration dates primarily during the second 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 March 31, 2026, the Company had outstanding exchange-traded futures with aggregate notional values related to its deferred cash compensation hedging program of approximately $271 million, with expiration dates during the second quarter of 2026.
63
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 March 31, 2026 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
64
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.
65
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.
66
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the three months ended March 31, 2026, the Company made the following purchases of its common stock, which is registered pursuant to Section 12(b) of the Exchange Act, and Class B-2 Common Units ("Subco Units") of a consolidated subsidiary, BlackRock Saturn Subco, LLC.
|
|
Total Number |
|
|
Total Number |
|
|
Average |
|
|
Total |
|
|
Maximum |
|
|||||
January 1, 2026 through January 31, 2026 |
|
|
307,856 |
|
|
|
128,794 |
|
|
$ |
1,121.03 |
|
|
|
128,794 |
|
|
|
9,116,170 |
|
February 1, 2026 through February 28, 2026 |
|
|
242,066 |
|
|
|
16,088 |
|
|
$ |
1,075.96 |
|
|
|
256,697 |
|
|
|
8,859,473 |
|
March 1, 2026 through March 31, 2026 |
|
|
40,252 |
|
|
|
— |
|
|
$ |
1,058.83 |
|
|
|
27,158 |
|
|
|
8,832,315 |
|
Total |
|
|
590,174 |
|
|
|
144,882 |
|
|
$ |
1,101.80 |
|
|
|
412,649 |
|
|
|
|
|
67
Item 5. Other Information
Section 13(r) Disclosure
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, the Company hereby incorporates by reference herein Exhibit 99.1 of this report, which includes information provided to us by Malaysia Airport Holdings Berhard.
68
Item 6. Exhibits
Exhibit No. |
|
Description |
|
|
|
10.1(1) |
|
Amendment No. 17, dated as of March 31, 2026, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender, and the banks and other financial institutions referred to therein. |
|
|
|
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 |
|
|
|
99.1 |
|
Section 13(r) Disclosure |
|
|
|
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) |
|
|
|
___________________________________________________________________________________________________________________
69
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: May 6, 2026 |
|
|
Martin S. Small |
|
|
|
Senior Managing Director & Chief Financial Officer (Principal Financial Officer) |
70