Blackrock, Inc. (BLK)

BlackRock reported third-quarter 2026 revenue of $7.75 billion on 14 October, up 19 percent from a year earlier 1. Clients added $205 billion of net inflows in the quarter, and assets under management, the money it runs for clients, reached $15.5 trillion 1.

Diluted earnings per share, the profit per share after counting every share that could exist, were $10.57 under accounting rules and $15.93 as adjusted 1. The adjusted figure leaves out a noncash $564 million change in the value of extra purchase price owed to the sellers of past acquisitions 1.

The adjusted operating margin, a measure of operating profit against revenue, was 47.8 percent, up from 44.6 percent a year earlier 1. Chief executive Larry Fink said the firm raised $68 billion in private markets over the last twelve months 1.

Fink added that the firm's AI Infrastructure Partnership made its first deployment this quarter 1. Aligned Data Centers describes its purchase, completed on 21 July 2026 at an enterprise value of about $40 billion, as the partnership's first investment 10.

Fink said the firm is entering its seasonally strongest fourth quarter with accelerating momentum 1. A lawsuit by state attorneys general over coal supply is still pending against BlackRock, State Street and Vanguard 3.

BlackRock describes itself as a publicly traded investment management firm that serves institutional and retail clients worldwide 2. Its income comes mostly from fees charged as a percentage of the assets it manages, so revenue follows the size of those assets 2. That size moves with markets, with client deposits and withdrawals, and with the firms it buys 2.

Assets under management grew from $8.7 trillion at the end of 2020 to $14.0 trillion at the end of 2025, a compound growth rate of 10 percent a year 2. Net inflows of $2.5 trillion and market gains of $2.9 trillion account for nearly all of that rise 2.

Revenue dipped from $19.4 billion in 2021 to $17.9 billion in 2022 and stayed at $17.9 billion in 2023 2. It then rose to $20.4 billion in 2024 and $24.2 billion in 2025 2.

From 2023 the firm bought its way deeper into private markets, meaning investments outside public stock and bond markets, such as infrastructure and private credit 2. Kreos Capital added $2 billion of assets in August 2023, SpiderRock Advisors $4 billion in May 2024 and Global Infrastructure Partners, known as GIP, $70 billion in October 2024 2. GIP cost about $3 billion in cash and 6.9 million BlackRock shares, with 4.0 million to 5.2 million more shares owed if performance targets are met 2.

In 2025 it closed three more deals 2. Preqin, a private markets data provider, was bought on 3 March for £2.5 billion in cash, about $3.2 billion, and the real estate firm ElmTree Funds followed on 2 September 2.

The biggest was HPS Investment Partners, a global credit investment manager bought on 1 July 2025 2. It added $165 billion of client assets and was paid for mostly in units of a BlackRock subsidiary valued at $8.5 billion 2.

Revenue rose 19 percent in 2025 to $24.2 billion, which the annual report credits to markets, organic base fee growth, fees from the GIP and HPS deals and higher technology revenue 2. Operating income still fell to $7.0 billion from $7.6 billion because of noncash acquisition costs and a $109 million charitable gift of Circle shares 2. On the company's adjusted basis, operating income rose $1.5 billion to $9.6 billion 2.

In the first nine months of 2026, revenue reached $21.5 billion, against $17.2 billion a year earlier 1. Technology services and subscription revenue grew to $1.68 billion from $1.45 billion 1.

Index funds and iShares ETFs

iShares is BlackRock's brand of exchange-traded funds, or ETFs, which trade on stock exchanges 2. BlackRock calls itself the leading ETF provider in the world, with $5.5 trillion of iShares ETF assets at the end of 2025 and $527 billion of ETF net inflows during 2025 2. ETFs were 42 percent of long-term assets and 45 percent of long-term base fees and securities lending revenue 2.

In the third quarter of 2026, iShares generated $135 billion of net inflows, diversified across categories and global product lines, the firm said 1. Index funds that are not ETFs held $4.4 trillion at the end of September 2026, with $26 billion of net outflows in the quarter 1.

Active funds and private markets

Active funds try to beat a market benchmark, and the firm said active strategies drew $66 billion of net inflows in the third quarter of 2026, led by its fixed income and systematic franchises 1. Systematic strategies pick investments with computer models 1.

Private markets held $336 billion at the end of September 2026 and brought in $668 million of base fees and securities lending revenue in the third quarter 1. They were 2 percent of assets but 11 percent of those fees 1.

The HPS purchase, the company says, positions it to provide an integrated private credit platform with both public and private income solutions 2. At the end of 2025 it also had about $91 billion of unfunded commitments to deploy, mainly for institutional clients and not counted in assets 2.

Technology: Aladdin, eFront and Preqin

Aladdin is BlackRock's investment and risk management software, sold to asset managers, insurers, pension funds, banks and others 2. eFront serves private markets, Aladdin Wealth serves wealth managers, Cachematrix serves cash management for banks and companies, and Preqin supplies private markets data 2.

Technology services and subscription revenue was $2.0 billion in 2025, up 24 percent, and annual contract value, the yearly fees under signed contracts, rose 31 percent including Preqin and 16 percent without it 2. Preqin added approximately $210 million of that revenue 2.

In the third quarter of 2026, technology services and subscription revenue was $588 million, up 14 percent, and annual contract value was up 12 percent 1.

Cash management

Cash management funds, which hold clients' short-term money, held $1.08 trillion at the end of 2025 2. In the third quarter they took in $31 billion and produced 6 percent of base fees and securities lending revenue 1.

Where the revenue comes from

Of $24.2 billion of revenue in 2025, investment advisory, administration fees and securities lending revenue was $19.2 billion, about 79 percent (computed) 2. Technology services and subscription revenue was $2.0 billion, performance fees $1.4 billion and distribution fees $1.4 billion 2.

People and board

BlackRock had about 24,900 employees in more than 30 countries at the end of 2025, with roughly 60 percent outside the United States 2. Laurence Fink is chairman and chief executive, and Martin Small is senior managing director and chief financial officer, per the annual report's signatures dated 25 February 2026 2.

Shareholders elected 19 director nominees on 20 May 2026, including Fink and Robert Kapito, and approved executive pay in an advisory vote of 78.7 million to 42.4 million 8. On 27 January 2026 the board added Gregg Lemkau, co-chief executive of the merchant bank BDT & MSD Partners, as an independent director 7.

In January 2026 the pay committee adopted an Executive Carry Program for senior executives other than the chief executive 6. Awards give the right to a percentage of carry distributions, the profit share paid by certain private markets funds 6.

Offices, rivals and legal problems

The principal office is leased at 50 Hudson Yards in New York 2. BlackRock also owns an 84,500 square foot office building in Wilmington, Delaware, and a 43,000 square foot data center in Amherst, New York 2.

Thirteen state attorneys general sued BlackRock, State Street and Vanguard in federal court in the Eastern District of Texas 3. They allege the three conspired to suppress coal supply, and the court largely denied a motion to dismiss in 2025 3. Four states also pursue consumer protection claims over statements on BlackRock fund websites 3.

Management says it does not anticipate that the combined liability from regulatory matters or lawsuits will have a material effect, but gives no assurance 3. The annual report also flags common ownership, the theory that one investor holding stakes in rival companies may soften competition, and says some commentators have proposed limits on such stakes 2.

The umbrella, in words

BlackRock's main brands are iShares for ETFs, Aladdin and Aladdin Wealth for investment and wealth management software, eFront for private markets software, Preqin for private markets data and Cachematrix for cash management technology 2. LifePath is its target-date retirement product line 2.

BlackRock Finance, Inc., GIP, HPS and their subsidiaries became wholly owned subsidiaries of BlackRock Saturn Subco, LLC, itself a consolidated subsidiary of BlackRock, when the HPS deal closed on 1 July 2025 2. Exhibit 21.1 lists the direct and indirect subsidiaries as of 31 December 2025, among them Aperio Group, LLC, BlackRock Advisors, LLC and Beijing eFront Software Company Limited 9.

The annual report names minority investments, meaning invested stakes, in financial technology and digital distribution firms, among them Securitize, Circle, Clarity AI, Envestnet, Acorns, Scalable Capital and iCapital 2. On 10 December 2025 it gave part of its Circle stake to the BlackRock Charitable Fund 2.

On 27 October 2026 BlackRock filed a Schedule 13G/A reporting that certain business units beneficially own 17.7 percent of Innovative Industrial Properties as of 30 September 2026 12. That is a manager's holding on behalf of its funds and clients, since the company does not engage in proprietary trading 2.

BlackRock is an independent, publicly traded company with no single majority shareholder, and more than 80 percent of its board is independent 2. Vanguard Capital Management reported owning 6.87 percent of BlackRock's common stock as of 31 March 2026 in a Schedule 13G 11.

In its 14 October 2026 results release, Fink said the firm is entering its seasonally strongest fourth quarter with accelerating momentum and a broad pipeline spanning whole portfolio, private markets, retirement and international platforms 1. The company says its systematic equity platform could deliver continued double-digit organic base fee growth and positive inflows 2.

The company also expects that fixed income returns in 2026 may again come mainly from income rather than rising bond prices 2. The annual report shows $497 million of technology revenue still to be recognized from signed contracts at the end of 2025, including $208 million in 2026 2.

Aligned's owners said the AI Infrastructure Partnership has an initial target of deploying $30 billion of equity capital, with the potential to support up to $100 billion of total investment including debt 10. At closing in July 2026 the consortium also committed another $5 billion of growth capital to Aligned 10.

The HPS deal carries deferred payment of 2.8 million to 4.4 million more Subco Units, initially valued at $3.4 billion at close, which may be paid in about five years if milestones are met 2. A GIP stock payment of 4.0 million to 5.2 million shares is expected no later than 31 December 2028 2.

On 30 June 2026 the company registered the issue of up to 12,035,866 shares to holders of Subco Units who redeem them, and said it expects to settle redemptions by direct exchange for common stock 4. Redemption rights begin at certain times after the one-year anniversary of the 1 July 2025 closing 4.

BlackRock said it expects to identify participants and grant awards under the Executive Carry Program beginning in 2026 6. In March 2026 it raised its revolving credit commitments by $400 million to $6.3 billion and extended the maturity to 31 March 2031 for most lenders 5.

The Texas coal-supply lawsuit has no trial date in the filings read, and the company says it cannot reasonably estimate a possible loss or range of loss 3.