BlackRock beats expectations. CEO Fink: “I’ve never been so optimistic about the future”
The savings giant has seen its profits rise by 42 per cent this quarter
BlackRock has closed the second quarter with strong growth and has raised its outlook. As at 30 June, the US asset management giant had reached $15,300 billion in assets under management, thanks to net inflows of $192 billion in the quarter and record inflows of $321 billion in the first half of the year. Year-on-year, revenue rose by 31 per cent, whilst operating profit increased by 42 per cent, or 39 per cent on an adjusted basis. Diluted earnings per share thus stood at $12.19, rising to $13.91 after adjusting for non-recurring items.
Growth, driven by particularly favourable market conditions, was widespread across the entire platform, with ETFs, private markets and active fixed income making a particularly significant contribution. Technology and subscription services also performed well, rising by 13 per cent thanks to the boost from Aladdin. The group also repurchased $450 million worth of its own shares during the quarter and has decided to increase its projected quarterly buyback target to $550 million.
For Chairman and Chief Executive Larry Fink, this momentum is set to continue. “Market fundamentals are solid and well-supported, with higher margins and earnings growth driven by new technologies,” said the banker. “Our momentum is gathering pace and I have never been so optimistic about future growth.”
According to Fink, the breadth of the platform enables BlackRock to capture a growing share of clients’ portfolios and generate sustainable returns for shareholders. “Demand is growing across our active management division,” he added, pointing out that the margin for the quarter is the highest it has been in the last five years. This result, combined with inflows and revenue growth, has bolstered the group’s confidence to the extent that it has prompted it to increase its share buy-back programme for 2026.
