BlackRock, Inc. Q1 FY2026 earnings call

• Strong first quarter performance with double-digit growth in revenue, operating income, and EPS. • 8% organic base fee growth, seventh consecutive quarter at or above 5%. • $130 billion net inflows in first quarter, led by ETFs, active and private markets. • Deep client engagement across product, region, and client type. • Volatile market environment with geopolitical uncertainty and AI impact. • Margin expansion of over 100 basis points. • Partnerships and integration of acquired firms driving growth. • Focus on whole portfolio solutions and retirement investing.

First quarter revenue was $6.7 billion, up 27% year-over-year. Operating income was $2.7 billion, up 31%. Earnings per share was $12.53, 11% higher. Organic base fee growth was 8%, seventh consecutive quarter at or above 5%, last 12 months at 10%. ETF net inflows were $132 billion, led by index bond ETFs. Appirio had record net inflows of $13 billion. SpiderRock added over $1 billion. Institutional active net inflows were $24 billion. Private markets had $9 billion net inflows. Cash management had $6 billion net outflows. Base fee and securities lending revenue was $5.4 billion, up 24%. Performance fees were $272 million. Technology services and subscription revenue was up 22%, ACV increased 14%.

• Anticipate repurchasing at least $450 million of shares per quarter for the balance of the year. • Confident in diversified platform and pipeline, with belief in long-term growth drivers. • Expect continued organic base fee growth and margin expansion.

• Volatile market environment with sensitivity to economic data and geopolitical uncertainty. • Impact of artificial intelligence on business models. • Potential changes in tax legislation affecting effective tax rate. • Market conditions and client redemptions in certain products.

Q: About wealth channel penetration and redemptions in Evergreen private credit products.

A: Martin discussed wealth channel progress, including ETFs, SMAs, after-tax investing, Appirio and SpiderRock flows, model portfolios, and stable evergreen flows.

Q: Thoughts on DOL proposal for DC plan sponsors selecting privates.

A: Martin and Larry discussed the DOL proposal, positive view, opportunity for diversified portfolios, and plans to launch life path with privates.

Q: Whether BlackRock gains share in market dislocations.

A: Larry and Martin talked about platform positioning, ETF scale, whole portfolio relationships, and ability to take share in private markets.

Q: Middle East conflict impact on sovereign wealth behavior.

A: Larry stated no change in behavior, continued dialogues, and opportunities.

Q: Organic base fee growth and scaling.

A: Martin discussed margin expansion, future margin potential, and organic base fee growth drivers.

Q: Trends at HBS and private credit.

A: Martin talked about HLEND performance, institutional demand, and deployment.

Q: Plans for IQQ ETF.

A: Martin discussed filing for IQQ, partnership with NASDAQ, and differentiated ETF platform