It has been about a month since the last earnings report for BlackRock (BLK). Shares have added about 8.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is BlackRock due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
BlackRock’s second-quarter 2026 adjusted earnings of $13.91 per share handily surpassed the Zacks Consensus Estimate of $12.72. The figure reflects a 15% rise from the year-ago quarter.
Results benefited from a rise in revenues. The assets under management balance witnessed robust year-over-year growth, driven by net inflows to record levels. However, higher expenses created a headwind.
Net income attributable to BlackRock (on a GAAP basis) was $1.91 billion, up 20% from the prior-year quarter.
Quarterly revenues (on a GAAP basis) were $7.08 billion, outpacing the Zacks Consensus Estimate of $6.84 billion. Revenues increased 31% year over year. The rise was driven by an increase in all revenue components.
Total expenses amounted to $4.62 billion, up 25% year over year. The increase was due to a rise in all cost components, except for the change in fair value of contingent consideration. Also, the company did not record any restructuring charge in the reported quarter.
Non-operating income (on a GAAP basis) was $258 million, down 50% from the prior-year quarter.
BlackRock’s adjusted operating income was $2.92 billion, increasing 39% from the prior-year quarter.
As of June 30, 2026, AUM was a record $15.34 trillion, reflecting a year-over-year rise of 22%. The company witnessed long-term net inflows of $199 billion in the reported quarter.
As of June 30, 2026, the average AUM of $14.85 trillion rose 24% year over year.
BlackRock repurchased shares worth $450 million in the reported quarter.
The company expects annual contract value (ACV) growth in the low to mid-teens over the long term for its technology business.
Excluding the impacts of the HPS and Preqin acquisitions, management expects mid-single-digit percentage growth in full-year 2026 G&A expenses.
The company expects to repurchase at least $550 million of stock per quarter in the near term, up from prior guidance of $450 million.
The projected tax run rate is 25% for the remainder of 2026.
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
At this time, BlackRock has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise BlackRock has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Originally published on zacks.com, part of the BLOX Digital Content Exchange.
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