BlackRock Inc (NYSE:BLK) reported second-quarter profit that topped Wall Street estimates on Wednesday, powered by record inflows and higher fees.
The world's largest asset manager posted adjusted earnings of $13.91 per share, beating the average analyst estimate of $12.57 and up 15% from a year earlier.
Revenue rose 31% to $7.08 billion, ahead of the $6.72 billion expected by analysts.
Assets under management climbed 22% to $15.34 trillion, as the firm pulled in $191.7 billion in total net inflows for the quarter.
ETFs led the gains with $177.9 billion in inflows, while active strategies added $53.3 billion. Fixed income drew $92.1 billion and equities brought in $71.6 billion. Alternatives added $22 billion, including $15.4 billion into private markets.
Cash management was the lone laggard, with $7.4 billion in outflows.
BlackRock's iShares ETF business ended the quarter with $6.25 trillion in assets.
Base fees and securities lending revenue rose 29% to $5.73 billion, while performance fees more than tripled to $305 million. The company said its recent acquisition of HPS Investment Partners contributed roughly $230 million to base fees in the quarter.
Organic base fee growth came in at 8% for the quarter and 10% over the trailing twelve months, with net inflows over that period totaling $868 billion. The first half of the year brought a record $321 billion in net inflows.
Adjusted net income rose 22% to $2.29 billion, while adjusted operating income climbed 39% to $2.92 billion. Adjusted operating margin expanded 260 basis points to 45.9%.
BlackRock said it repurchased $450 million of shares during the quarter and raised its planned quarterly buyback pace to $550 million, lifting its full-year 2026 repurchase target to $2 billion. The company also paid a dividend of $5.73 per share.
Shares of BlackRock were up 7.2% in early Wednesday trading in New York.
