BlackRock, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
BLK$1,178.87+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001193125-26-208766
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001193125-26-337177
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 192 previous paragraphs and 224 current paragraphs.
119 unchanged; 66 reworded; 33 added; 5 removed; 2 previous and 6 current paragraphs rearranged.
Tables are not compared: 27 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
GAAP. Operating income of $2.5 billion increased $730 million and operating margin of 34.7% increased 280 bps from the three months ended June 30, 2025. Increases in operating income and operating margin were driven by higher revenue, reflecting the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, higher performance fees, and higher technology services and subscription revenue, partially offset by higher expense, including the impact of the HPS Transaction primarily related to noncash acquisition-related costs, as well as higher sales, asset and account expense. In addition, during the second quarter of 2025, BlackRock recorded a $39 million restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify the Company's organization to fit more closely with strategic priorities.
Current report
Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs decreased $226 million from the three months ended June 30, 2025, driven primarily by a $330 million noncash pre-tax gain in the second quarter of 2025 related to Circle Internet Group, Inc. ("Circle"), partially offset by higher equity method earnings and noncash gains on revaluation of investments.
Current report
Earnings per diluted common share increased $2.00, or 20%, from the three months ended June 30, 2025, reflecting higher operating income and a lower effective tax rate, partially offset by lower nonoperating income and a higher diluted share count in connection with the HPS Transaction.
Current report
Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs decreased $264 million from the six months ended June 30, 2025, driven by the previously mentioned $330 million noncash pre-tax gain related to Circle recorded in 2025 and lower net interest income (expense), partially offset by higher equity method earnings and noncash gains on revaluation of investments.
Current report
As Adjusted. Operating income of $5.6 billion increased $1.5 billion and operating margin of 45.2% increased 200 bps from the six months ended June 30, 2025. The acquisition-related expenses and restructuring charge described above have been excluded from as adjusted results. Earnings per diluted common share increased $3.10, or 13%, from the six months ended June 30, 2025, reflecting higher operating income, partially offset by lower nonoperating income, a higher effective tax rate, and a higher diluted share count in connection with the HPS Transaction.
Current report
(c)
Current report
Restructuring charge. In the second quarter of 2025, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify BlackRock's organization to fit more closely with strategic priorities. Management believes excluding the impact of this restructuring charge when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
Current report
AUM increased $1.5 trillion to $15.3 trillion at June 30, 2026 from $13.9 trillion at March 31, 2026, driven by net market appreciation and net inflows.
Current report
Long-term net inflows of $199 billion were comprised of $178 billion, $19 billion and $2 billion from ETFs, retail clients and institutional clients, respectively. Net flows in long-term products are described below.
Current report
Retail net inflows of $19 billion were driven by net inflows into active fixed income products and continued demand for Aperio and BlackRock's liquid alternatives funds.
Current report
Institutional active net inflows of $44 billion were driven by strength in private markets, fixed income, systematic equity strategies, as well as outsourcing and target-date offerings.
Current report
Institutional index net outflows of $41 billion were concentrated in low-fee index equity offerings.
Current report
Cash management net outflows of $7 billion were driven by redemptions from US government funds.
Current report
AUM decreased $18 billion due to the impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the Japanese yen and the euro.
Current report
Component Changes in AUM for the Six Months Ended June 30, 2026
Current report
The following table presents the component changes in AUM by product type for the six months ended June 30, 2026.
Current report
The following table presents the component changes in AUM by client type and product type for the six months ended June 30, 2026.
Current report
The following table presents the component changes in AUM by investment style and product type for the six months ended June 30, 2026.
Current report
The following table presents the component changes in AUM by private markets product type for the six months ended June 30, 2026.
Current report
ETFs net inflows of $310 billion were led by core equity and index bond ETFs net inflows of $117 billion and $102 billion, respectively. Active ETFs contributed $39 billion of net inflows.
Current report
Institutional index net outflows of $76 billion were concentrated in low-fee index equity offerings.
Current report
Long-term net inflows of $773 billion were comprised of net inflows of $644 billion, $126 billion and $4 billion from ETFs, retail clients and institutional clients, respectively. Net flows in long-term products are described below.
Current report
ETFs net inflows of $644 billion were led by core equity and index bond ETFs net inflows of $240 billion and $191 billion, respectively. Precision and other, and Active ETFs contributed $124 billion and $73 billion of net inflows, respectively.
Current report
Institutional index net outflows of $102 billion were concentrated in low-fee index equity offerings.
Current report
Revenue increased $1.7 billion, or 31%, from the three months ended June 30, 2025, primarily driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, higher performance fees and higher technology services and subscription revenue.
Current report
Technology services and subscription revenue of $566 million increased $67 million from $499 million for the three months ended June 30, 2025, reflecting the sustained demand for Aladdin and multi-product solutions.
Current report
Distribution fees of $395 million increased $75 million from $320 million for the three months ended June 30, 2025, primarily reflecting higher average AUM.
Current report
Revenue increased $3.1 billion, or 29%, from the six months ended June 30, 2025, primarily driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, higher performance fees and higher technology services and subscription revenue.
Current report
Investment advisory, administration fees and securities lending revenue of $11.2 billion increased $2.3 billion from $8.9 billion for the six months ended June 30, 2025, primarily driven by the impact of market beta on average AUM, organic base fee growth and approximately $460 million of fees related to the HPS Transaction. Securities lending revenue of $418 million increased from $328 million for the six months ended June 30, 2025, primarily reflecting higher spreads.
Current report
Investment advisory performance fees of $577 million increased $423 million from $154 million for the six months ended June 30, 2025, primarily reflecting higher revenue from alternative products, including the impact of the HPS Transaction, and higher revenue from long-only products.
Current report
Distribution fees of $784 million increased $143 million from $641 million for the six months ended June 30, 2025, primarily reflecting higher average AUM.
Current report
Expense increased $931 million, or 25%, from the three months ended June 30, 2025, reflecting higher employee compensation and benefits expense, sales, asset and account expense, and general and administration expense. Expense for the three months ended June 30, 2026 was impacted by the HPS Transaction(1), including noncash acquisition-related expenses.
Current report
General and administration expense of $1.4 billion increased $166 million from $1.2 billion for the six months ended June 30, 2025, primarily driven by occupancy and office related expense, technology expense and professional services expense.
Removed paragraphs (5)
Previous report
Nonoperating income (expense), net of NCI - CIPs decreased $38 million from the three months ended March 31, 2025, driven primarily by lower dividend income and net interest income (expense).
Previous report
Institutional index net outflows of $35 billion were concentrated in low-fee index equity offerings.
Previous report
ETFs net inflows of $551 billion were led by equity and fixed income ETFs, which saw $312 billion and $187 billion of net inflows, respectively. Digital assets ETPs generated $32 billion of net inflows and Active ETFs contributed $64 billion of net inflows.
Previous report
Institutional index net outflows of $108 billion were concentrated in low-fee index equity and fixed income offerings and included the impact of a single client's $52 billion partial redemption in the second quarter of 2025.
Previous report
Revenue increased $1.4 billion, or 27%, from the three months ended March 31, 2025, primarily driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, and higher technology services and subscription revenue.
Reworded paragraphs (66)
Previous wording
BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm with $13.9 trillion of AUM at March 31, 2026. With approximately 25,400 employees in more than 30 countries, BlackRock provides a broad range of investment management and technology and subscription services to institutional and retail clients in more than 100 countries across the globe.
Current wording
BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm with $15.3 trillion of AUM at June 30, 2026. With approximately 26,200 employees in more than 30 countries, BlackRock provides a broad range of investment management and technology and subscription services to institutional and retail clients in more than 100 countries across the globe.
Previous wording
As of March 31, 2026, there were 155.4 million shares of common stock and 7.6 million Subco Units outstanding.
Current wording
As of June 30, 2026, there were 155.0 million shares of common stock and 7.6 million Subco Units outstanding.
Previous wording
As Adjusted. Operating income of $2.7 billion increased $637 million and operating margin of 44.5% increased 130 bps from the three months ended March 31, 2025. The noncash acquisition-related items described above have been excluded from as adjusted results. Earnings per diluted common share increased $1.23, or 11%, from the three months ended March 31, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income, a higher effective tax rate, and a higher diluted share count in the current quarter.
Current wording
As Adjusted. Operating income of $2.9 billion increased $817 million and operating margin of 45.9% increased 260 bps from the three months ended June 30, 2025. The acquisition-related expenses and restructuring charge described above have been excluded from as adjusted results. Earnings per diluted common share increased $1.86, or 15%, from the three months ended June 30, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income and a higher diluted share count in connection with the HPS Transaction.
Previous wording
GAAP. Operating income of $2.8 billion increased $1.1 billion and operating margin of 42.0% increased 980 bps from the three months ended March 31, 2025. Increases in operating income and operating margin were driven by higher revenue, reflecting organic base fee growth, the positive impact of markets, and fees related to the HPS Transaction. GAAP operating income and operating margin were also impacted by noncash acquisition-related items in connection with the HPS and GIP Transactions.
Current wording
GAAP. Operating income of $5.3 billion increased $1.8 billion, while operating margin of 38.3% increased 630 bps from the six months ended June 30, 2025. Operating income and operating margin reflected higher revenue, driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, and higher technology services and subscription revenue. GAAP operating income and operating margin were also impacted by noncash acquisition-related items in connection with the HPS and GIP Transactions as well as the restructuring charge described above.
Previous wording
First quarter 2026 and 2025 income tax expense includes $57 million and $46 million of discrete tax benefits, respectively, related to vested stock-based compensation awards. In addition, first quarter 2025 income tax expense included $149 million of net discrete tax benefits realized from changes in the Company's organizational entity structure.
Current wording
Income tax expense for the six months ended June 30, 2026 and 2025, included $62 million and $50 million of discrete tax benefits, respectively, related to vested stock-based compensation awards. In addition, income tax expense for the six months ended June 30, 2025 included a $149 million discrete tax benefit realized from changes in the Company's organizational entity structure.
Previous wording
Earnings per diluted common share increased $4.42, or 46%, from the three months ended March 31, 2025, reflecting higher operating income, impacted by noncash acquisition-related items, partially offset by lower nonoperating income, a higher effective tax rate, and a higher diluted share count in connection with the HPS Transaction.
Current wording
Earnings per diluted common share increased $6.42, or 32%, from the six months ended June 30, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income, a higher diluted share count in connection with the HPS Transaction, and a higher effective tax rate.
Previous wording
For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. In addition, the non-GAAP adjustment in 2025 and 2026 related to the change in fair value of contingent consideration is primarily not deductible for income tax purposes.
Current wording
For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. The non-GAAP adjustments in 2025 and 2026 related to the change in fair value of contingent consideration are primarily not deductible for income tax purposes.
Previous wording
In addition, beginning in the third quarter of 2025, in connection with the HPS Transaction, the Company updated its definition of net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, to assume all outstanding Subco Units issued as part of the consideration for the HPS Transaction have been exchanged in accordance with the terms on a one-for-one basis into common stock of BlackRock, as Subco Units will be exchangeable at the option of the holder when exchange rights begin. Accordingly, the noncontrolling interest allocated to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. Management believes that these updated non-GAAP measures are useful indicators of BlackRock’s profitability and enhance comparability among periods presented, and therefore are useful to investors.
Current wording
In addition, beginning in the third quarter of 2025, in connection with the HPS Transaction, the Company updated its definition of net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, to assume all outstanding Subco Units issued as part of the consideration for the HPS Transaction have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock, as Subco Units are exchangeable at the option of the holder. Accordingly, the noncontrolling interest related to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. Management believes that these updated non-GAAP measures are useful indicators of BlackRock’s profitability and enhance comparability among periods presented, and therefore are useful to investors.
Previous wording
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares and Subco Units outstanding.
Current wording
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares including Subco Units.
Previous wording
ETFs net inflows of $132 billion were led by equity and fixed income ETFs net inflows of $88 billion and $45 billion, respectively. Active ETFs contributed $19 billion of net inflows.
Current wording
ETFs net inflows of $178 billion were led by core equity and index bond ETFs net inflows of $85 billion and $61 billion, respectively. Active ETFs contributed $20 billion of net inflows.
Previous wording
Net market depreciation of $216 billion was primarily driven by global equity market depreciation.
Current wording
Net market appreciation of $1.3 trillion was primarily driven by global equity market appreciation.
Previous wording
AUM decreased $147 billion to $13.9 trillion at March 31, 2026 from $14.0 trillion at December 31, 2025, driven by net market depreciation and the negative impact of foreign exchange movements, partially offset by net inflows.
Current wording
AUM increased $1.3 trillion to $15.3 trillion at June 30, 2026 from $14.0 trillion at December 31, 2025, driven by net market appreciation and net inflows, partially offset by the negative impact of foreign exchange movements.
Previous wording
Long-term net inflows of $136 billion were comprised of $132 billion and $15 billion from ETFs and retail clients, respectively, partially offset by net outflows of $11 billion from institutional clients. Net flows in long-term products are described below.
Current wording
Long-term net inflows of $335 billion were comprised of $310 billion and $34 billion from ETFs and retail clients, respectively, partially offset by net outflows of $9 billion from institutional clients. Net flows in long-term products are described below.
Previous wording
Retail net inflows of $15 billion were driven by net inflows into equity products, largely reflecting net inflows in Aperio, and continued strength in the Company's systematic liquid alternatives, active fixed income and private markets offerings.
Current wording
Retail net inflows of $34 billion were driven by net inflows into equity products, largely reflecting net inflows in Aperio, and continued strength in the Company's systematic liquid alternatives and active fixed income offerings.
Previous wording
Institutional active net inflows of $24 billion were driven by BlackRock's LifePath® target date franchise, private markets, and systematic equity strategies, partially offset by several client-specific fixed income redemptions.
Current wording
Institutional active net inflows of $68 billion were driven by BlackRock's LifePath® target-date franchise, private markets, systematic equity strategies and outsourcing mandates.
Previous wording
Cash management net outflows of $6 billion were driven by seasonal net outflows from US government money market funds.
Current wording
Cash management net outflows of $14 billion were driven by net outflows from US government money market funds.
Previous wording
AUM decreased $50 billion due to the impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the British pound, the euro and the Japanese yen.
Current wording
AUM decreased $68 billion due to the impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the Japanese yen, the euro, the British pound and the Canadian dollar.
Previous wording
AUM increased $2.3 trillion to $13.9 trillion at March 31, 2026 from $11.6 trillion at March 31, 2025, driven by net market appreciation, net inflows, AUM added from the HPS and ElmTree Transactions and the positive impact of foreign exchange movements.
Current wording
AUM increased $2.8 trillion to $15.3 trillion at June 30, 2026 from $12.5 trillion at June 30, 2025, driven by net market appreciation, net inflows and AUM added from the HPS and ElmTree Transactions, partially offset by the negative impact of foreign exchange movements.
Previous wording
Retail net inflows of $109 billion were led by net inflows into fixed income, equity and multi-asset strategies, driven by the onboarding of a significant separately managed account (SMA) assignment in the fourth quarter of 2025 as well as demand for Aperio. Liquid alternatives and private markets added $9 billion and $5 billion, respectively.
Current wording
Retail net inflows of $126 billion were led by net inflows into fixed income, equity and multi-asset strategies, driven by the onboarding of a significant separately managed account ("SMA") assignment in the fourth quarter of 2025 as well as demand for Aperio. Liquid alternatives and private markets added $11 billion and $4 billion, respectively.
Previous wording
Institutional active net inflows of $69 billion were led by $56 billion in multi-asset net inflows reflecting continued growth from significant outsourcing mandates and Lifepath target-date offerings. Private market net inflows of $37 billion were led by private credit and infrastructure. Multi-asset and private market net inflows were partially offset by net outflows from equity and fixed income products, including a single-client transfer to institutional index equity in the third quarter of 2025.
Current wording
Institutional active net inflows of $106 billion were led by $74 billion in multi-asset net inflows reflecting continued growth from significant outsourcing mandates and Lifepath target-date offerings. Private markets net inflows of $46 billion were led by private credit and infrastructure. Multi-asset and private markets net inflows were partially offset by net outflows from equity and fixed income products, including a single-client transfer to institutional index equity in the third quarter of 2025.
Previous wording
Cash management net inflows of $124 billion were primarily due to net inflows into US government, international and prime money market funds.
Current wording
Cash management net inflows of $94 billion were primarily due to net inflows into US government, international and prime money market funds.
Previous wording
Net market appreciation of $1.4 trillion was primarily driven by US and global equity market appreciation.
Current wording
Net market appreciation of $2.0 trillion was primarily driven by US and global equity market appreciation.
Previous wording
AUM increased $79 billion due to the impact of foreign exchange movements, primarily resulting from the weakening of the US dollar, largely against the euro, the British pound, and the Australian dollar, partially offset by the strengthening of the US dollar, primarily against the Japanese yen.
Current wording
AUM decreased $111 billion due to the impact of foreign exchange movements, primarily resulting from the strengthening of the US dollar, largely against the Japanese yen, the British pound, the euro and the Canadian dollar.
Previous wording
The Company’s results of operations for the three months ended March 31, 2026 and 2025 are discussed below. For a further description of the Company’s revenue and expense, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on February 25, 2026 ("2025 Form 10-K").
Current wording
The Company’s results of operations for the three and six months ended June 30, 2026 and 2025 are discussed below. For a further description of the Company’s revenue and expense, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on February 25, 2026 ("2025 Form 10-K").
Previous wording
The table below presents detail of revenue for the three months ended March 31, 2026 and 2025 and includes the product type mix of base fees and securities lending revenue and performance fees.
Current wording
The table below presents detail of revenue for the three and six months ended June 30, 2026 and 2025 and includes the product type mix of base fees and securities lending revenue and performance fees.
Previous wording
Amounts include securities lending revenue of $179 million and $157 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Amounts include securities lending revenue of $239 million and $171 million for the three months ended June 30, 2026 and 2025, respectively, and $418 million and $328 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
Investment advisory, administration fees (collectively "base fees") and securities lending revenue of $5.4 billion increased $1.0 billion from $4.4 billion for the three months ended March 31, 2025, primarily driven by organic base fee growth, the impact of market beta on average AUM, and approximately $230 million of fees related to the HPS Transaction. Securities lending revenue of $179 million increased from $157 million for the three months ended March 31, 2025.
Current wording
Investment advisory, administration fees (collectively "base fees") and securities lending revenue of $5.7 billion increased $1.3 billion from $4.5 billion for the three months ended June 30, 2025, primarily driven by the positive impact of market beta on average AUM, organic base fee growth and approximately $230 million of fees related to the HPS Transaction. Securities lending revenue of $239 million increased from $171 million for the three months ended June 30, 2025, primarily reflecting higher spreads.
Previous wording
Investment advisory performance fees of $272 million increased $212 million from $60 million for the three months ended March 31, 2025, primarily reflecting higher revenue from private markets, including the impact of the HPS Transaction.
Current wording
Investment advisory performance fees of $305 million increased $211 million from $94 million for the three months ended June 30, 2025, primarily reflecting higher revenue from alternative products, including the impact of the HPS Transaction, and higher revenue from long-only products.
Previous wording
Technology services and subscription revenue of $530 million increased $94 million from $436 million for the three months ended March 31, 2025, reflecting the sustained demand for Aladdin technology offerings and a full-quarter impact of approximately $65 million of revenue related to the Preqin Transaction.
Current wording
Technology services and subscription revenue of $1.1 billion increased $161 million from $935 million for the six months ended June 30, 2025, reflecting the sustained demand for Aladdin, multi-product solutions and the impact related to the Preqin Transaction, which was completed in March of 2025.
Previous wording
The following table presents expense for the three months ended March 31, 2026 and 2025.
Current wording
The following table presents expense for the three and six months ended June 30, 2026 and 2025.
Previous wording
Sales, asset and account expense of $1.3 billion increased $248 million from $1.0 billion for the three months ended March 31, 2025, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
Current wording
Sales, asset and account expense of $1.3 billion increased $279 million from $1.1 billion for the three months ended June 30, 2025, driven by higher direct fund expense and distribution and servicing costs, primarily reflecting higher average AUM.
Previous wording
General and administration expense of $674 million increased $59 million from $615 million for the three months ended March 31, 2025, primarily driven by occupancy and office related expense, and technology expense.
Current wording
General and administration expense of $720 million increased $107 million from $613 million for the three months ended June 30, 2025, primarily driven by occupancy and office related expense, technology expense and professional services expense.
Previous wording
Expense increased $306 million, or 9%, from the three months ended March 31, 2025, reflecting higher employee compensation and benefits expense, general and administration expense, and sales, asset and account expense. Expense for the three months ended March 31, 2026 was impacted by the previously described noncash acquisition-related items incurred in connection with the HPS and Preqin Transactions(1), including the change in fair value of contingent consideration and amortization of intangible assets.
Current wording
Expense increased $1.2 billion, or 17%, from the six months ended June 30, 2025, reflecting higher employee compensation and benefits expense, sales, asset and account expense, and general and administration expense. Expense for the six months ended June 30, 2026 was impacted by the HPS, GIP and Preqin Transactions(1), including noncash change in fair value of contingent consideration and amortization of intangible assets.
Previous wording
Employee compensation and benefits expense of $2.2 billion increased $484 million from $1.7 billion for the three months ended March 31, 2025, primarily reflecting the impact of higher operating income and performance fees, and the impact of the HPS and Preqin Transactions.
Current wording
Employee compensation and benefits expense of $4.5 billion increased $994 million from $3.5 billion for the six months ended June 30, 2025, primarily reflecting the impact of higher operating income and performance fees, and the impact of the HPS and Preqin Transactions.
Previous wording
Change in fair value of contingent consideration(1) of $549 million decreased $645 million as compared to the change in the three months ended March 31, 2025, primarily in connection with the fair value of contingent consideration for the GIP and HPS Transactions, which is impacted by the share price of BlackRock common stock.
Current wording
Change in fair value of contingent consideration(1) decreased $710 million as compared to the change in the six months ended June 30, 2025, primarily in connection with the fair value of contingent consideration for the GIP and HPS Transactions, which is impacted by the share price of BlackRock common stock at the end of the period.
Previous wording
Amortization and impairment of intangible assets(1) of $277 million increased $160 million from $117 million for the three months ended March 31, 2025, primarily reflecting amortization of intangible assets acquired in the HPS and Preqin Transactions.
Current wording
Amortization of intangible assets(1) of $553 million increased $299 million from $254 million for the six months ended June 30, 2025, primarily reflecting amortization of intangible assets acquired in the HPS and Preqin Transactions.
Previous wording
The summary of nonoperating income (expense), less net income (loss) attributable to NCI - CIPs for the three months ended March 31, 2026 and 2025 was as follows:
Current wording
The summary of nonoperating income (expense), less net income (loss) attributable to NCI - CIPs for the three and six months ended June 30, 2026 and 2025 was as follows:
Previous wording
Amounts include earnings (losses) from certain equity method minority investments and noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.
Current wording
Amounts for the three months ended June 30, 2026 and 2025, include noncash pre-tax losses of approximately $37 million and gains of approximately $330 million, respectively, in connection with Circle. Additional amounts include earnings (losses) from certain equity method minority investments and noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.
Previous wording
Income tax expense for the three months ended March 31, 2026 includes a $57 million discrete tax benefit related to vested stock-based compensation awards.
Current wording
Income tax expense for the six months ended June 30, 2026 includes a $62 million discrete tax benefit related to stock-based compensation awards that vested in 2026.
Previous wording
Income tax expense for the three months ended March 31, 2025 included a $149 million discrete tax benefit related to the realization from changes in the Company's organizational structure and a $46 million discrete tax benefit related to vested stock-based compensation awards.
Current wording
Income tax expense for the six months ended June 30, 2025 included a $149 million discrete tax benefit from realized changes in the Company's organizational entity structure and a $50 million discrete tax benefit related to stock-based compensation awards that vested in 2025.
Showing the first 40 of 66 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Net market appreciation of $1.1 trillion was primarily driven by global equity market appreciation.
Current report — wording carried from elsewhere
Employee compensation and benefits expense of $2.3 billion increased $510 million from $1.8 billion for the three months ended June 30, 2025, primarily reflecting the impact of higher operating income and performance fees, and the impact of the HPS Transaction.
Current report — wording carried from elsewhere
Change in fair value of contingent consideration(1) of $11 million decreased $65 million as compared to the change in the three months ended June 30, 2025, primarily in connection with the fair value of contingent consideration for the GIP Transaction, which is impacted by the share price of BlackRock common stock at the end of the period.
Current report — wording carried from elsewhere
Amortization of intangible assets(1) of $276 million increased $139 million from $137 million for the three months ended June 30, 2025, primarily reflecting amortization of intangible assets acquired in the HPS Transaction.
Current report — wording carried from elsewhere
Sales, asset and account expense of $2.6 billion increased $527 million from $2.1 billion for the six months ended June 30, 2025, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
Current report — wording carried from elsewhere
For the three months ended June 30, 2026, net loss of the Obligor Group was $188 million, primarily comprised of $130 million of interest expense and $85 million of intangible amortization expense. Revenue during this period was not material.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Previous report — wording carried elsewhere
Long-term net inflows of $620 billion were comprised of net inflows of $551 billion and $109 billion from ETFs and retail clients, respectively, partially offset by net outflows of $40 billion from institutional clients. Net flows in long-term products are described below.