BlackRock, Inc. (NYSE:BLK) on Tuesday reported first-quarter fiscal 2026 results that topped Wall Street expectations, driven by strong asset growth and higher fee income.

Revenue rose 27% year over year to $6.70 billion, exceeding the consensus estimate of $6.46 billion. Adjusted operating income increased 31% to $2.70 billion. Adjusted earnings per share came in at $12.53, up 11% from a year earlier and above estimates of $11.62.

Revenue and Profit Breakdown

Investment advisory, administration fees, and securities lending revenue climbed to $5.44 billion from $4.40 billion a year ago. Growth was supported by an 8% increase in organic base fees — the strongest first-quarter performance in five years — along with favorable market effects on average assets under management and about $230 million in fees tied to the HPS transaction.

Securities lending revenue rose to $179 million from $157 million. Investment advisory performance fees surged to $272 million from $60 million in the prior-year quarter, driven by higher private markets revenue, including contributions from the HPS transaction.

Technology services and subscription revenue increased to $530 million from $436 million, boosted by strong demand for Aladdin offerings and roughly $65 million in revenue from the Preqin acquisition completed in March 2025. Annual contract value for the segment grew 14%, while adjusted margins expanded by more than 100 basis points.

Asset Growth and Capital Allocation

BlackRock reported total net inflows of $130 billion, up from $84 billion a year earlier. Its iShares platform posted record first-quarter net inflows of $132 billion and doubled net new base fees year over year.

Total assets under management reached a record $13.9 trillion at quarter-end, compared with $11.6 trillion a year ago.

The company repurchased $450 million of shares during the quarter and raised its quarterly dividend by 10% to $5.73 per share.

CEO Commentary

Chairman and CEO Laurence Fink said the firm delivered "one of the strongest starts to a year in our history."

"Over the last twelve months, clients entrusted BlackRock with $744 billion of net new assets, powering 10% organic base fee growth," Fink said.

He added that active equity generated $3 billion in net inflows, while private markets brought in $9 billion, led by private credit and infrastructure.

BLK Price Action: BlackRock shares were up 2.57% at $1,050 during premarket trading on Tuesday, according to Benzinga Pro data.

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