BlackRock reported a net profit of $2.21 billion, or $14.06 per share, for the three months ended March 31, representing a significant increase from $1.51 billion, or $9.64 per share, in the year-ago period. According to reports from The Economic Times, this translates to a 47% year-over-year growth in profitability. The company's investment advisory performance fees came in at $272 million in the first quarter of 2026, marking a substantial spike from $60 million in the corresponding period last year. BlackRock shares rose about 4% following the earnings announcement, reflecting strong market confidence in the results.
BlackRock's total assets under management reached $13.89 trillion, up from $11.58 trillion in the year-ago period, as reported by The Economic Times. The company achieved total net inflows of $130 billion in the first quarter, with the lion's share going into its iShares ETFs. According to the latest earnings call transcript, record first-quarter ETF net inflows of $132 billion were led by index bond ETFs with $41 billion of net inflows, while precision exposures, core equity, and active ETFs added $39 billion, $19 billion, and $19 billion respectively. The company's private markets business drew inflows of $9 billion during the quarter, primarily in private credit and infrastructure due to deployment activity. Additionally, retail net inflows of $15 billion reflected continued strength in systematic liquid alternatives, active fixed income, and evergreen private markets offerings.
According to The Economic Times, BlackRock's active ETFs have attracted investors looking to capitalize on market dispersion through low-cost products, particularly during periods of macroeconomic pressure from global geopolitics. The company's active ETFs and alternative investments strategies have allowed it to diversify during market trouble, with these vehicles generating higher yields and triggering performance payouts even when broader markets are volatile. As reported in the earnings call, BlackRock's active ETF platform has grown four times in the last two years to more than $110 billion in AUM, with net inflows of $19 billion leading the industry. The firm believes active ETFs can be a $500 million or greater revenue generator by 2030, and is already more than halfway there. Aperio generated a record $13 billion of net inflows and Spider Rock added over $1 billion in the quarter, with Aperio's AUM having more than tripled and Spider Rock's AUM having more than doubled in the five and two years respectively since their closings.
BlackRock strategists have returned to an overweight view on U.S. stocks as they see the damage to global economic growth from the Middle East conflict 'contained', according to Bloomberg News. The firm had been watching 'two signposts to dial up risk-taking' after shifting to neutral as the Middle East conflict led to reducing risk a few weeks ago. BlackRock's bullish turn comes as the S&P 500 has recovered almost all of its losses triggered by the start of the war in late February, with U.S. President Donald Trump signalling a willingness to end the conflict and agreeing to a fragile ceasefire. The company's institutional active net inflows of $24 billion were led by LifePath target date franchise, private markets, and systematic strategies, demonstrating strong institutional confidence in U.S. equities.
CEO Laurence Fink emphasized that the firm's integrated model across public markets, private markets and technology continues to strengthen its competitive position, as reported by The Economic Times. He highlighted that BlackRock's scale and diversified platform are becoming increasingly valuable in a complex investment environment. According to the earnings call, CFO Small stated the company can confidently and consistently deliver 6% to 7% growth from structural growth segments, and highlighted the commitment to recurring margin expansion above 45%. The company's fee rate grew 0.2 basis points sequentially, supported by strong market performance in international equity and increased iShares exposures. BlackRock's annualized effective fee rate is up 0.2 basis points sequentially, with the as-adjusted tax rate at 23% for the quarter, including $57 million in discrete tax benefits. The firm is launching new alternative investment products in the U.S. and Europe for private wealth and model portfolios, including HLEND E, HREAL, and HNET to capture demand for evergreen structures.
