BlackRock Inc. posted a 46% year-over-year increase in first-quarter net income, reaching $2.21 billion, or $14.06 per share, for the three months ended March 31. Adjusted earnings of $12.53 per share surpassed the consensus analyst estimate of approximately $11.65, according to the firm's earnings release Tuesday. Revenue climbed 27% to $6.7 billion, also topping expectations of roughly $6.55 billion.
The strong profit performance was fueled by record inflows into the iShares exchange-traded fund business, which attracted $132 billion in net new assets during the quarter—the best first-quarter result in the unit's history. Total net inflows across the firm reached $130 billion, with private markets contributing an additional $9 billion, led by private credit and infrastructure strategies.
Despite the inflow momentum, BlackRock's assets under management closed the quarter at $13.89 trillion, up 20% from $11.58 trillion a year earlier but down from the $14.04 trillion record set at the end of 2025. The decline reflected market volatility, with the S&P 500 falling 4.6% during the period. For asset managers, AUM is a critical metric because it underpins most fee revenue; a market-driven drop can partially offset the benefit of new client flows.
Performance fees surged to $272 million, more than quadruple the $60 million recorded in the first quarter of 2025, driven largely by private markets activity and the impact of the 2025 acquisition of HPS Investment Partners. Base fees, excluding performance-linked revenue, grew 8% organically from a year earlier—the firm's strongest first-quarter organic base fee growth in five years.
Technology services revenue rose 22% year-over-year to $530 million. CEO Larry Fink noted that annual contract value for the firm's technology services grew 14%, supported by demand for the Aladdin platform and contributions from data provider Preqin, acquired in March 2025.
BlackRock's private markets AUM stood at $320.4 billion at quarter-end, down slightly from $322.6 billion at December 31. The decline reflected $8.5 billion in capital returned to investors and roughly $2 billion in market value depreciation, partially offset by $9.1 billion in net inflows. Fink said private markets inflows were led by private credit and infrastructure, where fundraising and deployment momentum remain strong.
The firm returned $450 million to shareholders through share repurchases during the quarter and raised its quarterly cash dividend by 10% to $5.73 per share. Shares rose approximately 2.5% in premarket trading Tuesday but remain down more than 4% year-to-date. The adjusted operating margin widened to 44.5% from 43.2% a year earlier, reflecting operating leverage across the combined asset management and technology platform.
As BlackRock sees AI, energy shocks, and evolving diversification as key market drivers for 2026, the first-quarter results underscore the firm's ability to generate earnings growth even amid market turbulence. The S&P 500's 0.49% slip in recent sessions highlights the ongoing volatility that could continue to pressure AUM levels.
