BlackRock Inc.
05/06/2026 | Press release | Distributed by Public on 05/06/2026 13:26
Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
This report, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock's future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" and similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
BlackRock has previously disclosed risk factors in its Securities and Exchange Commission reports. These risk factors and those identified elsewhere in this report, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management ("AUM"); (3) the relative and absolute investment performance of BlackRock's investment products; (4) BlackRock's ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of Global Infrastructure Management, LLC ("GIP" or the "GIP Transaction"), Preqin Holding Limited ("Preqin" or the "Preqin Transaction") and HPS Investment Partners ("HPS" or the "HPS Transaction" and together with the GIP Transaction and the Preqin Transaction, the "Transactions"); (7) BlackRock's ability to integrate acquired businesses successfully, including the Transactions; (8) the unfavorable resolution of legal proceedings; (9) the extent and timing of any share repurchases; (10) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (11) the failure to effectively manage the development and use of artificial intelligence; (12) attempts to circumvent BlackRock's operational control environment or the potential for human error in connection with BlackRock's operational systems; (13) the impact of legislative and regulatory actions and reforms, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock's reputation; (17) increasing focus from stakeholders regarding environmental and social-related matters; (18) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock's control, including wars, global trade tensions, tariffs, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (19) climate-related risks to BlackRock's business, products, operations and clients; (20) the ability to attract, train and retain highly qualified professionals; (21) fluctuations in the carrying value of BlackRock's economic investments; (22) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (23) BlackRock's success in negotiating distribution arrangements and maintaining distribution channels for its products; (24) the failure by key third-party providers to fulfill their obligations to BlackRock; (25) operational, technological and regulatory risks associated with BlackRock's major technology partnerships; (26) any disruption to the operations of third parties whose functions are integral to BlackRock's exchange-traded products ("ETPs") platform; (27) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (28) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.
OVERVIEW
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.
BlackRock's diverse platform of alpha-seeking active, private markets, index and cash management investment strategies across asset classes enables the Company to offer choice and tailor investment and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, private markets, liquid alternatives, digital assets, currencies and commodities, and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares® ETFs, separate accounts, collective trust funds and other pooled investment vehicles. BlackRock also offers technology and subscription services, including the investment and risk management technology platform, Aladdin®, Aladdin WealthTM, eFront®, Preqin and Cachematrix®, as well as advisory services and solutions to a broad base of institutional and wealth management clients. The Company is highly regulated and manages its clients' assets as a fiduciary. The Company does not engage in proprietary trading activities that could conflict with the interests of its clients.
BlackRock serves a diverse mix of institutional and retail clients across the globe. Clients include tax-exempt institutions, such as defined benefit and defined contribution pension plans, charities, foundations and endowments; official institutions, such as central banks, sovereign wealth funds, supranationals and other government entities; taxable institutions, including insurance companies, financial institutions, corporations and third-party fund sponsors, and retail intermediaries.
BlackRock maintains a significant global sales and marketing presence that is focused on establishing and maintaining retail and institutional investment management and technology service relationships by marketing its services to investors directly and through third-party distribution relationships, including financial professionals and pension consultants.
Certain prior period presentations were reclassified to ensure comparability with current period classifications.
EXECUTIVE SUMMARY
|
Three Months Ended |
||||||||
|
March 31, |
||||||||
|
(in millions, except per share data) |
2026 |
2025 |
||||||
|
GAAP basis(1): |
||||||||
|
Total revenue |
$ |
6,698 |
$ |
5,276 |
||||
|
Total expense |
3,884 |
3,578 |
||||||
|
Operating income |
$ |
2,814 |
$ |
1,698 |
||||
|
Operating margin |
42.0 |
% |
32.2 |
% |
||||
|
Nonoperating income (expense), less net income |
22 |
60 |
||||||
|
Income tax expense |
516 |
248 |
||||||
|
Less: Net income (loss) attributable to NCI - Subco |
108 |
- |
||||||
|
Net income attributable to BlackRock |
$ |
2,212 |
$ |
1,510 |
||||
|
Diluted earnings per common share |
$ |
14.06 |
$ |
9.64 |
||||
|
Effective tax rate |
18.2 |
% |
14.1 |
% |
||||
|
As adjusted(2): |
||||||||
|
Operating income |
$ |
2,669 |
$ |
2,032 |
||||
|
Operating margin |
44.5 |
% |
43.2 |
% |
||||
|
Nonoperating income (expense), less net income |
$ |
22 |
$ |
75 |
||||
|
Net income attributable to BlackRock(3) |
$ |
2,068 |
$ |
1,770 |
||||
|
Diluted earnings per common share(3) |
$ |
12.53 |
$ |
11.30 |
||||
|
Effective tax rate |
23.2 |
% |
16.0 |
% |
||||
|
Other: |
||||||||
|
Assets under management (end of period) |
$ |
13,894,600 |
$ |
11,583,928 |
||||
|
Diluted weighted-average common shares |
165.0 |
156.6 |
||||||
|
Shares outstanding including Subco Units(4) |
163.0 |
155.0 |
||||||
|
Book value per share(5) |
$ |
364.87 |
$ |
309.86 |
||||
|
Cash dividends declared and paid per share |
$ |
5.73 |
$ |
5.21 |
||||
(1)
Accounting principles generally accepted in the United States ("GAAP").
(2)
As adjusted items are described in more detail in Non-GAAP Financial Measures.
(3)
Net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, assume all Subco Units have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock. Accordingly, the noncontrolling interest allocated to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. See Non-GAAP Financial Measures for further information.
(4)
As of March 31, 2026, there were 155.4 million shares of common stock and 7.6 million Subco Units outstanding.
(5)
Total BlackRock stockholders' equity divided by total shares of common stock outstanding at March 31 of the respective period-end.
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
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.
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).
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.
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.
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.
See Non-GAAP Financial Measures for further information on as adjusted items and the reconciliation to GAAP.
For further discussion of BlackRock's revenue, expense, nonoperating results and income tax expense, see Discussion of Financial Results herein.
NON-GAAP FINANCIAL MEASURES
BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company's ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures ("non-GAAP adjustments") include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock's book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock's financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock's revenue and expense. BlackRock's management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted:
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Operating income, GAAP basis |
$ |
2,814 |
$ |
1,698 |
|||
|
Non-GAAP expense adjustments: |
|||||||
|
Compensation expense related to appreciation |
5 |
(3 |
) |
||||
|
Amortization of intangible assets (b) |
277 |
117 |
|||||
|
Acquisition-related compensation costs (b) |
107 |
85 |
|||||
|
Acquisition-related transaction costs (b)(1) |
15 |
39 |
|||||
|
Change in fair value of contingent consideration (b) |
(549 |
) |
96 |
||||
|
Operating income, as adjusted |
$ |
2,669 |
$ |
2,032 |
|||
|
Revenue, GAAP basis |
$ |
6,698 |
$ |
5,276 |
|||
|
Non-GAAP adjustments: |
|||||||
|
Distribution fees |
(389 |
) |
(321 |
) |
|||
|
Investment advisory fees |
(316 |
) |
(249 |
) |
|||
|
Revenue used for operating margin measurement |
$ |
5,993 |
$ |
4,706 |
|||
|
Operating margin, GAAP basis |
42.0 |
% |
32.2 |
% |
|||
|
Operating margin, as adjusted |
44.5 |
% |
43.2 |
% |
|||
(1)
Amounts included within general and administration expense.
(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted:
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Nonoperating income (expense), GAAP basis |
$ |
28 |
$ |
65 |
|||
|
Less: Net income (loss) attributable to NCI - CIPs |
6 |
5 |
|||||
|
Nonoperating income (expense), net of NCI - CIPs |
22 |
60 |
|||||
|
Less: Hedge gain (loss) on deferred cash compensation |
- |
(15 |
) |
||||
|
Nonoperating income (expense), less net income (loss) |
$ |
22 |
$ |
75 |
|||
(3) Net income attributable to BlackRock, Inc., as adjusted:
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
(in millions, except per share data) |
2026 |
2025 |
|||||
|
Net income attributable to BlackRock, Inc., GAAP basis |
$ |
2,212 |
$ |
1,510 |
|||
|
Noncontrolling interest - Subco |
108 |
- |
|||||
|
Net income attributable to BlackRock, Inc., (for diluted EPS) |
2,320 |
1,510 |
|||||
|
Non-GAAP adjustments(1): |
|||||||
|
Net impact of hedged deferred cash compensation plans (a) |
4 |
9 |
|||||
|
Amortization of intangible assets (b) |
207 |
87 |
|||||
|
Acquisition-related compensation costs (b) |
80 |
63 |
|||||
|
Acquisition-related transaction costs (b) |
11 |
29 |
|||||
|
Change in fair value of contingent consideration (b) |
(554 |
) |
72 |
||||
|
Net income attributable to BlackRock, Inc., as adjusted |
$ |
2,068 |
$ |
1,770 |
|||
|
Diluted weighted-average common shares outstanding |
165.0 |
156.6 |
|||||
|
Diluted earnings per common share, GAAP basis |
$ |
14.06 |
$ |
9.64 |
|||
|
Diluted earnings per common share, as adjusted |
$ |
12.53 |
$ |
11.30 |
|||
(1)
Non-GAAP adjustments, excluding income tax matters, are net of tax.
(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock's financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company's long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company's financial performance, to determine the long-term and annual compensation of the Company's senior-level employees and to evaluate the Company's relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.
•
Operating income, as adjusted, includes the following non-GAAP expense adjustments:
(a)
Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company's financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.
(b)
Acquisition-related costs. Acquisition-related costs include adjustments related to amortization of intangible assets, change in fair value of contingent consideration (primarily associated with noncash contingent consideration) incurred in connection with certain acquisitions and other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation and general and administration expense primarily related to professional services. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company's financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.
•
Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company's distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.
(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, is an effective measure for reviewing BlackRock's nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, provides a useful measure for both management and investors of BlackRock's nonoperating results that impact book value.
(3) Net income attributable to BlackRock, Inc., as adjusted:
•
Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock's profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock's book value or certain tax items that do not impact cash flow.
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.
•
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.
•
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares and Subco Units outstanding.
ASSETS UNDER MANAGEMENT
AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.
|
AUM and Net Inflows (Outflows) by Product Type |
|||||||||||||||||||
|
AUM |
Net inflows (outflows) |
||||||||||||||||||
|
March 31, |
December 31, |
March 31, |
Three Months |
Twelve Months |
|||||||||||||||
|
(in millions) |
2026 |
2025 |
2025 |
2026 |
2026 |
||||||||||||||
|
Equity |
$ |
7,661,385 |
$ |
7,793,875 |
$ |
6,204,549 |
$ |
71,842 |
$ |
272,656 |
|||||||||
|
Fixed income |
3,270,863 |
3,272,021 |
3,006,670 |
34,314 |
160,975 |
||||||||||||||
|
Multi-asset |
1,222,612 |
1,223,625 |
1,002,681 |
17,827 |
81,550 |
||||||||||||||
|
Alternatives: |
|||||||||||||||||||
|
Private markets |
320,431 |
322,624 |
212,354 |
9,076 |
41,766 |
||||||||||||||
|
Liquid alternatives |
108,639 |
100,990 |
79,356 |
5,551 |
14,539 |
||||||||||||||
|
Alternatives subtotal |
429,070 |
423,614 |
291,710 |
14,627 |
56,305 |
||||||||||||||
|
Digital assets |
60,671 |
78,435 |
50,329 |
935 |
32,343 |
||||||||||||||
|
Currency and |
176,676 |
169,216 |
97,355 |
(3,644 |
) |
16,206 |
|||||||||||||
|
Long-term |
12,821,277 |
12,960,786 |
10,653,294 |
135,901 |
620,035 |
||||||||||||||
|
Cash management |
1,073,323 |
1,080,732 |
930,634 |
(6,177 |
) |
123,780 |
|||||||||||||
|
Total |
$ |
13,894,600 |
$ |
14,041,518 |
$ |
11,583,928 |
$ |
129,724 |
$ |
743,815 |
|||||||||
|
AUM and Net Inflows (Outflows) by Client Type and Product Type |
|||||||||||||||||||
|
AUM |
Net inflows (outflows) |
||||||||||||||||||
|
March 31, |
December 31, |
March 31, |
Three Months |
Twelve Months |
|||||||||||||||
|
(in millions) |
2026 |
2025 |
2025 |
2026 |
2026 |
||||||||||||||
|
Retail |
$ |
1,262,374 |
$ |
1,278,732 |
$ |
1,022,880 |
$ |
15,233 |
$ |
108,673 |
|||||||||
|
ETFs |
5,485,544 |
5,467,710 |
4,302,761 |
131,692 |
550,994 |
||||||||||||||
|
Institutional: |
|||||||||||||||||||
|
Active |
2,509,266 |
2,518,170 |
2,155,178 |
23,713 |
68,833 |
||||||||||||||
|
Index |
3,564,093 |
3,696,174 |
3,172,475 |
(34,737 |
) |
(108,465 |
) |
||||||||||||
|
Institutional subtotal |
6,073,359 |
6,214,344 |
5,327,653 |
(11,024 |
) |
(39,632 |
) |
||||||||||||
|
Long-term |
12,821,277 |
12,960,786 |
10,653,294 |
135,901 |
620,035 |
||||||||||||||
|
Cash management |
1,073,323 |
1,080,732 |
930,634 |
(6,177 |
) |
123,780 |
|||||||||||||
|
Total |
$ |
13,894,600 |
$ |
14,041,518 |
$ |
11,583,928 |
$ |
129,724 |
$ |
743,815 |
|||||||||
|
AUM and Net Inflows (Outflows) by Investment Style and Product Type |
|||||||||||||||||||
|
AUM |
Net inflows (outflows) |
||||||||||||||||||
|
March 31, |
December 31, |
March 31, |
Three Months |
Twelve Months |
|||||||||||||||
|
(in millions) |
2026 |
2025 |
2025 |
2026 |
2026 |
||||||||||||||
|
Active |
$ |
3,410,923 |
$ |
3,432,743 |
$ |
2,889,141 |
$ |
29,620 |
$ |
155,405 |
|||||||||
|
ETFs |
5,485,544 |
5,467,710 |
4,302,761 |
131,692 |
550,994 |
||||||||||||||
|
Non-ETF index |
3,924,810 |
4,060,333 |
3,461,392 |
(25,411 |
) |
(86,364 |
) |
||||||||||||
|
Long-term |
12,821,277 |
12,960,786 |
10,653,294 |
135,901 |
620,035 |
||||||||||||||
|
Cash management |
1,073,323 |
1,080,732 |
930,634 |
(6,177 |
) |
123,780 |
|||||||||||||
|
Total |
$ |
13,894,600 |
$ |
14,041,518 |
$ |
11,583,928 |
$ |
129,724 |
$ |
743,815 |
|||||||||
(1)
Amounts include commodity ETFs and ETPs.
Component Changes in AUM for the Three Months Ended March 31, 2026
The following table presents the component changes in AUM by product type for the three months ended March 31, 2026.
|
December 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
change |
impact(2) |
2026 |
AUM(3) |
||||||||||||||||||||
|
Equity |
$ |
7,793,875 |
$ |
71,842 |
$ |
- |
$ |
(179,623 |
) |
$ |
(24,709 |
) |
$ |
7,661,385 |
$ |
7,930,545 |
|||||||||||
|
Fixed income |
3,272,021 |
34,314 |
(957 |
) |
(19,649 |
) |
(14,866 |
) |
3,270,863 |
3,303,591 |
|||||||||||||||||
|
Multi-asset |
1,223,625 |
17,827 |
- |
(12,714 |
) |
(6,126 |
) |
1,222,612 |
1,247,632 |
||||||||||||||||||
|
Alternatives: |
|||||||||||||||||||||||||||
|
Private markets |
322,624 |
9,076 |
(8,471 |
) |
(1,989 |
) |
(809 |
) |
320,431 |
322,399 |
|||||||||||||||||
|
Liquid alternatives |
100,990 |
5,551 |
(695 |
) |
2,707 |
86 |
108,639 |
105,904 |
|||||||||||||||||||
|
Alternatives subtotal |
423,614 |
14,627 |
(9,166 |
) |
718 |
(723 |
) |
429,070 |
428,303 |
||||||||||||||||||
|
Digital assets |
78,435 |
935 |
- |
(18,694 |
) |
(5 |
) |
60,671 |
67,740 |
||||||||||||||||||
|
Currency and |
169,216 |
(3,644 |
) |
- |
11,305 |
(201 |
) |
176,676 |
190,349 |
||||||||||||||||||
|
Long-term |
12,960,786 |
135,901 |
(10,123 |
) |
(218,657 |
) |
(46,630 |
) |
12,821,277 |
13,168,160 |
|||||||||||||||||
|
Cash management |
1,080,732 |
(6,177 |
) |
- |
2,206 |
(3,438 |
) |
1,073,323 |
1,072,769 |
||||||||||||||||||
|
Total |
$ |
14,041,518 |
$ |
129,724 |
$ |
(10,123 |
) |
$ |
(216,451 |
) |
$ |
(50,068 |
) |
$ |
13,894,600 |
$ |
14,240,929 |
||||||||||
The following table presents the component changes in AUM by client type and product type for the three months ended March 31, 2026.
|
December 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
change |
impact(2) |
2026 |
AUM(3) |
||||||||||||||||||||
|
Retail: |
|||||||||||||||||||||||||||
|
Equity |
$ |
629,081 |
$ |
7,434 |
$ |
- |
$ |
(18,708 |
) |
$ |
(2,764 |
) |
$ |
615,043 |
$ |
638,493 |
|||||||||||
|
Fixed income |
384,887 |
2,816 |
- |
(3,815 |
) |
(1,065 |
) |
382,823 |
386,517 |
||||||||||||||||||
|
Multi-asset |
199,655 |
999 |
- |
(4,447 |
) |
(227 |
) |
195,980 |
201,964 |
||||||||||||||||||
|
Private markets |
30,681 |
1,261 |
(295 |
) |
(338 |
) |
(119 |
) |
31,190 |
31,195 |
|||||||||||||||||
|
Liquid alternatives |
34,428 |
2,723 |
(185 |
) |
414 |
(42 |
) |
37,338 |
36,190 |
||||||||||||||||||
|
Retail subtotal |
1,278,732 |
15,233 |
(480 |
) |
(26,894 |
) |
(4,217 |
) |
1,262,374 |
1,294,359 |
|||||||||||||||||
|
ETFs: |
|||||||||||||||||||||||||||
|
Equity |
4,006,014 |
88,113 |
- |
(85,765 |
) |
(6,829 |
) |
4,001,533 |
4,112,258 |
||||||||||||||||||
|
Fixed income |
1,205,953 |
45,438 |
- |
(9,362 |
) |
(3,004 |
) |
1,239,025 |
1,233,149 |
||||||||||||||||||
|
Multi-asset |
14,402 |
884 |
- |
(90 |
) |
(110 |
) |
15,086 |
15,005 |
||||||||||||||||||
|
Digital assets |
78,435 |
935 |
- |
(18,694 |
) |
(5 |
) |
60,671 |
67,740 |
||||||||||||||||||
|
Commodities |
162,906 |
(3,678 |
) |
- |
10,158 |
(157 |
) |
169,229 |
183,413 |
||||||||||||||||||
|
ETFs subtotal |
5,467,710 |
131,692 |
- |
(103,753 |
) |
(10,105 |
) |
5,485,544 |
5,611,565 |
||||||||||||||||||
|
Institutional: |
|||||||||||||||||||||||||||
|
Active: |
|||||||||||||||||||||||||||
|
Equity |
247,993 |
4,385 |
- |
(2,238 |
) |
(1,451 |
) |
248,689 |
255,779 |
||||||||||||||||||
|
Fixed income |
905,566 |
(7,192 |
) |
(957 |
) |
(2,368 |
) |
(2,918 |
) |
892,131 |
905,463 |
||||||||||||||||
|
Multi-asset |
1,006,106 |
15,877 |
- |
(8,295 |
) |
(5,784 |
) |
1,007,904 |
1,027,077 |
||||||||||||||||||
|
Private markets |
291,943 |
7,815 |
(8,176 |
) |
(1,651 |
) |
(690 |
) |
289,241 |
291,204 |
|||||||||||||||||
|
Liquid alternatives |
66,562 |
2,828 |
(510 |
) |
2,293 |
128 |
71,301 |
69,714 |
|||||||||||||||||||
|
Active subtotal |
2,518,170 |
23,713 |
(9,643 |
) |
(12,259 |
) |
(10,715 |
) |
2,509,266 |
2,549,237 |
|||||||||||||||||
|
Index |
3,696,174 |
(34,737 |
) |
- |
(75,751 |
) |
(21,593 |
) |
3,564,093 |
3,712,999 |
|||||||||||||||||
|
Institutional subtotal |
6,214,344 |
(11,024 |
) |
(9,643 |
) |
(88,010 |
) |
(32,308 |
) |
6,073,359 |
6,262,236 |
||||||||||||||||
|
Long-term |
12,960,786 |
135,901 |
(10,123 |
) |
(218,657 |
) |
(46,630 |
) |
12,821,277 |
13,168,160 |
|||||||||||||||||
|
Cash management |
1,080,732 |
(6,177 |
) |
- |
2,206 |
(3,438 |
) |
1,073,323 |
1,072,769 |
||||||||||||||||||
|
Total |
$ |
14,041,518 |
$ |
129,724 |
$ |
(10,123 |
) |
$ |
(216,451 |
) |
$ |
(50,068 |
) |
$ |
13,894,600 |
$ |
14,240,929 |
||||||||||
(1)
Realizations represent return of capital/return on investments.
(2)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into United States ("US") dollars for reporting purposes.
(3)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(4)
Amounts include commodity ETFs and ETPs.
The following table presents the component changes in AUM by investment style and product type for the three months ended March 31, 2026.
|
December 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
change |
impact(2) |
2026 |
AUM(3) |
||||||||||||||||||||
|
Active: |
|||||||||||||||||||||||||||
|
Equity |
$ |
546,028 |
$ |
3,150 |
$ |
- |
$ |
(10,493 |
) |
$ |
(2,690 |
) |
$ |
535,995 |
$ |
558,046 |
|||||||||||
|
Fixed income |
1,257,358 |
(5,033 |
) |
(957 |
) |
(5,867 |
) |
(3,510 |
) |
1,241,991 |
1,258,117 |
||||||||||||||||
|
Multi-asset |
1,205,743 |
16,876 |
- |
(12,741 |
) |
(6,011 |
) |
1,203,867 |
1,229,024 |
||||||||||||||||||
|
Private markets |
322,624 |
9,076 |
(8,471 |
) |
(1,989 |
) |
(809 |
) |
320,431 |
322,399 |
|||||||||||||||||
|
Liquid alternatives |
100,990 |
5,551 |
(695 |
) |
2,707 |
86 |
108,639 |
105,904 |
|||||||||||||||||||
|
Active subtotal |
3,432,743 |
29,620 |
(10,123 |
) |
(28,383 |
) |
(12,934 |
) |
3,410,923 |
3,473,490 |
|||||||||||||||||
|
ETFs: |
|||||||||||||||||||||||||||
|
Equity |
4,006,014 |
88,113 |
- |
(85,765 |
) |
(6,829 |
) |
4,001,533 |
4,112,258 |
||||||||||||||||||
|
Fixed income |
1,205,953 |
45,438 |
- |
(9,362 |
) |
(3,004 |
) |
1,239,025 |
1,233,149 |
||||||||||||||||||
|
Multi-asset |
14,402 |
884 |
- |
(90 |
) |
(110 |
) |
15,086 |
15,005 |
||||||||||||||||||
|
Digital assets |
78,435 |
935 |
- |
(18,694 |
) |
(5 |
) |
60,671 |
67,740 |
||||||||||||||||||
|
Commodities |
162,906 |
(3,678 |
) |
- |
10,158 |
(157 |
) |
169,229 |
183,413 |
||||||||||||||||||
|
ETFs subtotal |
5,467,710 |
131,692 |
- |
(103,753 |
) |
(10,105 |
) |
5,485,544 |
5,611,565 |
||||||||||||||||||
|
Non-ETF index |
4,060,333 |
(25,411 |
) |
- |
(86,521 |
) |
(23,591 |
) |
3,924,810 |
4,083,105 |
|||||||||||||||||
|
Long-term |
12,960,786 |
135,901 |
(10,123 |
) |
(218,657 |
) |
(46,630 |
) |
12,821,277 |
13,168,160 |
|||||||||||||||||
|
Cash management |
1,080,732 |
(6,177 |
) |
- |
2,206 |
(3,438 |
) |
1,073,323 |
1,072,769 |
||||||||||||||||||
|
Total |
$ |
14,041,518 |
$ |
129,724 |
$ |
(10,123 |
) |
$ |
(216,451 |
) |
$ |
(50,068 |
) |
$ |
13,894,600 |
$ |
14,240,929 |
||||||||||
The following table presents the component changes in AUM by private markets product type for the three months ended March 31, 2026.
|
December 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
change |
impact(2) |
2026 |
AUM(3) |
||||||||||||||||||||
|
Private markets: |
|||||||||||||||||||||||||||
|
Infrastructure |
$ |
112,116 |
$ |
1,234 |
$ |
(320 |
) |
$ |
(902 |
) |
$ |
(261 |
) |
$ |
111,867 |
$ |
112,127 |
||||||||||
|
Private equity |
30,623 |
399 |
(579 |
) |
(162 |
) |
(50 |
) |
30,231 |
30,434 |
|||||||||||||||||
|
Private credit |
145,385 |
6,619 |
(3,906 |
) |
(711 |
) |
(342 |
) |
147,045 |
146,753 |
|||||||||||||||||
|
Real estate |
25,062 |
455 |
(3,494 |
) |
(262 |
) |
(107 |
) |
21,654 |
23,570 |
|||||||||||||||||
|
Multi-alternatives |
9,438 |
369 |
(172 |
) |
48 |
(49 |
) |
9,634 |
9,515 |
||||||||||||||||||
|
Total private markets |
$ |
322,624 |
$ |
9,076 |
$ |
(8,471 |
) |
$ |
(1,989 |
) |
$ |
(809 |
) |
$ |
320,431 |
$ |
322,399 |
||||||||||
(1)
Realizations represent return of capital/return on investments.
(2)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
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.
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.
•
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.
•
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.
•
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.
•
Institutional index net outflows of $35 billion were concentrated in low-fee index equity offerings.
Cash management net outflows of $6 billion were driven by seasonal net outflows from US government money market funds.
Net market depreciation of $216 billion was primarily driven by global equity market depreciation.
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.
Component Changes in AUM for the Twelve Months Ended March 31, 2026
The following table presents the component changes in AUM by product type for the twelve months ended March 31, 2026.
|
March 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
Acquisitions(2) |
change |
impact(3) |
2026 |
AUM(4) |
|||||||||||||||||||||||
|
Equity |
$ |
6,204,549 |
$ |
272,656 |
$ |
- |
$ |
- |
$ |
1,152,903 |
$ |
31,277 |
$ |
7,661,385 |
$ |
7,278,164 |
|||||||||||||||
|
Fixed income |
3,006,670 |
160,975 |
(2,990 |
) |
13,567 |
69,382 |
23,259 |
3,270,863 |
3,164,014 |
||||||||||||||||||||||
|
Multi-asset |
1,002,681 |
81,550 |
- |
- |
126,819 |
11,562 |
1,222,612 |
1,144,988 |
|||||||||||||||||||||||
|
Alternatives: |
|||||||||||||||||||||||||||||||
|
Private markets |
212,354 |
41,766 |
(31,648 |
) |
101,017 |
(5,738 |
) |
2,680 |
320,431 |
287,605 |
|||||||||||||||||||||
|
Liquid alternatives |
79,356 |
14,539 |
(889 |
) |
6,377 |
8,498 |
758 |
108,639 |
95,293 |
||||||||||||||||||||||
|
Alternatives subtotal |
291,710 |
56,305 |
(32,537 |
) |
107,394 |
2,760 |
3,438 |
429,070 |
382,898 |
||||||||||||||||||||||
|
Digital assets |
50,329 |
32,343 |
- |
- |
(22,002 |
) |
1 |
60,671 |
78,541 |
||||||||||||||||||||||
|
Currency and |
97,355 |
16,206 |
- |
- |
63,137 |
(22 |
) |
176,676 |
140,338 |
||||||||||||||||||||||
|
Long-term |
10,653,294 |
620,035 |
(35,527 |
) |
120,961 |
1,392,999 |
69,515 |
12,821,277 |
12,188,943 |
||||||||||||||||||||||
|
Cash management |
930,634 |
123,780 |
- |
- |
9,748 |
9,161 |
1,073,323 |
1,010,890 |
|||||||||||||||||||||||
|
Total |
$ |
11,583,928 |
$ |
743,815 |
$ |
(35,527 |
) |
$ |
120,961 |
$ |
1,402,747 |
$ |
78,676 |
$ |
13,894,600 |
$ |
13,199,833 |
||||||||||||||
The following table presents the component changes in AUM by client type and product type for the twelve months ended March 31, 2026.
|
March 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
Acquisitions(2) |
change |
impact(3) |
2026 |
AUM(4) |
|||||||||||||||||||||||
|
Retail: |
|||||||||||||||||||||||||||||||
|
Equity |
$ |
502,678 |
$ |
25,555 |
$ |
- |
$ |
- |
$ |
82,411 |
$ |
4,399 |
$ |
615,043 |
$ |
584,908 |
|||||||||||||||
|
Fixed income |
323,508 |
46,548 |
- |
- |
6,907 |
5,860 |
382,823 |
351,337 |
|||||||||||||||||||||||
|
Multi-asset |
153,420 |
22,806 |
- |
- |
19,144 |
610 |
195,980 |
175,265 |
|||||||||||||||||||||||
|
Private markets |
16,017 |
4,839 |
(1,505 |
) |
11,674 |
(86 |
) |
251 |
31,190 |
26,160 |
|||||||||||||||||||||
|
Liquid alternatives |
27,257 |
8,925 |
(217 |
) |
- |
1,273 |
100 |
37,338 |
32,411 |
||||||||||||||||||||||
|
Retail subtotal |
1,022,880 |
108,673 |
(1,722 |
) |
11,674 |
109,649 |
11,220 |
1,262,374 |
1,170,081 |
||||||||||||||||||||||
|
ETFs: |
|||||||||||||||||||||||||||||||
|
Equity |
3,111,438 |
312,379 |
- |
- |
563,717 |
13,999 |
4,001,533 |
3,703,511 |
|||||||||||||||||||||||
|
Fixed income |
1,039,115 |
186,993 |
- |
- |
5,339 |
7,578 |
1,239,025 |
1,151,324 |
|||||||||||||||||||||||
|
Multi-asset |
10,603 |
3,028 |
- |
- |
1,357 |
98 |
15,086 |
13,083 |
|||||||||||||||||||||||
|
Digital assets |
50,329 |
32,343 |
- |
- |
(22,002 |
) |
1 |
60,671 |
78,541 |
||||||||||||||||||||||
|
Commodities |
91,276 |
16,251 |
- |
- |
61,650 |
52 |
169,229 |
133,994 |
|||||||||||||||||||||||
|
ETFs subtotal |
4,302,761 |
550,994 |
- |
- |
610,061 |
21,728 |
5,485,544 |
5,080,453 |
|||||||||||||||||||||||
|
Institutional: |
|||||||||||||||||||||||||||||||
|
Active: |
|||||||||||||||||||||||||||||||
|
Equity |
217,390 |
(18,082 |
) |
- |
- |
47,323 |
2,058 |
248,689 |
241,606 |
||||||||||||||||||||||
|
Fixed income |
853,873 |
(11,272 |
) |
(2,990 |
) |
13,567 |
33,309 |
5,644 |
892,131 |
889,801 |
|||||||||||||||||||||
|
Multi-asset |
835,479 |
55,646 |
- |
- |
105,920 |
10,859 |
1,007,904 |
953,221 |
|||||||||||||||||||||||
|
Private markets |
196,337 |
36,927 |
(30,143 |
) |
89,343 |
(5,652 |
) |
2,429 |
289,241 |
261,445 |
|||||||||||||||||||||
|
Liquid alternatives |
52,099 |
5,614 |
(672 |
) |
6,377 |
7,225 |
658 |
71,301 |
62,882 |
||||||||||||||||||||||
|
Active subtotal |
2,155,178 |
68,833 |
(33,805 |
) |
109,287 |
188,125 |
21,648 |
2,509,266 |
2,408,955 |
||||||||||||||||||||||
|
Index |
3,172,475 |
(108,465 |
) |
- |
- |
485,164 |
14,919 |
3,564,093 |
3,529,454 |
||||||||||||||||||||||
|
Institutional subtotal |
5,327,653 |
(39,632 |
) |
(33,805 |
) |
109,287 |
673,289 |
36,567 |
6,073,359 |
5,938,409 |
|||||||||||||||||||||
|
Long-term |
10,653,294 |
620,035 |
(35,527 |
) |
120,961 |
1,392,999 |
69,515 |
12,821,277 |
12,188,943 |
||||||||||||||||||||||
|
Cash management |
930,634 |
123,780 |
- |
- |
9,748 |
9,161 |
1,073,323 |
1,010,890 |
|||||||||||||||||||||||
|
Total |
$ |
11,583,928 |
$ |
743,815 |
$ |
(35,527 |
) |
$ |
120,961 |
$ |
1,402,747 |
$ |
78,676 |
$ |
13,894,600 |
$ |
13,199,833 |
||||||||||||||
(1)
Realizations represent return of capital/return on investments.
(2)
Amounts include AUM attributable to the HPS and ElmTree Transactions.
(3)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(4)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
(5)
Amounts include commodity ETFs and ETPs.
The following table presents the component changes in AUM by investment style and product type for the twelve months ended March 31, 2026.
|
March 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
Acquisitions(2) |
change |
impact(3) |
2026 |
AUM(4) |
|||||||||||||||||||||||
|
Active: |
|||||||||||||||||||||||||||||||
|
Equity |
$ |
458,656 |
$ |
(10,765 |
) |
$ |
- |
$ |
- |
$ |
83,936 |
$ |
4,168 |
$ |
535,995 |
$ |
516,014 |
||||||||||||||
|
Fixed income |
1,149,891 |
31,413 |
(2,990 |
) |
13,567 |
39,448 |
10,662 |
1,241,991 |
1,209,113 |
||||||||||||||||||||||
|
Multi-asset |
988,884 |
78,452 |
- |
- |
125,063 |
11,468 |
1,203,867 |
1,128,470 |
|||||||||||||||||||||||
|
Private markets |
212,354 |
41,766 |
(31,648 |
) |
101,017 |
(5,738 |
) |
2,680 |
320,431 |
287,605 |
|||||||||||||||||||||
|
Liquid alternatives |
79,356 |
14,539 |
(889 |
) |
6,377 |
8,498 |
758 |
108,639 |
95,293 |
||||||||||||||||||||||
|
Active subtotal |
2,889,141 |
155,405 |
(35,527 |
) |
120,961 |
251,207 |
29,736 |
3,410,923 |
3,236,495 |
||||||||||||||||||||||
|
ETFs: |
|||||||||||||||||||||||||||||||
|
Equity |
3,111,438 |
312,379 |
- |
- |
563,717 |
13,999 |
4,001,533 |
3,703,511 |
|||||||||||||||||||||||
|
Fixed income |
1,039,115 |
186,993 |
- |
- |
5,339 |
7,578 |
1,239,025 |
1,151,324 |
|||||||||||||||||||||||
|
Multi-asset |
10,603 |
3,028 |
- |
- |
1,357 |
98 |
15,086 |
13,083 |
|||||||||||||||||||||||
|
Digital assets |
50,329 |
32,343 |
- |
- |
(22,002 |
) |
1 |
60,671 |
78,541 |
||||||||||||||||||||||
|
Commodities |
91,276 |
16,251 |
- |
- |
61,650 |
52 |
169,229 |
133,994 |
|||||||||||||||||||||||
|
ETFs subtotal |
4,302,761 |
550,994 |
- |
- |
610,061 |
21,728 |
5,485,544 |
5,080,453 |
|||||||||||||||||||||||
|
Non-ETF index |
3,461,392 |
(86,364 |
) |
- |
- |
531,731 |
18,051 |
3,924,810 |
3,871,995 |
||||||||||||||||||||||
|
Long-term |
10,653,294 |
620,035 |
(35,527 |
) |
120,961 |
1,392,999 |
69,515 |
12,821,277 |
12,188,943 |
||||||||||||||||||||||
|
Cash management |
930,634 |
123,780 |
- |
- |
9,748 |
9,161 |
1,073,323 |
1,010,890 |
|||||||||||||||||||||||
|
Total |
$ |
11,583,928 |
$ |
743,815 |
$ |
(35,527 |
) |
$ |
120,961 |
$ |
1,402,747 |
$ |
78,676 |
$ |
13,894,600 |
$ |
13,199,833 |
||||||||||||||
The following table presents the component changes in AUM by private markets product type for the twelve months ended March 31, 2026.
|
March 31, |
Net |
Market |
FX |
March 31, |
Average |
||||||||||||||||||||||||||
|
(in millions) |
2025 |
(outflows) |
Realizations(1) |
Acquisitions(2) |
change |
impact(3) |
2026 |
AUM(4) |
|||||||||||||||||||||||
|
Private markets: |
|||||||||||||||||||||||||||||||
|
Infrastructure |
$ |
108,371 |
$ |
12,487 |
$ |
(6,428 |
) |
$ |
- |
$ |
(3,585 |
) |
$ |
1,022 |
$ |
111,867 |
$ |
110,867 |
|||||||||||||
|
Private equity |
36,562 |
2,450 |
(9,155 |
) |
- |
203 |
171 |
30,231 |
33,325 |
||||||||||||||||||||||
|
Private credit |
33,686 |
24,005 |
(11,162 |
) |
101,017 |
(1,303 |
) |
802 |
147,045 |
109,689 |
|||||||||||||||||||||
|
Real estate |
26,076 |
541 |
(4,391 |
) |
- |
(1,202 |
) |
630 |
21,654 |
24,840 |
|||||||||||||||||||||
|
Multi-alternatives |
7,659 |
2,283 |
(512 |
) |
- |
149 |
55 |
9,634 |
8,884 |
||||||||||||||||||||||
|
Total private markets |
$ |
212,354 |
$ |
41,766 |
$ |
(31,648 |
) |
$ |
101,017 |
$ |
(5,738 |
) |
$ |
2,680 |
$ |
320,431 |
$ |
287,605 |
|||||||||||||
(1)
Realizations represent return of capital/return on investments.
(2)
Amounts include AUM attributable to the HPS and ElmTree Transactions.
(3)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(4)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
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.
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.
•
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.
•
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.
•
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.
•
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.
Cash management net inflows of $124 billion were primarily due to net inflows into US government, international and prime money market funds.
Net market appreciation of $1.4 trillion was primarily driven by US and global equity market appreciation.
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.
DISCUSSION OF FINANCIAL RESULTS
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").
Revenue
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.
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Revenue |
|||||||
|
Investment advisory, administration fees and |
|||||||
|
Equity: |
|||||||
|
Active |
$ |
593 |
$ |
518 |
|||
|
ETFs |
1,793 |
1,349 |
|||||
|
Equity subtotal |
2,386 |
1,867 |
|||||
|
Fixed income: |
|||||||
|
Active |
531 |
492 |
|||||
|
ETFs |
434 |
352 |
|||||
|
Fixed income subtotal |
965 |
844 |
|||||
|
Active multi-asset |
371 |
313 |
|||||
|
Alternatives: |
|||||||
|
Private markets |
658 |
535 |
|||||
|
Liquid alternatives |
197 |
150 |
|||||
|
Alternatives subtotal |
855 |
685 |
|||||
|
Non-ETF index |
342 |
307 |
|||||
|
Digital assets, commodities and multi-asset ETFs(1) |
179 |
92 |
|||||
|
Long-term |
5,098 |
4,108 |
|||||
|
Cash management |
340 |
293 |
|||||
|
Total investment advisory, administration fees |
5,438 |
4,401 |
|||||
|
Investment advisory performance fees: |
|||||||
|
Equity |
22 |
10 |
|||||
|
Fixed income |
2 |
12 |
|||||
|
Multi-asset |
9 |
4 |
|||||
|
Alternatives: |
|||||||
|
Private markets |
232 |
24 |
|||||
|
Liquid alternatives |
7 |
10 |
|||||
|
Alternatives subtotal |
239 |
34 |
|||||
|
Total investment advisory performance fees |
272 |
60 |
|||||
|
Technology services and subscription revenue |
530 |
436 |
|||||
|
Distribution fees |
389 |
321 |
|||||
|
Advisory and other revenue: |
|||||||
|
Advisory |
12 |
14 |
|||||
|
Other |
57 |
44 |
|||||
|
Total advisory and other revenue |
69 |
58 |
|||||
|
Total revenue |
$ |
6,698 |
$ |
5,276 |
|||
(1)
Amounts include commodity ETFs and ETPs.
(2)
Amounts include securities lending revenue of $179 million and $157 million for the three months ended March 31, 2026 and 2025, respectively.
The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product type:
|
Three Months Ended March 31, |
||||||||||||||||
|
Percentage of Base |
Percentage |
|||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
|||||||||||||
|
Equity: |
||||||||||||||||
|
Active |
10 |
% |
12 |
% |
4 |
% |
4 |
% |
||||||||
|
ETFs |
33 |
% |
31 |
% |
28 |
% |
28 |
% |
||||||||
|
Equity subtotal |
43 |
% |
43 |
% |
32 |
% |
32 |
% |
||||||||
|
Fixed income: |
||||||||||||||||
|
Active |
10 |
% |
11 |
% |
9 |
% |
10 |
% |
||||||||
|
ETFs |
8 |
% |
8 |
% |
9 |
% |
8 |
% |
||||||||
|
Fixed income subtotal |
18 |
% |
19 |
% |
18 |
% |
18 |
% |
||||||||
|
Active multi-asset |
7 |
% |
7 |
% |
9 |
% |
8 |
% |
||||||||
|
Alternatives: |
||||||||||||||||
|
Private markets |
12 |
% |
12 |
% |
2 |
% |
2 |
% |
||||||||
|
Liquid alternatives |
4 |
% |
4 |
% |
1 |
% |
1 |
% |
||||||||
|
Alternatives subtotal |
16 |
% |
16 |
% |
3 |
% |
3 |
% |
||||||||
|
Non-ETF index |
7 |
% |
6 |
% |
28 |
% |
30 |
% |
||||||||
|
Digital assets, commodities |
3 |
% |
2 |
% |
2 |
% |
1 |
% |
||||||||
|
Long-term |
94 |
% |
93 |
% |
92 |
% |
92 |
% |
||||||||
|
Cash management |
6 |
% |
7 |
% |
8 |
% |
8 |
% |
||||||||
|
Total AUM |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
||||||||
(1)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(2)
Amounts include commodity ETFs and ETPs.
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
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.
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.
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.
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.
Expense
The following table presents expense for the three months ended March 31, 2026 and 2025.
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Expense |
|||||||
|
Employee compensation and benefits |
$ |
2,225 |
$ |
1,741 |
|||
|
Sales, asset and account expense: |
|||||||
|
Distribution and servicing costs |
705 |
570 |
|||||
|
Direct fund expense |
481 |
392 |
|||||
|
Sub-advisory and other |
71 |
47 |
|||||
|
Total sales, asset and account expense |
1,257 |
1,009 |
|||||
|
General and administration expense: |
|||||||
|
Marketing and promotional |
101 |
97 |
|||||
|
Occupancy and office related |
147 |
114 |
|||||
|
Portfolio services |
70 |
64 |
|||||
|
Technology |
206 |
189 |
|||||
|
Professional services |
75 |
73 |
|||||
|
Communications |
10 |
10 |
|||||
|
Foreign exchange remeasurement |
(4 |
) |
(8 |
) |
|||
|
Other general and administration |
69 |
76 |
|||||
|
Total general and administration expense |
674 |
615 |
|||||
|
Change in fair value of contingent consideration |
(549 |
) |
96 |
||||
|
Amortization of intangible assets |
277 |
117 |
|||||
|
Total expense |
$ |
3,884 |
$ |
3,578 |
|||
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
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.
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.
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.
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.
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.
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.
(1)
These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustment for acquisition-related costs. See Non-GAAP Financial Measures for further information on as adjusted items.
Nonoperating Results
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:
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Nonoperating income (expense), GAAP basis |
$ |
28 |
$ |
65 |
|||
|
Less: Net income (loss) attributable to NCI - CIPs |
6 |
5 |
|||||
|
Nonoperating income (expense), net of NCI - CIPs |
22 |
60 |
|||||
|
Less: Hedge gain (loss) on deferred cash compensation plans(1) |
- |
(15 |
) |
||||
|
Nonoperating income (expense), net of NCI - CIPs, as adjusted(2) |
$ |
22 |
$ |
75 |
|||
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Net gain (loss) on investments, net of NCI - CIPs |
|||||||
|
Private equity |
$ |
9 |
$ |
48 |
|||
|
Real assets |
5 |
(2 |
) |
||||
|
Other alternatives(3) |
15 |
9 |
|||||
|
Other investments(4) |
(13 |
) |
(10 |
) |
|||
|
Hedge gain (loss) on deferred cash compensation plans(1) |
- |
(15 |
) |
||||
|
Subtotal |
16 |
30 |
|||||
|
Other income/gain (expense/loss)(5) |
50 |
23 |
|||||
|
Total net gain (loss) on investments, net of NCI - CIPs |
66 |
53 |
|||||
|
Dividend income and net interest income (expense) |
(44 |
) |
7 |
||||
|
Nonoperating income (expense), net of NCI - CIPs |
22 |
60 |
|||||
|
Less: Hedge gain (loss) on deferred cash compensation plans(1) |
- |
(15 |
) |
||||
|
Nonoperating income (expense), net of NCI - CIPs, as adjusted(2) |
$ |
22 |
$ |
75 |
|||
(1)
Amount relates to the gain (loss) from economically hedging BlackRock's deferred cash compensation plans.
(2)
Management believes nonoperating income (expense), net of NCI - CIPs, as adjusted, is an effective measure for reviewing BlackRock's nonoperating results, which ultimately impacts BlackRock's book value. See Non-GAAP Financial Measures for further information on other non-GAAP financial measures.
(3)
Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
(4)
Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.
(5)
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.
Income Tax Expense
|
GAAP |
As Adjusted(1) |
||||||||||||||
|
Three Months Ended |
Three Months Ended |
||||||||||||||
|
March 31, |
March 31, |
||||||||||||||
|
(in millions) |
2026 |
2025 |
2026 |
2025 |
|||||||||||
|
Operating income |
$ |
2,814 |
$ |
1,698 |
$ |
2,669 |
$ |
2,032 |
|||||||
|
Total nonoperating income (expense)(2) |
$ |
22 |
$ |
60 |
$ |
22 |
$ |
75 |
|||||||
|
Income before income taxes(2) |
$ |
2,836 |
$ |
1,758 |
$ |
2,691 |
$ |
2,107 |
|||||||
|
Income tax expense |
$ |
516 |
$ |
248 |
$ |
623 |
$ |
337 |
|||||||
|
Effective tax rate |
18.2 |
% |
14.1 |
% |
23.2 |
% |
16.0 |
% |
|||||||
(1)
As adjusted items are described in more detail in Non-GAAP Financial Measures.
(2)
Net of net income (loss) attributable to NCI - CIPs.
2026. 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.
2025. 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.
STATEMENT OF FINANCIAL CONDITION OVERVIEW
As Adjusted Statement of Financial Condition
The following table presents a reconciliation of the condensed consolidated statement of financial condition presented on a GAAP basis to the condensed consolidated statement of financial condition, excluding the impact of separate account assets and separate account collateral held under securities lending agreements (directly related to lending separate account securities) and separate account liabilities and separate account collateral liabilities under securities lending agreements and CIPs.
The Company presents the as adjusted statement of financial condition as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or NCI - CIPs that ultimately do not have an impact on stockholders' equity or cash flows. Management views the as adjusted statement of financial condition, which contains non-GAAP financial measures, as an economic presentation of the Company's total assets and liabilities; however, it does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Separate Account Assets and Liabilities and Separate Account Collateral Held under Securities Lending Agreements
Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company that is a registered life insurance company in the UK, and represent segregated assets held for purposes of funding individual and group pension contracts. The Company records equal and offsetting separate account liabilities. The separate account assets are not available to creditors of the Company and the holders of the pension contracts have no recourse to the Company's assets. The net investment income attributable to separate account assets accrues directly to the contract owners and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these assets or liabilities, BlackRock earns an investment advisory fee for the service of managing these assets on behalf of its clients.
In addition, the Company records on its condensed consolidated statements of financial condition the separate account collateral obtained under BlackRock Life Limited securities lending arrangements for which it has legal title as its own asset in addition to an equal and offsetting separate account collateral liability for the obligation to return the collateral. The collateral is not available to creditors of the Company, and the borrowers under the securities lending arrangements have no recourse to the Company's assets.
Consolidated Sponsored Investment Products
The Company consolidates certain sponsored investment products accounted for as variable interest entities ("VIEs") and voting rights entities ("VREs"). See Note 2, Significant Accounting Policies, in the notes to the consolidated financial statements contained in the 2025 Form 10-K for more information on the Company's consolidation policy.
The Company cannot readily access cash and cash equivalents, or other assets held by CIPs to use in its operating activities. In addition, the Company cannot readily sell investments held by CIPs in order to obtain cash for use in the Company's operations.
|
March 31, 2026 |
||||||||||||||||
|
(in millions) |
GAAP |
Separate |
CIPs(2) |
As |
||||||||||||
|
Assets |
||||||||||||||||
|
Cash and cash equivalents |
$ |
9,841 |
$ |
- |
$ |
413 |
$ |
9,428 |
||||||||
|
Accounts receivable |
5,219 |
- |
- |
5,219 |
||||||||||||
|
Investments |
14,574 |
- |
3,782 |
10,792 |
||||||||||||
|
Separate account assets and collateral held |
65,356 |
65,356 |
- |
- |
||||||||||||
|
Operating lease right-of-use assets |
1,849 |
- |
- |
1,849 |
||||||||||||
|
Other assets(3) |
10,411 |
- |
264 |
10,147 |
||||||||||||
|
Subtotal |
107,250 |
65,356 |
4,459 |
37,435 |
||||||||||||
|
Goodwill and intangible assets, net |
62,987 |
- |
- |
62,987 |
||||||||||||
|
Total assets |
$ |
170,237 |
$ |
65,356 |
$ |
4,459 |
$ |
100,422 |
||||||||
|
Liabilities |
||||||||||||||||
|
Accrued compensation and benefits |
$ |
1,588 |
$ |
- |
$ |
- |
$ |
1,588 |
||||||||
|
Accounts payable and accrued liabilities |
2,097 |
- |
- |
2,097 |
||||||||||||
|
Borrowings |
12,749 |
- |
- |
12,749 |
||||||||||||
|
Separate account liabilities and collateral |
65,356 |
65,356 |
- |
- |
||||||||||||
|
Contingent consideration liabilities |
7,865 |
- |
- |
7,865 |
||||||||||||
|
Deferred income tax liabilities(4) |
4,660 |
- |
- |
4,660 |
||||||||||||
|
Operating lease liabilities |
2,216 |
- |
- |
2,216 |
||||||||||||
|
Other liabilities |
10,390 |
- |
721 |
9,669 |
||||||||||||
|
Total liabilities |
106,921 |
65,356 |
721 |
40,844 |
||||||||||||
|
Equity |
||||||||||||||||
|
Total BlackRock, Inc. stockholders' equity |
56,688 |
- |
- |
56,688 |
||||||||||||
|
Noncontrolling interests |
6,628 |
- |
3,738 |
2,890 |
||||||||||||
|
Total equity |
63,316 |
- |
3,738 |
59,578 |
||||||||||||
|
Total liabilities and equity |
$ |
170,237 |
$ |
65,356 |
$ |
4,459 |
$ |
100,422 |
||||||||
(1)
Amounts represent segregated client assets and related liabilities, in which BlackRock has no economic interest. BlackRock earns an investment advisory fee for the service of managing these assets on behalf of its clients.
(2)
Amounts represent the impact of consolidating CIPs.
(3)
Amount includes property and equipment and other assets.
(4)
Amount includes approximately $6.0 billion of deferred income tax liabilities related to goodwill and intangibles.
The following discussion summarizes the significant changes in assets and liabilities on a GAAP basis. Please see the condensed consolidated statements of financial condition as of March 31, 2026 and December 31, 2025 contained in Part I, Item 1 of this filing. The discussion does not include changes related to assets and liabilities that are equal and offsetting and have no impact on BlackRock's stockholders' equity.
Assets. Cash and cash equivalents at March 31, 2026 included $413 million of cash held by CIPs (see Liquidity and Capital Resources for details on the change in cash and cash equivalents during the three months ended March 31, 2026). Accounts receivable at March 31, 2026 increased $61 million from December 31, 2025, primarily due to higher base fee and technology services receivables. Investments at March 31, 2026 increased $1.3 billion from December 31, 2025 (for more information see Investments herein). Goodwill and intangible assets at March 31, 2026 decreased $264 million from December 31, 2025, due to amortization of intangible assets. Other assets at March 31, 2026 increased $3.5 billion from December 31, 2025, primarily related to an increase in unit trust receivables (substantially offset by an increase in unit trust payables recorded within other liabilities).
Liabilities. Accrued compensation and benefits at March 31, 2026 decreased $2.2 billion from December 31, 2025, primarily due to 2025 incentive compensation cash payments in the first quarter of 2026, partially offset by 2026 incentive compensation accruals. Accounts payable and accrued liabilities at March 31, 2026 increased $357 million from March 31, 2025, primarily due to increased accruals. Contingent consideration liabilities at March 31, 2026 decreased $564 million from December 31, 2025, primarily due to a change in fair value of contingent consideration in connection with the GIP and HPS Transactions, primarily impacted by the share price of BlackRock stock. Other liabilities at March 31, 2026 increased $3.6 billion from December 31, 2025, primarily due to higher unit trust payables (substantially offset by an increase in unit trust receivables recorded within other assets). Net deferred income tax liabilities at March 31, 2026 increased $42 million from December 31, 2025, primarily due to the effects of temporary differences associated with the stock-based compensation.
Investments
The Company's investments were $14.6 billion and $13.3 billion at March 31, 2026 and December 31, 2025, respectively. Investments include CIPs accounted for as VIEs and VREs. Management reviews BlackRock's investments on an "economic" basis, which eliminates the NCI - CIPs portion of investments that does not impact BlackRock's book value or net income attributable to BlackRock. BlackRock's management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
The Company presents investments, as adjusted, to enable investors to understand the economic portion of investments that is owned by the Company as a gauge to measure the impact of changes in net nonoperating income (expense) on investments to net income (loss) attributable to BlackRock.
The Company further presents net "economic" investment exposure, net of deferred cash compensation investments and hedged exposures, to reflect another helpful measure for investors. The economic impact of investments held pursuant to deferred cash compensation plans is substantially offset by a change in associated compensation expense, and the impact of the portfolio of seed investments is mitigated by futures entered into as part of the Company's macro hedging strategy. Carried interest capital allocations are excluded as there is no impact to BlackRock's stockholders' equity until such amounts are realized as performance fees. Finally, the Company's regulatory investment in Federal Reserve Bank stock, which is not subject to market or interest rate risk, is excluded from the Company's net economic investment exposure.
|
March 31, |
December 31, |
|||||||
|
(in millions) |
2026 |
2025 |
||||||
|
Investments, GAAP |
$ |
14,574 |
$ |
13,271 |
||||
|
Investments held by CIPs |
(10,402 |
) |
(9,131 |
) |
||||
|
Net interest in CIPs(1) |
6,620 |
6,564 |
||||||
|
Investments, as adjusted |
10,792 |
10,704 |
||||||
|
Investments related to deferred cash compensation plans |
(458 |
) |
(337 |
) |
||||
|
Hedged exposures |
(1,673 |
) |
(1,682 |
) |
||||
|
Federal Reserve Bank stock |
(87 |
) |
(87 |
) |
||||
|
Carried interest |
(3,670 |
) |
(3,710 |
) |
||||
|
Total "economic" investment exposure(2) |
$ |
4,904 |
$ |
4,888 |
||||
(1)
Amounts include $3.6 billion and $3.7 billion of carried interest (VIEs) at March 31, 2026 and December 31, 2025, respectively, which has no impact on the Company's "economic" investment exposure.
(2)
Amounts do not include corporate minority investments included in other assets on the condensed consolidated statements of financial condition.
The following table represents the carrying value of the Company's economic investment exposure, by asset type, at March 31, 2026 and December 31, 2025:
|
March 31, |
December 31, |
|||||||
|
(in millions) |
2026 |
2025 |
||||||
|
Equity/Fixed income/Multi-asset(1) |
$ |
4,044 |
$ |
4,212 |
||||
|
Alternatives: |
||||||||
|
Private equity |
794 |
761 |
||||||
|
Real assets |
820 |
687 |
||||||
|
Other alternatives(2) |
919 |
910 |
||||||
|
Alternatives subtotal |
2,533 |
2,358 |
||||||
|
Hedged exposures |
(1,673 |
) |
(1,682 |
) |
||||
|
Total "economic" investment exposure |
$ |
4,904 |
$ |
4,888 |
||||
(1)
Amounts include seed investments in equity, fixed income, and multi-asset ETFs/mutual funds/strategies.
(2)
Other alternatives primarily include co-investments in credit funds, direct hedge fund strategies, and hedge fund solutions.
As adjusted investment activity for the three months ended March 31, 2026 was as follows:
|
(in millions) |
Three Months |
||
|
Investments, as adjusted, beginning balance |
$ |
10,704 |
|
|
Purchases/capital contributions |
636 |
||
|
Sales/maturities |
(364 |
) |
|
|
Distributions(1) |
(114 |
) |
|
|
Market appreciation(depreciation)/earnings from equity method investments |
(3 |
) |
|
|
Carried interest capital allocations/(distributions) |
(40 |
) |
|
|
Other(2) |
(27 |
) |
|
|
Investments, as adjusted, ending balance |
$ |
10,792 |
|
(1)
Amount includes distributions representing return of capital and return on investments.
(2)
Amount includes the impact of foreign exchange movements.
LIQUIDITY AND CAPITAL RESOURCES
BlackRock Cash Flows Excluding the Impact of CIPs
The condensed consolidated statements of cash flows include the cash flows of the CIPs. The Company uses an adjusted cash flow statement, which excludes the impact of CIPs, as a supplemental non-GAAP measure to assess liquidity and capital requirements. The Company believes that its cash flows, excluding the impact of the CIPs, provide investors with useful information on the cash flows of BlackRock relating to its ability to fund additional operating, investing and financing activities. BlackRock's management does not advocate that investors consider such non-GAAP measures in isolation from, or as a substitute for, its cash flows presented in accordance with GAAP.
The following table presents a reconciliation of the condensed consolidated statements of cash flows presented on a GAAP basis to the condensed consolidated statements of cash flows, excluding the impact of the cash flows of CIPs:
|
(in millions) |
GAAP |
Impact on |
Cash Flows |
||||||||
|
Cash, cash equivalents and restricted cash, December 31, 2025 |
$ |
11,490 |
$ |
461 |
$ |
11,029 |
|||||
|
Net cash provided by/(used in) operating activities |
(980 |
) |
(1,563 |
) |
583 |
||||||
|
Net cash provided by/(used in) investing activities |
(280 |
) |
104 |
(384 |
) |
||||||
|
Net cash provided by/(used in) financing activities |
(304 |
) |
1,411 |
(1,715 |
) |
||||||
|
Effect of exchange rate changes on cash, cash equivalents |
(63 |
) |
- |
(63 |
) |
||||||
|
Net increase/(decrease) in cash, cash equivalents and restricted |
(1,627 |
) |
(48 |
) |
(1,579 |
) |
|||||
|
Cash, cash equivalents and restricted cash, March 31, 2026 |
$ |
9,863 |
$ |
413 |
$ |
9,450 |
|||||
Sources of BlackRock's operating cash primarily include base fees and securities lending revenue, performance fees, technology services and subscription revenue, advisory and other revenue and distribution fees. BlackRock uses its cash to pay all operating expenses, interest and principal on borrowings, income taxes, dividends/Subco distributions and repurchases of shares and share equivalents, acquisitions, capital expenditures and purchases of co-investments and seed investments.
For details of the Company's GAAP cash flows from operating, investing and financing activities, see the condensed consolidated statements of cash flows contained in Part I, Item 1 of this filing.
Cash flows provided by/(used in) operating activities, excluding the impact of CIPs, primarily include the receipt of base fees, securities lending revenue, performance fees and technology services and subscription revenue, offset by the payment of operating expenses incurred in the normal course of business, including year-end incentive and deferred cash compensation accrued during prior years, and income tax payments.
Cash flows used in investing activities, excluding the impact of CIPs, for the three months ended March 31, 2026 were $384 million, primarily reflecting $353 million of net purchases of investments and $106 million of purchases of property and equipment, partially offset by $90 million of distributions of capital from equity method investees.
Cash flows used in financing activities, excluding the impact of CIPs, for the three months ended March 31, 2026 were $1.7 billion, primarily resulting from $973 million of dividends/Subco distributions, $810 million worth of share and share equivalents repurchases, including $360 million of employee tax withholdings related to employee stock transactions, partially offset by $74 million from stock options exercised.
The Company manages its financial condition and funding to maintain appropriate liquidity for the business. Management believes that the Company's liquid assets, continuing cash flows from operations, borrowing capacity under the Company's existing revolving credit facility and uncommitted commercial paper private placement program, provide sufficient resources to meet the Company's short-term and long-term cash needs, including operating, debt and other obligations as they come due and anticipated future capital requirements. Liquidity resources at March 31, 2026 and December 31, 2025 were as follows:
|
March 31, |
December 31, |
||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Cash and cash equivalents(1) |
$ |
9,841 |
$ |
11,468 |
|||
|
Cash and cash equivalents held by CIPs(2) |
(413 |
) |
(461 |
) |
|||
|
Subtotal(3) |
9,428 |
11,007 |
|||||
|
Credit facility - undrawn(4) |
6,300 |
5,900 |
|||||
|
Total liquidity resources |
$ |
15,728 |
$ |
16,907 |
|||
(1)
Amounts exclude restricted cash.
(2)
The Company cannot readily access such cash and cash equivalents to use in its operating activities.
(3)
The percentage of cash and cash equivalents held by the Company's US subsidiaries was approximately 45% and 50% at March 31, 2026 and December 31, 2025, respectively. See Net Capital Requirements herein for more information on net capital requirements in certain regulated subsidiaries.
(4)
In March 2026, the aggregate commitment of the credit facility was increased from $5.9 billion to $6.3 billion. See Short-Term Borrowings herein for more information.
Total liquidity resources decreased $1.2 billion during the three months ended March 31, 2026, primarily reflecting payments of 2025 year-end incentive awards, dividends/distributions of $973 million, share and share equivalent repurchases of $810 million, and $353 million of net purchases of investments, partially offset by a $400 million increase in the aggregate commitment amount under the credit facility and cash flows from other operating activities.
A significant portion of the Company's $10.8 billion of investments, as adjusted, is illiquid in nature and, as such, cannot be readily convertible to cash.
Share Repurchases. In January 2026, the Company announced that the Board of Directors authorized the repurchase of an additional seven million shares under the Company's existing share repurchase program for a total of up to approximately 9.2 million shares of BlackRock common stock.
During the three months ended March 31, 2026, under the Company's existing share repurchase program, the Company repurchased an aggregate of 0.4 million shares and share equivalents for approximately $450 million. At March 31, 2026, there were approximately 8.8 million shares still authorized to be repurchased under the program. The timing and actual number of shares repurchased will depend on a variety of factors, including legal limitations, price and market conditions.
Net Capital Requirements. The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions. As a result, such subsidiaries of the Company may be restricted in their ability to transfer cash between different jurisdictions and to their parents. Additionally, transfers of cash between international jurisdictions may have adverse tax consequences that could discourage such transfers.
BlackRock Institutional Trust Company, N.A. ("BTC") is chartered as a national bank that does not accept deposits or make commercial loans and whose operations are limited to trust and other fiduciary activities. BTC provides investment management and other fiduciary services, including investment advisory and securities lending agency services, to institutional clients. BTC is subject to regulatory capital and liquid asset requirements administered by the US Office of the Comptroller of the Currency.
At both March 31, 2026 and December 31, 2025, the Company was required to maintain approximately $2.2 billion in net capital in certain regulated subsidiaries, including BTC, entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the UK, and the Company's broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.
Short-Term Borrowings
2026 Revolving Credit Facility. The Company maintains an unsecured revolving credit facility, which is available for working capital and general corporate purposes (the "2026 Credit Facility"). In March 2026, the 2026 Credit Facility was amended to, among other things, (1) increase the aggregate commitment amount by $400 million to $6.3 billion, (2) extend the maturity date to March 2031 for lenders pursuant to the Company's option to request extensions of the maturity date available under the 2026 Credit Facility and (3) remove the secured overnight financing rate ("SOFR") adjustment for all SOFR-based loans. The amended 2026 Credit Facility permits the Company to request up to an additional $1.4 billion of borrowing capacity, subject to lender credit approval, which could increase the overall size of the 2026 Credit Facility to an aggregate principal amount of up to $7.7 billion. Interest on outstanding borrowings accrues at an applicable benchmark rate for the denominated currency of the loan, plus a spread. The 2026 Credit Facility requires the Company not to exceed a maximum consolidated leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3.5 to 1, which was satisfied with a ratio of less than 1 to 1 at March 31, 2026. At March 31, 2026, the Company had no amount outstanding under the 2026 Credit Facility.
Commercial Paper Program. The Company may issue short-term unsecured commercial paper notes (the "CP Notes") on a private-placement basis up to a maximum aggregate amount outstanding at any time of $5 billion. The payments of the CP Notes have been unconditionally guaranteed by BlackRock Finance, Inc. (formerly known as BlackRock, Inc.) ("Old BlackRock") (the "CP Notes Guarantee"). The CP Notes will rank equal in right of payment with all of BlackRock's other unsubordinated indebtedness, and the obligations of Old BlackRock under the CP Notes Guarantee will rank equal in right of payment with all of Old BlackRock's other unsubordinated indebtedness. Net proceeds of issuances of the CP Notes are expected to be used for general corporate purposes. The commercial paper program is currently supported by the 2026 Credit Facility. At March 31, 2026, BlackRock had no CP Notes outstanding.
Subsidiary Credit Facility. BlackRock Investment Management (UK) Limited ("BIM UK"), a wholly owned subsidiary of the Company, maintains a revolving credit facility (the "Subsidiary Credit Facility") in the amount of £25 million (or approximately $33 million based on the GBP/USD foreign exchange rate at March 31, 2026) with a rolling 364-day term structure. The Subsidiary Credit Facility is available for BIM UK's general corporate and working capital purposes. At March 31, 2026, there was no amount outstanding.
Long-Term Borrowings
At March 31, 2026, the principal amount of long-term notes outstanding was $12.9 billion. See Note 15, Borrowings, in the 2025 Form 10-K for more information on overall borrowings outstanding as of December 31, 2025.
During the three months ended March 31, 2026, the Company paid approximately $172 million of interest on long-term notes. Future principal repayments and interest requirements at March 31, 2026 were as follows:
|
(in millions) |
||||||||||||
|
Year |
Principal |
Interest(1) |
Total |
|||||||||
|
Remainder of 2026 |
$ |
- |
$ |
332 |
$ |
332 |
||||||
|
2027 |
1,500 |
493 |
1,993 |
|||||||||
|
2028 |
- |
445 |
445 |
|||||||||
|
2029 |
1,500 |
417 |
1,917 |
|||||||||
|
2030 |
1,000 |
377 |
1,377 |
|||||||||
|
2031 |
1,250 |
353 |
1,603 |
|||||||||
|
Thereafter(1) |
7,603 |
3,765 |
11,368 |
|||||||||
|
Total |
$ |
12,853 |
$ |
6,182 |
$ |
19,035 |
||||||
(1)
The amounts related to the 3.75% Notes due 2035 are calculated using the EUR/USD foreign exchange rate as of March 31, 2026.
Supplemental Guarantor Information
BlackRock, Inc. ("New BlackRock") is the issuer of 4.6% Notes due 2027, 4.7% Notes due 2029, 5.0% Notes due 2034, 4.9% Notes due 2035, 3.75% Notes due 2035, 5.25% Notes due 2054 and 5.35% Notes due 2055 (collectively the "New BlackRock Notes"), which are fully and unconditionally guaranteed on a senior unsecured basis by Old BlackRock ("Notes Guarantees"). The New BlackRock Notes and the Notes Guarantees rank equally in right of payment with all of BlackRock's and Old BlackRock's other unsubordinated indebtedness, respectively. No other subsidiary of New BlackRock or Old BlackRock guarantees the New BlackRock Notes. The Notes Guarantees will be automatically and unconditionally released and discharged, and Old BlackRock will be released from all obligations under the indenture in its capacity as guarantor, in certain circumstances as described in the separate indentures governing the New BlackRock Notes. See Note 14, Borrowings, in the notes to the condensed consolidated financial statements and Note 15, Borrowings, in the 2025 Form 10-K for further information on New BlackRock Notes.
In October 2024, in connection with the closing of the GIP Transaction, New BlackRock also entered into a guarantee (the "New BlackRock Guarantee") pursuant to which New BlackRock fully and unconditionally guaranteed, on a senior unsecured basis, the remaining obligations of Old BlackRock with respect to its previously issued senior unsecured notes. The New BlackRock Guarantee ranks equally in right of payment with all of New BlackRock's other unsubordinated indebtedness. In certain circumstances as described in the New BlackRock Guarantee, the New BlackRock Guarantee will be automatically and unconditionally released and discharged, and New BlackRock will be released from all obligations under the New BlackRock Guarantee.
The following presents unaudited summarized financial information of New BlackRock and Old BlackRock (together with New BlackRock, the "Obligor Group") on a combined basis as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026. Intercompany balances and transactions between New BlackRock and Old BlackRock have been eliminated, and balances and transactions with subsidiaries, which are not part of the Obligor Group, have been separately presented, and investments in and equity in earnings related to subsidiaries of New BlackRock and Old BlackRock, which are not members of the Obligor Group, have been excluded.
Summarized Balance Sheet (unaudited)
|
March 31, |
December 31, |
||||||
|
(in millions) |
2026 |
2025 |
|||||
|
Assets |
|||||||
|
Receivables from non-guarantor subsidiaries |
$ |
41 |
$ |
2,655 |
|||
|
Goodwill and intangible assets |
27,187 |
27,274 |
|||||
|
Other assets |
1,283 |
1,228 |
|||||
|
Total assets |
$ |
28,511 |
$ |
31,157 |
|||
|
Liabilities |
|||||||
|
Borrowings |
$ |
12,749 |
$ |
12,769 |
|||
|
Payables to non-guarantor subsidiaries |
3,524 |
5,485 |
|||||
|
Other liabilities |
3,875 |
3,806 |
|||||
|
Total liabilities |
$ |
20,148 |
$ |
22,060 |
|||
Summarized Income Statement (unaudited)
For the three months ended March 31, 2026, net income of the Obligor Group was $352 million, primarily comprised of a noncash gain of $500 million related to a change in fair value of contingent consideration, partially offset by $131 million of interest expense, and $86 million of amortization expense. Revenue during this period was not material.
Commitments and Contingencies
Contingent Consideration Liabilities. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to the achievement of specified performance targets or satisfaction of certain post-closing events. The fair value of any contingent consideration is estimated at the time of acquisition closing and is included in contingent consideration liabilities on the condensed consolidated statements of financial condition. The fair value of the remaining aggregate contingent payments at March 31, 2026 totaled $7.9 billion, including $4.3 billion and $3.4 billion related to the GIP and HPS Transactions, respectively. The contingent payments related to the GIP Transaction, if any, will be settled all in stock, for a number of shares ranging from 4.0 million to 5.2 million shares, subject to achieving certain performance targets. The contingent payments related to the HPS Transaction, if any, will be delivered all in Subco Units of approximately 2.8 million to 4.4 million, subject to achieving certain post-closing conditions and financial performance milestones.
Investment Commitments. At March 31, 2026, the Company had $2.7 billion of various capital commitments to fund sponsored investment products, including CIPs. These products include various private market products, including private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the condensed consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients.
Critical Accounting Policies and Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ significantly from those estimates. These estimates, judgments and assumptions are affected by the Company's application of accounting policies. Management considers the following accounting policies and estimates critical to understanding the condensed consolidated financial statements. These policies and estimates are considered critical because they had a material impact, or are reasonably likely to have a material impact on the Company's condensed consolidated financial statements and because they require management to make significant judgments, assumptions or estimates. For a summary of these and additional accounting policies as well as recent accounting developments, see Note 2, Significant Accounting Policies, in the notes to the condensed consolidated financial statements. In addition, see Critical Accounting Policies and Estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 2, Significant Accounting Policies, in the 2025 Form 10-K for further information.
Consolidation. The Company consolidates entities in which the Company has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the VRE or is a primary beneficiary ("PB") of a VIE. Assessing whether an entity is a VIE or a VRE involves judgment and analysis on a structure-by-structure basis. Factors considered in this assessment include the entity's legal organization, the entity's capital structure, the rights of equity investment holders, the Company's contractual involvement with and economic interest in the entity and any related party or de facto agent implications of the Company's involvement with the entity. Entities that are determined to be VREs are consolidated if the Company can exert absolute control over the financial and operating policies of the investee, which generally exists if there is greater than 50% voting interest. Entities that are determined to be VIEs are consolidated if the Company is the PB of the entity. BlackRock is deemed to be the PB of a VIE if it (1) has the power to direct the activities that most significantly impact the entities' economic performance and (2) has the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. There is judgment involved in assessing whether the Company is the PB of a VIE. In addition, the Company's ownership interest in VIEs is subject to variability and is impacted by actions of other investors such as ongoing redemptions and contributions. The Company generally consolidates VIEs in which it holds an economic interest of 10% or greater and deconsolidates such VIEs once its economic interest falls below 10%. As of March 31, 2026, the Company was deemed to be the PB of approximately 135 VIEs, which are BlackRock sponsored investment products. See Note 6, Consolidated Sponsored Investment Products, in the notes to the condensed consolidated financial statements for more information.
Fair Value Measurements. The Company's assessment of the significance of a particular input to the fair value measurement according to the fair value hierarchy (i.e., Level 1, 2 and 3 inputs, as defined) in its entirety requires judgment and considers factors specific to the financial instrument. See Note 2, Significant Accounting Policies, and Note 8, Fair Value Disclosures, in the notes to the condensed consolidated financial statements for more information on fair value measurements.
Goodwill and Intangible Assets. The Company accounts for business combinations using the acquisition method of accounting, where the purchase price is allocated to the assets acquired and liabilities assumed based on their fair values at the date of the transaction. Any excess purchase consideration over the fair value of net assets acquired is recorded as goodwill.
The Company determines fair value of identifiable intangible assets acquired using the best available information which incorporates various estimates and assumptions, including, but not limited to, future expected cash flows, fundraising assumptions, useful lives, and discount rates. These estimates are based on historical data, internal estimates, or external sources. Changes in economic conditions, capital markets, client behavior, regulatory environments, or other factors could cause actual results to differ materially from these estimates and assumptions.
Contingent Consideration Liabilities. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to the achievement of specified performance targets or satisfaction of certain post-closing events. The fair value of this contingent consideration is estimated at the time of acquisition closing and is included in contingent consideration liabilities on the condensed consolidated statements of financial condition. The fair value of the remaining aggregate contingent payments at March 31, 2026 totaled $7.9 billion, including $4.3 billion and $3.4 billion related to the GIP and HPS Transactions, respectively.
The contingent payments related to the GIP Transaction, if any, will be settled all in stock, ranging from 4.0 million to 5.2 million shares, subject to achieving certain performance targets. The fair value of the GIP Transaction contingent consideration is estimated using the income approach, which included certain significant inputs such as a risk-free discount rate of approximately 3.8% as well as current estimates of the timing and amounts of fundraising forecasts, stock and AUM volatility, and correlation between stock price and AUM (Level 3 inputs).
The payments related to the HPS Transaction, if any, will be delivered all in Subco Units of approximately 2.8 million to 4.4 million, subject to achieving certain post-closing conditions and financial performance milestones. The fair value of the HPS Transaction contingent consideration is estimated using the income approach, which included certain significant inputs such as a risk-free discount rate of approximately 3.8%, as well as estimates of the timing and amounts of fundraising and fee related earnings forecasts, cost of equity, and stock price performance (Level 3 inputs).
Subsequent changes of estimated fair value of contingent consideration are recorded within general and administration expense of the condensed consolidated statements of income until the contingency is resolved. Accordingly, changes in the key inputs and assumptions described will impact the amount of contingent consideration expense recorded in a reporting period. A portion of the contingent consideration is subject to reclassification to equity when certain contingencies are resolved or when triggers that may require the Company to settle an amount in cash expires.
Investment Advisory Performance Fees / Carried Interest. The Company receives investment advisory performance fees, including incentive allocations (carried interest) from certain actively managed investment funds and certain separately managed accounts ("SMAs"). These performance fees are dependent upon exceeding specified relative or absolute investment return thresholds, which vary by product or account, and include monthly, quarterly, annual or longer measurement periods.
Performance fees, including carried interest, are generated on certain management contracts when performance hurdles are achieved. Such performance fees are recognized when the contractual performance criteria have been met and when it is determined that they are no longer probable of significant reversal. Given the unique nature of each fee arrangement, contracts with customers are evaluated on an individual basis to determine the timing of revenue recognition. Significant judgment is involved in making such determination. Performance fees typically arise from investment management services that began in prior reporting periods. Consequently, a portion of the fees the Company recognizes may be partially related to the services performed in prior periods that meet the recognition criteria in the current period. At each reporting date, the Company considers various factors in estimating performance fees to be recognized, including carried interest. These factors include but are not limited to whether: (1) the amounts are dependent on the financial markets and, thus, are highly susceptible to factors outside the Company's influence; (2) the ultimate payments have a large number and a broad range of possible amounts; and (3) the funds or SMAs have the ability to (a) invest or reinvest their sales proceeds or (b) distribute their sales proceeds and determine the timing of such distributions.
The Company is allocated/distributed carried interest from certain alternative investment products upon exceeding performance thresholds. The Company may be required to reverse/return all, or part, of such carried interest allocations/distributions depending upon future performance of these products. Carried interest subject to such clawback provisions is recorded in investments or cash and cash equivalents to the extent that it is distributed, on its condensed consolidated statements of financial condition. The Company records a liability for deferred carried interest to the extent it receives cash or capital allocations related to carried interest prior to meeting the revenue recognition criteria. At March 31, 2026 and December 31, 2025, the Company had $3.6 billion and $3.5 billion, respectfully, of deferred carried interest recorded in other liabilities on the condensed consolidated statements of financial condition. A portion of the deferred carried interest may also be paid to certain employees and other third parties. The ultimate timing of the recognition of performance fee revenue and related compensation expense, if any, is unknown. See Note 16, Revenue, in the notes to the condensed consolidated financial statements for detailed changes in the deferred carried interest liability balance for the three months ended March 31, 2026 and 2025.
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