Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $7.8 billion | up 19% year-over-year |
| Operating Income | $3.3 billion | up 27% year-over-year |
| Earnings per share | $15.93 | up 38% year-over-year |
| Operating Margin | 47.8% | up 320 basis points year-over-year |
| Net Inflows | $205 billion | Not stated |
Guidance and outlook
- We continue to estimate that 25% is a reasonable projected tax run rate for the fourth quarter of 2026.
- We continue to expect a mid-single-digit percentage increase in full year G&A.
- We anticipate repurchasing at least $550 million worth of shares in the fourth quarter.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record financial results, 11% organic base fee growth, and strong momentum in private markets and technology. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Organic Base Fee Growth
Asked: Analysts asked where the firm is seeing increasingly sustained contribution to organic base fee growth.
Answer: Martin Small noted growth is diversified across systematic businesses, active management, AI partnership deployment, and precision ETFs.
AI Infrastructure
Asked: Analysts asked how higher financing costs impact the AI infrastructure build-out.
Answer: Larry Fink noted that while rates are structurally higher, the need for compute capacity is an imperative, and BlackRock is creating innovative financing structures for data centers.
Tax-Aware Strategies
Asked: Analysts asked about demand for tax-aware suites and capacity constraints at custodians.
Answer: Martin Small cited strong demand for direct indexing and long-short strategies, noting they are broadening financing counterparties to manage capacity.
Margin Expansion
Asked: Analysts asked about the drivers of margin expansion and the outlook for 2027.
Answer: Martin Small attributed expansion to structural growth in private markets and technology, aiming for recurring fee margins north of 50%.
What to watch before the next call
- The deployment of capital for AI infrastructure and data centers.
- The performance of evergreen funds in private markets.
- The impact of higher interest rates on long-term fixed income allocations.
