Morningstar

BlackRock Earnings: Market Gains and Flows Lift AUM to Record Levels in Q2

We expect to raise our fair value estimate of BlackRock stock.

BlackRock offices in New York City.
Erik McGregor/LightRocket via Getty
Securities in This Article
BlackRock Inc
(BLK)

Key Morningstar Metrics for BlackRock

  • Fair Value Estimate
    : $1,150.00
  • Morningstar Rating
    : ★★★
  • Morningstar Economic Moat Rating
    : Wide
  • Morningstar Uncertainty Rating
    : High

What We Thought of BlackRock’s Earnings

BlackRock BLK ended June 2026 with a record $15.345 trillion in assets under management, or AUM, up 10.4% sequentially and 22.5% year over year. The firm benefited from strong flows into its ETF platform, with strong equity market gains also lifting managed assets.

Why it matters: BlackRock continues to outperform its traditional asset management peers in organic AUM growth through its mix of index funds and ETFs, while the expansion of its private capital platform has further strengthened its ability to generate positive flows more consistently.

  • Net inflows of $199 billion during the second quarter represented an annualized organic AUM growth rate of 6.2%, well above the midpoint of our annual target rate range of 3%-5%. We expect to see lower rates of growth from most of BlackRock’s peers when they report their second-quarter results.
  • The iShares platform remains the biggest driver of flows for the firm, with BlackRock picking up another $178 billion in net long-term inflows, equivalent to a 13.0% annualized organic AUM growth rate, from its ETF business during the June quarter.

The bottom line: We expected the June quarter to be much better, following a difficult first quarter (marred by the start of the war in Iran), with the 15% increase in US equity markets and strong ETF industry flows contributing to the results.

  • We expect to increase our $1,150 per share fair value estimate for wide-moat BlackRock by around 5% once we’ve incorporated these results into our valuation. We view the shares as slightly to modestly undervalued relative to our revised estimate.
  • That said, we remain conservative with our near-term assumptions for BlackRock and the rest of the US-based asset managers, believing that the ongoing Iran war, as well as US fiscal and monetary policies, will keep the equity and fixed-income markets more volatile.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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