US Stocks: BlackRock shares jump 4% after reporting strong first quarter profit
BlackRock shares gained after stronger-than-expected Q1 earnings driven by robust ETF inflows, higher performance fees, and steady AUM growth. The firm reported $130 billion in net inflows and rising profitability despite weak broader market condi...
By ETMarkets.com |
ETMarkets.com
BlackRock shares rose about 4% after the world's largest asset manager reported stronger first-quarter earnings, supported by robust inflows into its exchange-traded funds business and a sharp jump in performance fees.
The company posted net profit of $2.21 billion for the three months ended March 2026, beating expectations. The earnings momentum came despite a broadly flat US market backdrop, where the S&P 500 declined 4.6% during the quarter.
Investor flows remained a key driver of performance. BlackRock reported total net inflows of $130 billion during the quarter, with the bulk directed into its iShares ETF platform, underscoring continued investor preference for low-cost, passive investment products. Its private markets segment also attracted $9 billion in inflows, reflecting sustained institutional demand for alternative assets.
Assets under management rose to $13.89 trillion, up from $11.58 trillion a year earlier.
A notable contributor to earnings was the sharp rise in investment advisory performance fees, which climbed to $272 million in the quarter from $60 million a year ago. The increase indicates stronger returns from actively managed strategies and alternative investments, which typically carry higher fee structures.
Chief Executive Laurence Fink said the firm's integrated model across public markets, private markets and technology continues to strengthen its competitive position. He emphasised that BlackRock’s scale and diversified platform are becoming increasingly valuable in a complex investment environment.
The private markets business remains under close watch from investors, particularly amid concerns around transparency and risk in segments such as private credit. The sector has seen rapid capital inflows in recent years but has also faced scrutiny following high-profile bankruptcies, including US auto parts supplier First Brands and dealership chain Tricolor.
BlackRock reported $320.4 billion in private markets assets during the quarter, slightly down from $322.6 billion at the end of the previous quarter. The decline reflects a combination of $9.1 billion in inflows, $8.5 billion in capital returns and a $2 billion mark-to-market drop.
The company posted net profit of $2.21 billion for the three months ended March 2026, beating expectations. The earnings momentum came despite a broadly flat US market backdrop, where the S&P 500 declined 4.6% during the quarter.
Investor flows remained a key driver of performance. BlackRock reported total net inflows of $130 billion during the quarter, with the bulk directed into its iShares ETF platform, underscoring continued investor preference for low-cost, passive investment products. Its private markets segment also attracted $9 billion in inflows, reflecting sustained institutional demand for alternative assets.
Assets under management rose to $13.89 trillion, up from $11.58 trillion a year earlier.
A notable contributor to earnings was the sharp rise in investment advisory performance fees, which climbed to $272 million in the quarter from $60 million a year ago. The increase indicates stronger returns from actively managed strategies and alternative investments, which typically carry higher fee structures.
Chief Executive Laurence Fink said the firm's integrated model across public markets, private markets and technology continues to strengthen its competitive position. He emphasised that BlackRock’s scale and diversified platform are becoming increasingly valuable in a complex investment environment.
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The private markets business remains under close watch from investors, particularly amid concerns around transparency and risk in segments such as private credit. The sector has seen rapid capital inflows in recent years but has also faced scrutiny following high-profile bankruptcies, including US auto parts supplier First Brands and dealership chain Tricolor.
BlackRock reported $320.4 billion in private markets assets during the quarter, slightly down from $322.6 billion at the end of the previous quarter. The decline reflects a combination of $9.1 billion in inflows, $8.5 billion in capital returns and a $2 billion mark-to-market drop.
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