Conference introductions and legal disclaimers precede a review of BlackRock's Q2 2026 financial performance, focusing on adjusted results and potential differences from GAAP. Forward-looking statements caution on potential material differences in actual outcomes, with no obligation to update these projections.

BlackRock showcases record net inflows and organic fee growth, solidifying its position as a leader in global asset management. The firm's integrated platform, spanning public and private markets, has attracted clients seeking coherent strategies amidst market fragmentation. With double-digit increases in revenue, operating income, and earnings per share, BlackRock demonstrates resilience and adaptability, driving expanded investor access to capital markets and digital assets. The company's focus on long-term growth, coupled with a diversified client base, underscores its commitment to sustainable performance and its role as a total portfolio partner.

The company reported a 31% year-over-year increase in Q2 revenue to $7.1 billion, attributed to organic growth, higher market impacts, the acquisition of HPS, and increased technology services and subscription revenue. Operating income rose 39% to $2.9 billion, with earnings per share up 15% to $13.91. The effective tax rate was 25%, expected to remain stable for the remainder of 2026, excluding discrete items or legislative changes. Non-operating results included $170 million in net investment gains and holdings of 7.3 million common shares from a public listing.

Fee securities lending revenue increased by 29% year over year, influenced by market data and HP's contribution. Performance fees rose, mainly due to higher alternative revenue, including $150 million from HT. Technology services and subscription revenue also saw a 13% increase compared to the previous year.

Annual contract value (ACV) rose 15% YoY, with a commitment to low to mid teens growth. Despite a 25% rise in total expenses, driven by higher compensation and sales asset costs, the company delivered significant margin expansion, achieving a 46.5% operating margin excluding performance fees. Capital management remains a priority, with an aggressive share repurchase plan of at least $550 million per quarter, surpassing previous guidance.

BlackRock reported record financial results with diversified net inflows, strong growth in active and index strategies, and sustained expansion in capital markets, highlighting disciplined execution and future opportunities in professional asset management.

BlackRock highlights strong global market fundamentals, organic growth, and record inflows, attributing success to comprehensive investment technology and client relationships. The company projects significant shareholder returns, exceeding $5.7 billion, reflecting confidence in future expansion and market leadership.

BlackRock showcases robust organic growth, expanding margins, and a capital return program, positioning itself as a premier choice for clients seeking large-scale, customized asset management and technology solutions, exemplified by recent mandates totaling $7 billion.

BlackRock continues to expand its leadership in retirement income solutions, with a focus on technology, AI, and comprehensive data analysis. The company's iShares platform leads in ETF adoption, achieving record net inflows and global scale. Systematic equity strategies, leveraging proprietary data and AI, have doubled AUM in two years, demonstrating BlackRock's commitment to innovative, outcomes-based investment solutions.

BlackRock leverages acquisitions to scale capabilities, exemplified by APERIO and SPIDER ROCK growth. Private markets momentum accelerates with GIP platform deployment, digital infrastructure opportunities, and joint origination with HBS, reflecting strategic capital mobilization and institutional demand.

BlackRock emphasizes its unique platform integrating public and private markets, active and index strategies, and technology. The firm aims to expand access to capital markets, supporting long-term savings strategies and benefiting from increased client participation. This approach drives organic growth, higher earnings, and shareholder value, showcasing BlackRock's optimistic future outlook.

A dialogue occurs regarding updates on direct indexing and the growing demand for liquid alternatives, with a focus on the long-short equity strategy. The conversation highlights the strengthening underlying demand in this category and seeks perspectives on its future potential.

The dialogue highlights BlackRock's strategic focus on optimizing after-tax portfolios and scaling long-short strategies as key growth drivers. It discusses the acquisition of Aperio, emphasizing the firm's mission to enhance client outcomes by maximizing post-tax returns. The conversation underscores the importance of integrating these strategies across various investment vehicles, including ETFs, SMA, and direct indexing, to address investor challenges and capitalize on industry growth opportunities.

Discusses BlackRock's strategy to tokenize assets, aiming for $500 million revenue by 2030, focusing on scalable, regulated access to digital assets and integrating traditional investments with crypto, stablecoins, and digital wallets for efficient allocation.

BlackRock aims to integrate traditional finance with decentralized markets through digital asset products, managing stablecoin reserves, and tokenizing investment products, targeting growth in digital wallets and organic expansion.

The dialogue discusses advancements in acquiring high-grade debt mandates for insurance companies, amounting to $10 billion so far in 2026, highlighting BlackRock's potential in converting liquid assets to fixed income markets and its implications for insurance-related AUM growth.

Insurance companies globally are increasingly seeking private markets for higher yields, driving demand for large-scale infrastructure financing. This trend is accelerating, with BlackRock's integrated services across debt and equity attracting more insurance assets, enhancing fee averages and solidifying strategic partnerships in the industry.

A discussion on the robust demand for private credit investments, particularly from institutional investors, amidst stable credit quality and liquidity. The dialogue also touches on the insurance industry's interest in higher returns and the overall positive fundraising trends, expecting continued growth.

The dialogue explores BlackRock's achievement of industry-leading margins, attributing growth to structural categories like private markets, ETFs, and AI technology. It discusses the sustainability of these margins, aiming for over 30% revenue from private markets and technology by 2030, and outlines strategies for further margin expansion through higher fee rates, organic growth, and technology use.

Despite rising revenue sharing fees by competitors, BlackRock leverages its scale, differentiated relationships, and comprehensive offerings to maintain strong, profitable growth with distribution partners, emphasizing mutual success and client demand for active ETFs.

Discussed strong pipeline for private markets deployment and fundraising, highlighting engagement in high-grade trade and infrastructure debt, with a focus on first-time and successor strategies across infrastructure and credit, indicating positive trends for future quarters.

BlackRock has achieved significant inflows in private markets, particularly in private credit and infrastructure, demonstrating disciplined deployment and fundraising. The company's strategic focus on optimizing LP solutions and consolidating private equity portfolios has attracted substantial investment, including a $3 billion inflow in private equity solutions, highlighting opportunities for further growth in managing and reinvesting LP portfolios.

iShares leverages its global leadership in ETFs to facilitate democratization of investing, driving net flows and diversifying into US assets and crypto, highlighting Europe's growing market and adaptability to digital investments.

Discussed strong growth in Aladdin and related services, highlighting the impact of market gyrations and regulatory changes on demand for transparency. AI integration is seen as pivotal for enhancing analytical platforms across public and private markets, aiming to deliver comprehensive risk assessment solutions. BlackRock remains committed to leading in FinTech by consolidating services and leveraging technology for better client experiences and operational efficiencies.

The CEO expresses gratitude towards participants, emphasizes BlackRock's record growth in the first half of 2026, and expresses confidence in the company's future, attributing success to strategic platform investments. The call concludes with warm wishes for the summer.