BlackRock revenue rose 19% to $7.8 billion in the third quarter as net inflows hit $205 billion

By Jon Mc Gowan, The Filing Desk

BlackRock's revenue grew 19.1% to $7.8 billion in the third quarter of 2026, and net income rose 25.4% to $1.7 billion. Operating margin was unchanged at 30.0%. BlackRock shares closed 0.7% higher on October 14, the day it released results, while the S&P 500 fund closed 1.1% lower.

Revenue growth came from fees on a larger asset base

Revenue of $7.8 billion was 1.7 times the $4.6 billion BlackRock reported in the fourth quarter of 2023. For the first nine months of 2026, revenue rose 25.1% to $21.5 billion.

BlackRock's 10-Q says the third-quarter increase reflected the positive impact of markets, organic base fee growth, higher performance fees and higher technology services and subscription revenue. Performance fees were $630 million, and technology services and subscription revenue was $588 million. In its earnings release, the company said it took in $205 billion of net inflows in the quarter and ended it with $15.5 trillion in assets under management.

Net income grew faster than operating income

Operating income rose 19.1% to $2.3 billion, in line with revenue, so the operating margin stayed at 30.0%, the same as 30.0% a year earlier. Net income margin was 21.4%, up from 20.3%. Pretax income rose 32.4% to $2.6 billion, because gains on investments pushed nonoperating income higher.

Diluted earnings per share rose 25.4% to $10.57. The company's operating expenses include a noncash charge for contingent consideration owed on past acquisitions. The 10-Q says its value depends on BlackRock's share price at the end of the period, and the charge was larger this quarter than in the third quarter of 2025. Income tax expense was $724 million, or 27.4% of pretax income, against 23.5% a year earlier.

Free cash flow nearly doubled

Cash from operations was $2.7 billion, up 91.4% from $1.4 billion a year earlier. Capital spending was $101 million. Free cash flow, which is cash from operations minus capital spending, rose 95.0% to $2.6 billion, or 33.6% of revenue.

Cash flow swings with the quarter. Free cash flow was negative in the first quarters of 2025 and 2026, at $1.2 billion and $1.1 billion, and positive in the quarters after them.

Cash and cash equivalents were $12.9 billion at September 30, 2026, against $10.0 billion a year earlier. Debt was $12.7 billion, little changed from $12.8 billion.

Twelve quarters of figures