BlackRock Q2 FY26 earnings call BLK

BlackRock's integrated public and private market platform, underpinned by comprehensive investment technology, is central to its strategy. The firm is leveraging megatrends like AI, digital and physical infrastructure, and changes in equity market structure to drive growth and meet client demand for holistic portfolio solutions. The acquisitions of GIP, HPS, and Preqin are performing ahead of plan, accelerating the 2030 growth trajectory.

The firm is experiencing significant momentum in private markets, with $15 billion of net inflows in Q2, driven by private credit deployment, infrastructure fundraising, and a private equity solutions outsourcing mandate. The integration of HPS and GIP is creating joint origination opportunities, particularly in digital infrastructure, and is expected to accelerate conversion of insurance assets into private market mandates, with $10 billion in high-grade and infra debt mandates closed for insurance companies in 2026.

BlackRock views digital assets as a significant organic growth opportunity, aiming for a $500 million revenue business by 2030. The strategy focuses on scaled, regulated access, bridging traditional and DeFi markets, becoming a stablecoin reserve manager (managing $60 billion for Circle), and tokenizing long-term investment products like iShares and treasury funds. Recent SEC filings for tokenized money market funds on Ethereum highlight efforts to bring core cash management capabilities to the digital ecosystem, tapping into 5 billion digital wallets globally.

Aperio, a direct indexing and long/short tax-aware strategy provider, continues to be a strong growth driver, with AUM approaching $200 billion, quadrupling since its acquisition five years ago. The firm sees tax-optimized portfolios as a structural growth theme, applicable across various investment vehicles. Aperio recorded $7 billion in Q2 net inflows, split between long-only and long/short strategies, and $20 billion YTD, surpassing 2025's record flows of $15 billion.

Technology services, including Aladdin and Preqin, are experiencing strong growth, with 13% revenue growth and 15% ACV growth in Q2. The integration of Preqin with Aladdin and eFront is enhancing client value by providing greater transparency and analytics in private markets, especially as regulatory changes (e.g., DOL's proposed safe harbor rule) demand more rigorous data for private assets in 401(k)s. AI is being leveraged to build new capabilities for comprehensive data and workflow solutions, aiming for a seamless analytical platform across public and private markets.

iShares in Europe has seen significant growth, raising $80 billion year-to-date and reaching $1.5 trillion in AUM, reflecting the democratization of investing in the region. BlackRock's global leadership in ETFs allows it to cater to diverse investor demands, whether for U.S., Asian, or European assets, and to provide access vehicles for various market exposures. This includes strong inflows into European Bitcoin ETFs, demonstrating the platform's ability to facilitate diverse allocations.