BlackRock Inc. reported second-quarter results that topped Wall Street expectations, driven by record assets under management, inflows, revenue and earnings. The world's largest asset manager is now exploring tokenized ETFs, Treasury funds and private market products to expand its addressable market. BlackRock has filed SEC registrations for tokenized money market fund offerings, aiming to build a "digital wallet native" asset manager and position tokenization as a long-term driver of organic growth.

Earnings Beat Estimates

Second-quarter revenue increased 31% year over year to $7.08 billion, exceeding the analyst consensus estimate of $6.70 billion. Adjusted earnings came in at $13.91 per share, ahead of the Street estimate of $12.60. Adjusted operating income rose 39% to $2.92 billion, while adjusted operating margin expanded to 45.9% from 43.3% a year earlier, marking the company's highest level in nearly five years.

Assets Under Management Hit Record

Assets under management increased 22% year over year to a record $15.34 trillion, while average AUM climbed 24% to $14.85 trillion. The company said AUM has grown by more than $1 trillion so far in 2026, supported by strong market performance and client inflows. BlackRock also reported about $110 billion in digital asset-related AUM and said it aims to grow that business into a $500 million annual revenue opportunity by 2030.

Tokenization Strategy

Management noted opportunities across 5 billion digital wallets, a crypto market valued at more than $2 trillion and a stablecoin market exceeding $300 billion. BlackRock executives said tokenized ETFs could dramatically expand the firm's addressable market by bringing investment products directly into digital wallets. The company said it wants investors to access iShares ETFs and other long-term investment products directly through digital wallets, positioning tokenization as a major long-term growth opportunity.

iShares Continues ETF Leadership

The company's iShares platform surpassed $6 trillion in AUM and generated $178 billion in second-quarter net inflows, contributing to a record first half of the year. BlackRock said iShares delivered 12% organic base fee growth in 2026 as global ETF adoption continued to expand. Its active ETF business attracted more than $70 billion in inflows over the past year, making BlackRock the industry's largest active ETF provider. The broader active franchise generated $53 billion in net inflows, while the firm's systematic investing platform doubled to $400 billion in AUM over the past two years.

Management Outlook

BlackRock said it expects to return more than $5.7 billion to shareholders in 2026 through dividends and share repurchases, up 16% from 2025. The company repurchased $450 million of stock during the quarter and increased its quarterly share repurchase authorization to $550 million, lifting its planned 2026 share repurchases to $2 billion. Management reiterated confidence in sustaining double-digit earnings growth and reaffirmed its goal of generating more than 30% of total revenue from private markets and technology by 2030.

BlackRock, Inc. Chief Financial Officer Martin Small stated that the firm continues to anticipate a mid-single-digit percentage increase in full-year general and administrative (G&A) expenses. This guidance was provided during a conference call regarding the company's financial outlook.

Financial Outlook

The projection for G&A expenses highlights the firm's expectations for operational costs for the fiscal year. While specific figures were not disclosed, the mid-single-digit percentage increase serves as a key metric for investors assessing the company's cost management strategies.

Conference Call Details

Chairman and Chief Executive Officer Laurence D. Fink, President Robert S. Kapito, and Chief Financial Officer Martin S. Small hosted the teleconference. The event provided a platform for management to discuss financial results and operational guidance with analysts and investors.