It has been about a month since the last earnings report for BlackRock (BLK). Shares have added about 4.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is BlackRock due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
BlackRock Q1 Earnings Beat Estimates, Revenues & AUM Rise Y/Y
BlackRock’s first-quarter 2026 adjusted earnings of $12.53 per share handily surpassed the Zacks Consensus Estimate of $11.96. The figure reflects a 10.9% rise from the year-ago quarter.
Results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses created a headwind.
Net income attributable to BlackRock (on a GAAP basis) was $2.21 billion, up 46.5% from the prior-year quarter.
Revenues Improve, Expenses Rise
Quarterly revenues (on a GAAP basis) were $6.70 billion, outpacing the Zacks Consensus Estimate of $6.62 billion. Revenues increased 27% year over year. The rise was driven by an increase in all revenue components.
Total expenses amounted to $3.88 billion, up 8.6% year over year. The increase was due to a rise in all cost components, except for the change in fair value of contingent consideration.
Non-operating income (on a GAAP basis) was $28 million, down 56.9% from the prior-year quarter.
BlackRock’s adjusted operating income was $2.67 billion, increasing 31% from the prior-year quarter.
AUM Balance Rises
As of March 31, 2026, AUM totaled $13.89 trillion, reflecting a year-over-year rise of 19.9%. The company witnessed long-term net inflows of $136 billion in the reported quarter.
As of March 31, 2026, the average AUM of $14.24 trillion rose 21.8% year over year.
Share Repurchases
BlackRock repurchased shares worth $450 million in the reported quarter.
Outlook
The company expects annual contract value (ACV) growth in the low to mid-teens over the long term.
BlackRock anticipates repurchasing at least $450 million of shares per quarter in 2026.
The projected tax run rate is 25% for 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, BlackRock has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, BlackRock has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
