BlackRock's Fee Mix Shift Protects Earnings from AUM Decline
OA
Oscar Aldridge
BlackRock · Apr 14, 2026
Source: DojiDoji Data Terminal
BlackRock's adjusted earnings per share for the first quarter of 2026 reached $12.53, exceeding the $11.48 consensus estimate. This profit growth occurred despite a sequential decline in assets under management, which slipped to $13.89 trillion from a record $14.04 trillion at the end of 2025. Market declines reduced the value of client portfolios even as the firm attracted $130 billion in total net inflows.
Revenue climbed 27% year-over-year to $6.698 billion, driven by a shift toward higher-margin revenue streams. Investment advisory performance fees jumped from $60 million to $272 million year-over-year. Private markets assets totaled $320.4 billion, contributing 16% of the firm's total base fees despite representing a fraction of total AUM.
This revenue diversification is the result of strategic acquisitions of Global Infrastructure Partners and HPS Investment Partners. CEO Larry Fink described the firm's integrated model across public markets, private markets, and technology as a strengthening of its competitive position. The iShares Bitcoin Trust ended the quarter with $54 billion in assets under management.
Despite the flow data, private markets experienced a $2 billion mark-to-market drop and $8.5 billion in capital returns, offsetting $9.1 billion in inflows. Total AUM remains the basis on which future fees are earned, and adjusted EPS grew despite the decline in total AUM.