Key Points
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BlackRock’s assets under management reached $15.3 trillion in the second quarter, more than any company has ever overseen.
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Clients added $192 billion of net new money during the quarter, up from about $68 billion in the year-ago period.
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Even after jumping on the report, shares trade about 10% below their 52-week high.
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Asset management giant BlackRock (NYSE: BLK) reported second-quarter results on Wednesday, and the numbers came with a milestone: assets under management (AUM) of $15.3 trillion. No company has ever managed more, and none had crossed $15 trillion until now.
Investors cheered, sending shares 6.6% higher on the day.
Round numbers usually make better headlines than investment theses. But in BlackRock’s case, the record arrived alongside accelerating client inflows, 31% revenue growth, and the company’s highest adjusted operating margin in almost five years.
So what does the record actually mean for the stock? Here’s a closer look.
Where the $15 trillion came from
The best way to judge an asset manager is by its net flows (the new money clients hand it, minus what they pull out), because a rising market can inflate AUM even when clients are leaving.
On that measure, BlackRock is accelerating. Clients added $192 billion of net new money in the second quarter, up from about $68 billion in the year-ago period and about $129 billion in the first quarter of this year.
That brought first-half net inflows to a record $321 billion. For perspective, the company’s AUM stood at $13.9 trillion just three months earlier, at the end of March.
The flows were broad-based, too. ETFs led the way with $178 billion of second-quarter net inflows, and BlackRock said its iShares ETF business crossed $6 trillion in AUM, roughly double its size three years ago. By asset class, fixed income took in the most money of all, at $92 billion. And another $53 billion flowed into the company’s active strategies, including a record $7 billion into liquid alternatives.
“In the second quarter clients entrusted us with $192 billion of net inflows, generating 8% organic base fee growth,” said BlackRock CEO Larry Fink in the company’s second-quarter earnings release, calling that growth rate “well in excess of our target.”
The financial results followed the flows. Second-quarter revenue rose 31% year over year to $7.1 billion, helped by market gains, organic growth, higher performance fees, and fees from the company’s 2025 acquisition of private credit specialist HPS Investment Partners. Operating income climbed 42% year over year, or 39% on an adjusted basis. And BlackRock’s adjusted operating margin expanded to 45.9% from 43.3% a year ago, the highest it has been in almost five years. Adjusted earnings per share rose 15% to $13.91.
One caveat is worth dwelling on, though. Most of the past year’s increase in AUM came from rising markets, not new client money. Total AUM grew by roughly $2.8 trillion year over year, and net inflows accounted for $868 billion of that. Markets did most of the rest.
What the record means for the stock
That caveat matters because BlackRock earns base fees as a percentage of the assets it manages — $5.7 billion of base fees and securities lending revenue in the second quarter alone. A rising market lifts those fees with no extra effort from the company.
In a falling market, the same math runs in reverse — AUM shrinks, and fees shrink with it. Anyone buying the stock after a big market run should keep that exposure in mind.
Still, the parts of the quarter BlackRock controls looked strong. Organic base fee growth of 8% came in above the company’s own target. Technology services and subscription revenue, built around the company’s Aladdin platform, grew 13% year over year, with annual contract value up 15%. And management now plans $2 billion of share repurchases in 2026, a signal of confidence in the growth ahead.
So, does the record quarter make the stock worth buying after Wednesday’s pop?
At about $1,093 per share as of this writing, BlackRock trades at about 27 times earnings, and shares still sit about 10% below their 52-week high of $1,219.94. The stock also pays a dividend that yields about 2.1% at the current share price.
For a company growing adjusted earnings per share 15%, with organic growth running ahead of its own target, I think that valuation is reasonable. Not a bargain, but reasonable. And I’d be comfortable buying shares here. Of course, a stock built on AUM leans on the market itself — a deep sell-off could drag fees, and likely the share price, down with it. Investors should size a position accordingly.
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Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends BlackRock. The Motley Fool has a disclosure policy.
