BlackRock (BlackRock (BLK)) shares climbed in premarket trading Wednesday after the world's largest asset manager reported second-quarter results that blew past Wall Street estimates. The numbers were driven by record inflows, swelling assets under management, and a surge in fee revenue.

Earnings Beat Estimates

Revenue for the quarter jumped 31% year-over-year to $7.08 billion, topping the analyst consensus of $6.70 billion. Adjusted operating income rose 39% to $2.92 billion, and the adjusted operating margin expanded to 45.9% from 43.3% a year earlier — the company's highest margin in nearly five years. Adjusted earnings came in at $13.91 per share, well ahead of the $12.60 analysts were expecting.

Fee Revenue and Technology Growth

Investment advisory, administration fees, and securities lending revenue climbed to $5.73 billion from $4.45 billion a year ago, reflecting higher average assets under management, 8% organic base fee growth, and about $230 million in fees tied to the HPS transaction. Securities lending revenue rose to $239 million from $171 million as spreads improved.

Investment advisory performance fees more than tripled to $305 million from $94 million, driven by stronger alternative investment revenue (including contributions from HPS) and higher long-only product fees. Technology services and subscription revenue grew to $566 million from $499 million, supported by continued demand for Aladdin products and multi-product solutions. Annual contract value for the tech segment increased 15% from a year earlier.

Record Inflows and Asset Growth

BlackRock reported total net inflows of $192 billion, up sharply from $68 billion a year ago. Its active business generated $53 billion in net inflows, led by systematic strategies and a record $7 billion in liquid alternatives. Assets under management increased 22% year-over-year to $15.34 trillion, while average AUM rose 24% to $14.85 trillion. iShares AUM surpassed $6 trillion, nearly doubling over the past three years.

The company also repurchased $450 million of shares during the quarter and increased its quarterly share repurchase authorization to $550 million, raising its planned 2026 share repurchases to $2 billion.

Management Commentary

CEO Laurence Fink said strong market conditions, improving profitability, and advances in technology continued to drive growth. He added that deeper client relationships and rising demand for BlackRock's investment capabilities helped deliver record financial performance, including $868 billion in net inflows, 10% organic base fee growth over the past year, and more than double the inflows recorded in the first half of 2026 compared with a year earlier.

"The scale and depth of our client relationships globally have never been greater. Clients are turning to BlackRock for insights and opportunities," Fink said.

CFO Martin Small reaffirmed the company's expectation for a mid-single-digit percentage increase in full-year general and administrative expenses.

BLK Price Action: BlackRock shares were up 4.15% at $1,068.00 during premarket trading on Wednesday.