Call in the Global Specialist (17/7)

Research evidence excerpt

Call in the Global Specialist (17/7)

Gigi Sparling - Specialist Sales - European Europe Specialist Sales

Financials AC 17 July 2026 J P M O R G A N

(44-20) 7134-0355

ghislaine.sparling@jpmorgan.com

Long BLK - BlackRock’s 2Q26 results were notably strong, with adjusted EPS of $13.91, beating consensus estimates. This

outperformance was driven by robust top-line trends, including a significant beat in net sales and higher average AUM. Operating

leverage was evident, as adjusted operating margins expanded to 45.9% in 2Q26, up from 44.5% in 1Q26. This margin

improvement signals that BlackRock is efficiently scaling its business and converting revenue growth into higher profitability. I

very much like the risk-reward for BLK going forward with a few key items driving the bus:

Sustained Organic Growth and Inflows

• BLK organic base fee growth remained elevated at +8% in 2Q26, consistent with 1Q26 levels. This metric is closely watched

as it reflects the underlying health and growth of BlackRock’s core business.

• Long-term inflows accelerated to $199bn in 2Q26, up from $136bn in 1Q26. The iShares platform, particularly equity and

fixed income ETFs, continued to drive these inflows, underscoring BlackRock’s leadership in ETF distribution and its ability

to capture market share.

Resilience Amid Industry Concerns

• Despite industry concerns about private credit and redemption risks in private markets, BlackRock’s retail private markets are

not yet a material driver of flows. The firm delivered $15bn in private markets inflows in 2Q26, up from $9bn in 1Q26,

demonstrating resilience and growth in this segment. This is more of a driver of sentiment rather than numbers at this point

but if the narrative around alt flows is more constructive, that’s helpful for the shares.