AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 2/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Distribution reach, platform breadth and integrated technology are corroborated by multiyear inflows and expanded technology relationships. This supports a demonstrated narrow advantage, without proving relative cost leadership or network effects.
durability · 2/4 · Five-year aggregate inflows and continued 2026 demand support persistence, but freely terminable mandates, annual approvals and technology substitution limit demonstrated protection.
customer dependency · 2/4 · Integrated investment workflows imply operational dependence for some Aladdin users. This is an inference; migration costs are undisclosed and investment clients retain substantial exit rights.
erosion resilience · 2/4 · Broad positive flows and technology expansion coexist with institutional index outflows and a realized management-contract impairment. Competitive technology risks are possibilities, not evidence of widespread realized erosion.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Base fee growth, technology revenue growth and performance fees do not isolate realized prices from flows, product mix, acquisitions or investment performance. Neither realized fee increases nor cuts are established.
retention · 3/4 · Five-year net inflows, continued 2026 net demand and explicitly expanded technology relationships strongly support repeat demand indirectly. These are aggregate operating indicators, not measured customer renewal or gross retention rates.
margin resilience · 2/4 · Adjusted margins remained substantial and improved in first-half 2026, while 2025 GAAP margins declined materially due to acquisition-related expenses and a charitable contribution. The mixed record supports operating resilience, not proof of price-setting power.
contractual freedom · 1/4 · Clients and fund boards possess meaningful termination and withdrawal rights; relevant fund contracts require annual approval and fees may be reduced at boards' behest. These disclosed terms constrain pricing discretion even without evidence of actual fee cuts.
Predictability—
Five consecutive annual periods are required for predictability; the accepted history is incomplete.
Financial strength—
Missing required inputs: currentRatioGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 62.93
- netDebtEbitGrade
- 96.31
- interestCoverageGrade
- 95.22
- Debt / FCF (x)
- 3.59
- Net debt / operating income (x)
- 0.18
- Interest coverage (x)
- 11.47
Capital allocation—
Missing annual observations required by this category.
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual dividends, repurchases and low covenant leverage support financing discipline. Acquisition borrowing and higher diluted share counts create material commitments and dilution; acquisition returns and synergies remain unproven.
incentive alignment · 3/4 · More than half of aggregate 2025 NEO compensation uses three-year performance awards tied to organic revenue growth and adjusted margins. January 2026 grants are disclosed as made, and historical incentive reductions demonstrate downside responsiveness. Actual executive ownership balances and exceptional long-term alignment are not established.
execution · 3/4 · Multiyear net inflows, organic technology ACV expansion and continued 2026 demand demonstrate commercial execution. This assessment uses indirect aggregate operating evidence rather than accepting management performance appraisals; market appreciation and acquisitions also contribute to financial growth.
governance · 2/4 · Existing majority-independent oversight and actual committee cybersecurity reviews support functioning governance. Only 67% say-on-pay support indicates meaningful shareholder reservations, followed by documented engagement. Proposed board composition and charter changes are not treated as adopted outcomes.
Evidence
BlackRock maintains a significant global sales and marketing presence that is focused on establishing and maintaining retail and institutional investment management and technology service relationships by marketing its services to investors directly and through third-party distribution relationships, including financial professionals and pension consultants.
Item 1, Business: distribution relationships · Filed 25/02/2026
BlackRock’s diverse platform of alpha-seeking active, private markets, index and cash management investment strategies across asset classes enables the Company to offer choice and tailor investment and asset allocation solutions for clients.
Item 1, Business: investment platform breadth · Filed 25/02/2026
The consistency of our results stands out even more over the long term, with nearly $2.5 trillion of net inflows over the last five years.
Shareholder letter: five-year net inflows · Filed 10/04/2026
Clients awarded BlackRock with a record $698 billion of net inflows in 2025, driving 9% organic base fee growth.
MD&A: 2025 net inflows and organic base fee growth · Filed 25/02/2026
December 31, Net inflows Market FX June 30, Average (in millions) 2025 (outflows) Realizations(1) change impact(2) 2026 AUM(3) Equity $ 7,793,875 $ 143,440 $ — $ 987,657 $ (36,738 ) $ 8,888,234 $ 8,275,937 Fixed income 3,272,021 126,410 (1,871 ) 12,505 (18,904 ) 3,390,161 3,328,895 Multi-asset 1,223,625 34,610 — 96,952 (7,888 ) 1,347,299 1,280,725 Alternatives: Private markets 322,624 24,509 (14,681 ) (2,458 ) (911 ) 329,083 323,993 Liquid alternatives 100,990 12,147 (765 ) 7,767 173 120,312 110,531 Alternatives subtotal 423,614 36,656 (15,446 ) 5,309 (738 ) 449,395 434,524 Digital assets 78,435 (2,182 ) — (27,403 ) (11 ) 48,839 65,172 Currency and commodities(4) 169,216 (3,898 ) — (13,178 ) (291 ) 151,849 181,688 Long-term 12,960,786 335,036 (17,317 ) 1,061,842 (64,570 ) 14,275,777 13,566,941 Cash management 1,080,732 (13,611 ) — 5,344 (3,618 ) 1,068,847 1,073,788 Total $ 14,041,518 $ 321,425 $ (17,317 ) $ 1,067,186 $ (68,188 ) $ 15,344,624 $ 14,640,729 The following table presents the component changes in AUM by client type and product type for the six months ended June 30, 2026.
MD&A: first-half 2026 AUM changes separating flows, markets and foreign exchange · Filed 06/08/2026
The advisory or management contracts BlackRock has entered into with its clients, including the agreements that govern many of BlackRock’s investment funds, provide investors or, in some cases, the independent directors of applicable investment funds, with significant latitude to terminate such contracts, withdraw funds or liquidate funds, or to remove BlackRock as a fund’s investment advisor (or equivalent).
Item 1A, Risk Factors: client termination and withdrawal rights · Filed 25/02/2026
BlackRock also manages its US mutual funds, closed-end and exchange-traded funds under management contracts that must be renewed and approved annually by the funds’ respective boards of directors, a majority of whom are independent from the Company.
Item 1A, Risk Factors: annual fund-board approval · Filed 25/02/2026
BlackRock’s fee arrangements under any of its advisory or management contracts may be reduced (including at the behest of a fund’s board of directors).
Item 1A, Risk Factors: reducible advisory fees · Filed 25/02/2026
• Institutional index net outflows of $41 billion were concentrated in low-fee index equity offerings.
MD&A: institutional index outflows · Filed 06/08/2026
In addition, expense for 2024 included a $50 million noncash impairment charge related to certain indefinite-lived open-end management contracts.
MD&A: 2024 management-contract impairment · Filed 25/02/2026
Aladdin’s competitive position is based in part on its ability to combine risk analytics with portfolio management, trading and operations tools on a single platform.
Item 1A, Risk Factors: Aladdin integrated platform · Filed 25/02/2026
Through the integration of Aladdin and eFront, clients are able to better manage and analyze risk across their whole portfolio spanning public and private markets.
MD&A: Aladdin and eFront integration · Filed 25/02/2026
BlackRock is empowering clients with data and opening Aladdin by creating connectivity with ecosystem providers and third-party technology solutions, which include asset servicers, cloud providers, digital asset platforms, trading systems, and others.
MD&A: Aladdin third-party connectivity · Filed 25/02/2026
Technology services and subscription annual contract value ("ACV") grew 16% organically, reflecting both new and expanded client relationships.
MD&A: organic technology ACV growth and expanded relationships · Filed 25/02/2026
Technology services and subscription revenue of $2.0 billion in 2025 increased $378 million from $1.6 billion in 2024, reflecting the sustained demand for Aladdin technology offerings and approximately $210 million of revenue related to the Preqin Transaction.
MD&A: technology revenue, demand and Preqin contribution · Filed 25/02/2026
Increased competition from risk analytics and investment management technology providers, including from competitors with increasingly sophisticated and comprehensive product offerings, or a shift in client demand toward standalone or internally developed solutions, whether due to price competition, perceived market share, platform offerings or flexibility, or market-based or regulatory factors, may weaken Aladdin’s competitive position and may cause the Company’s revenue and earnings to decline.
Item 1A, Risk Factors: competing and internally developed technology · Filed 25/02/2026
In addition, to the extent that Aladdin competitors are able to innovate more effectively than BlackRock or leverage delivery models that provide clients faster time to market, lower costs or the ability to more seamlessly combine or bundle with other service offerings, BlackRock may lose existing clients or fail to capture future market share, which may impede its productivity and growth.
Item 1A, Risk Factors: innovation, delivery models and costs · Filed 25/02/2026
1 Financial Highlights (in millions, except per share data) GAAP: 2025 2024 2023 2022 2021 Total revenue $ 24,216 $ 20,407 $ 17,859 $ 17,873 $ 19,374 Operating income $ 7,045 $ 7,574 $ 6,275 $ 6,385 $ 7,450 Operating margin 29.1 % 37.1 % 35.1 % 35.7 % 38.5 % Nonoperating income (expense)(1) $ 312 $ 578 $ 706 $ 89 $ 419 Net income attributable to BlackRock, Inc.
Financial Highlights: five-year GAAP revenue and operating results · Filed 25/02/2026
$ 5,553 $ 6,369 $ 5,502 $ 5,178 $ 5,901 Diluted earnings per common share $ 35.31 $ 42.01 $ 36.51 $ 33.97 $ 38.22 (in millions, except per share data) As adjusted(2): 2025 2024 2023 2022 2021 Operating income $ 9,600 $ 8,110 $ 6,593 $ 6,711 $ 7,747 Operating margin 44.1 % 44.5 % 41.7 % 42.8 % 46.8 % Nonoperating income (expense)(1) $ 251 $ 533 $ 648 $ 89 $ 419 Net income attributable to BlackRock, Inc.
Financial Highlights: five-year adjusted operating results · Filed 25/02/2026
Decreases in GAAP operating income and operating margin were driven by noncash acquisition-related expenses and the noncash Charitable Contribution.
MD&A: causes of 2025 GAAP operating decline · Filed 25/02/2026
As Adjusted. Operating income of $5.6 billion increased $1.5 billion and operating margin of 45.2% increased 200 bps from the six months ended June 30, 2025.
MD&A: first-half 2026 adjusted operating results · Filed 06/08/2026
Condensed Consolidated Statements of Income (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share data) 2026 2025 2026 2025 Revenue Investment advisory, administration fees and securities lending revenue: Investment advisory and administration fees $ 5,487 $ 4,283 $ 10,746 $ 8,527 Securities lending revenue 239 171 418 328 Total investment advisory, administration fees and securities lending revenue 5,726 4,454 11,164 8,855 Investment advisory performance fees 305 94 577 154 Technology services and subscription revenue 566 499 1,096 935 Distribution fees 395 320 784 641 Advisory and other revenue 92 56 161 114 Total revenue 7,084 5,423 13,782 10,699 Expense Employee compensation and benefits 2,274 1,764 4,499 3,505 Sales, asset and account expense: Distribution and servicing costs 732 576 1,437 1,146 Direct fund expense 543 441 1,024 833 Sub-advisory and other 67 46 138 93 Total sales, asset and account expense 1,342 1,063 2,599 2,072 General and administration expense 720 613 1,394 1,228 Change in fair value of contingent consideration 11 76 (538 ) 172 Restructuring charge — 39 — 39 Amortization of intangible assets 276 137 553 254 Total expense 4,623 3,692 8,507 7,270 Operating income 2,461 1,731 5,275 3,429 Nonoperating income (expense) Net gain (loss) on investments 283 550 355 608 Interest and dividend income 109 144 199 317 Interest expense (134 ) (173 ) (268 ) (339 ) Dividend income and net interest income (expense) (25 ) (29 ) (69 ) (22 ) Total nonoperating income (expense) 258 521 286 586 Income before income taxes 2,719 2,252 5,561 4,015 Income tax expense 677 587 1,193 835 Net income 2,042 1,665 4,368 3,180 Less: Net income (loss) attributable to NCI - CIPs 35 72 41 77 Net income (loss) attributable to NCI - Subco 93 — 201 — Net income attributable to BlackRock, Inc.
Condensed Consolidated Statements of Income: first-half 2026 results · Filed 06/08/2026
During the six months ended June 30, 2026, under the Company’s existing share repurchase program, the Company repurchased an aggregate of 0.8 million shares and share equivalents for approximately $900 million.
Note 21, Capital Stock: executed first-half 2026 repurchases · Filed 06/08/2026
The 2026 Credit Facility requires the Company not to exceed a maximum consolidated leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3.5 to 1, which was satisfied with a ratio of less than 1 to 1 at June 30, 2026.
Liquidity and Capital Resources: leverage covenant and actual compliance · Filed 06/08/2026
common stockholders: Basic $ 12.34 $ 10.29 $ 26.58 $ 20.03 Diluted $ 12.19 $ 10.19 $ 26.25 $ 19.83 Weighted-average common shares outstanding: Basic 155.2 154.9 155.2 155.0 Diluted (including Subco Units) 164.6 156.3 164.8 156.4 See accompanying notes to condensed consolidated financial statements.
Condensed Consolidated Statements of Income: diluted share counts · Filed 06/08/2026
Cash flows used in financing activities, excluding the impact of CIPs, for 2024 were $83 million, primarily resulting from $3.1 billion of cash dividend payments, $1.9 billion of share repurchases, including $1.6 billion in open market transactions and $0.3 billion of employee tax withholdings related to employee stock transactions, and $1.0 billion of repayment of long-term borrowings, partially offset by $5.5 billion of proceeds from long-term borrowings related to the issuances of senior notes to fund a portion of the cash consideration for the GIP Transaction and the Preqin Transaction, which is anticipated to close in the first quarter of 2025, and $0.5 billion in proceeds from stock options exercised.
MD&A: 2024 acquisition financing, debt repayment and capital returns · Filed 25/02/2025
During 2025, 2024 and 2023, the Company paid cash dividends of $20.84 per share (or $3.3 billion), $20.40 per share (or $3.1 billion) and $20.00 per share (or $3.0 billion), respectively.
Capital Stock: dividends paid in 2023–2025 · Filed 25/02/2026
◦BPIP awards in particular represent more than 50% of 2025 NEO TAC in aggregate, with ultimate realized values that are further determined by achievement against pre-established 3-year key financial metric targets.
Executive Compensation: BPIP share of 2025 NEO compensation · Filed 10/04/2026
◦The two key financial metrics used in BPIP, Organic Revenue Growth and Operating Margin, as adjusted, are critical drivers of BlackRock’s long-term shareholder value creation that are embedded in BPIP awards using objective, quantified performance targets and a payout matrix disclosed upfront for shareholders.
Executive Compensation: BPIP performance metrics · Filed 10/04/2026
◦Following FY2022, for example, NEO pay determinations through the Framework resulted in a 32% average reduction in NEO total incentives.
Executive Compensation: realized 2022 incentive reductions · Filed 10/04/2026
For the 2025 BPIP awards granted in January 2026, the number of shares of BlackRock common stock that a participant ultimately receives upon settlement will be equal to the base number of RSUs granted, multiplied by a percentage determined in accordance with the 2025 BPIP Award Determination Matrix below.
Executive Compensation: January 2026 BPIP grants and settlement terms · Filed 10/04/2026
BlackRock is an independent, publicly traded company, with no single majority shareholder and over 80% of its Board of Directors consisting of independent directors.
Item 1, Business: existing board independence and ownership structure · Filed 25/02/2026
During 2025, the Risk Committee received updates from the CISO at each of its regularly scheduled meetings, as well as at its joint session with the Audit Committee.
Corporate Governance: actual 2025 cybersecurity oversight · Filed 10/04/2026
At the 2025 Annual Meeting of Shareholders, 67% of votes were cast in support of our executive compensation policies, practices, and determinations.
Executive Compensation: 2025 say-on-pay support · Filed 10/04/2026
This included outreach to stewardship teams and investors at our 50 largest shareholders, representing approximately 65% of shares outstanding, and more than 20 engagements overall, representing more than one‑third of shares outstanding.
Executive Compensation: shareholder outreach and engagements · Filed 10/04/2026
(2)Organic Revenue Growth is a measure of the estimated annual revenue impact of BlackRock’s total net new business in a given year, including net new technology services revenue, excluding the effect of market appreciation/(depreciation) and foreign exchange.
Pay Versus Performance: organic revenue growth definition · Filed 10/04/2026
Organic Revenue is not directly correlated with the actual revenue earned in a given year.
Pay Versus Performance: organic revenue versus actual earned revenue · Filed 10/04/2026
BlackRock may not be able to realize the anticipated benefits of these acquisitions, including synergies, value creation or other benefits, fully or at all, or on the timeline BlackRock expects.
Item 1A, Risk Factors: acquisition benefits remain uncertain · Filed 25/02/2026
