BlackRock Inc. (NYSE:BLK) expects momentum to continue into the seasonally strong fourth quarter, supported by broad activity across iShares, private markets, retirement and international platforms, the company said during its third-quarter earnings call.
Management said the company continues to execute against its long-term targets for organic base fee growth, operating margin expansion and EPS.
BlackRock repurchased $550 million of shares in the third quarter of 2026 and expects to buy back at least another $550 million in the fourth quarter, subject to market conditions and capital spending plans, consistent with guidance issued in July.
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Growth Opportunities In AI and Private Markets
The company sees growth opportunities in the convergence of public and private markets, rising AI infrastructure investment, and increasing demand for investment technology and data.
Management also expects private credit demand to remain strong, particularly from insurers seeking high-grade investment solutions, with activity potentially accelerating toward year-end and into 2027.
BlackRock raised $68 billion in private markets over the past 12 months, including $25 billion in private credit during its first full year with HPS.
Its AI infrastructure partnership completed its first deployment with the closing of the Align Data Center transaction, valued at approximately $40 billion in enterprise value.
The company also partnered with Meta Platforms, Inc. (NASDAQ:META) to finance its planned $14 billion Texas data center, combining Global Infrastructure Partners’ infrastructure expertise with private financing capabilities, including HPS.
BlackRock sees further opportunities to fund customers expanding computing capacity, initially through private placements for high-grade insurance mandates and potentially later through securitized, tradable investments available to a wider range of investors.
Management said BlackRock will use its technology, data, scale and investment expertise to develop standardized performance measures and risk analytics for computing capacity as an emerging asset class.
Earnings Snapshot
BlackRock reported third-quarter revenue growth of 19% year-over-year to $7.75 billion, topping the analyst consensus estimate of $7.52 billion. Adjusted earnings came in at $15.93 per share, ahead of the consensus estimate of $14.13.
J.P. Morgan analyst Michael Cho said revenue topped JPMorgan’s $7.47 billion estimate, partly due to higher performance fees.
Cho noted that BlackRock’s third-quarter results exceeded expectations, supported by strong inflows across most businesses.
BLK Stock Price Activity: BlackRock shares were up 0.21% at $1,068.40 at the time of publication on Wednesday.
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