Technology servicesNarrow moat

BlackRock (BLK) — moat facet

The one line sold on contracts rather than asset values, and more than half of its 2025 growth was an acquisition.

Technology services and subscription revenue is BlackRock's software business, and at $1,981 million in 2025 it is about 8% of revenue 1. It comprises Aladdin, the investment and risk platform BlackRock runs its own portfolios on, and the products sold around it: Aladdin Wealth, eFront, Preqin and Cachematrix 2. The customers include insurers, pension funds, banks and other asset managers.

Technology services revenue growth (%)+7.9%2024+23.6%2025 reported+10.5%2025 ex-Preqin+13.4%Q2 2026BlackRock Form 10-K FY2025 and 10-Q Q2 2026; Preqin about $210m of 2025 revenue
Take Preqin out and the software business grows at about 10-13% a year.

It is paid by contract, not by asset values. Aladdin assignments are typically long-term contracts that provide recurring revenue 3, which makes this the one line that does not move with markets day to day. Annual contract value rose 31% in 2025 including Preqin and 16% without it 4.

The line's history is slow and then bought. It was $1,485 million in 2023 and $1,603 million in 2024, up 7.9% 5. In 2025 it rose 24%, and about $210 million of the increase came from Preqin, acquired in March 2025 6. Without Preqin the line grew about 10.5% 7. That is faster than it had been, and it is not the growth the headline figure suggests.

BlackRock does not disclose the profitability of the business, because it reports one segment. What is visible is the scale: the whole of technology revenue is about a tenth of base fees 8. Aladdin's value to BlackRock lies partly outside this line, in running BlackRock's own investment operations, and that value is not separately priced.

The latest figures show the Preqin boost fading. Technology revenue was $566 million in Q2 2026 against $499 million, up 13%, and $1,096 million in the first half against $935 million, up 17% 9. Preqin was in most of the 2025 first half too, so the quarter's 13% is close to the organic rate. The filing attributes it to sustained demand for Aladdin and multi-product solutions 10.

The outlook depends on the private side. Preqin gives BlackRock private-markets data to sell alongside eFront's workflow, and the firm describes growing private allocations as a growth opportunity for Preqin 11. The measure to watch is organic annual contract value growth: sustained above the 16% of 2025, and technology becomes a second engine; back toward single digits, and it stays a useful 8% of a fee business.

Moat trajectory: Holding steady

Q2 2026 technology revenue grew 13%, close to the organic rate once Preqin is in both periods.

The number that tests this moat
Reported
Technology services revenue growth, latest quarter
+13% in Q2 2026 ($566m against $499m)

With Preqin in both periods this is close to organic growth; above the 16% organic ACV growth of 2025 would make technology a second engine.

Source: BlackRock Form 10-Q, Q2 2026 ↗
References
  1. ReportedTechnology services and subscription revenue is BlackRock's software business, and at $1,981 million in 2025 it is about 8% of revenue .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  2. ReportedIt comprises Aladdin, the investment and risk platform BlackRock runs its own portfolios on, and the products sold around it: Aladdin Wealth, eFront, Preqin and Cachematrix .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  3. ReportedAladdin assignments are typically long-term contracts that provide recurring revenue , which makes this the one line that does not move with markets day to day.
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedAnnual contract value rose 31% in 2025 including Preqin and 16% without it .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  5. ReportedIt was $1,485 million in 2023 and $1,603 million in 2024, up 7.9% .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  6. ReportedIn 2025 it rose 24%, and about $210 million of the increase came from Preqin, acquired in March 2025 .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  7. Moat Explorer calcWithout Preqin the line grew about 10.5% .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  8. Moat Explorer calcWhat is visible is the scale: the whole of technology revenue is about a tenth of base fees .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  9. ReportedTechnology revenue was $566 million in Q2 2026 against $499 million, up 13%, and $1,096 million in the first half against $935 million, up 17% .
    BlackRock, Inc. Form 10-Q, quarter ended 30 June 2026 - revenue by line, base fees by product and client type, performance fees by product, distribution costs, AUM by client type and product — Q2 2026 · publ. August 2026 · source ↗
  10. ReportedThe filing attributes it to sustained demand for Aladdin and multi-product solutions .
    BlackRock, Inc. Form 10-Q, quarter ended 30 June 2026 - revenue by line, base fees by product and client type, performance fees by product, distribution costs, AUM by client type and product — Q2 2026 · publ. August 2026 · source ↗
  11. ReportedPreqin gives BlackRock private-markets data to sell alongside eFront's workflow, and the firm describes growing private allocations as a growth opportunity for Preqin .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
Sources
Generated September 23, 2026