Leading Universities Post Strong Endowment Gains; Harvard’s Return Tops 27%

Harvard University's endowment generated a 27.1% return in fiscal year 2026, according to the university's annual financial report, growing its total value by about $11 billion over the prior year to nearly $68 billion. That makes it the largest university endowment in the world. According to N.P. "Narv" Narvekar, CEO of the Harvard Management Company, the performance was driven primarily by venture capital, public equities, and hedge funds, and was also shaped by the portfolio's composition, as the firm "deliberately grew private equity to be the largest part of our portfolio." Private equity now accounts for 46% of the portfolio. The gains came even as Harvard remains in protracted disputes with the Trump administration over federal research policy, the termination of scores of research grants, its admission of international students, and other legal matters.

Harvard ended the year with a $100 million operating surplus on $6.7 billion of operating revenue, a 1.5% operating margin, compared with a $113 million operating deficit in FY 2025. The annual endowment distribution totaled $2.6 billion, nearly 40% of operating revenue, though more than 80% of that distribution carried specific donor restrictions. Harvard reported a $78.7 million deficit in unrestricted funds, which support general operations. Beginning in fiscal 2027, Harvard will face an increase in the federal excise tax on net investment income from 1.4% to 8%, which university officials estimate will cost roughly $300 million a year, with the amount varying based on market performance.

Harvard's results were not unique. Several public and private institutions posted 20% to 30%-plus returns, buoyed by investments in AI companies, SpaceX, and a strong stock market, outpacing broad indexes such as the S&P 500. Washington University in St. Louis reported a 37.3% gain, driven by a roughly 3,000% return on its SpaceX investment, lifting its endowment to $17.7 billion and producing a surplus of about $112 million (2.1%). Stanford announced a 31.7% return on its merged financial pool, bringing it to $61.5 billion. The University of Pennsylvania reported a 27.4% return, lifting its endowment from $24.8 billion to $31 billion, after a 12.2% return the prior year. The University of North Carolina System Investment Fund returned 37.8% for the fiscal year ending in June, mainly due to its SpaceX stake, and now holds about $17 billion. Brown University returned 19.6%, its highest in five years, with its portfolio rising to $9.5 billion. The University of Colorado Foundation's long-term pool returned 20.3% to almost $3 billion, and Boston College's endowment grew 20%.