Key Takeaways
- • Stanford University's Merged Pool returned 31.7% for the fiscal year ending June 30, 2026, net of internal and external costs but before federal excise taxes, which rise to 8.0% this academic year.
- • The 5- and 10-year annualized returns stand at 10.3% and 12.5%, versus medians of 7.2% and 9.9% for U.S. college and university endowments over the same periods, per Cambridge Associates.
- • The 31.7% one-year return exceeded the 15.5% median endowment return reported for last year, and a typical 70/30 global stocks and U.S. bonds portfolio returned 17.8% over one year.
- • The Merged Pool will disburse more than $2.2 billion to the university in fiscal 2027, roughly one-fifth of the operating budget, and the pool was valued at $61.5 billion on June 30, 2026.
- • Stanford reports record financial aid of $1.2 billion for fiscal 2027, with no undergraduate tuition increase for 2026-27.
Summary
Stanford University announced a 31.7% investment return in its Merged Pool for the year ending June 30, 2026, according to the university's report. The five- and ten-year annualized returns were 10.3% and 12.5%, respectively. All figures are net of internal and external costs but do not reflect federal excise taxes, which rise to 8.0% this academic year for Stanford and a small number of other universities.
The one-year result outpaced the 15.5% median return for U.S. college and university endowments, as preliminarily reported by Cambridge Associates. Over five and ten years, the median endowment returned 7.2% and 9.9% annually. A typical 70/30 passive portfolio of global stocks and high-quality U.S. bonds returned 17.8%, 7.4% and 9.3% over the same one-, five- and ten-year periods, so Stanford's one-year return trailed that benchmark while its longer-term results exceeded the endowment median.
Stanford Management Company chief executive Robert Wallace attributed the results to strong performance from public and private equity positions, along with a contribution from absolute return strategies. Wallace said the university's 10-year performance places it in the top 5% of higher education endowments and reflects efforts to rebuild the portfolio with greater concentration and quality. He noted that annual distributions to the operating budget have more than doubled over the last decade.
The Merged Pool, the university's principal investment vehicle, held $61.5 billion on June 30, 2026. It invests a substantial majority of Stanford's more than 9,000 endowed gifts and other long-term operating funds. A commercial real estate portion of the endowment near campus sits outside the pool. Beginning September 1, 2026, the pool will disburse more than $2.2 billion in fiscal 2027, about one-fifth of the operating budget. Total financial aid and student support will reach a record $1.2 billion, with endowment distributions providing nearly half. Stanford did not raise undergraduate tuition for 2026-27, and families with incomes below $100,000 pay no tuition, room or board. University president Jonathan Levin said the endowment supports the institution's long-term mission. The aggregate endowment value as of August 31, 2026 will appear in financial statements in the coming months.
The one-year result outpaced the 15.5% median return for U.S. college and university endowments, as preliminarily reported by Cambridge Associates. Over five and ten years, the median endowment returned 7.2% and 9.9% annually. A typical 70/30 passive portfolio of global stocks and high-quality U.S. bonds returned 17.8%, 7.4% and 9.3% over the same one-, five- and ten-year periods, so Stanford's one-year return trailed that benchmark while its longer-term results exceeded the endowment median.
Stanford Management Company chief executive Robert Wallace attributed the results to strong performance from public and private equity positions, along with a contribution from absolute return strategies. Wallace said the university's 10-year performance places it in the top 5% of higher education endowments and reflects efforts to rebuild the portfolio with greater concentration and quality. He noted that annual distributions to the operating budget have more than doubled over the last decade.
The Merged Pool, the university's principal investment vehicle, held $61.5 billion on June 30, 2026. It invests a substantial majority of Stanford's more than 9,000 endowed gifts and other long-term operating funds. A commercial real estate portion of the endowment near campus sits outside the pool. Beginning September 1, 2026, the pool will disburse more than $2.2 billion in fiscal 2027, about one-fifth of the operating budget. Total financial aid and student support will reach a record $1.2 billion, with endowment distributions providing nearly half. Stanford did not raise undergraduate tuition for 2026-27, and families with incomes below $100,000 pay no tuition, room or board. University president Jonathan Levin said the endowment supports the institution's long-term mission. The aggregate endowment value as of August 31, 2026 will appear in financial statements in the coming months.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.