Key Takeaways
- • Harvard University's endowment grew 27.1% in fiscal year 2026, its strongest return in five years and best since 2021, according to the annual financial report released Thursday, October 15, 2026.
- • The endowment, managed by Harvard Management Company, outperformed the S&P 500's 22.3% total return by 4.8 percentage points and now totals nearly $68 billion.
- • A $2.2 billion stake in Elon Musk's SpaceX, disclosed in a second-quarter 13F filing, was the endowment's largest single holding by value, ahead of Taiwan Semiconductor Manufacturing Company at just under $350 million.
- • The federal excise tax on Harvard's net investment income rises from 1.4% to 8% starting this fiscal year, which the university estimates will cost roughly $300 million a year.
- • Federally sponsored research revenue fell 19.5% to $509 million in fiscal 2026 amid federal pressure on the university.
Summary
Harvard University's endowment grew 27.1% in fiscal year 2026, the university said in its annual financial report released Thursday, according to CNBC. The return was its strongest in five years and its best since 2021 for the endowment, which is managed by the Harvard Management Company. The endowment beat the S&P 500's 22.3% total return over the same period by 4.8 percentage points and now totals nearly $68 billion. Harvard's fiscal year ends June 30.
The gain was powered in large part by a $2.2 billion position in SpaceX, the rocket and satellite company led by Elon Musk. Harvard disclosed the stake in its second-quarter 13F filing with the Securities and Exchange Commission. It is the endowment's largest single holding by value, followed by Taiwan Semiconductor Manufacturing Company at just under $350 million.
The results came as the Trump administration has sought penalties against the school and threatened to withhold federal funding over diversity commitments and other issues. Federally sponsored research revenue declined 19.5% to $509 million in fiscal 2026. Harvard's chief financial officer Ritu Kalra and treasurer Timothy Barakett wrote in the 49-page report that the federal excise tax on the university's net investment income will rise from 1.4% to 8% starting in the current fiscal year, a nearly six-fold increase that they estimate will cost roughly $300 million a year. They noted the tax would be several times larger in a year of returns like this one.
Kalra and Barakett cautioned that markets can reverse gains, and said the university deliberately smooths distributions so operating support does not swing with markets. Strong returns therefore support Harvard's work gradually through future distributions. President Alan Garber acknowledged the headwinds but said Harvard can still succeed, describing the moment as a thrilling time to be part of the institution.
The gain was powered in large part by a $2.2 billion position in SpaceX, the rocket and satellite company led by Elon Musk. Harvard disclosed the stake in its second-quarter 13F filing with the Securities and Exchange Commission. It is the endowment's largest single holding by value, followed by Taiwan Semiconductor Manufacturing Company at just under $350 million.
The results came as the Trump administration has sought penalties against the school and threatened to withhold federal funding over diversity commitments and other issues. Federally sponsored research revenue declined 19.5% to $509 million in fiscal 2026. Harvard's chief financial officer Ritu Kalra and treasurer Timothy Barakett wrote in the 49-page report that the federal excise tax on the university's net investment income will rise from 1.4% to 8% starting in the current fiscal year, a nearly six-fold increase that they estimate will cost roughly $300 million a year. They noted the tax would be several times larger in a year of returns like this one.
Kalra and Barakett cautioned that markets can reverse gains, and said the university deliberately smooths distributions so operating support does not swing with markets. Strong returns therefore support Harvard's work gradually through future distributions. President Alan Garber acknowledged the headwinds but said Harvard can still succeed, describing the moment as a thrilling time to be part of the institution.
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