Key Takeaways
- • Stanford University reported a 31.7% investment return in its Merged Pool 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 Merged Pool's 5- and 10-year annualized returns are 10.3% and 12.5%, against medians of 7.2% and 9.9% for U.S. college and university endowments, according to Cambridge Associates' preliminary data.
- • The Merged Pool, valued at $61.5 billion as of June 30, 2026, will disburse more than $2.2 billion to the university in fiscal year 2027, about one-fifth of its operating budget.
- • Stanford's 31.7% one-year return exceeded the 15.5% median for endowments last year, though the release notes the university's 10-year return places it in the top 5% of higher education endowments.
- • Total student financial aid and support from Stanford resources will reach a record $1.2 billion in fiscal 2027, and undergraduate tuition was not raised 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 announcement. The return brings the pool's five- and ten-year annualized returns to 10.3% and 12.5%, respectively. These figures are net of all 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.
Stanford's one-year performance compares with a 15.5% median return for U.S. college and university endowments in the prior year, as preliminarily reported by Cambridge Associates. Over five and ten years, the median endowment returned 7.2% and 9.9% per year. Over the same periods, a typical 70/30 passive portfolio of global stocks and high-quality U.S. bonds returned an annualized 17.8%, 7.4%, and 9.3%, respectively, for the one-, five-, and ten-year periods.
Robert Wallace, chief executive officer of Stanford Management Company, attributed the results to strong performance from public and private equity positions, along with a significant contribution from absolute return strategies. He cautioned that single-year performance should not be given undue weight, and noted that the university's ten-year performance places it in the top 5% of higher education endowments. Annual distributions to the operating budget have more than doubled over the last decade, he said.
In fiscal year 2027, beginning September 1, 2026, the Merged Pool will disburse more than $2.2 billion to the university, roughly one-fifth of its operating budget. Jonathan Levin, president of Stanford University, said the endowment supports the institution's long-term mission. Total financial aid and student support from Stanford resources will reach a record $1.2 billion in fiscal 2027, with endowment distributions contributing nearly half. Stanford did not increase undergraduate tuition for 2026-27, and families with incomes below $100,000 pay no tuition, room, or board, while those below $150,000 pay no tuition.
The Merged Pool, the university's principal investment vehicle, holds a substantial majority of more than 9,000 endowed gifts and other long-term operating funds. Its value on June 30, 2026, was $61.5 billion. A commercial real estate portion of the endowment near campus is excluded from the pool. Stanford Management Company manages the pool under fiduciary principles and the university's Ethical Investment Framework. Aggregate endowment value as of August 31, 2026, will be published in the university's financial statements in the coming months.
Stanford's one-year performance compares with a 15.5% median return for U.S. college and university endowments in the prior year, as preliminarily reported by Cambridge Associates. Over five and ten years, the median endowment returned 7.2% and 9.9% per year. Over the same periods, a typical 70/30 passive portfolio of global stocks and high-quality U.S. bonds returned an annualized 17.8%, 7.4%, and 9.3%, respectively, for the one-, five-, and ten-year periods.
Robert Wallace, chief executive officer of Stanford Management Company, attributed the results to strong performance from public and private equity positions, along with a significant contribution from absolute return strategies. He cautioned that single-year performance should not be given undue weight, and noted that the university's ten-year performance places it in the top 5% of higher education endowments. Annual distributions to the operating budget have more than doubled over the last decade, he said.
In fiscal year 2027, beginning September 1, 2026, the Merged Pool will disburse more than $2.2 billion to the university, roughly one-fifth of its operating budget. Jonathan Levin, president of Stanford University, said the endowment supports the institution's long-term mission. Total financial aid and student support from Stanford resources will reach a record $1.2 billion in fiscal 2027, with endowment distributions contributing nearly half. Stanford did not increase undergraduate tuition for 2026-27, and families with incomes below $100,000 pay no tuition, room, or board, while those below $150,000 pay no tuition.
The Merged Pool, the university's principal investment vehicle, holds a substantial majority of more than 9,000 endowed gifts and other long-term operating funds. Its value on June 30, 2026, was $61.5 billion. A commercial real estate portion of the endowment near campus is excluded from the pool. Stanford Management Company manages the pool under fiduciary principles and the university's Ethical Investment Framework. Aggregate endowment value as of August 31, 2026, will be published in the university's financial statements in the coming months.
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