Harvard endowment grows 27.1% in fiscal 2026, lifted by SpaceX stake
Harvard's endowment reached nearly $68 billion, its best return in five years, even as federal research funding fell and a higher excise tax looms.
At a glance
- Harvard's endowment grew 27.1% in fiscal 2026 to nearly $68 billion, its best return in five years.
- The return beat the S&P 500's 22.3% total return by 4.8 percentage points.
- Federal research revenue fell 19.5%, and a higher federal excise tax on investment income is expected to cost about $300 million a year.
Harvard University's endowment grew 27.1% in fiscal year 2026, its strongest return in five years, bringing the fund to nearly $68 billion, the school said in its annual financial report released Thursday.
The return beat the S&P 500's 22.3% total return over the same period by 4.8 percentage points. Harvard's fiscal year ends June 30, and the endowment is managed by the Harvard Management Company. It was the fund's best year since 2021.
SpaceX is the largest single holding
In its second-quarter 13F filing with the Securities and Exchange Commission, Harvard disclosed a $2.2 billion stake in SpaceX, Elon Musk's rocket and satellite company. That was the endowment's largest single holding by value, ahead of Taiwan Semiconductor Manufacturing Company at just under $350 million.
Federal pressure on the university
The strong returns came amid actions by the Trump administration to penalize the school and withhold funding from the university. Federally sponsored research revenue declined 19.5% to $509 million in fiscal 2026.
Harvard chief financial officer Ritu Kalra and treasurer Timothy Barakett wrote in the 49-page report that from the current fiscal year, "endowment resources will face an additional constraint, with the federal excise tax on Harvard's net investment income rising nearly six-fold, from 1.4% to 8%." They estimated the higher rate will cost roughly $300 million a year, and noted that in a year of returns like this one, the tax "would be several times larger."
The two also cautioned that markets can take back what they give, but said the return strengthens the endowment's capacity to support the university over time. They added that Harvard deliberately smooths distributions so that operating support does not rise and fall with the markets.
Garber acknowledges headwinds
President Alan Garber acknowledged those challenges but said in the report that Harvard can still succeed. "Together, we have the opportunity to set the University on a path to excellence that none of us can imagine today," he said. "Notwithstanding the challenges and uncertainty, this is a thrilling time to be part of a great American institution devoted to Veritas."
Source: CNBC Top News.
Questions and answers
- How much did Harvard's endowment grow in fiscal 2026?
- Harvard's endowment grew 27.1% in fiscal year 2026, reaching nearly $68 billion. The school said it was the endowment's strongest return in five years.
- What is Harvard's largest endowment holding?
- Harvard disclosed a $2.2 billion stake in SpaceX in its second-quarter 13F filing, making it the endowment's largest single holding by value. Taiwan Semiconductor Manufacturing Company followed at just under $350 million.
- Why does Harvard face new financial pressure?
- The Trump administration has moved to penalize the school and withhold funding, and federally sponsored research revenue fell 19.5% to $509 million. Harvard also expects a higher federal excise tax on net investment income, rising from 1.4% to 8%, to cost roughly $300 million a year.
