Harvard University’s endowment grew 27.1% in fiscal year 2026, the highest return in five years, the school said in its annual financial report released Thursday.
The fund’s total value now stands at nearly $68 billion, outperforming the S&P 500’s total return of 22.3% over the same period by 4.8 percentage points. The achievement comes as the Trump administration takes steps to punish the school and withhold funding from the university.
“The market can easily get back what it gives, but over the long term, that return will strengthen the endowment’s ability to support the university,” Harvard Chief Financial Officer Ritu Kalra and Treasurer Timothy Baraket wrote in their 49-page annual report. “The university intentionally smooths distributions so that management support does not rise or fall with the market. Therefore, high investment returns support Harvard research over time through future distributions.”
The returns marked the best year since 2021 for the endowment, which is managed by Harvard Management Company. Harvard University’s fiscal year ends on June 30th.
Harvard University disclosed Elon Musk’s $2.2 billion stake in its second-quarter 13F filing with the Securities and Exchange Commission. space x Rocket and satellite company. This was the fund’s largest single holding and the second largest. Taiwan semiconductor manufacturing company Just under $350 million.
But Harvard’s financial position has been hurt by the federal government’s actions. Federally supported research revenues decreased 19.5% to $509 million in fiscal year 2026.
And starting this year, “endowment resources will face further constraints as the federal excise tax on Harvard’s net investment income increases almost sixfold, from 1.4% to 8%,” Kalra and Barakett wrote. “We estimate that the rate increases will cost us approximately $300 million annually.”
“If there are as many returns as this year, the federal sales tax will be several times higher,” they pointed out.
President Alan Garber acknowledged such headwinds, but said in the report that Harvard still has the potential to succeed.
“Together, we have the opportunity to lead the university on a path to excellence that no one can imagine today,” he said. “Despite the challenges and uncertainties, it is a thrilling time to be part of a great American institution dedicated to Veritas.”
