Harvard Endowment Soars to $68 Billion After 27 Percent Return

Key Points:

• Harvard’s endowment grew by over $11 billion to nearly $68 billion in fiscal year 2026, achieving a 27 percent investment return, its highest since 2021, driven largely by a $2.2 billion stake in SpaceX.
• The University reported a $100 million operating surplus, a 1.5 percent margin on $6.7 billion revenue, after a $113 million deficit in 2025, but faced a $78.7 million deficit in unrestricted funds supporting general operations.
• Harvard’s tax on investment income more than quadrupled to $207 million due to higher realized gains, and the new endowment tax rate increase from 1.4% to 8%, effective fiscal year 2027, has caused a $1.9 billion jump in estimated future tax liabilities.
• Operating expenses fell over 2 percent to $6.64 billion, with a nearly 4 percent decline in salaries and wages due to hiring freezes and restructurings, though legal fees surged 58 percent amid ongoing federal investigations and court battles.
• Harvard Management Company expanded its tech sector presence with a new San Francisco office, and private equity now comprises 46 percent of the endowment portfolio, with venture capital investments increasing from 24 to 31 percent.