Blackstone Reports Strong Q2 Earnings, Driven by AI Investments as Assets Reach $1.35 Trillion
New York-based Blackstone reported second-quarter distributable earnings of $1.52 per share, exceeding analyst estimates and rising 26% year-over-year. The firm's total assets reached $1.35 trillion due to strong inflows during the quarter. Key contributors included asset monetizations totaling $31.8 billion from deals such as selling a stake in data centers to Digital Realty and power infrastructure holdings to TPG. Blackstone is heavily investing in AI, with nine of its top 10 best-performing investments tied to artificial intelligence. CEO Stephen Schwarzman highlighted the firm's position on the "most consequential transformation" driven by AI and expressed confidence in Blackstone’s stock value as a gateway into this megatrend. However, he also acknowledged risks related to excessive exuberance in AI investing. Despite recent market volatility affecting private credit funds like BCRED, net returns improved slightly from flat in Q1 2026 but remained below the previous year's performance. Redemption requests have slowed significantly since July began.
Topics: AI investments assets under management Blackstone profit beat