Blackstone Reports Strong Q2 Earnings Driven by AI Investments Despite Flat Stock Performance
Blackstone Inc. (BX) reported a significant jump in profit for the second quarter of 2026, with earnings per share rising 26% to $1.52 and revenue increasing 36% to $5.04 billion. The firm's assets under management grew by 11%, reaching $1.35 trillion. Nine out of ten top-performing investments were linked to artificial intelligence (AI), highlighting the growing importance of this sector in Blackstone’s portfolio. Despite these strong results, Blackstone’s stock remained largely unchanged and is down about 20% year-to-date. This muted reaction was partly due to weaker-than-expected base management fees and a continued decline in profits from its private credit business, which saw a second consecutive quarter of profit contraction. The firm's flagship retail fund also experienced reduced inflows as wealthy investors grew cautious. Blackstone’s AI strategy has been central since 2021 when it acquired QTS for $10 billion and expanded into data centers and infrastructure financing. However, recent challenges such as local opposition to new projects and a slowdown in non-AI sectors have raised concerns about the sustainability of its growth.
Topics: AI investments Blackstone private credit stock performance