Harvard's Endowment Surpasses $68 Billion with 27% Return, Driven by SpaceX Stake
Harvard University reported a 27.1% return on its endowment in fiscal year 2026, the strongest performance since 2021 and outperforming the S&P 500's 22.3%. The growth was largely driven by Harvard’s $2.2 billion investment in SpaceX, which became its largest single holding. This marked a significant milestone for the university as it navigates political pressures from the Trump administration, including potential penalties over diversity and funding issues. Despite strong returns, Harvard faces financial headwinds such as an 19.5% decline in federally-sponsored research revenue to $509 million and a nearly six-fold increase in federal excise tax on its endowment income—from 1.4% to 8%. The higher tax is expected to cost the university approximately $300 million annually, according to Harvard’s CFO Ritu Kalra and Treasurer Timothy Barakett. University President Alan Garber acknowledged these challenges but expressed confidence in navigating them while advancing institutional excellence.
Topics: government policy investment returns SpaceX university endowments