Harvard University’s endowment grew 27.1% in the fiscal year ended June 30, its strongest return since 2021, the school said in its annual financial report on Thursday.
By the numbers: The endowment now totals nearly $68 billion after beating the S&P 500’s 22.3% total return by 4.8 percentage points over the same period.
- Harvard disclosed a $2.2 billion stake in SpaceX in its second-quarter 13F filing with the SEC, its largest single holding by value. Taiwan Semiconductor Manufacturing Company was second at just under $350 million.
- Harvard’s fiscal year ends June 30, and the money is managed by Harvard Management Company.
Yes, but: Federally sponsored research revenue fell 19.5% to $509 million in fiscal 2026, as the Trump administration sought penalties against the 21,000-student school and threatened to withhold funding over diversity commitments and other issues.
What's next: Starting in the current fiscal year the federal excise tax on Harvard’s net investment income rises nearly six-fold, from 1.4% to 8%. The university estimates the higher rate costs roughly $300 million a year, and several times more in a year of returns like this one.
What they're saying: "While markets can easily take back what they give, that return will strengthen the endowment’s capacity to support the University over time," chief financial officer Ritu Kalra and treasurer Timothy Barakett wrote in the 49-page annual report.
Between the lines: Harvard deliberately smooths distributions so that operating support stays steady through market swings, Kalra and Barakett wrote, which means a 27.1% year reaches classrooms gradually through future payouts.
Why it matters: The largest US university endowment posted its best year in five by owning a private rocket company, a measure of how far institutional money has moved into late-stage private tech.
