In the 2026 fiscal year, rich colleges got even richer.
Harvard University may have brought in $123 million less in federal research funding as it became the favorite higher-education punching bag of the Trump administration. But it still reported a surplus for the year thanks in large part to its endowment.
Last fiscal year, which ended June 30 for Harvard and many other colleges, the Ivy League institution’s endowment grew at a rate of just over 27% to $68 billion. That growth translated to $11 billion in real dollars, a figure that represents more — typically much more — money than is found in nearly every other endowment in the country but for the largest 20 or so. And it helped Harvard fund $400 in research activity out of pocket.
Harvard is also facing newly increased federal taxes on endowment income, which went into effect for the wealthiest colleges in January. The university's leaders are budgeting for $300 million a year in federal taxes on its investment income as a result of the change.
Harvard may be in a class of its own in dollar terms. But many college endowments across the country have reported double digit growth as equity and other investment markets boomed amid persistent inflation, sluggish job growth, the ongoing U.S. war in Iran, high energy prices and widespread economic and geopolitical uncertainty.
Booming growth at some university endowments
Such growth is a bright spot — for those lucky enough to have started with some meat to their endowments — in a higher ed world under pressure by demographic shifts and myriad other factors.
In a September report, S&P Global Ratings analysts said they had noticed “an increasing number of institutions relying on elevated endowment draws” and other uses of the endowment amid diminishing net tuition revenue. That’s a risky gamble, they noted, one that trades short-term liquidity for long-term financial security.
Those colleges were the exception, though. “Most have focused on building their endowments and preserving resources amid uncertainty,” the analysts added.
Here’s a look at some of the biggest endowment winners and their year-over-year returns from 2026 fiscal:
- Stanford University saw a 31.7% return on its investment pool for the fiscal year, bringing the total to $61.5 billion. Those investment funds are set to add over $2.2 billion to the private California university’s operating budget in fiscal 2027 — roughly one-fifth of the total.
- The University of Pennsylvania’s endowment grew at a rate similar to Harvard’s — 27.4% — reaching $31.1 billion by the end of fiscal 2026. That compares to an annualized increase of 9.2% over the past five years. It also stands as the largest one-year dollar jump in the university’s history, according to the Philadelphia Inquirer.
- Washington University in St. Louis announced its endowment had grown by a whopping 37.3% to $17.7 billion amid a year of painful layoffs. One stock in particular played a major role. A $50 million investment in SpaceX a decade ago has become 10% of WashU’s portfolio amid the company’s $1.8 trillion initial public offering, according to Bloomberg. Chancellor Andrew Martin said in a community message that WashU officials expected “a healthy increase” in the university’s endowment payout rate for fiscal 2028 as a result of growth.
- Yale University’s endowment grew 26.3% to $53.3 billion, a rate three times what the Ivy League institution budgeted for. “Of course, the university will benefit less from this return than it did in previous years, as a portion will be subject to the higher endowment tax rate,” Yale leaders said, pointing to the new 8% earnings tax it has to pay on the endowment, up from 1.4% previously.
- Princeton University made a 23.7% gain on its endowment, which expanded to an all-time high of $42.3 billion. The explosive growth — the highest rate since 2021 for Princeton — follows months of budget cuts, based in part on expectations for lower investment returns in the future. Those expectations have not changed, according to a spokesperson’s statement to media in October.
- Brown University reported a 19.6% return on its endowment, which grew to $9.5 billion in fiscal 2026. The endowment provided the university with a $357 million contribution to its operating budget, an all-time high at the Ivy League, that amounted to some $32,000 per student and 24% of Brown’s total revenue for the year.
- Dartmouth College's endowment returns increased 17.5% to $10 billion, which was “well-ahead of its portfolio benchmark.” The Ivy League institution’s CFO described the endowment as “foundational” to Dartmouth’s ability to invest in its future amid inflation, high interest rates, energy costs, tariffs, endowment taxes and threats to federal funding.
