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    BX
    Earnings call· Jun 2026(Q2 FY26)

    Blackstone Inc. BX

    Jul 23, 2026 Source

    Executive summary

    Blackstone Q2 FY26 — AI-Driven Growth Fuels Record AUM and Strong Earnings

    Blackstone delivered robust Q2 FY26 results, driven by its strategic, large-scale investments in AI-related infrastructure and companies, which fueled record AUM and strong earnings growth. The firm continues to expand its diversified capital solutions platform across institutional, insurance, and private wealth channels, positioning itself as a leader in private capital for the ongoing AI transformation. While geopolitical uncertainties and elevated interest rates present some headwinds, particularly in real estate and certain credit products, management remains optimistic about future growth and realization opportunities.

    Highlights

    5

    • Distributable earnings (DE) increased 26% year-over-year to $2 billion.

    • Fee-related earnings (FRE) grew 22% year-over-year to $1.8 billion.

    • Total inflows reached nearly $70 billion in the quarter, lifting assets under management (AUM) 11% year-over-year to a record $1.35 trillion.

    • Net realizations rose 27% year-over-year to $414 million.

    • The IPO market is strengthening, with 3 IPOs executed since May and 8 on file globally.

    Concerns

    4

    • Geopolitical volatility pushed out exit pipelines and slowed realization activity in the near term.

    • Muted flows in credit for private wealth, with BCRED redemption requests remaining elevated and exceeding the 5% limit, resulting in net outflows of $1.2 billion.

    • The real estate recovery has been impacted by the increase in base rates.

    • Management is mindful of the potential for excessive exuberance in the AI area and associated investment risks.

    Guidance & targets

    6
    CategoryTargetConfidence
    Base management fees growth
    return to double-digit growth
    high materiality
    High
    Net realizations
    robust
    high materiality
    High
    New private equity energy transition flagship fund
    hit its hard cap soon
    medium materiality
    High
    Secondaries buyout flagship fund
    target of at least $22 billion
    medium materiality
    High
    Wellington and Vanguard funds inflows
    expected to start later this quarter
    medium materiality
    High
    BXHF (new perpetual multi-strategy hedge fund product) subscriptions
    expects to accept our first subscriptions
    medium materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Private Equity
    Strong fee revenue growth and investment performance, particularly in AI-related holdings and Asia.
    Corporate private equity funds appreciated: 3.7% in Q2Corporate private equity funds appreciated: 14% for LTMLatest global flagship appreciated: 6.1% in Q2Asia PE appreciated: 8.8% in Q2Most recent fully invested energy fund appreciated: 23.6% in Q2Operating companies revenue growth: 11% YoY
    		—32%——
    Real Estate
    Fee revenue growth despite base management fee decline due to harvesting and institutional cores headwinds. Strong performance in data centers, logistics, and rental housing.
    Performance revenues rose: nearly fivefold to highest level in 4 yearsOverall values appreciated: modestly in Q2Data centers, logistics, and rental housing comprise: nearly 80% of global equity portfolioLogistics U.S. leasing volume: up 26% in H1BREIT Global appreciated: 7% in Q2BREIT Asia appreciated: 3.7% in Q2
    		—21%——
    BXMA
    Strong fee revenue growth, record AUM, and exceptional investment performance and inflows.
    AUM reached: $109 billionAUM growth: 21% YoYLargest strategy delivered: 25 consecutive quarters of positive returnsLargest strategy Q2 returns: best in 6 yearsJuly 1 monthly inflows: $4.8 billion (best single month)Gross return for absolute return composite: 5.8% in Q2Gross return for absolute return composite: over 15% for LTMPositive composite returns: 25 consecutive quartersPositive composite returns: 38 of past 39 months
    		—18%——
    Credit
    Strong fee revenue growth, significant inflows, and robust AUM growth, particularly in insurance. Stable underlying credit performance.
    Combined platform AUM: $550 billionCombined platform AUM growth: 13% YoYInflows: $33 billion in Q2Insurance AUM reached: $290 billionInsurance AUM growth: 15% YoYNon-investment grade private credit strategies gross return: 1% in Q2Non-investment grade private credit strategies gross return: 7% for LTMMost recent BGREEN 3 gross return: 4.5% in Q2
    		—11%——
    Infrastructure
    Rocket ship growth in AUM and exceptional returns, powered by AI investments.
    AUM: $90 billionAUM growth: 40% YoYNet annual return since inception for co-mingled AIP strategy: 18%Dedicated platform appreciated: 7.2% in Q2Dedicated platform appreciated: 29% for LTM
    		————

    Operational metrics

    33
    Distributable earnings
    $2 billionup 26% year-over-year
    Q2 FY26

    Underpinned by strong FRE and net realizations.

    Fee-related earnings
    $1.8 billiongrew 22% year-over-year
    Q2 FY26

    One of the three best quarters in firm history.

    Net realizations
    $414 millionup 27% year-over-year
    Q2 FY26

    Despite geopolitical volatility.

    Total inflows
    $70 billion
    Q2 FY26

    Contributed to record AUM.

    Assets Under Management (AUM)
    $1.35 trillionup 11% year-over-year
    Q2 FY26

    Reached a record level.

    Dividend per share
    $1.29
    Q2 FY26

    Declared for holders of record as of August 3.

    Total revenues
    over 20% year-over-year growthover 20% year-over-year growth
    Q2 FY26

    Similar trajectory to Q1.

    Fee revenues
    over 20% year-over-year growthover 20% year-over-year growth
    Q2 FY26

    Double-digit growth in all four segments.

    Transaction and advisory fees
    $321 millionnearly doubled in the second quarter
    Q2 FY26

    Reached a record level, representing an underappreciated engine of fee revenue growth.

    Fee-related performance revenues
    $793 millionincreased 68% year-over-year
    Q2 FY26

    Powered by scaling and strong performance of perpetual strategies.

    Pay management fees
    mid-single-digit rateyear-over-year
    Q2 FY26

    In line with previous trajectory, with strong double-digit growth in PE and BXMA, deceleration in credit, and decline in real estate.

    Gross performance revenues
    $731 milliongrew 32% year-over-year
    Q2 FY26

    Underpinned by strong PE and real estate contributions.

    Net accrued performance revenue
    $7.5 billionup 13% year-over-year
    Q2 FY26

    Significant embedded realization potential on the balance sheet.

    Data center platform total value
    $185 billionup from $130 billion at the start of this year
    Q2 FY26

    Reflects significant growth in AI-related infrastructure.

    Data center capacity lease expectation
    over 3x morethan any other year in our history
    FY26

    If pipeline is executed, platform could double in next few years.

    Data center market potential
    $1 trillion
    over time

    For long-term ownership of stabilized data centers, currently a nascent market.

    Credit dry powder
    $84 billionover double where it was at the beginning of 2024
    Q2 FY26

    Largely earns fees as invested, representing a "coiled spring" for management fee growth.

    Insurance clients (dedicated solutions)
    40nearly doubled in the past 2 years
    Q2 FY26

    In dedicated insurance solutions area, with continued global additions.

    Private wealth AUM
    $324 billiongrew 16% year-over-year
    Q2 FY26

    Reached a record level despite geopolitical turbulence and muted credit flows.

    Private wealth total sales
    $8.6 billion
    Q2 FY26

    With a strong recovery in June after a slower pace in April and May.

    BXPE NAV
    $25 billionup 2x year-over-year
    Q2 FY26

    June represented the best month of sales since launch at $1.2 billion.

    BXPE net annualized return
    20%
    since inception

    For its largest share class, powered by outstanding portfolio positioning.

    BXINFRA NAV
    $6 billion
    Q2 FY26

    Raised approximately $900 million in Q2.

    BXINFRA annualized net return
    16%
    since inception

    For its largest share class.

    BREIT NAV
    $57 billionincreased 7% year-over-year
    Q2 FY26

    BREIT's investment in data centers, comprising 27% of the portfolio, has been particularly helpful.

    BREIT net return
    9.4%approximately 40% above the public REIT index
    since inception (9.5 years ago)

    For its largest share class.

    BREIT repurchases
    down 42% year-over-yeardown 42% year-over-year
    Q2 FY26

    Resulted in the best regular way net flows in nearly 4 years.

    BCRED gross sales
    $1 billion
    Q2 FY26

    Redemption requests remained elevated and exceeded the 5% limit.

    BCRED net outflows
    $1.2 billion
    Q2 FY26

    Resulted from elevated repurchase requests exceeding the 5% limit.

    US IPO activity increase
    sixfoldcompared to the same time last year
    H1 FY26

    Indicates a strengthening IPO market.

    IPO count executed
    3
    since May

    Includes a mobile advertising business, an office REIT in India, and BXDC.

    IPOs on file globally
    8
    Q2 FY26

    From a range of sectors and geographies.

    Data center sites
    15 gigawatts
    current

    Globally, representing a scarce commodity for building compute capacity.

    Industry KPIs

    4
    MetricValueDetails
    Fundraising inflows$70 billionUSD
    Performance revenue$7.5 billionUSD
    Fee related earnings$1.8 billionUSD
    Deployment realizations$414 millionUSD

    Product announcements

    3
    ProductTypeDetails
    BXDC (Blackstone REIT)launch
    WVB All Markets and WVB Blackstone All Privateslaunch
    BXHF (new perpetual multi-strategy hedge fund product)launch

    Deals & partnerships

    6
    GoogleBuild a new AI cloud provider powered by Google's TPU chips.up to $5 billion initially

    Blackstone teamed with Google to create a new AI cloud provider.

    AnthropicForm a company focused on driving enterprise adoption of Anthropic's AI-powered solutions.

    Blackstone partnered with Anthropic to form a company.

    Broadcom and another managerCreate a financing platform in support of Broadcom's deployment of large-scale AI compute for their end customers.$35 billion initially

    Blackstone joined Broadcom and another manager to create a financing platform.

    Williams$5.3 billion investment for leading energy infrastructure company, Williams, to support multiple development projects to power data centers.$5.3 billion

    Blackstone announced a $5.3 billion investment for leading energy infrastructure company, Williams.

    Nippon LifeDeploy approximately $10 billion in private credit over the next several years and also invest in their domestic real estate portfolio.approximately $10 billionnext several years

    New partnership with Japan's largest life insurer, Nippon Life. Builds on existing relationship through investments in Corebridge and Resolution Life.

    Wellington and VanguardAlliance to launch funds providing individuals with simplified access to three world-class asset management firms, including the full breadth of the Blackstone platform.

    The first two funds, WVB All Markets and WVB Blackstone All Privates, officially launched.

    Risks & headwinds

    5
    Geopolitical volatilitynear term

    pushed out exit pipelines and slowed realization activity in the near term

    Mitigation: Management expects a robust Q4 FY26 and FY27 for realizations as IPO market strengthens and M&A activity picks up in certain sectors.

    Potential for excessive exuberance in AIongoing

    explicitly unquantified

    Mitigation: Carefully chosen spots, leveraging scale and knowledge, focusing on compelling risk-adjusted returns with meaningful downside protection.

    BCRED redemption requestsQ2 FY26

    remained elevated and exceeded the 5% limit with approximately 50% fulfilled resulting in net outflows of $1.2 billion

    Mitigation: Redemptions are materially down in Q3; management attributes this to reduced market noise and sustained positive performance, with continued investor outreach.

    Real estate recovery impacted by higher base ratesongoing

    explicitly unquantified

    Mitigation: Underlying fundamentals are improving (e.g., reduced new supply, strong logistics leasing); public markets are forward-looking. Expect recovery to pick up pace once geopolitical issues settle.

    Muted M&A activity in 'white collar' services (professional info, enterprise software)for a while

    less liquidity

    Mitigation: Management notes this segment is only 6% of firm-wide exposure; expectations for buyers and sellers will need to adjust.

    What to watch in Q3 FY26

    5

    BCRED redemption requests

    Q3 FY26
    Currentdown materially
    TargetContinued material reduction or stabilization below 5% limit

    Why it matters

    Indicates stabilization of private wealth credit products and investor confidence, impacting net flows and AUM.

    I would reaffirm what I said, which is it's early in the quarter. but the redemptions in BCRED are down materially, which is positive.

    Q&A highlights

    7

    Asked for building blocks supporting the expectation of double-digit growth in base management fees for FY27.

    Michael Chae outlined drivers including the full-year benefit of PE segment drawdowns (SP10, Asia III, Energy Transition), seasoning and expansion of perpetual strategies (BXPE, BXINFRA, BXMA), underlying positive growth in credit insurance, and stabilization in real estate base fee trends. He also highlighted the significant increase in credit dry powder ($84 billion) as a "coiled spring" for future fees.

    “So first, the full year benefit of the private equity segment drawdowns that will activate -- we've activated or will activate this year. So that's our SP10 fund, our Asia III fund in [ BPC ], our energy transition fund.”

    asked by Glenn Schorr · answered by Michael Chae

    3 min read7 chapters

    Detailed Narrative

    01

    AI Investment Strategy and Impact

    Blackstone has become a leading private capital provider in the AI ecosystem, with investments in data centers, energy/power, and frontier AI companies like Anthropic, OpenAI, and SpaceX. These investments are driving standout results across numerous strategies, supporting fundraising, deployment, and performance revenues. The firm is also creating new AI-focused platforms, including a $5 billion AI cloud provider with Google, a partnership with Anthropic for enterprise AI adoption, and a $35 billion financing platform with Broadcom for large-scale AI compute.

    02

    Data Center Platform Growth

    The firm's data center platform has grown to $185 billion in total value, up from $130 billion at the start of the year. Blackstone expects to lease over three times more capacity this year than ever before, with the platform potentially doubling in the next few years. The market for long-term ownership of stabilized data centers is projected to grow to $1 trillion, with the recent launch of BXDC, a $2 billion blind pool REIT IPO, aiming to capitalize on this opportunity.

    03

    Fundraising Momentum Across Channels

    Blackstone is experiencing robust inflows across its institutional, insurance, and private wealth channels. Institutional demand is strong, with infrastructure AUM growing 40% YoY to $90 billion and BXMA AUM up 21% YoY to $109 billion. Several new drawdown funds, including opportunistic private credit, life sciences, and Asia private equity, hit their hard caps. The insurance AUM reached $290 billion, up 15% YoY, with a new $10 billion partnership with Nippon Life.

    04

    Private Wealth Resilience and Innovation

    Despite geopolitical turbulence and muted credit flows, private wealth AUM grew 16% YoY to $324 billion. BXPE achieved a 20% net annualized return since inception, and BREIT's NAV increased 7% YoY to $57 billion, with redemptions sharply falling. The firm is launching new products like BXHF and funds with Wellington and Vanguard to provide simplified access to private markets for a broader range of individual investors.

    05

    Strengthening IPO Market and Realizations

    The IPO market has strengthened considerably, with US IPO activity increasing sixfold in the first half of the year. Blackstone has executed three IPOs since May, including BXDC, and has eight IPOs on file globally. This activity is expected to provide a foundation for greater realizations and performance revenues, with a robust fourth quarter and 2027 anticipated after a sequential deceleration in Q3.

    06

    Real Estate Market Dynamics

    While the recovery in commercial real estate has been impacted by higher base rates, underlying fundamentals show positive signs, particularly in logistics, where leasing activity is reaccelerating. Data centers, logistics, and rental housing now comprise nearly 80% of the global equity portfolio. The public REIT market's outperformance suggests a forward-looking anticipation of recovery, with a sharp reduction in new supply contributing to improving conditions.

    07

    Transaction Fees as a Growing Revenue Engine

    Transaction and advisory fees nearly doubled in Q2 to a record $321 million, up 52% sequentially. This growth is attributed to the firm's expanding platform and its role as a capital solutions provider for customized corporate solutions, particularly in private investment-grade credit. This fee stream is becoming an increasingly important and underappreciated engine of fee revenue growth.

    AI-generated summary of the company’s earnings call. Not investment advice.