Harvard's endowment rises 27% to $68 billion, fueled by SpaceX investment

Harvard University’s endowment jumped 27.1% in fiscal year 2026, its strongest return in five years, according to the school’s annual financial report released Thursday. The surge pushed the fund’s value to nearly $68 billion, outpacing the S&P 500’s 22.3% total return by almost five points. A $2.2 billion stake in Elon Musk’s SpaceX, disclosed in a recent SEC filing, was the single largest holding that helped drive the performance.

The boost comes as the university faces heightened pressure from the federal government. The Trump administration has taken steps to penalize Harvard and withhold funding, while federally‑sponsored research revenue fell 19.5% to $509 million in the same fiscal year. At the same time, a new federal excise tax on the endowment’s net investment income is set to rise from 1.4% to 8%, a six‑fold increase that Harvard estimates will cost roughly $300 million a year. These headwinds have forced the school to rely more heavily on investment gains to fund its operations.

Harvard’s chief financial officer Ritu Kalra and treasurer Timothy Barakett wrote that the strong return will “strengthen the endowment’s capacity to support the University over time.” They noted that the university deliberately smooths distributions so that operating support does not swing with market volatility. The $2.2 billion SpaceX position dwarfs the next biggest holding, Taiwan Semiconductor Manufacturing Company, which sits just under $350 million. The endowment’s performance marks its best year since 2021, and the fund is managed by the Harvard Management Company, which reports to the university’s leadership.

President Alan Garber acknowledged the fiscal challenges but said the university can still thrive. He argued that the current gains give Harvard “the opportunity to set the University on a path to excellence that none of us can imagine today.” With the higher tax and reduced research funding looming, Harvard will likely continue to lean on its diversified portfolio and large private‑equity positions to fund scholarships, faculty salaries, and new initiatives. How the endowment adapts to the new tax regime will be a key test of its long‑term financial resilience.