Harvard’s endowment jumps 27% in fiscal 2026, lifted by SpaceX as top holding

Key points

• Harvard's endowment grew 27.1% in fiscal 2026, its best return in five years.
• The endowment now totals nearly $68 billion, beating the S&P 500's 22.3% return.
• Federal research funding fell 19.5% and a higher excise tax will cost about $300 million a year.

Harvard University's endowment grew 27.1% in fiscal year 2026, its strongest return in five years, according to the school's annual financial report released Thursday. The endowment now stands at nearly $68 billion.

The return beat the S&P 500's 22.3% total return for the same period by 4.8 percentage points. The gains came as the Trump administration took steps to penalize the university and withhold federal funding.

SpaceX becomes top holding

In its second-quarter 13F filing with the Securities and Exchange Commission, Harvard disclosed a $2.2 billion stake in Elon Musk's SpaceX, making it the endowment's largest single holding by value. Taiwan Semiconductor Manufacturing Company followed at just under $350 million.

The endowment is managed by the Harvard Management Company. Harvard's fiscal year ends on June 30.

While markets can easily take back what they give, that return will strengthen the endowment's capacity to support the University over time

— Ritu Kalra and Timothy Barakett

Federal funding and tax pressures

Federally sponsored research revenue declined 19.5% to $509 million in fiscal 2026. Starting in the current fiscal year, Harvard's chief financial officer Ritu Kalra and treasurer Timothy Barakett wrote that the federal excise tax on net investment income will rise from 1.4% to 8%, costing roughly $300 million a year.

They noted that in a year of returns like this one, the tax would be several times larger. President Alan Garber acknowledged the headwinds but said Harvard can still succeed, writing that "this is a thrilling time to be part of a great American institution devoted to Veritas."