01—Abstract
Summary
Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Blackstone reported a strong second quarter of 2026, with Total Revenues of $5.04 billiona (up 36% year over year) and Net Income Attributable to Blackstone Inc. of $1.23 billion, or $1.54 per diluted share, versus $0.98 a year earlier.
Growth was driven mainly by Investment Income, which rose 54% to $2.47 billionb on higher realized and unrealized gains, concentrated in Real Estate (BREP and Core+ funds) and Private Equity realizations. Management and Advisory Fees, Net grew 11% to $2.27 billion, with Private Equity and Credit & Insurance contributing most of the increase. Fee Related Earnings rose 22% to $1.78 billion and Segment Distributable Earnings rose 23% to $2.20 billion for the quarter, reflecting higher Fee Related Performance Revenues (notably BREIT and BXPE).
Total Assets Under Management reached $1.35 trillionc at June 30, 2026, up 3% for the quarter and 7% year to date, while Fee-Earning Assets Under Management rose to $961.6 billion. Perpetual Capital reached $555.6 billion. Management flagged softer areas: redemption requests in BCRED remained elevated, producing net outflows in the quarter, and Credit & Insurance Net Realizations fell sharply year over year.
Compensation costs grew faster than revenue, with Total Compensation and Benefits up 28% in the quarter, largely due to performance allocations compensation. Balance sheet activity was modest. Loans Payable rose to $13.2 billiond, including an $800 million draw on the $4.325 billion Revolving Credit Facility, and cash and cash equivalents were $2.5 billion.
Blackstone paid $3.4 billion in dividends and distributions year to date and repurchased only $48.4 million of stock. The company also disclosed a June 2026 settlement with Kentucky Retirement System and the Commonwealth, requiring an $18 million payment (insured), which the quarter's financial results accrue for.
02—Key points
Key Highlights
- Total Revenues rose 36% to $5.04 billion in Q2 2026, led by a 54% increase in Investment Income to $2.47 billion from realized and unrealized gains, mainly in Real Estate and Private Equity.
- Net Income Attributable to Blackstone Inc. was $1.23 billion ($1.54 per diluted share) versus $764 million ($0.98) in Q2 2025; six-month EPS was $2.37 versus $1.77.
- Management and Advisory Fees, Net grew 11% to $2.27 billion, with Private Equity (+$88M) and Credit & Insurance (+$102M, including capital markets advisory fees) as the main contributors.
- Fee Related Earnings rose 22% to $1.78 billion and Segment Distributable Earnings rose 23% to $2.20 billion, supported by higher Fee Related Performance Revenues, largely from BREIT and BXPE.
- Total AUM reached a record $1.35 trillion (+3% in Q2, +7% YTD) and Fee-Earning AUM reached $961.6 billion; Perpetual Capital grew to $555.6 billion.
- Credit headwinds: BCRED recorded net outflows in Q2 due to elevated redemption requests, and Credit & Insurance Net Realizations fell 95% year over year to $3.2 million.
- Balance sheet: Loans Payable increased to $13.2 billion, including an $800 million Revolving Credit Facility draw; dividends and distributions paid totaled $3.4 billion year to date, while buybacks were modest at $48.4 million.
03—Questions
Frequently Asked Questions
What drove the large increase in Blackstone's second-quarter revenue and earnings?
Most of the increase came from Investment Income, which rose $867 million to $2.47 billion. The Real Estate segment was the principal driver, with higher realized gains and unrealized appreciation in BREP and Core+ real estate funds, and Private Equity also contributed through Corporate Private Equity realizations. Investment gains are less predictable than fee revenue, so part of this increase may not recur in future quarters.
How much of Blackstone's earnings are recurring fee-based versus dependent on investment performance?
Fee Related Earnings of $1.78 billion for Q2 (about 81% of Segment Distributable Earnings of $2.20 billion) reflect recurring management fees and Fee Related Performance Revenues, which are less dependent on realizations. Net Realizations of $414 million make up the rest and are tied to the timing of asset sales and fund performance. Blackstone's Net Accrued Performance Revenues rose to $7.47 billion, which indicates future realization potential but is not guaranteed.
Is Blackstone's credit business under pressure?
Partly. Credit & Insurance Segment Distributable Earnings fell 6% in Q2 to $373 million, and BCRED saw net outflows because redemption requests rose and subscriptions slowed. Management said Q3 redemption requests are running significantly lower than in Q2. Fee Related Earnings in the segment still grew 11% on higher transaction and base management fees, and the Private Credit composite returned 1% gross in Q2.
What are the main risks or cost pressures highlighted in the filing?
Compensation is the largest cost pressure: Total Compensation and Benefits rose 28% to $1.81 billion in Q2, mostly from higher performance allocations compensation. Other risks include AI-driven valuation pressure on software holdings, geopolitical conflict in the Middle East slowing realizations, and rising defaults in direct lending. Interest expense also increased 7% to $145 million, and the company drew $800 million on its revolver.
What is the outcome of the Kentucky Retirement System litigation?
The Blackstone Defendants reached a new settlement agreement with KRS and the Commonwealth effective June 12, 2026. It requires an $18 million payment to KRS, with a further $6 million payable under certain conditions, and both amounts are to be covered by insurance. Objections from Taylor plaintiffs are pending. Blackstone's Q2 results include an accrual for the estimated liability, and the filing states that no other material unaccrued liabilities are known.
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