U.S. University Endowments See Strongest Returns in Five Years

U.S. university endowments recorded their strongest returns in five years for the most recent fiscal year, fueled by surges in artificial intelligence and the valuation of SpaceX. According to early data from Cambridge Associates, the median return for college and university endowments was 16.1%.

Harvard University reported a 27.1% gain, increasing its total endowment to nearly $68 billion. The University of North Carolina system saw a 37.8% increase, with SpaceX accounting for approximately half of those returns. Other institutions reporting significant growth included Washington University in St. Louis at 37.3% and Stanford University at 31.7%.

While these windfalls bolster financial aid and operating budgets, university executives noted that the gains are tempered by inflation and declining enrollment. Additionally, certain research universities face a pending tax increase on net investment income scheduled for the 2027 fiscal year.