NEW YORK, July 23, 2026, 09:35 EDT
- Distributable earnings increased by 26% to $1.52 per share, exceeding the consensus forecast of $1.35.
- According to company data, recurring performance fees accounted for 58% of the increase in fee-related revenue.
Shares of Blackstone NYSE:BX slipped 0.8% to $121.82 soon after Thursday’s market open, even though the company reported a 13% earnings beat. U.S. markets were open at the dateline.
The primary indicator for investors was the more resilient fee mix. Growth in fee revenue was mainly fueled by recurring performance fees.
The fees originate from perpetual funds, according to Blackstone. The company states these are recurring and do not depend on the sale of underlying assets.
Fee-related performance revenues surged 68% to $793 million. Management and advisory fees increased 11%, reaching $2.25 billion.
According to company data, recurring fees accounted for 58% of incremental fee-related revenue. Their portion of total revenue increased to 26%, up from 19%.
| Investor metric | Q2 2026* | Q2 2025 | Change |
|---|---|---|---|
| Revenue from fee-related performance | $793 million | $472 million | +68% |
| Portion of fee-related revenue† | 26.1% | 18.9% | +7.1 points |
| Management and advisory fee income | $2.25 billion | $2.02 billion | +11% |
| Earnings from fee-related activities | $1.78 billion | $1.46 billion | +22% |
| Margin on fee-related earnings† | 58.6% | 58.6% | Unchanged |
Figures for Q2 2026 are preliminary and have not been audited. †Derived using Blackstone’s published data.
Distributable earnings increased by 26%, reaching $1.98 billion, or $1.52 per share. Analysts surveyed by Reuters had forecast earnings of $1.35 per share.
However, the fee-related earnings margin remained at 58.6%, showing little movement compared to the previous year.
Fee-related compensation climbed 26%. Other operating expenses were up 14%.
The shift towards a richer revenue mix has not resulted in operating leverage so far. This could account for the cautious initial response.
The capital base is showing increased stability. Perpetual capital climbed 15% to $555.6 billion, accounting for 41% of overall AUM.
Perpetual capital generating fees climbed to $463 billion, accounting for 48% of total fee-earning assets.
Investment performance was boosted by AI-related assets. Gross returns for infrastructure strategies reached 7.2% in the quarter.
Blackstone Chief Executive Stephen Schwarzman said the firm decided to “lean into the artificial intelligence megatrend.” According to the company, nine of its ten top-performing investments were connected to AI. Reuters
Realizations amounted to $31.8 billion, and inflows reached $68.3 billion. Blackstone announced a dividend of $1.29, with payment set for August 10.
Private credit marketed to affluent investors lagged. BCRED attracted $1 billion, down from $1.9 billion in the previous quarter and $3.7 billion in the same period last year.
Net returns for private credit reached 0.4%, down from 2.2% in the same period last year. Increased inflows into private equity balanced out the slowdown in credit.
The stock was down roughly 20% for the year as of Wednesday. Investor response at Thursday’s open indicates continued demand for improvement in margins.
Key risks include declining demand for retail credit, potential reversals in AI valuations, and delays in exits. Any of these could impact fees, carried interest, and future dividends.
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