Blackstone Inc. (BX) Earnings & Analysis

Latest quarter

Blackstone’s Q3 FY2026 revenue on the consensus basis was $3.2 billion, above the $3.1 billion consensus estimate. Adjusted earnings per share were $1.32, above the $1.26 consensus estimate.

On the reported revenue measure, Blackstone recorded $3.1 billion, compared with $3.1 billion a year earlier after rounding; the year-over-year change was −0.83%. Diluted earnings per share rose to $0.83 from $0.80, while operating margin increased to 46.9% from 43.3%. Net income from continuing operations was $662.4 million.

CFO Michael Chae said total fee revenue rose 8% year over year to $2.7 billion, with growth in base management fees, transaction and advisory fees, and fee-related performance revenue. He said net realizations fell 20% quarter over quarter. For the preceding quarter, Blackstone’s free cash flow was $1.9 billion, compared with $848.4 million in Q2 FY2025.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Stephen Schwarzman said higher capital costs had hurt investor sentiment and transaction activity, even as investment in artificial intelligence supported growth in parts of the economy. He said Blackstone received $63 billion of inflows in the quarter and more than $270 billion over the preceding 12 months.

Schwarzman said demand for computing capacity was accelerating while supply remained constrained. He also identified risks to AI infrastructure projects: investors may lack capital, and projects may be unable to secure power, equipment or approvals. Blackstone’s data-center portfolio, he said, is built on long-term contracts.

CFO Michael Chae said assets under management rose 10% year over year to approximately $1.4 trillion. He said base management fees reached $2 billion in the quarter, supported by growth in private equity and the multi-asset business, BXMA. Fee-related earnings rose 6% year over year to $1.6 billion, while distributable earnings were $1.7 billion.

Chae said the dedicated infrastructure platform appreciated 6.4% in Q3, supported by data-center leasing. In real estate, he said Core Plus funds appreciated 1.6%, while BREP opportunistic funds declined 3.2%; widening capitalization rates were partly offset by data-center leasing and interest-rate hedges.

Asked about realizations, Chae said Blackstone had visibility into a fourth-quarter increase from previously announced sales. He added that carry realizations under contract and expected to close in Q4 should surpass the firm’s total Q3 net realizations, though realizations are subject to “inherent lumpiness” between quarters.

On insurance fees, Chae said pricing depends on the client, strategy and relationship size, with an average range of 40 to 50 basis points. Responding to questions about real-estate fee dynamics, he said the end of BREP 8’s fund life in the prior quarter had a full-quarter effect on management fees in Q3.

Guidance

On the Q1 call, CFO Michael Chae expected real-estate fee headwinds to bottom in the middle of FY2026 and fees to accelerate sequentially as the year ended. On the latest call, he said he expected real-estate base management fees to remain broadly stable through year-end and into 2027.