Princeton's endowment returned 23.7% in fiscal 2026 (year to June 30, 2026) and reached a record $42.3 billion, up from $36.4 billion a year earlier and above its previous high of $37.7 billion in 2021. Its 10-year average return is 11.3% a year, yet Princeton still plans on 8% a year for budgeting.
Answer
Princeton's endowment returned 23.7% in fiscal 2026 (the year to June 30, 2026) and reached a record $42.3 billion, up from $36.4 billion a year earlier and past its previous high of $37.7 billion in 2021. The 10-year average return is 11.3% a year, yet the university still budgets on an assumed 8%. Endowment funds cover about two-thirds of Princeton's operating budget.
| Princeton endowment — fact box | Fiscal 2026 (year to June 30, 2026) |
|---|---|
| Endowment value | $42.3 billion (record) |
| Prior year | $36.4 billion (FY2025) |
| Return | 23.7% (FY2025: 11%) |
| Previous peak | $37.7 billion in 2021, after a 46.9% return |
| 5 / 10 / 20-year average return | 6.7% / 11.3% / 9.7% a year |
| Long-term planning assumption | 8% (cut from 10.2%) |
| Payout for operating expenses (prior year) | $1.8 billion |
| Share of operating budget | About two-thirds |
Sources: Princeton Alumni Weekly, Julie Bonette (Oct. 16, 2026); Chief Investment Officer (ai-cio.com), Matt Toledo (Oct. 20, 2026).
How big is Princeton's endowment in 2026?
At the end of fiscal 2026, Princeton's endowment stood at $42.3 billion, the highest in its history, as the Princeton Alumni Weekly reported on October 16, 2026. The previous record was $37.7 billion in 2021, a year in which the endowment earned 46.9%. After that peak, weaker years left the fund at $36.4 billion by June 30, 2025.
That places Princeton among the largest university endowments in the world. Only Harvard (nearly $68 billion) and Stanford's merged pool ($61.5 billion) reported larger figures for June 30, 2026 among the peers that have published so far. Yale normally releases its annual figure in October; see our Yale endowment 2026 page. See the full table in our largest university endowments 2026 ranking.
What return did Princeton earn in fiscal 2026?
The endowment returned 23.7%, more than double the 11% it earned in fiscal 2025. Chief Investment Officer magazine noted that Princeton, like many peers, likely benefited from exposure to SpaceX and to artificial intelligence-related investments, though it did not confirm the size of that exposure.
The result was strong in absolute terms but not top of the class. Among peers that have published fiscal 2026 figures:
| University | FY2026 return | Value at June 30, 2026 | Source |
|---|---|---|---|
| Stanford (merged pool) | 31.7% | $61.5 billion | Forbes, Oct. 16, 2026 |
| Penn | 27.4% | $31.1 billion | Daily Pennsylvanian, Sept. 24, 2026 |
| Harvard | 27.1% | nearly $68 billion | Forbes, Oct. 16, 2026 |
| Princeton | 23.7% | $42.3 billion | PAW, Oct. 16, 2026 |
| Brown | 19.6% | $9.5 billion | Forbes, Oct. 16, 2026 |
Several smaller pools did even better. Forbes reported 37.3% at Washington University in St. Louis and 37.8% at the University of North Carolina System Investment Fund, both largely driven by SpaceX. For individual profiles see Harvard, Stanford and Penn.
What is Princeton's long-term track record?
According to PAW, Princeton's endowment has averaged:
- 6.7% a year over five years, a period that includes the 2021 peak and the weaker years that followed;
- 11.3% a year over ten years (AI-CIO gives 11%);
- 9.7% a year over twenty years.
The five-year figure matters. It shows that one exceptional year (2021) followed by several modest ones can leave a five-year average well below the long-run record. A single 23.7% year does not by itself change the planning picture, which is why the university has kept its assumption unchanged.
Why does Princeton still plan on 8%?
In February 2026, President Christopher Eisgruber lowered the university's long-term return assumption to 8% from 10.2%, according to PAW and AI-CIO. PAW reports that the expectation of lower returns helped prompt budget cuts over the past two years.
After the fiscal 2026 result, university spokesperson Michael Hotchkiss told PAW that the planning assumption remains 8% and that Princeton is "on a multiyear path to a more sustainable budget." For an endowment that funds two-thirds of the operating budget, the gap between a strong year and the planning rate is a buffer, not a windfall to spend.
This is a common pattern among large endowments: smooth spending rules and conservative return assumptions protect the budget from the volatility of a portfolio heavy in private equity and venture capital. Our endowment model explainer covers how this works.
How does the endowment fund Princeton?
The endowment is Princeton's main source of operating money. According to the university, as cited by PAW:
- endowment funds cover about two-thirds of the operating budget, including faculty, staff, construction and facilities;
- they pay 50% of undergraduate financial aid costs and nearly all graduate financial aid;
- more than half of the endowment is restricted, meaning gifts can be invested but not spent;
- about 70% is set aside for specific donor purposes such as scholarships or faculty chairs.
AI-CIO reports that the endowment paid out $1.8 billion for operating expenses in the prior fiscal year, and that Princeton received $218 million of contributions with donor restrictions and $98 million without.
What does Princeton's result tell other asset owners?
Three points stand out for long-horizon investors:
- Dispersion was wide. Fiscal 2026 returns among large endowments ranged from 19.6% (Brown) to 31.7% (Stanford), and higher still at some smaller pools. Exposure to a few concentrated private holdings, such as SpaceX, explains much of the gap.
- Planning rates lag good years on purpose. Princeton kept its 8% assumption after a 23.7% year. That discipline is similar to the spending rules used by Yale and other peers.
- Records follow drawdowns. It took five years for Princeton to pass its 2021 peak, a reminder that illiquid-heavy portfolios can move sideways for long stretches.
Sources
- Princeton Alumni Weekly, Julie Bonette, "Princeton's Endowment Returns 23.7%, Grows to $42.3 Billion," October 16, 2026.
- Chief Investment Officer (ai-cio.com), Matt Toledo, "Princeton Endowment Sees 23.7% Return in Fiscal 2026," October 20, 2026.
- Forbes, Michael T. Nietzel, "Leading Universities Post Strong Endowment Gains; Harvard's Return Tops 27%," October 16, 2026.
- The Daily Pennsylvanian, Ryan Rucker, "Penn endowment sees over $6 billion jump in largest single-year return on record," September 24, 2026.
Last updated October 27, 2026.