BX earnings analysis
What we found in BX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Blackstone delivered a strong second quarter, with GAAP revenue up 36% year over year to $5.044 billion and diluted EPS of $1.54, while recurring Fee Related Earnings rose 22% to $1.783 billion. Fundraising and AUM were robust, led by Private Equity and Multi-Asset Investing, and operating cash flow reached $2.932 billion for the first half on only $65.4 million of capital expenditures. Offsetting positives were weaker Credit & Insurance realizations, elevated BCRED redemptions, declining Real Estate AUM and higher leverage and clawback exposure.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS accelerated sharply
- GAAP revenue was $5.044 billion, up $1.332 billion or 36% year over year and approximately 39% above the prior quarter's $3.62 billion. Diluted EPS was $1.54 versus $0.98 year over year and $0.83 in the prior quarter.
- Recurring earnings and profitability improved
- Net income attributable to Blackstone Inc. rose 61% year over year to $1.229 billion, while Fee Related Earnings increased 22% to $1.783 billion. Segment Distributable Earnings increased 23% year to date to $4.194 billion.
- AUM and fundraising remained strong
- Total AUM reached $1.346 trillion, up $42.2 billion sequentially and $71.3 billion from December 31, 2025. Second-quarter inflows were $68.3 billion, producing net inflows of $54.8 billion.
- Private Equity led segment growth
- Private Equity Segment Distributable Earnings grew 31% year over year to $981.5 million, led by $197.5 million of higher Fee Related Earnings; six-month Private Equity earnings increased 49% to $2.0 billion.
- Multi-Asset momentum strengthened
- Multi-Asset Investing Segment Distributable Earnings increased 35% year over year to $97.7 million. Management reported positive performance across all strategies and $4.8 billion of inflows in its best single month subsequent to quarter end.
- Strong cash generation with low capex
- Operating cash flow was $2.932 billion for the six months ended June 30, 2026, versus $1.998 billion a year earlier, while capital expenditures were $65.4 million. Cash generation remained strong relative to the business's limited capital spending needs.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Credit realizations and defaults deteriorated
- Credit & Insurance Segment Distributable Earnings declined 6% year over year to $373.2 million, while Net Realizations fell 95% to $3.2 million. Management also said defaults in direct lending have risen and expects them to continue rising from historically low levels.
- Private-credit liquidity pressure
- BCRED redemption requests remained elevated and produced net outflows in the second quarter; management said subscriptions decelerated from the prior quarter. Credit & Insurance outflows totaled $7.6 billion in the quarter, although third-quarter redemption requests were described as significantly lower.
- Real-estate AUM and activity weakened
- Real Estate Total AUM declined 2% year to date to $314.1 billion, including $13.7 billion of realizations, $5.0 billion of outflows and $1.5 billion of market depreciation. Management cited elevated base rates and Middle East conflict as factors weighing on transaction activity.
- Leverage and commitment obligations rose
- Loans payable increased to $13.195 billion from $12.445 billion at December 31, 2025, including $800.0 million outstanding under the revolving credit facility. The company also had $5.905 billion of remaining operating-entity capital commitments.
- Clawback exposure increased
- Potential clawback exposure increased to $1.088 billion from $806.3 million at December 31, 2025, with Real Estate accounting for $904.7 million. In the remote scenario that all carry-fund investments became worthless, potential clawback was estimated at $9.1 billion.
- Macro and valuation risks remain material
- Management updated the market and geopolitical risk discussion, citing a 31.4% second-quarter decline in West Texas Intermediate crude oil to $69.50 per barrel and ongoing uncertainty from Middle East conflict, interest rates and AI disruption.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.54
- Segment
- Real Estate: Segment Distributable Earnings $745.3 million, up 32% year over year; Total AUM $314.1 billion, down $1.1 billion sequentially.
- Segment
- Private Equity: Segment Distributable Earnings $981.5 million, up 31% year over year; Total AUM $454.2 billion, up $24.2 billion sequentially.
- Segment
- Credit & Insurance: Segment Distributable Earnings $373.2 million, down 6% year over year; Total AUM $469.3 billion, up $11.9 billion sequentially.
- Segment
- Multi-Asset Investing: Segment Distributable Earnings $97.7 million, up 35% year over year; Total AUM $108.6 billion, up $7.3 billion sequentially.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management stated that third-quarter BCRED redemption requests were significantly lower than in the second quarter, and that improving geopolitical conditions should support greater realizations over time.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- Blackstone reported Q1 2026 revenues of $3.433 billion, surpassing consensus estimates of $3.408 billion, with a diluted EPS of $1.36, also beating estimates. The quarter shows an improvement in revenue and EPS compared…
- 10-K · February 27, 2026
- Blackstone positions itself as the world’s largest alternative asset manager with more than $1.3 trillion in Total Assets Under Management as of December 31, 2025, emphasizing scale, diversification and a…
- 10-Q · November 7, 2025
- Blackstone reported Q3 2025 revenues of $3,088,635,000 and diluted EPS of $0.80. Fee-related revenue (management & advisory and incentive fees) increased while Investment Income collapsed vs. the prior year, and the…
- 10-Q · August 2, 2024
- Blackstone reported Q2 total revenues of $2,796,381 (thousands), down modestly versus $2,814,691 in Q2 2023, while diluted EPS fell to $0.58 from $0.79 a year ago. Management & advisory fees and incentive fees grew, but…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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