Princeton’s Endowment Returns 23.7%, Grows to $42.3 Billion

Princeton reported a 23.7% return on endowment investments for the fiscal year ending June 30, 2026, raising the endowment’s value to $42.3 billion. The University’s endowment has averaged a 6.7% annual return over the last five years, 11.3% over the last decade, and 9.7% over the last two decades. 

The return was comparable to those of other Ivy League schools that have announced their most recent endowment returns. Harvard and the University of Pennsylvania reported 27.1% and 27.4% returns respectively, while Brown reported a 19.6% increase. The other Ivies have not yet announced their 2026 endowment returns.

The strong return comes in the same year that University President Christopher Eisgruber ’83 said he expected endowment returns to decrease, an expectation that in part prompted budget cuts across Princeton over the past two years. Eisgruber predicted average returns of 8%, down from the 10.2% previously anticipated.

“It’s important to note that while this year’s returns are good news, our planning assumption for the long-term rate of return remains at 8%,” said Michael Hotchkiss, a University spokesperson, in a statement to PAW. “As a result, the University continues to be on a multiyear path to a more sustainable budget that requires careful planning and thoughtful financial choices.”

The 2026 endowment total passes Princeton’s previous high of $37.7 billion in 2021, a year in which the University saw a record return of 46.9%. In 2025, Princeton reported an 11% endowment return and a total endowment value of $36.4 billion. 

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This Is How Princeton’s Endowment Works

Endowments are back in the news, and PAW is here with a Q&A to clear up any confusion

According to the University, about two-thirds of the operating budget is covered by endowment funds, including costs related to faculty, staff, construction, and facilities maintenance. The endowment also pays for 50% of financial aid costs for undergraduate students and nearly all for graduate students. More than half of the endowment is restricted, meaning gifts can’t be spent but can be invested. In addition, 70% of the endowment is set aside strictly for the donor’s purpose, such as scholarships or a faculty chair.

“The endowment continues to provide a crucial financial foundation for the University’s pursuit of its research and teaching mission — allowing Princeton researchers to tackle the world’s toughest problems and its students to receive a transformative education supported by robust financial aid,” Hotchkiss said.