BX — Blackstone Inc.

Summary of Blackstone Inc. Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• GAAP Net Income: $13 billion.
• Distributable Earnings: $1.8 billion, or $1.36 per share, up 25% year-over-year.
• Dividend Declared: $1.16 per share, payable to holders of record as of May 4, 2026.
• Assets Under Management (AUM): Grew 12% year-over-year to over $1.3 trillion.
• Inflows: $69 billion in Q1, totaling nearly $250 billion over the past 12 months.
• Fee-Related Earnings: Increased 23% year-over-year to $1.5 billion.
• Total Management Fees: Reached a record $2.1 billion, up 13% year-over-year.

2. Strategic Updates and Business Highlights

• Blackstone reported strong performance across its flagship strategies, particularly in infrastructure, which saw significant appreciation.
• The firm has positioned itself as a leading investor in AI-related infrastructure, with over $150 billion in data centers and a robust pipeline for future development.
• Blackstone launched a new public company aimed at acquiring stabilized, newly constructed data centers.
• The firm’s private credit strategies continue to attract institutional capital, despite external concerns about systemic risks in the sector.
• The private wealth channel saw AUM increase by 14% year-over-year to $310 billion, with notable fundraising success across various products.

3. Forward Guidance and Outlook

• Blackstone anticipates robust IPO activity in 2026, driven by strong company fundamentals and a favorable mix of businesses.
• The firm expects to see a ramp-up in management fees as new funds exit their fee holiday periods later in the year.
• There is optimism about the private wealth channel's growth potential, with plans to expand offerings and increase the sales force.

4. Bad News, Challenges, or Points of Concern

• Market Volatility: The ongoing geopolitical tensions, particularly the conflict in the Middle East, have created a volatile market environment, impacting investor sentiment and capital flows.
• Private Credit Concerns: Despite strong historical performance, Blackstone faces challenges in the private credit sector due to negative perceptions and redemption pressures, particularly in its BCRED fund, which experienced net outflows of $1.4 billion.
• Software Sector Risks: The firm acknowledged potential risks in the software sector due to AI disruption, which could affect valuations and performance.
• Real Estate Headwinds: The real estate segment is facing challenges from harvesting activities and market headwinds, particularly in the Core+ platform.

5. Notable Q&A Insights

• IPO Outlook: Management remains confident in achieving a record year for IPOs, citing strong company fundamentals and a favorable mix of businesses, particularly in AI and infrastructure.
• Private Wealth Strategy: The firm is committed to expanding its private wealth business, emphasizing the long-term potential for alternatives in 401(k) plans despite recent redemption trends.
• Credit Market Dynamics: Management highlighted the resilience of their credit portfolio, particularly in software, and noted that strong performance from borrowers could mitigate refinance risks.
• Market Share Gains: There is potential for Blackstone to gain market share in the private wealth space as competitors face challenges, positioning the firm favorably for future growth.

Overall, Blackstone Inc. demonstrated strong financial performance in Q1 2026, with strategic initiatives focused on AI and infrastructure, while navigating challenges in the private credit and real estate sectors. The firm remains optimistic about future growth opportunities across its diverse investment strategies.