BX Blackstone Group 10-Q 2026-09-30 section summaries

Blackstone Inc. — Q3 and nine months ended September 30, 2026

Consolidated results

Q3 revenue was nearly flat year over year: higher management and advisory fees were offset by lower incentive fees and investment income. Investment income included a $627.1 million unrealized performance-allocation loss, compared with a $215.8 million loss in Q3 2025; realized performance allocations were $831.8 million versus $997.3 million. For 9M, revenue and attributable net income grew 16.2% and 26.8%, respectively, supported by higher realized performance allocations and a favorable “other” revenue comparison.

Segment results

Segment revenue below is the company’s segment measure; segment distributable earnings (DE) is its reported profit measure, not GAAP operating income.

Q3 DE declined 4.1% despite higher fee-related earnings, as net realizations fell—particularly in Private Equity, where realized performance revenues were $285.5 million versus $559.4 million. For 9M, DE rose 13.1%, led by Private Equity and Multi-Asset Investing; Credit & Insurance DE fell, including lower net realizations.

Fee-related performance revenue grew strongly, while Q3 realized performance revenue fell 37.7%; its 9M comparison instead showed 12.4% growth. Segment expenses were $1,313.0 million in Q3 versus $1,316.8 million, and $4,354.4 million for 9M versus $3,750.8 million. Segment results exclude certain items, including equity-based compensation ($329.2 million in Q3 and $1,244.2 million for 9M).

Cash flow and shares

Common shares issued and outstanding increased from 748.688 million at December 31, 2025 to 760.147 million at September 30, 2026. Unrecognized equity-compensation expense was $2.7 billion, expected to be recognized over 3.3 years; approximately 444 million weighted-average Blackstone Holdings Partnership Units were excluded from diluted shares as anti-dilutive. Blackstone repurchased 0.6 million shares for $75.5 million in 9M; $1.6 billion remained under its $2.0 billion authorization.

Balance sheet, investments and funding

Total equity less goodwill and intangible assets was approximately $17.594 billion; on the parent stockholders’ equity basis, less those assets, the amount was approximately $6.844 billion. Total investments included $6.610 billion of partnership investments and $4.757 billion of investments in consolidated Blackstone funds. Accrued performance allocations increased by $4.175 billion from changes in fund fair values, partly offset by $3.760 billion of distributions. Net intangible assets were $104.3 million; remaining intangibles are expected to amortize over a four-year weighted-average period.

Borrowings were $13.401 billion carrying value and $11.717 billion fair value at September 30. Operating borrowings included a $700 million revolver draw. Scheduled principal payments totaled $13.522 billion, including $8.367 billion due thereafter. On November 2, 2026, Blackstone issued $600 million principal of 5.650% senior notes due 2031 and $500 million principal of 5.900% notes due 2033.

Risk, commitments and accounting context

Blackstone had $7.6 billion of investment commitments. Recorded potential clawback obligations rose to $1.463 billion from $806.3 million, including $1.264 billion for Real Estate and $199.4 million for Private Equity. A remote all-investments-worthless scenario could produce $9.0 billion of potential clawbacks after tax where applicable; management considers the scenario remote. Non-consolidated VIE maximum exposure to loss was $7.054 billion, principally $6.720 billion of investments. Consolidated VIE assets are restricted to settling those entities’ obligations, with no recourse to Blackstone’s general credit.

Fair-value estimates for private investments and other Level III assets rely on unobservable assumptions and can materially affect earnings before cash realization. Level III assets were $4.740 billion and liabilities $1.165 billion at quarter-end. Certain NAV-valued investments face lock-ups, redemption limits or other liquidity restrictions. Blackstone’s $2.075 billion of tax-receivable-agreement obligations reflects arrangements under which eligible owners receive 85% of realized tax savings; estimated future payments total $2.1 billion over 15 years. A new accounting standard on contractual sale restrictions in equity-security fair value measurement is effective for periods beginning after December 15, 2027; Blackstone is assessing its impact.

Blackstone (BX) — Q3 2026 MD&A

Blackstone earns management, transaction and advisory fees alongside incentive fees, carried interest and investment income. Fee and performance revenues are sensitive to fee-earning assets, portfolio valuations, realizations and transaction activity. Its four segments are Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing. Distributable Earnings (DE) and Segment Distributable Earnings are non-GAAP measures of realized earnings; they exclude unrealized activity and are not equivalent to GAAP net income or pretax income.

Consolidated results

Q3 revenue was nearly flat year over year, while 9M revenue increased 16.2%. Management and advisory fees grew, but Q3 investment income declined 17% and incentive fees fell 14%. Q3 realized investment income was down $198.3 million, principally because Private Equity lacked the prior-year Secondaries sale of a GP Stakes portfolio interest. Unrealized investment income improved $77.2 million overall: a $490.3 million increase in Credit & Insurance, largely from Corebridge common-stock appreciation, was partly offset by declines in Private Equity and Real Estate. Q3 included $627.1 million of unrealized performance-allocation losses versus $215.8 million a year earlier, while principal-investment unrealized income was $249.9 million versus a $238.7 million loss.

For 9M, investment income rose $721.1 million, including $844.1 million higher realized income, partly offset by lower unrealized income. Higher Private Equity and Real Estate realizations were partly offset in Credit & Insurance by the absence of the prior-year Bistro sale. Expense trends also diverged: Q3 expenses declined 7.2%, while 9M expenses rose 12.3%, including higher compensation associated with increased fees and performance allocations. The effective tax rate was 16.9% in Q3 versus 14.5%, and 15.7% for 9M versus 15.4%; changes primarily reflected noncontrolling interests, with state taxes also affecting Q3.

Segment performance — Q3

Management and advisory fees are shown as the comparable segment revenue line; Segment Distributable Earnings is the segment profit measure.

Real Estate DE fell 10% as fee-related earnings and realizations declined; higher capitalization rates pressured property values, though digital infrastructure and logistics were cited as longer-term supports. Private Equity DE decreased 7% because the prior-year GP Stakes realization did not recur, partly offset by stronger recurring fees and infrastructure performance revenues. Credit & Insurance DE rose 4% as stronger realizations offset weaker fee-related performance revenues, mainly at BCRED and BXSL. Multi-Asset DE increased 31%, with $8.6 billion of inflows and the Absolute Return Composite recording its 26th consecutive positive-performance quarter.

For 9M, segment DE was Real Estate $1.856 billion (from $1.680 billion), Private Equity $2.780 billion (from $2.187 billion), Credit & Insurance $1.179 billion (from $1.315 billion), and Multi-Asset $281.8 million (from $207.5 million). Higher Private Equity and Multi-Asset earnings were offset in part by lower Credit & Insurance realizations, including the prior-year Bistro sale.

Earnings measures, assets under management and flows

For 9M, DE rose to $5.458 billion from $4.866 billion, Fee Related Earnings to $4.903 billion from $4.202 billion, and Adjusted EBITDA to $6.544 billion from $5.768 billion. Q3 DE included a $627.1 million adjustment for unrealized performance revenues; equity-based compensation added back in its reconciliation was $329.2 million. Net accrued performance revenues increased over the year, driven by $4.4 billion of net performance-revenue receivables, partly offset by $3.6 billion of net realized distributions; amounts exclude clawbacks.

Total AUM increased $22.1 billion in Q3 and $93.4 billion from year-end; Fee-Earning AUM rose $28.1 billion in Q3 and $68.0 billion year to date. Q3 AUM growth reflected strong Credit & Insurance inflows, while Real Estate declined. Total AUM and Fee-Earning AUM use different bases and timing, particularly for drawdown funds, so their activity measures are not directly comparable. Annualized base management fee rate was 0.83%, versus 0.86% a year earlier. In Credit & Insurance, 98% of invested performance-eligible AUM was above its high-water mark or hurdle (99% a year earlier); in Multi-Asset, 92% was above thresholds, versus 97%.

Balance sheet, funding and risks

At September 30, 2026, total assets were $49.6 billion and liabilities $28.6 billion. Blackstone reported $3.0 billion of cash, $168.3 million of Corporate Treasury Investments and $8.9 billion of Other Investments, including $8.2 billion of liquid investments. Borrowings were $13.076 billion, including $700 million drawn on a $4.325 billion revolving facility; senior-note principal totaled $12.376 billion. On November 2, the company issued $600 million of 5.650% notes due 2031 and $500 million of 5.900% notes due 2033.

Remaining commitments for Blackstone and its General Partner were $7.640 billion; the company expects substantial commitments to be called over the next three years. Contractual obligations included $4.861 billion of future interest on operating-entity borrowings and $2.075 billion of expected undiscounted tax-receivable-agreement payments. Liquidity depends partly on realizations, which can be volatile, and may be pressured if weak realizations coincide with fund capital calls. Blackstone’s stated dividend intention is approximately 85% of its share of DE, subject to board discretion; it paid $1.12 per share for Q3. It repurchased $27.1 million of shares in Q3, with $1.6 billion remaining under authorization.

Higher U.S. rates, persistent inflation and geopolitical uncertainty weighed on Q3 transaction activity: U.S. IPO volume fell 46% year over year and announced M&A volume 18%, despite stronger 9M comparisons. Valuations of unquoted investments rely substantially on assumptions about cash flows, discount rates and exit values; changes can affect fees, investment income and compensation. Credit & Insurance reported elevated BCRED redemption requests and expects market conditions to continue weighing on flows; it is monitoring rising direct-lending defaults and potential AI-related disruption, particularly in software.

Market Risk

Blackstone’s principal market-risk exposure arises from its role as general partner or investment adviser to its funds. Changes in the fair value of fund investments can affect management fees, Performance Revenues, and investment income. As of September 30, 2026, the company reported no material change in market risks compared with December 31, 2025. The section provides no quantitative sensitivity measures.

Management, including the CEO and CFO, concluded that Blackstone’s disclosure controls and procedures were effective at the reasonable-assurance level as of period-end. No changes during the most recent quarter materially affected, or were reasonably likely to materially affect, the company’s internal control over financial reporting.

Risk factors

The filing introduces no new specific risk factors or financial metrics. It refers readers to the risk factors in Blackstone’s 2025 Form 10-K and says the MD&A discussion of financial-market and economic conditions updates the 10-K’s risk concerning difficult market and geopolitical conditions. Such conditions could reduce revenue, earnings, and cash flow, and adversely affect the company’s financial prospects and condition. Blackstone also cautions that risks not currently known, or currently considered immaterial, could materially adversely affect its business, financial condition, or operating results.