This story is developing and will continue to be updated.
Penn’s endowment surged by a record $7 billion in fiscal year 2026, its strongest year-over-year gain in recent history.
After years of steady growth, the endowment saw a staggering 27.4% return last year. Executive Vice President Mark Dingfield announced the results Thursday at a meeting of the University Board of Trustees’ Budget and Finance Committee. The gain marks a significant jump from the previous year’s 12.2% return.
A majority of endowment funds are dedicated to instructional use and student financial aid. Each year, Penn aims for an annual payout rate of 5% of each endowment fund.
Most of Penn’s endowment is invested in the Associated Investments Fund, a pooled investment vehicle in which many individual endowments and trusts hold units. The University’s Office of Investments — made up of nearly 40 investment, operations, and administrative professionals — manages the fund.
At the Sept. 24 meeting, Dingfield also announced the University’s net operating surplus in FY26. Penn saw a total surplus of $636 million, well above its forecast.
In its budget for the upcoming fiscal year, the University has continued to advocate for cost-reduction measures amid ongoing uncertainty surrounding federal research funding, international student visa policies, and changes to student loan programs.
Starting this July, Penn also faces a 4% federal excise tax on its endowment income — a move University officials previously warned could significantly hinder its ability to support student financial aid, faculty research, and capital growth.
The 4% tax applies to universities with a student-adjusted endowment between $750,000 and $2 million. Penn’s current endowment tax is derived from the 2017 Tax Cuts and Jobs Act, which levied a 1.4% excise tax on private universities with endowments of more than $500,000 per student.
Staff reporter Ryan Rucker covers administration and can be reached at rucker@thedp.com. At Penn, he studies political science.
