Blackstone Shares Jump 6% on Earnings Beat and $63 Billion in Inflows

Blackstone shares rose 6% today, outperforming the S&P 500, after third-quarter earnings exceeded estimates. The move followed a release in which Chairman and CEO Stephen Schwarzman reported that inflows reached $63 billion, citing positive momentum across major fundraising channels.

For the quarter ended Sept. 30, 2026, the revenue side presented a mixed picture. GAAP revenue slipped to $3.06 billion from $3.09 billion a year earlier, landing under Wall Street estimates. Realized performance revenue in private equity fell 49%, a metric that reflects profits booked when investments are sold. Investors have observed this trend for several years, as a slow deal market has kept total revenue well below its 2021 peak. However, figures show a recovery in progress, with 2025 figures at $14.2 billion, up from $7.68 billion in 2023.

Base management fees provided a steadier component of the business, reaching $1.99 billion in the quarter, a 4% increase from the prior year. On the earnings call, management stated it expects fourth-quarter realizations to rise significantly and anticipates base management fees will grow by double digits again in 2027. Schwarzman described the company as moving toward what he expects to be an outstanding 2027. Analysts already project earnings per share to climb about 25% in 2027, a trajectory supported by today's results and the management outlook.

Despite the stock's jump, valuation remains below historical norms. Blackstone traded at 18 times forward earnings at Wednesday's close, or closer to 19 times after today's move. The company's five-year average multiple is 23 times. Schwarzman noted that the higher cost of capital has hurt transaction activity, a pressure he said has continued since the quarter ended. The next checkpoint for investors is the fourth-quarter report in late January, which will indicate whether the expected rise in realizations materializes.