Alternative investment manager Blackstone (NYSE: BX) reported revenue ahead of Wall Street’s expectations in Q3 2026, but sales fell by 2.3% year on year to $3.26 billion. Its non-GAAP profit of $1.32 per share was 4.9% above analysts’ consensus estimates.

Is now the time to buy BX? Find out in our full research report (it’s free for active Edge members).

StockStory’s take

Chairman and CEO Stephen Schwarzman emphasized Blackstone’s resilience in a complex environment, underpinned by “continued year over year growth in fee related earnings notwithstanding fewer realizations.” Management credited strength in AI infrastructure, energy holdings, and private wealth inflows as drivers of performance, even as transaction activity remained muted.

Looking forward, Blackstone’s outlook is shaped by its exposure to AI-driven infrastructure, private credit expansion, and new product launches across wealth and insurance channels. President and COO Jonathan Gray stressed that demand for capital in AI and energy “is creating generational opportunities,” particularly in data centers, power, and related assets. Management believes its long-term contracted approach to AI infrastructure and expansion into multi-asset products position the firm for future growth, while acknowledging that real estate headwinds and capital markets volatility could persist.

Key insights from management’s remarks

Management attributed the quarter’s results to AI infrastructure investments, accelerating fundraising, and strong fee-related earnings, while noting real estate and capital markets volatility as ongoing headwinds.

• AI infrastructure drives results: Blackstone’s data center and energy infrastructure investments, often secured by long-term contracts with large technology and hyperscale clients, provided stability and outperformance relative to broader markets. Management sees the “shortage of compute” and scarcity of data center supply as enhancing the value of these assets.

• Private wealth and fundraising momentum: The firm reported $63 billion of inflows in the quarter, with sustained growth across private equity, credit, and infrastructure strategies. New products like BXPM (“Blackstone in a box”) and a perpetual hedge fund vehicle contributed to expanded reach in the wealth channel.

• Fee-related earnings growth: Fee-related earnings rose on the back of double-digit growth in private equity and multi-asset (BXMA) platforms. Transaction and advisory fees also increased, reflecting the platform’s expansion into new sectors and geographies.

• Strategic insurance channel expansion: Assets under management in the insurance segment grew 14% year-over-year, driven by the appeal of private credit and Blackstone’s open-architecture model. Management cited over 20 clients expanding their relationships within the past year, enabled by scalable mandate structures and excess spread opportunity.

• Real estate mixed environment: While data centers and logistics drove leasing momentum, higher interest rates and cap rate widening put pressure on certain real estate segments, particularly multifamily housing. Management noted that limited new supply and resilient debt markets are partially offsetting these headwinds.

Drivers of future performance

Management expects continued momentum from AI and energy infrastructure, diversification in private credit, and expanded wealth offerings to drive results, but acknowledges real estate and market risks.

• AI and energy infrastructure expansion: Blackstone believes continued demand for compute power and electrification will support growth in its infrastructure and energy platforms. Management stressed that their disciplined, contract-driven approach—focusing on long-term leases with highly creditworthy counterparties—should mitigate some risks associated with large capital commitments in the AI buildout.

• Private credit and insurance growth: The firm is targeting further expansion in investment-grade private credit, with large institutional and insurance clients seeking bespoke capital solutions. Management sees a broadening opportunity set, noting that as insurance client allocations to AI-related debt grow, traditional pension and sovereign wealth funds will increasingly participate, supporting fee growth and diversification.

• Product innovation and real estate recovery: Blackstone is investing in new multi-asset and perpetual products, including partnerships with Vanguard and Wellington to expand access to alternative assets. While management expects real estate fee growth to remain stable in the near term, they are monitoring for signs of recovery as new supply wanes and demand dynamics evolve.

Catalysts in upcoming quarters

Looking ahead, the StockStory team will be monitoring (1) the pace and profitability of AI and energy infrastructure deployments, (2) signs of stabilization or improvement in real estate fundamentals and fee growth, and (3) the scale and adoption of new wealth and insurance products, especially in retail and institutional channels. Progress on these fronts will be critical for assessing Blackstone’s ability to deliver on its growth strategy amid continued market volatility.

Blackstone currently trades at $118.24, up from $109.64 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free).

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