Blackstone’s first quarter results were met with a negative market reaction following a significant earnings-per-share (EPS) shortfall, despite notable year-over-year revenue growth. Management attributed the sales gains to robust fundraising momentum and strong performance in infrastructure and credit platforms, particularly within AI-related assets and private credit. Chairman and CEO Stephen Schwarzman emphasized that “nearly all of our flagship strategies reported positive appreciation in the quarter compared to declines in major equity and credit indices,” with infrastructure and digital platforms leading the way. The quarter’s challenges, according to management, were shaped by ongoing volatility in global markets, heightened geopolitical risks, and external pressure on the private credit sector.
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Blackstone (BX) Q1 CY2026 Highlights:
- Revenue: $3.46 billion vs analyst estimates of $3.42 billion (24.2% year-on-year growth, 1.4% beat)
- Adjusted EPS: $1.36 vs analyst estimates of $1.34 (1.7% beat)
- Adjusted EBITDA: $2.13 billion (61.5% margin, 22.5% year-on-year growth)
- Operating Margin: 57.6%, in line with the same quarter last year
- Market Capitalization: $94.13 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Blackstone’s Q1 Earnings Call
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Craig William Siegenthaler (Bank of America): asked about Blackstone’s record IPO pipeline amid geopolitical conflict. President and COO Jonathan Gray responded that the firm’s AI infrastructure and physical asset focus supports the outlook, but timing of realized gains depends on market stabilization.
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Michael J. Cyprys (Morgan Stanley): questioned AI’s impact on fundraising and growth. Gray highlighted broad benefits across infrastructure, credit, and private equity, stating that the AI infrastructure strategy is “the single most important thing for the performance of our clients.”
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Bart Jarski (RBC Capital Markets): inquired about the pace of private wealth expansion. Gray confirmed ongoing investment in global distribution and cited the long runway for individual investor adoption, with continued team expansion and new product offerings.
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Glenn Paul Schorr (Evercore): asked about fee growth and deployment timing in the credit platform. CFO Michael Chae explained that while near-term growth could slow, a large pool of uninvested capital and ongoing institutional fundraising position the credit business for future expansion.
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Steven Joseph Chubak (Wolfe Research): raised concerns about AI-related risks and portfolio adaptation. Gray acknowledged disruption beyond software and described initiatives to work with portfolio companies on AI readiness, while emphasizing that real estate and logistics remain resilient.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of investment and appreciation in AI infrastructure and energy transition assets, (2) signs of stabilization and renewed growth in the private wealth channel, particularly for credit and real estate vehicles, and (3) progress in institutional fundraising cycles, including new flagship launches and fee-earning asset deployment. The resolution of geopolitical conflicts and regulatory developments in retirement and wealth channels will also be important markers for Blackstone’s growth trajectory.
Blackstone currently trades at $119.25, down from $129.73 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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