BX Beats Q1 Earnings Expectations, But Its Private Credit Funds Generate No Returns

• Blackstone reports Q1 earnings at $1.36 per share, beating expectations of $1.33.
• Blackstone’s private credit funds delivered zero net returns.
• Announces dividend of $1.16 per common share payable on May 11, 2026.

Blackstone (BX) stock dropped 6% on Thursday but recovered slightly after-hours after its private credit business’s zero returns offset optimism around better-than-expected earnings and dividend announcement.

BX’s private credit and insurance business, which accounts for 35% of the firm’s total assets under management and is its largest contributor, reported zero net returns for the quarter. The asset manager, however, announced a $1.16 dividend payable on May 11. 

Blackstone, on its conference call, highlighted the firm’s large bets on data centers and energy for artificial intelligence, while predicting that outflows from its private credit funds would subside. 

CEO Stephen Schwarzman told conference call listeners that he had been involved in AI since 2015, long before the rise of today’s large language models (LLMs) from OpenAI and Anthropic.

“This strategic decision that we made to go long AI infrastructure is going to be the single most important thing for the performance of our clients and ultimately, the growth of our business,” said Blackstone President Jonathan Gray.

Total revenue increased 10% to $3.62 billion, finishing Q1 with a staggering $1.3 trillion in assets under management (AUM). But returns fell across certain businesses, even as Blackstone drew in $68.5 billion in new assets.

What Do Analysts Say?

12 out of 22 analysts rate the stock ‘buy’ or higher, and 11 rate ‘hold’. 

Analysts expect earnings of $1.44 per share in Q2, according to data from Koyfin. 

Morgan Stanley on Tuesday lowered its price target on BX to $184 from $215 and maintained an ‘Overweight’ rating on the shares, while Citizens lowered the firm's price target to $190 from $195 and kept an ‘Outperform’ rating on the shares. 

Retail Take

Retail sentiment on Stocktwits was ‘bullish’ with ‘high’ message volumes. 

One user highlighted that the firm overall has met expectations, though it isn’t enough.

The stock has dropped 21% year-to-date. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.