Blackstone (BX +1.03%) reported its second-quarter financial results on July 23. The leading global alternative investment manager “delivered an outstanding second quarter, highlighted by strong growth in earnings and nearly $70 billion of inflows,” stated CEO Stephen Schwarzman in the earnings report. The financial firm benefited from its strategy to lean into the AI megatrend.

Here’s a closer look at the alternative investment manager’s second-quarter results, and whether the financial stock is a buy following the results.

Image source: The Motley Fool.

A strong quarter for Blackstone

Blackstone’s distributable earnings jumped 26% to nearly $2 billion, or $1.52 per share. The company benefited from strong fee-related earnings (up 22% to nearly $1.8 billion) and net realizations (up 27% to over $400 million). That continued the private equity giant’s strong showing in 2026. Its year-to-date distributable earnings have surged 26% to over $3.7 billion.

The fund manager continues to deliver strong returns for its clients. Despite all the questions facing the private credit sector, Blackstone’s private credit investments have delivered a 6.8% gross return over the last 12 months. It has also delivered strong returns across its private equity strategies, led by infrastructure (28.6%) and corporate private equity (14.4%).

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NYSE: BX

Blackstone

Today's Change

(1.03%) $1.27

Current Price

$124.09

Key Data Points

Market Cap

$150BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$119.88 - $126.51

52wk Range

$101.73 - $190.09

Volume

3.9M

Avg Vol

5.2M

Gross Margin

99.34%

Dividend Yield

4.05%

Blackstone’s history of delivering strong returns for clients continues to drive robust fund inflows. Its assets under management increased 11% to nearly $1.35 trillion, thanks in part to nearly $70 billion of inflows during the quarter. While redemption requests on Blackstone’s flagship private credit fund (BCRED) have surged this year, forcing it to cap withdrawals, overall inflows to its private credit and insurance strategies remain robust. Its total AUM has increased by 15% to almost $470 billion following $31 billion in inflows in the second quarter, including $1 billion in equity raised for BCRED. Private equity AUM was also up briskly (17% to $454 billion).

An improving value proposition

Blackstone’s distributable earnings are up 26% this year. It has generated $7.9 billion, or $6.15 per share, in distributable earnings over the last 12 months, up 26% from the year-ago period. That has enabled it to increase its trailing 12-month dividend payout by nearly 23% (from $4.26 to $5.23 per share).

Despite strong earnings growth, Blackstone’s stock price has tumbled nearly 35% from its 52-week high amid concerns about the private credit market. While those concerns are having some impact on BCRED -- its AUM has fallen from $82 billion to $79 billion while equity raised has declined from $3.7 billion in last year’s second quarter to $1 billion this year -- its overall private credit strategy is thriving. Further, private credit is only one aspect of Blackstone’s business. The company has invested heavily in AI across its strategies, which is paying off. Blackstone noted that nine of its 10 best-appreciating investments have an AI link, including its stake in Anthropic and its data center businesses. It continues to pour money into AI-related investments, including a recent $5 billion AI infrastructure venture with Google and a plan to invest $30 billion in AI data centers in Japan.

With its earnings surging and its stock price under pressure, Blackstone’s valuation has gotten increasingly more attractive. The stock price decline, when combined with a rising dividend, has also pushed its yield to a more enticing level for income-seekers (over 4% based on its recent share price and trailing 12-month payment).

Blackstone is a buy

Blackstone’s earnings show that its strategy is paying off. While it’s facing some private credit headwinds at BCRED, its overall private credit strategy is delivering results for investors. Meanwhile, its investments in AI are driving strong growth and returns. With its stock now down nearly 35% from the peak, Blackstone looks like a compelling buy following its strong second-quarter earnings.