BX · 10-Q · 2026Q3 · Full report
Operating Expense Trends
Blackstone Inc. · 2026-11-06 · Importance 37 · Surprise 32 · In source text
For the three months ended September 30, 2026, total expenses decreased $125.4 million (7%) year over year to $1.625 billion. Total compensation and benefits fell $164.5 million, including a $207.0 million decrease in performance allocations compensation, partly offset by a $55.1 million increase in compensation. Lower performance allocations compensation reflected lower investment income, while higher compensation was primarily tied to increased management and advisory fees. For the nine months ended September 30, 2026, total expenses rose $685.5 million (12%) to $6.263 billion, including increases of $540.7 million in compensation and benefits and $121.5 million in general, administrative and other expenses.
Key facts
- For the nine months ended September 30, 2026, Realized Performance Compensation increased $68.2 million and Fee Related Compensation decreased $52.5 million, reducing Net Realizations, increasing Fee Related Earnings and negatively affecting Income Before Provision (Benefits) for Taxes and Distributable Earnings. source
- Third-quarter 2026 expenses were $1.6 billion, down $125.4 million compared with $1.8 billion in the prior-year quarter. source
- Third-quarter 2026 Total Compensation and Benefits decreased $164.5 million, including a $207.0 million decrease in Performance Allocations Compensation, partly offset by a $55.1 million increase in Compensation. source
- Expenses were $6.3 billion for the nine months ended September 30, 2026, up $685.5 million from $5.6 billion for the same 2025 period. source
- Total Compensation and Benefits increased $540.7 million for the nine months ended September 30, 2026, including a $288.3 million increase in Performance Allocations Compensation and a $285.3 million increase in Compensation. source
- For full-year 2026, Blackstone expected Fee Related Compensation to decrease by the total additional Performance Compensation awarded for the year under its ongoing compensation program; the program does not affect full-year Income Before Provision (Benefits) for Taxes or Distributable Earnings. source
- For the three months ended September 30, 2026, Realized Performance Compensation did not change and Fee Related Compensation decreased by $17.5 million, increasing Fee Related Earnings and positively affecting Income Before Provision (Benefits) for Taxes and Distributable Earnings, with no impact on Net Realizations. source
- Real Estate Fee Related Compensation was $196.0 million in Q3 2026, up $27.7 million from $168.4 million, primarily due to increased Fee Related Performance Revenues. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -22.4% | Expenses were $6.3 billion for the nine months ended September 30, 2026, up $685.5 million from $5.6 billion for the same 2025 period. |
| operating_income | positive | realized | +4.1% | Third-quarter 2026 expenses were $1.6 billion, down $125.4 million compared with $1.8 billion in the prior-year quarter. |
| operating_income | negative | realized | -2.2% | For the nine months ended September 30, 2026, Realized Performance Compensation increased $68.2 million and Fee Related Compensation… |
| operating_income | positive | realized | +1.7% | For the nine months ended September 30, 2026, Realized Performance Compensation increased $68.2 million and Fee Related Compensation… |