The University releases its 2026 independent auditor’s report.
On Oct. 9, 2026 KPMG, an accountant firm, issued an independent auditor’s report verifying that the University’s consolidated financial statements for the fiscal years ending June 30, 2025 and June 30, 2026 fairly represent the University’s financial position “in accordance with U.S. generally accepted accounting principles.”
The financial statements include a wide array of financial information, including details about the University’s total assets, operating costs, investments and donations.
Total assets as of June 2026 are $32.57 billion, which was a 28.4% increase from June 2025. Total net assets as of June 2026 are $27.11 billion, which represents a $6.71 billion increase in the span of one year. The University’s operating revenue is $9.78 billion, a 2.4% increase since the previous year.
This relatively modest increase in operating revenue costs compared to the larger increase in net assets has resulted in an operating surplus value of $522.8 million, which is equal to the amount remaining after subtracting expenses from revenue.
In an email to The News-Letter, a University spokesperson explained that the operating margin consists of many accounts for different programs or purposes.
“The operating margin that appears on the financial statement is not a single pool of funds but comprises thousands of separate accounts – many of them restricted to specific programs or purposes… As other large nonprofit organizations, our operating margin varies from year to year, but we always aim to ensure that a small portion of that amount is available to weather short-term disruptions,” the University spokesperson wrote.
The significant increase in total university assets can be attributed to a combination of investment performance and donor-restricted resources. Donor-restricted resources refer to assets provided to a nonprofit organization with legally binding limits set by the donor detailing how those assets can be used.
For fiscal year 2026, the University reported $9.775 billion in operating revenue, an increase from the FY25 figure at $9.547 billion. The largest46 billion, or approximately 51.6% of total operating revenue. Contract revenue from Applied Physics Laboratory (APL) research specifically accounts for $2.964 billion of sponsored research revenue contributions
Comparatively, student tuition and fees made up only a small portion of operating revenue — only about 9% (or about $883.8 million). Other contributors to operating revenue included financial aid, clinical services, reimbursements from affiliated institutions and endowment payout supporting operations.
While operating revenue represents financial contributions from core business activities, investment returns represent financial gain from capital invested into assets outside of core operations. The University’s total investment return rose from $1.81 billion in FY25 to $4.26 billion in FY26, more than a two-fold increase. Three categories of investment returns were outlined. Of the total $4.260 billion in investment returns, $2.822 billion were returns with donor restrictions.
In addition, donations to the University increased significantly. Total net assets with donor restrictions increased from $13.94 billion to $19.01 billion. 89% of contribution revenue in FY26 were from 10 donors. The report stated that the 10 donors include “affiliated entities, trustees, and other donors.” No further details are included regarding the identity of donors.
In an email toThe News-Letter, a University spokesperson described the University’s approach to philanthropic gifts and its goal to protect its academic and research independence.
“The university does not accept gifts that come with restrictions that would unduly influence our research, teaching, or admissions decisions, and we reserve the right to decline or return a gift that doesn’t meet our standards,” the spokesperson wrote.
Though the financial statements report $27.11 billion in total net assets, only $3.739 billion of this figure represents assets freely available to spend without donor restrictions. The remaining $19.011 billion include endowment and other purpose-restricted funds. As a result, the University estimates that only $3.739 billion will be available for one year of general expenditures.
The financial statements also report $1.855 billion in debt, and $1.7 million tied up in open construction contracts, expected to span the next two to five years.
The University spent $9.253 billion on operations in FY26. The University’s largest ongoing costs were compensation ($4.348 billion) and employee benefits ($1.446 billion), representing 62.6% of total operating expenses. The APL alone accounted for $2.787 billion in expenses. Other major expenses included in the report were contractual services, supplies and materials, subcontractors, depreciation, travel and interest payments.
The report explicitly flagged changes in federal policy and regulation during FY26 as potential risks to university operations, including federally funded research and other programming. Approximately 88% of sponsored research revenue came from U.S. government departments and agencies in FY26, a one point decrease from 89% in FY25.
When asked about federal research funding, a University spokesperson explained that the University has taken steps to prepare for potential disruptions to federal research funding.
“As the federal government’s largest research partner for more than 40 years, Hopkins has long recognized that we are uniquely vulnerable to potential changes or uncertainty in federal support,” the spokesperson wrote. “The 2026 financial statement reflects that we have carefully managed our finances over a number of years to ensure that we can weather unexpected disruptions and limit their impact on our programs and people. We managed to end the fiscal year with a positive margin, consistent with recent years, despite ongoing declines in the number and value of new federal research awards.”
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