Harvard University announced an operating loss of $113 million for fiscal year 2025—its first operating deficit since the pandemic and the largest loss in 14 years. During the same period the university received more than $600 million in immediately‑spendable gifts, its highest such amount ever, and achieved an 11.9 % return on its endowment.
Harvard attributed the operating deficit to multiple factors, including inflation‑driven cost pressures, constraints tied to research funding and international student enrollment, and increased tax burdens on its endowment. The endowment itself grew from roughly $53.2 billion to $56.9 billion.
Despite strong fundraising and investment performance, Harvard’s leadership described the financial results as “extraordinarily challenging” for an institution with centuries of financial resilience.
Harvard’s reported operating loss highlights the financial complexities facing even the most well-endowed institutions. While strong returns and record-setting donations reflect continued support, the deficit points to challenges in managing expenses, navigating economic pressures, and adapting to evolving funding models. As higher education institutions face increased scrutiny over cost and value, financial performance remains a key indicator of long-term stability and operational discipline.
