Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 6 of last 7 quarters
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Brookfield's record fundraising and AI infrastructure momentum underscore the scale of capital flowing into the AI buildout. The expansion of the Bloom Energy partnership to $25B and the Paducah project (up to $100B investment, 2GW compute) highlight the magnitude of energy and data center demand. Brookfield's integrated approach—combining power, data centers, and compute—positions it as a key player in the physical infrastructure backbone of AI.
Brookfield reported record Q2 fundraising of $77B, including a $40B mandate from Just Group, bringing year-to-date fundraising to $98B and last-12-month to $163B. FRE grew 20% YoY to $808M and DE grew 15% to $707M, with fee-bearing capital up 19% to $672B. The company deployed $21B and monetized $11B during the quarter, and repurchased $200M of stock. The Oaktree acquisition closed, and the AI Infrastructure Fund held its first close, with the Bloom Energy partnership expanded fivefold to $25B.
Management expects 2026 to be a record year for fundraising, with year-to-date inflows of $98B and a strong pipeline for H2. They guided to roughly equal fundraising contributions across flagships, complementary equity, debt, and insurance channels, providing resilience even if markets shift. The Oaktree acquisition closed, and management expects it to drive revenue synergies and operating leverage, though consolidated margins will dip due to mix. AI infrastructure remains a key growth driver, with the BAF fund targeting $10B and anchoring a $100B investment program.
“AI is not only shaping our AI infrastructure strategy it is becoming an increasingly important theme across all of Brookfield.”
on AI strategy
“We do not commit capital speculatively and remain thoughtful about our counterparties and infrastructure locations.”
on Investment discipline
“We are positioned not simply to navigate this environment, but to outperform through it.”
on Outlook
Given the strong fundraising quarter, what is the outlook for H2 fundraising and key drivers?
Connor Teskey said year-to-date fundraising is nearly $100B, and they expect to far exceed the previous high watermark. He emphasized the balance across four channels—flagships, complementary equity, debt, and insurance—which provides comfort even if markets shift.
With Oaktree closed, what is your view on credit market depth to finance AI build-out and Oaktree's opportunity set?
Connor Teskey said credit markets are 'incredibly robust' with strong appetite for high-quality real assets, and there is enough capacity to support AI infrastructure. He noted Oaktree's integration is driving revenue synergies and that flagship fundraising timelines are being pulled forward.
Is AI infrastructure investing getting crowded, and how important are partnerships to scale?
Sikander Rashid acknowledged competition but highlighted differentiators: energy access (100GW needed vs 30GW available), $85B digital infrastructure portfolio, and focus on full value chain (power and compute = 60% of capital). He said partnerships with NVIDIA and Bloom are key differentiators.