In this article, we are going to discuss the 20 most profitable universities in the world. If you want to read about more institutions within this list, you can go directly to the 5 Most Profitable Universities in the World.
Few can deny the importance of education. It is an essential tool if one wants to make it in this world. The Universal Declaration of Human Rights even reiterates that education stands as one of the most essential human rights. In addition to the inherent value of acquiring knowledge, education is linked to a diverse array of advantages for individuals and society as a whole. These benefits encompass enhanced productivity and economic expansion. This has further spillover effects: human capital is at the heart of innovation, and a more educated workforce fosters innovative ideas leading to more and better jobs.
The COVID-19 pandemic led to widespread school closures, causing substantial upheaval in education systems globally. A World Bank report revealed that, at the height of the crisis, 45 European and Central Asian countries took the necessary step of shutting down their schools, impacting a staggering 185 million students. Of these, 22 million were children in 19 ECA countries living below the national poverty threshold. On the other hand, the pandemic can be attributed to paving the way for the rise of Educational Technology, with companies like Pearson PLC (NYSE:PSO) and Chegg (NYSE:CHGG) leading the charge. However, that success was short-lived with the advent of AI technology like ChatGPT. The stock price of Chegg (NYSE:CHGG), fell by nearly 50% on May 2nd, 2023.
While it may seem that such a shift in educational practices might drive potential students away from higher education institutions, the facts seem to point towards the opposite. Crimson Education reports that the esteemed Ivy League institutions are projected to receive an unprecedented number of applications for the class of 2027, reaching a record-breaking 410,500 applications. This represents a notable increase of over 31% compared to the 311,948 applications received by the class of 2023 before the pandemic.
When considering applications to certain institutions, many students look towards a university's wealth, or how profitable it is, to facilitate their decisions. Profitability in this matter refers to the size of the endowments certain universities receive, and the most profitable universities in the world generally produce the highest standard or research and education. However, while such universities have historically enjoyed growth in their endowment size, in a sharp turnaround from a record year in 2021, many elite universities have reported that their endowments lost value in fiscal year 2022. Harvard University and Brown University reported a 1.8% and a 4.6% decline in their endowment investments, respectively, while Columbia University reported a 7.6% decline from its endowments, the largest among the Ivy Leagues.
The incurred losses do not come as a surprise, as equity markets faced numerous economic challenges in the previous fiscal year. These challenges included persistent supply chain issues, the conflict in Ukraine, higher-than-expected inflation, and the tightening of U.S. monetary policy. In any case, it was a dramatic turnaround from the year 2021, when across the nation, university endowments realized their best returns in decades.
The higher education market is arguably more lucrative now than ever. As such, the global higher education market size is estimated to grow by $63.36 billion from 2022 to 2027, progressing at a CAGR of 14.49% during the forecast period. A major factor fueling the higher education market growth is the advent of changes in educational content delivery methods, including gamification-supported flipped classrooms and active learning platforms.
20 Most Profitable Universities in the World
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Our Methodology
For our list of the most profitable universities in the world, we scoured through numerous college statistics to find the largest university endowments in the world. Following this, we compiled a list of the universities that enjoy such endowments across the globe. Keep in mind, the list is predominantly filled with institutions within the United States as almost all of the richest colleges in the world are based within the US. If you want to see more information regarding universities and their statistics, you can take a look at our list of the 30 Colleges With the Highest Acceptance Rates and 30 Colleges With the Lowest Acceptance Rates.
20. University of Southern California
Endowment: $7.4 billion
The University of Southern California is a private research university in Los Angeles, California, United States. Founded in 1880 by Robert M. Widney, it is the oldest private research university in California. One of the most profitable universities in the world, it has a student population of 49,000.
19. Rice University
Endowment: $7.814 billion
Established in 1912, William Marsh Rice University, simply known as Rice University, holds the impressive rank of 147th worldwide. Dedicated to the "advancement of letters, science, and art" and renowned for its exceptional value among private universities, the institution garnered a remarkable 31,443 applications for the class of 2026, ultimately accepting 2,730 students.
18. Dartmouth College
Endowment: $8.1 billion
Dartmouth College, located in Hanover, New Hampshire, is a prestigious and highly respected Ivy League institution. Founded in 1769, it is one of the nine colonial colleges established before the American Revolution. Ranked 123rd in the world, some famous alums from Dartmouth include writer Theodor Geisel (Dr. Seuss) and poet Robert Frost.
17. John Hopkins University
Endowment: $8.244 billion
Johns Hopkins University is a private research university in Baltimore, Maryland, United States. Founded in 1876, Johns Hopkins was the first U.S. university based on the European research institution model. The acceptance rate is 11%, making it a very selective university. Admitted students are high achievers, with the average GPA being near a 4.0, and SAT scores are in the highest percentiles.
16. University of Oxford
Endowment: $9.6 billion
The University of Oxford is a collegiate research university in Oxford, England. While the university’s exact foundation date remains a little vague, evidence of teaching dates as far back as 1096, making it the oldest university in the English-speaking world and the world's second-oldest university in continuous operation after the University of Bologna. Currently fifth in the world rankings, the University of Oxford caters to a student community of nearly 24,300 and operates as the most profitable university in the UK.
15. Cornell University
Endowment: $9.84 billion
Cornell University is a private Ivy League statutory land-grant research university based in Ithaca, New York. The university was founded in 1865 by Ezra Cornell and Andrew Dickson White. Cornell University offers 80 undergraduate majors and 122 minors; a few of which are interdisciplinary or dual degree programs.
14. Emory University
Endowment: $9.99 billion
Founded in 1836 as Emory College by the Methodist Episcopal Church and named in honor of Methodist bishop John Emory, Emory University ranks 82nd in the world. A southern academic powerhouse, the university is divided into nine schools and colleges, four of which serve undergraduate and graduate students. Emory’s graduate programs include the highly ranked Goizueta Business School, School of Law and School of Medicine.
13. Vanderbilt University
Endowment: $10.21 billion
Vanderbilt University is a private research university in Nashville, Tennessee. Founded in 1873, it was named in honor of shipping and rail magnate Cornelius Vanderbilt, who provided the school its initial $1-million endowment. The university offers 70 undergraduate majors across five schools, most notably in economics, computer science and biological studies. The university's endowment size for the fiscal year 2022 came in at $10.21 billion.
12. University of Chicago
Endowment: $10.30 billion
Tucked away in Chicago’s Hyde Park neighborhood, the University of Chicago is an elite private research institution that was founded in 1890. It has a total undergraduate enrollment of 7,526 (fall 2021), and an urban campus spread across 217 acres. Ranked 13th overall in the world, the University of Chicago is one of the most influential private institutions of higher education.
11. Duke University
Endowment: $12.11 billion
Duke University is a private research university in Durham, North Carolina. Founded by Methodists and Quakers in the present-day city of Trinity in 1838, the school moved to Durham in 1892. Highly ranked by numerous college ranking sites, Duke University has a large number of notable alumni, including the Apple (NASDAQ: AAPL) CEO Tim Cook.
10. Washington University in St. Louis
Endowment: $12.25 billion
Washington University in St. Louis, often called WashU or WUSTL, is a private research university with its main campus in St. Louis County, and Clayton, Missouri. Founded in 1853, the university is named after George Washington. Consistently ranking among the top 100 universities in the USA for the past few years, WashU ranks among the most profitable universities in the world.
9. Columbia University
Endowment: $13.28 billion
Columbia University, officially titled as Columbia University in the City of New York, is a private Ivy League research university in New York City. Being a highly selective school, Columbia's acceptance rate is one of the lowest in the country – in 2021, it was 3.9%, tied with Stanford. For the class of 2026, the Columbia Early Decision acceptance rate came in at only 10.3%.
8. Northwestern University
Endowment: $14.12 billion
Northwestern University is a private research university in Evanston, Illinois. Established in 1851 to serve the former Northwest territory, it is the oldest chartered university in Illinois. Admissions at Northwestern are considered to be highly selective, and the university consistently ranks among the top universities in the United States. In the 2022 U.S. News & World Report's National Universities ranking, it was ranked 9th overall.
7. University of Notre Dame
Endowment: $16.73 billion
The University of Notre Dame du Lac, known simply as Notre Dame, is a private Catholic research university in Notre Dame, Indiana, north of the city of South Bend that was founded in 1842 by the French priest Edward Sorin. For the 2022 first-year applicant pool, the University of Notre Dame recorded 26,509 applicants, of which only 3,420 were accepted.
6. University of Pennsylvania
Endowment: $20.72 billion
The University of Pennsylvania, often abbreviated simply as Penn or UPenn, is one of the 8 prestigious Ivy League universities in the United States. In addition to being one of the most profitable universities in the world and having numerous highly regarded academic programs, UPenn is well known for being one of the top research universities in the country, boasting more than $1 billion in annual research budget.
