On November 3, billionaire investor Bill Ackman's Pershing Square released its third-quarter financial results, reporting a net loss attributable to the company of $19.9 million, compared with net income of $155.5 million in the same period a year earlier. Quarterly revenue fell 14.5% year over year to $56.6 million, while total expenses rose to $76.7 million from $41.9 million in the prior-year period. Although recurring management fee income grew, lower performance fees and higher operating costs weighed on overall profitability.
Even so, Pershing Square's investment portfolio continued to outperform the broader market. In the third quarter, the portfolio's net asset value (NAV) return reached 3.5%, surpassing the S&P 500's 2.3% gain over the same period, with Microsoft and Meta serving as the main contributors to returns. The company said it has added seven new investments since the start of 2026 and began establishing an eighth investment position after the end of the third quarter.
Pershing Square expects earnings per share for companies in its portfolio to grow at an average annual rate of roughly 20% over the next three to five years, above the 13% expected for S&P 500 constituents. The firm believes that the heavy influx of market capital into AI infrastructure suppliers has caused some companies with stable earnings growth capacity to be overlooked, creating opportunities for it to increase holdings in these companies at relatively attractive valuations.
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