Pershing Square (PSH) Q3 Results Deepen Concerns Over Ongoing Losses
Pershing Square came into this Q3 2026 earnings print with a premium story stock label and a rich 24.6x P/S multiple. The share price had slipped about 11.6% over the past month and stayed flat on the day, up just 0.09% to US$46.66. The headline result was another quarterly loss, with basic earnings per share of US$0.05 in the red and net income of US$19.9 million also in the red, even as revenue registered US$56.6 million. For a firm built on a high-conviction equity story, that profit squeeze is what matters most today.
Love Pershing Square's premium story stock appeal but concerned about ongoing losses at a rich 24.6x P/S multiple? Consider using the 35 high quality undervalued stocks as a benchmark for companies that pair stronger fundamentals with more grounded valuations.
Q3 2026 Earnings Summary
- Revenue (Q3 2026 vs. Q3 2025): US$56.6 million vs. US$66.2 million (reported top line was lower year on year)
- Net Income/Loss (Q3 2026 vs. Q3 2025): loss of US$19.9 million vs. profit of US$155.5 million (moved from profit to loss)
- Basic EPS (Q3 2026 vs. Q2 2026): loss of US$0.05 per share vs. loss of US$0.11 per share (quarter on quarter loss per share narrowed)
- Assets Under Management, or AUM (Q2 2026 vs. Q1 2026): US$32.5b vs. US$26.6b (reported AUM level was higher quarter on quarter)
Pershing Square says AI cloud upside is still underpriced. Ask Charlie what Pershing Square sees in the hyperscaler mispricing.
Pershing Square’s growth catalysts on trial
Pershing Square pitches its research build out and new vehicles as engines for much higher fee potential over time.
"The build out of an extensive research library of hundreds of businesses followed for many years allows Pershing Square to rapidly deploy capital when volatility dislocates prices. This can support higher long run returns on invested capital and, in turn, higher performance fees and operating margins."
The quarter did show higher AUM at US$32.5b, which fits the goal of scaling fee bases. Yet revenue of US$56.6 million and a loss of US$19.9 million indicate that hoped for operating leverage is not visible in current margins.
Stress testing Pershing Square’s risk narrative
The bear case focuses on product expansion and capital structure turning into drags rather than growth drivers.
"Pershing Square’s expansion into new permanent capital vehicles such as Pershing Square Ventures, crossover funds and asymmetric strategies, along with the continued work on SPARC, depends on consistent investor appetite and on the company’s ability to source attractive deals that public investors cannot replicate. If demand for these structures weakens or execution on new products disappoints, growth in fee paying assets could fall short of expectations and limit revenue and earnings growth."
The delayed PSV launch cited by recent downgrades, combined with lower year on year revenue and a swing from profit to loss, points to this execution risk already biting into the earnings profile.
The price and this Narrative do not agree. → Uncover what this Narrative says Pershing Square is actually worth.
Hunt For Mispriced Growth Stories
Pershing Square just showed how a rich narrative can clash with near term earnings pressure. The real opportunity is spotting companies that could be undervalued before the market closes the gap.
- Company 1 - 43% below our estimate - sells integrated data center building blocks as large AI infrastructure buyers adopt turnkey solutions.
- Company 2 - 30% below our estimate - uses AI centric networking and data services to move more customers onto recurring consumption contracts.
- Company 3 - 23% below our estimate - converts grid modernization and defense programs into higher value testing, diagnostics and measurement contracts.
Those are three of them. See the full list of 35 companies trading below our fair value estimates →
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com