Pershing Square Inc. recently released its Q3 2026 investor letter. A copy of the letter can be downloaded here. The letter reported 13% year-over-year growth in third-quarter fee-related earnings (FRE) to $63.7 million, while distributable earnings (DE) before taxes increased 8% to $61.0 million. After taxes, DE totaled $49.5 million, or $0.12 per share, down 12% year over year, primarily due to corporate income taxes following its IPO. Fee-paying assets under management reached approximately $23.0 billion as of September 30, 2026, up 3% sequentially and 4% year over year, with permanent capital representing 98% of the total. The firm said its portfolio companies recorded average quarterly EPS growth of approximately 5% and generated a combined investment return of just over 8%, excluding Howard Hughes Holdings and Fannie Mae and Freddie Mac. Pershing Square expects its portfolio companies to deliver approximately 20% annual EPS growth over the next three to five years. A major focus of the letter was the AI infrastructure buildout. AWS revenue growth accelerated to 39% in Q3, while Meta’s AI-driven advertising improvements and Microsoft’s Azure growth and Copilot adoption strengthened their investment cases. Pershing Square also invested $110 million across seven private companies as part of its planned launch of Pershing Square Ventures. Overall, the firm believes market volatility is creating opportunities to acquire high-quality businesses at attractive valuations. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Pershing Square highlighted stocks like S&P Global Inc. (NYSE:SPGI). S&P Global Inc. (NYSE:SPGI) provides financial information, analytics, credit ratings, benchmarks, and data services to businesses and financial market participants worldwide. The one-month return of S&P Global Inc. (NYSE:SPGI) is 17.93%, while its shares traded between $361.03 and $522.47 over the last 52 weeks. On November 3rd, 2026, S&P Global Inc. (NYSE:SPGI) stock closed at approximately $475.17 per share, with a market capitalization of about $137.63 billion.
Pershing Square stated the following regarding S&P Global Inc. (NYSE:SPGI) in its Q3 2026 investor letter:
“SPGI’s share price increased 3% during the third quarter and is down 1% year-to-date from our average cost as strong performance in S&P Global’s high-quality benchmark businesses has been overshadowed by concerns around the impact of AI on Market Intelligence and higher interest rates on Ratings growth.
We continue to believe that AI risk is confined to a small percentage of the company’s overall earnings and may be offset by growing demand for high-quality curated and proprietary data, as evidenced by preliminary data points from the company’s AI initiatives. Following the quarter, the company announced a strategic review, including the potential separation of its CapIQ and related data businesses. We are supportive of a separation as it will allow for greater focus on and investment in S&P’s high-quality data assets while alleviating concerns of AI disruption risk for the remaining company. Despite higher interest rates, we expect Ratings to deliver healthy growth and solid margin expansion through the cycle, supported by AI-related capex, robust M&A pipelines, and substantial maturity walls, particularly in high-yield debt.
We expect SPGI to compound earnings at a mid-teens rate over the long term, driven by high-single-digit revenue growth, operating leverage due to its largely fixed cost structure, and its robust capital return program, which should reduce shares outstanding by 4% per annum. SPGI trades at 20 times earnings, a low multiple for a company which owns a portfolio of the world’s best benchmark businesses.”
Source: finance.yahoo.com
