Stockbridge's Trades and Holdings in Q1 2026

Breaking down the stocks Stockbridge bought, sold, and held in Q1 2026, including their holdings at the end of the quarter. All data sourced from Stockbridge's 13F filed on May 15, 2026.

Who is Stockbridge?

Stockbridge is the public equity investment arm of Berkshire Partners, a Boston-based private equity firm established in 1984. The firm focuses on building long-term concentrated positions in high-quality growth companies with sustainable competitive advantages. Stockbridge leverages Berkshire's extensive private equity experience to identify public companies with exceptional management teams and compelling business models.

Berkshirepartners.com/stockbridge
Wikipedia
Interview with Stockbridge's Rob Small on Transdigm
Q1 '26 13F filed with SEC

Holdings in Q1 2026

Current Investment Strategy

Stockbridge, the concentrated public equity arm of Boston-based Berkshire Partners, maintained its private-equity-style, long-horizon approach in Q1 2026—building high-conviction positions in competitively advantaged businesses spanning industrials, technology infrastructure, and payments, highlighted by new stakes in Nvidia, Mastercard, Visa, Allison Transmission, and Liberty Media Formula One, while exiting software names Veeva, ServiceNow, and Klarna. The portfolio reshaping reflects a deliberate rotation away from pure-play SaaS and fintech-adjacent growth toward companies with durable, asset-backed or network-driven earnings power, consistent with the firm's longstanding emphasis on quality compounders with exceptional management teams and sustainable competitive moats.

New Investments

Nvidia NVDA

Stockbridge bought $267.2B of Nvidia in Q1 2026. Over the last 12 months, the company’s share price has risen roughly 88.26% and now trades near the top of its $129.16–$236.54 52‑week range, with the current quarter showing continued strength after a 16.96% gain in the past four weeks. In the most recent quarter, the company delivered EPS of $1.62, about a 5.51% beat versus the $1.54 consensus estimate, highlighting resilient data‑center and AI GPU demand and helping sustain positive momentum versus the prior quarter. While Trading Economics’ models point to a potential pullback toward $210.75 by quarter‑end and $197.93 over the next year, the combination of recent earnings outperformance and ongoing AI‑driven growth expectations has supported a higher valuation in the current quarter.

• Share price is up 16.96% over the last 4 weeks and 88.26% over the last 12 months.
• Most recent quarterly EPS was $1.62 vs. a $1.54 consensus, a 5.51% positive surprise.
• Trading Economics projects the stock at $210.75 by quarter‑end and $197.93 in 12 months, implying downside of roughly 7–13% from the recent price of about $228.64.

Allison Transmission ALSN

Stockbridge bought $120.62B of Allison Transmission in Q1 2026. Over the last two quarters, the company has shown clear positive momentum, with 2024 revenue up 6.3% to roughly $3.23 billion and net income up 8.6%, while the most recent quarter delivered about $192 million in net income (up 14% year over year) and diluted EPS of $2.23 (up 17% year over year) on stronger margins. Profitability is trending higher—recent results show adjusted EBITDA margin around 37.5% and net income at roughly 25.1% of net sales, aided by pricing, mix and operating leverage (including contributions from the Dana Off-Highway acquisition), which compares favorably to many commercial-vehicle peers facing flatter margin profiles. Despite this earnings growth, the stock trades at a trailing P/E of about 9.5x and a forward P/E near 10.8x, with a 1.3% dividend yield and a Street consensus Hold rating and roughly 17% implied upside in average 12‑month price targets, suggesting room for valuation re-rating if recent execution and cash generation are sustained.

• Full-year 2024 revenue grew 6.3% year over year to approximately $3.23 billion, while earnings increased about 8.6% to roughly $731 million.
• In the latest quarter, net income was around $192 million (about 25.1% of net sales), with diluted EPS of $2.23 up 17% year over year and adjusted EBITDA margin near 37.5%.
• The balance sheet and valuation are conservative, with a current ratio of about 3.8x, quick ratio roughly 2.8x, interest coverage around 10.9x, and the shares trading at a trailing P/E of roughly 9.5x, below many industrial peers.

Mastercard MA

Stockbridge bought $102.92B of Mastercard in Q1 2026. Mastercard delivered strong Q1 2026 results with EPS of $4.60 beating consensus by $0.19 and revenue of $8.40 billion rising 15.8% YoY, though the stock closed lower despite the earnings beat suggesting potential concerns about future guidance. The company has shown consistent growth with net income increasing 12.84% in the previous quarter to $3.70 billion, supported by strategic initiatives like the recently launched Threat Intelligence solution to combat payment fraud. With trailing EPS of $17.28 and a P/E ratio of 28.35, Mastercard remains positioned for continued growth with expected earnings increasing 15.47% next year.

• Q1 2026 EPS of $4.60 beat consensus by $0.19 with revenue of $8.40 billion rising 15.8% YoY.
• Net income increased 12.84% to $3.70 billion in the previous quarter, demonstrating consistent growth momentum.
• Despite earnings beat, stock price declined, with trailing EPS at $17.28 and expected earnings growth of 15.47% next year.

Visa V

Stockbridge bought $101.95B of Visa in Q1 2026. The company has extended its track record of double-digit growth over the last two quarters, with the latest print delivering revenue up 17.1% year over year and EPS of $3.31, beating consensus of $3.10 by $0.21 while sustaining net margins around 51.7% and ROE near 65%. Over this period, fundamentals have been gaining—trailing-12-month revenue up 14.4% and EPS up 15.2%—even as the stock has remained range-bound around $320–$330, roughly 13% below its $375.51 52-week high, leaving shares at about 28x trailing and 23–25x forward earnings. With analysts assigning a consensus “Strong Buy” rating, modeling EPS growth of roughly 13% over the next year and setting 12-month price targets around $396–$402 (~20–22% implied upside), and with new initiatives in agentic commerce and stablecoin payments layered on top of a cash-generative core business (TTM net income about $22B, EBITDA about $28B), the near-term setup skews positively if macro spending and cross-border volumes remain resilient.

• Most recent quarter: revenue up 17.1% year over year, EPS $3.31 vs. consensus $3.10 (beat of $0.21), with net margin about 51.7% and ROE about 65%.
• Trailing 12 months: revenue $43.03B (up 14.4% y/y), EPS 11.47 (up 15.2% y/y), and net income $22.03B (up 11.8% y/y).
• Valuation and sentiment: current share price around $325 vs. $375.51 52-week high, P/E about 28x and forward P/E around 23x, with consensus analyst price targets near $396–$402 (~20–22% implied upside).

Liberty Media FWONK

Stockbridge bought $62.03B of Liberty Media in Q1 2026. Over the last year the company has delivered robust growth, with F1 revenue up 14% in 2025 to $3.9B and momentum accelerating in Q1 2026 as F1 revenue jumped 53% year over year to $617M and Adjusted OIBDA rose 102% to $172M, supported by strong fan engagement and new race, media and sponsorship deals alongside the addition of MotoGP. The previous quarter also showed positive momentum, with quarterly revenue of $711M beating consensus of $683M and EPS of $0.03 exceeding expectations by $0.09, while the December 2025 split-off of Liberty Live simplified the structure as full-year F1 operating income rose 28% to $632M and MotoGP pro forma operating income climbed 86% to $54M. Despite this acceleration, the stock trades at a premium valuation with a trailing P/E around 42x, forward P/E near 47x, and normalized ROE of roughly 3.8%, so further upside will hinge on sustaining double-digit revenue growth and converting new broadcast, sponsorship and race agreements into higher margins.

• Q1 2026 F1 revenue increased 53% year over year to $617M and Adjusted OIBDA grew 102% year over year to $172M.
• Full-year 2025 F1 revenue grew 14% to $3.9B while operating income rose 28% to $632M and Adjusted OIBDA increased 20% to $946M.
• The stock trades at a trailing P/E of about 42 and a forward P/E of about 47, with normalized ROE of roughly 3.8% and ROIC near 4.0%.

Martin Marietta MLM

Stockbridge bought $18.96B of Martin Marietta in Q1 2026. Over the last year, Martin Marietta has delivered steady but unspectacular share‑price performance, rising roughly 8%, as solid aggregates fundamentals and infrastructure exposure have been offset by a premium valuation versus construction materials peers. In the latest quarter (Q1 2026), revenue reached a record $1.4B, up 17% year over year and about 3% above expectations on strong pricing and initial contribution from the Quikrete acquisition, but EPS of $1.93 came in roughly 4–5% below consensus due to integration costs and mix, following a prior quarter of low‑single‑digit revenue growth and slight misses on both revenue and EPS. With 2025 revenue of $6.15B (up 8.6% YoY), trailing EPS around $18, a P/E near 34x, and a 0.5% dividend yield, the stock screens as high‑quality but not cheap, yet we see potential upside from synergy capture on the Quikrete deal, continued high‑single‑digit price increases, and U.S. infrastructure spending that can sustain mid‑teens EPS growth from here.

• Q1 2026 revenue was a record $1.4B, up 17% YoY and roughly 3% above consensus, while EPS of $1.93 was about 4.5% below forecasts.
• 2025 full‑year revenue reached $6.15B, an 8.6% YoY increase, with trailing EPS around $18 implying a P/E of roughly 34x at a share price near $633.
• The stock is up about 7.7% over the last 12 months, and the Street’s 12‑month price target of $694 implies roughly 9–10% upside plus a 0.5% dividend yield.

Added, Trimmed, and Exited

Added

Stockbridge meaningfully increased its position in Amazon (AMZN) by roughly 25% (adding ~499K shares), while making smaller additions to Alphabet (GOOGL) (+5.5%), Waste Connections (WCN) (+3.5%), and Taiwan Semiconductor (TSM) (+1.5%). TransDigm (TDG) was effectively unchanged at +1 share.
What it means: The most telling move here is the conviction add to Amazon (AMZN), which reinforces Stockbridge's broader AI and cloud infrastructure thesis — a theme also visible in the new positions in Nvidia (NVDA) and the incremental buy of Taiwan Semiconductor (TSM). The modest top-up in Alphabet (GOOGL) suggests continued confidence in large-cap platform tech despite near-term macro uncertainty. The add to Waste Connections (WCN), a defensive compounder, reads as a ballast move — layering in resilience alongside the more growth-oriented bets. Taken together, the adds reflect a barbell approach: lean into AI infrastructure while quietly reinforcing high-quality, recession-resistant businesses.

Trimmed

Stockbridge dramatically cut Guidewire Software (GWRE) by nearly 91% (shedding ~1.3M shares), and made significant reductions to Microsoft (MSFT) (-30%), Deere (DE) (-27%), and Vulcan Materials (VMC) (-13%), with a smaller trim to KLA (KLAC) (-13%).
What it means: The near-complete exit from Guidewire Software (GWRE) is the headline — this was previously one of Stockbridge's larger positions, and slashing it by over 90% signals a fundamental reassessment, likely tied to valuation, growth deceleration, or capital reallocation priorities rather than a catastrophic business event. The sharp cut to Microsoft (MSFT) is notable given the firm's simultaneous additions to other AI names; it may reflect a view that Microsoft (MSFT)'s AI upside is already richly priced relative to picks like Amazon (AMZN) or Nvidia (NVDA) where Stockbridge sees more asymmetric return. Trimming Deere (DE) and Vulcan Materials (VMC) — both cyclical industrials with exposure to softer near-term demand — suggests some caution on the traditional infrastructure and agricultural equipment cycle, even as the firm initiates in Martin Marietta (MLM), hinting at a preference for aggregates pricing power over broader heavy machinery exposure.

Exited

Stockbridge fully liquidated its positions in Veeva (VEEV), ServiceNow (NOW), and Klarna (KLAR).
What it means: Exiting both Veeva (VEEV) and ServiceNow (NOW) — two high-quality, high-multiple enterprise SaaS businesses — is a striking and coherent signal. Rather than rotating within software, Stockbridge appears to be stepping back from the premium SaaS category entirely, likely concluding that valuations leave limited margin of safety in a higher-for-longer rate environment or that capital is better deployed in the AI hardware and payments infrastructure names being added this quarter. The exit from Klarna (KLAR), a smaller and more speculative fintech position, fits the same pattern of pruning growth-at-a-premium exposure. Collectively, these three exits freed up substantial capital that appears to have been redeployed into the six new positions initiated this quarter.

Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.