Abstract

Piedmont Office will report quarterly results on February 11, 2026 Post Market; this preview outlines recent performance, company projections, and the prevailing analyst stance based on data and media coverage through February 04, 2026.

Market Forecast

Consensus as reflected in company-provided forecast data points to current-quarter revenue of $139.40 million, gross profit margin not guided, GAAP net profit not guided, and adjusted EPS of -$0.05 with year-over-year change of -66.67%; revenue YoY is expected to decline by 1.81%. The main business of rent and tenant reimbursements is projected to remain the core revenue driver, with management signaling stability in property-related streams. The most promising segment remains rent and tenant reimbursements at approximately $133.03 million last quarter, although growth YoY is modest and overall revenue is expected to contract.

Last Quarter Review

Piedmont Office’s prior quarter delivered revenue of $139.16 million, a gross profit margin of 59.84%, GAAP net profit attributable to the parent company of -$13.46 million, a net profit margin of -9.67%, and adjusted EPS of -$0.11; revenue declined by 0.09% year-over-year, and adjusted EPS declined by 22.22% year-over-year. A notable highlight was operating performance measured by EBIT at $18.35 million, which came in below prior internal estimates and signaled persistent cost pressure amid a soft leasing backdrop. Main business highlights: rent and tenant reimbursements contributed $133.03 million, other property income was $6.02 million, and property management fees were $0.12 million, indicating revenue concentration in core rental streams with limited ancillary growth.

Current Quarter Outlook

Main Business: Rent and Tenant Reimbursements

Rent and tenant reimbursements remain the central revenue engine, and last quarter’s $133.03 million underscores the reliance on contractual leases across the portfolio. The quarter-on-quarter net loss narrowed with a 19.91% improvement in net profit change, suggesting incremental progress in cost containment or nonrecurring items’ normalization, but the net margin at -9.67% reflects ongoing headwinds. For the current quarter, the company’s forecast of $139.40 million revenue and EPS of -$0.05 implies continued pressure from vacancy, lease roll-downs, or rate concessions, with YoY declines captured by the -1.81% revenue growth and a significant negative EPS YoY. The rent stream’s stability hinges on renewal volumes, tenant mix, and market rents; with broader office fundamentals uneven, the quarter’s results will likely depend on retention rates and re-leasing spreads.

Most Promising Business: Leasing Stabilization and Core Property Cash Flows

Among Piedmont Office’s revenue components, rent and tenant reimbursements offer the clearest pathway to stabilization due to existing lease contracts and recoveries structures. The company’s internal forecast of EBIT at $22.92 million with expected YoY increase of 17.83% indicates potential operating leverage from expense management or improved collections. If operating expenses are contained and property-level margins hold near last quarter’s 59.84%, incremental gains could appear even with flat to slightly lower revenue. However, the EPS forecast at -$0.05 highlights that interest expense, depreciation, or non-cash items may weigh on bottom-line results. Investors should monitor leasing activity in key markets and the conversion of signed leases to cash rent commencement, as this could support EBIT improvement despite soft top-line trends.

Stock Price Drivers This Quarter

The stock’s near-term movement will be sensitive to adjusted EPS versus the -$0.05 forecast and whether EBIT exceeds the $22.92 million estimate. A narrower GAAP net loss than last quarter’s -$13.46 million could be viewed constructively, especially if the net margin improves from -9.67%. Revenue mix matters: maintaining rent and tenant reimbursements near last quarter’s $133.03 million will be crucial, as any slippage there is difficult to offset with smaller categories like other property income or property management fees. Guidance and leasing commentary will be decisive; reaffirmed or improved outlooks for occupancy and re-leasing spreads could mitigate concerns over YoY revenue decline, while cautious tone on demand or elevated concessions could reinforce the cautious sentiment reflected in the EPS YoY reduction.

Analyst Opinions

Coverage and institutional commentary in recent months have generally leaned cautious, focusing on macro office demand softness and the company’s negative EPS trajectory. The majority view highlights cautious expectations regarding revenue and EPS, aligning with the company’s forecast of -$0.05 EPS and -1.81% YoY revenue growth this quarter. Several institutions emphasize monitoring operating metrics such as EBIT trend—forecasted at $22.92 million—and cash flow resilience from core rent and reimbursements, with the view that modest operating improvement may not fully offset bottom-line pressures. The cautious stance centers on the persistence of headwinds in re-leasing activity, potential vacancy drift, and financing costs, with the balance of opinions calling for conservative interpretations of guidance and emphasis on execution in maintaining property-level margins around the 59.84% mark observed last quarter.