Key Highlights

  • Adjusted EPS of USD 1.41 beat the consensus estimate of USD 1.39, while GAAP diluted EPS was USD 1.15.
  • Revenues of USD 385.1 million fell 14% and missed the consensus estimate of USD 409.74 million.
  • Nine month revenues reached a record USD 1.29 billion, up 9%, with adjusted EPS of USD 4.92 rising 11%.
  • Cash and short-term investments hit a record USD 766 million with no Funded Debt outstanding.

PJT Partners Inc. (NYSE:PJT) reported third quarter 2026 revenues of USD 385.1 million, down 14% from USD 447.1 million a year earlier and below a consensus estimate of USD 409.74 million. Adjusted EPS of USD 1.41 compared with a consensus estimate of USD 1.39 and was 24% lower than a year ago. GAAP diluted EPS was USD 1.15 against USD 1.47, a 22% decline. GAAP pretax income was USD 68.8 million and adjusted pretax income was USD 72.4 million, decreases of 24% and 23%.

Lower Compensation Ratio Offset by Rising Non-Compensation Costs

Revenues fell on lower strategic advisory, restructuring and private Capital solutions revenues, partly offset by higher primary fundraising revenues. Adjusted compensation and benefits expense dropped 15% to USD 256.1 million, or 66.5% of revenues versus 67.5%, on lower revenues and a lower accrual rate. Adjusted non-compensation expense rose 10% to USD 56.7 million, or 14.7% of revenues versus 11.5%, driven by technology infrastructure, market data, a larger global office footprint and higher travel costs. Chairman and Chief Executive Officer Paul J. Taubman said the firm continues to invest in its footprint, capabilities and brand, pointed to record nine month revenues, pretax income and EPS, and said he remains highly confident in future growth prospects.

Capital Return and Nine Month Record Results

For the nine months, revenues rose 9% to USD 1,289.6 million, GAAP pretax income rose 14% to USD 251.3 million, and GAAP diluted EPS rose 7% to USD 5.02. The company repurchased 2.3 million shares and share equivalents through September 30 at an average price of USD 154.07, with USD 739 million of repurchase authorization remaining. The board declared a quarterly Dividend of USD 0.25 per share, payable December 16, 2026 to holders of record on December 2, 2026. The company also intends to exchange 75 thousand Partnership Units for cash, subject to board approval.

Third Quarter Margins and Capital Against Nine Month Figures

Third quarter adjusted pretax Margin of 18.8% compares with 21.0% a year earlier and 20.3% for the nine months. The GAAP non-compensation ratio was 15.0% against 11.8% a year earlier, while the GAAP compensation ratio eased to 67.1% from 67.8%. The effective tax rate on GAAP Net Income was 18.6% in the quarter against 9.8% for the nine months. The company repurchased 0.2 million shares in the quarter at an average of USD 156.74, above the nine month average of USD 154.07. The unit exchange price is tied to the volume-weighted average share price on November 5, 2026.