PJT Partners Q3 Revenue Falls 14%, Nine-Month Results Remain Higher

PJT Partners Inc. (NYSE: PJT) reported lower third-quarter 2026 revenue and earnings from a year earlier, while its nine-month and last-12-month results remained above the comparable prior-year periods. Quarterly revenue fell 14% to $385.1 million, and adjusted net income per share declined 24% to $1.41.

For the three months ended September 30, GAAP pretax income decreased 24% to $68.8 million from $91.0 million. Adjusted pretax income, which excludes acquisition-related compensation, intangible-asset amortization and a spin-off-related payable adjustment, fell 23% to $72.4 million from $94.0 million.

Net income attributable to PJT Partners was $31.8 million, compared with $39.8 million a year earlier. GAAP diluted earnings per share declined 22% to $1.15, while adjusted net income, if converted, was $60.1 million, down from $80.8 million.

Total quarterly expenses decreased to $316.3 million from $356.1 million. Compensation and benefits expense fell to $258.4 million from $303.3 million, while non-compensation expense increased to $57.9 million from $52.8 million.

Nine-Month Results Remain Higher

For the first nine months of 2026, revenue rose 9% to $1.29 billion. GAAP pretax income increased 14% to $251.3 million, and adjusted pretax income also grew 14% to $261.8 million. GAAP diluted earnings per share was $5.02, up 7%, while adjusted EPS increased 11% to $4.92.

On a last-12-month basis, revenue reached $1.82 billion, 10% above the prior-year period. Adjusted pretax income rose 15% to $388.4 million, and adjusted EPS increased 18% to $7.49. The firm served more than 440 clients over that period.

PJT operates an advisory-focused platform spanning strategic advisory, restructuring and special situations, and fund advisory and capital raising through PJT Park Hill. The presentation did not provide quarterly revenue or profit figures for individual businesses, but highlighted the breadth of the platform across mergers and acquisitions, capital markets, shareholder matters, liability management, distressed transactions and private-capital solutions.

The firm had 1,314 employees and 140 partners as of September 30, up from 1,224 employees and 133 partners at the end of 2025. Strategic Advisory accounted for 90 partners, with the remainder across restructuring and special situations, PJT Park Hill and corporate functions.

Balance Sheet and Capital Priorities

PJT reported $766 million of cash, cash equivalents and short-term investments, with no funded debt. Its stated capital priorities are to invest in the business, offset dilution and maintain a dividend, supported by disciplined expense management and a strong cash position.

The company returned $402 million of capital during the 12 months ended September 30 through open-market repurchases, exchanges, net share settlements and dividends. Cumulative capital returns since 2017 exceeded $2.2 billion. Average if-converted shares outstanding declined to 42.7 million in the third quarter from 43.8 million a year earlier, while weighted fully diluted shares outstanding at quarter-end decreased to 44.9 million from 45.8 million.

Management identified continued talent recruitment, broader capabilities and geographic expansion as operating priorities. The presentation also cited potential market-share opportunities, increased demand for advisory-focused firms and business disruption as long-term drivers, but it did not provide quantified revenue or earnings guidance.

PJT said its forward-looking expectations remain subject to regulatory and policy changes, cybersecurity and systems failures, reliance on third-party providers, and political and economic volatility. Other identified uncertainties include inflation, global trade policy changes, elevated interest rates, potential government shutdowns, geopolitical or military conflicts, catastrophic events and technological disruption, including the rapid adoption of artificial intelligence.