PJT’s adjusted earnings fall 24% to $1.41 per share in third quarter
Key Facts
PJT Partners reported on November 3, 2026, adjusted earnings per share of $1.41 in the third quarter, below the average Zacks estimate of $1.44 and compared with $1.85 a year earlier. Diluted earnings per share under accounting standards were $1.15, down 22% year over year, while adjusted earnings fell 24%. The figures put the third quarter on a weaker trajectory than the year-earlier period, although the company said it delivered record performance in the first nine months. Quarterly revenue was $385.1 million, down 14% from $447.1 million a year earlier. The previous close before the results announcement, on November 2, put the share price at $153.58.
The company attributed the revenue decline to lower revenue from strategic advisory, restructuring and private capital solutions. Higher revenue from primary capital raising partly offset the decline, but was not enough to make up for the drop in the other three areas. This breakdown provides a broader picture than earnings per share alone, linking the revenue contraction to the performance of specific business lines. Pretax income under accounting standards fell to $68.8 million, down 24% from a year earlier. Adjusted pretax income also fell, dropping 23% to $72.4 million.
Compensation and benefits expense fell to $258 million in the third quarter from $303 million in the year-earlier period. The company said the decline resulted from lower revenue and a lower accrual rate, reflecting the line item’s response to activity levels and quarterly results. By contrast, non-compensation expenses rose 10% to $57.9 million. PJT linked the increase to investment in technology infrastructure and higher market data costs, as well as office expansion and travel. Thus, lower compensation expense coincided with higher other operating expenses in a quarter when revenue and pretax income declined.
For the first nine months of 2026, PJT said it posted record results, with revenue, pretax income and earnings per share higher than in the year-earlier period. That marked a different trajectory from the third quarter’s performance and does not negate the year-over-year declines recorded in the quarter. Chief Executive Paul J. Taubman said the company continued to invest in expanding its presence, capabilities and brand, adding: "We remain highly confident in our future growth prospects." The company expressed confidence in its growth prospects in the context of continued investment, alongside weaker quarterly results. The figures cited here did not include a quantitative forecast for future periods.
Cash, cash equivalents and short-term investments totaled $766 million on September 30, 2026, and the company said it had no funded debt. These figures provide context on liquidity at quarter-end alongside the decline in quarterly revenue and earnings. During the quarter, PJT repurchased 0.2 million shares and equivalents at an average price of $156.74 per share. Remaining repurchase authorization totaled $739 million on September 30. The figures show the scale of the company’s repurchases and what remained available under the program at period-end.
PJT declared a quarterly cash dividend of $0.25 per share, payable on December 16, 2026, to shareholders of record on December 2. It also said it intends to exchange 75 thousand partnership units for cash, based on the volume-weighted average share price on November 5, subject to board approval. The company scheduled a call to discuss third-quarter and nine-month results for November 3, 2026, at 8:30 a.m. Eastern Time. The call covers both periods, which highlighted the divergence between the standalone quarter and the first nine months. The cash dividend and proposed action involving partnership units are the main upcoming dates cited by the company.