PJT Partners (1PJ) AI Stock Analysis

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PJT Partners

(Frankfurt:1PJ)

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Positive Factors

Record growth across businessesRecord nine-month revenue and management's expectation for record performance across all three businesses indicate broad-based demand rather than reliance on one franchise. This supports continued investment, strengthens operating scale, and provides a durable foundation for growth over the next several quarters.

Negative Factors

Transaction-cycle earnings volatilityPJT's success-based advisory model makes earnings sensitive to transaction timing and closing volumes. The sharp quarterly decline demonstrates that even a strong pipeline may not translate into steady results, creating ongoing volatility in revenue, margins and cash generation across market cycles.

PJT Partners Business Overview & Revenue Model

Company Description

PJT Partners Inc., an investment bank, provides various strategic advisory, shareholder advisory, capital markets advisory, and restructuring and special situations services to corporations, financial sponsors, institutional investors, and government...

PJT Partners Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q3-2026)|% Change Since:1.48%|Next Earnings Date:Feb 09, 2027

Earnings Call SentimentPositive

The call was broadly positive: record nine-month revenue and earnings, a record outlook for the full year across all three businesses, strong restructuring and private capital solutions demand, improving Strategic Advisory pipelines, substantial liquidity and continued recruiting and investment momentum outweighed the weaker third quarter. However, management highlighted lower quarterly completions, higher non-compensation expenses, challenging primary fundraising, lower M&A conversion rates, expensive financing and a potentially higher 2027 tax rate.

Positive Updates

Record Nine-Month Revenue and Earnings

Nine-month total revenues were $1.29 billion, up 9% year over year and a record for the period. Nine-month adjusted pretax income was $220 million, and adjusted if-converted EPS was a record $4.92, up 11% year over year. Record nine-month performance was led by Strategic Advisory and Restructuring.

Negative Updates

Third-Quarter Revenue and Earnings Decline

Third-quarter revenues were $385 million, down 14% year over year. Adjusted pretax income was $72 million, down 23%, and adjusted EPS was $1.41, down 24%, as fewer completions across all businesses weighed on results.

Company Guidance

Management said it remains on track to deliver record results for full-year 2026, with all 3 principal businesses tracking to record performance; adjusted compensation expense at 66.5% of revenues remains its best estimate for full-year 2026, and the effective tax rate expectation is 19.7%. Park Hill remains on track to deliver record 2026 revenues, Strategic Advisory remains on track to deliver another year of record revenues, and restructuring and liability management activity is expected to continue at higher levels. Annualized global announced M&A activity is trending up modestly from year ago levels, with 2026 on track to be the second best year ever for M&A as measured by announced volumes. For 2027, management said an appropriate starting point for the effective tax rate is around 25%, including the impacts it believes the 162(m) extension will have on its tax rate.

PJT Partners Risk Analysis

PJT Partners disclosed 33 risk factors in its most recent earnings report. PJT Partners reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

PJT Partners Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:1PJ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	77Outperform	$4.62B	18.16	44.59%	4.62%	11.93%	-2.27%
HLI	73Outperform	$10.27B	24.12	17.54%	1.78%	-0.45%	-5.71%
PIPR	73Outperform	$4.69B	14.88	22.13%	3.01%	19.70%	24.50%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LAZ	65Neutral	$4.01B	22.93	20.43%	4.77%	8.86%	-35.87%
PWP	61Neutral	$1.37B	30.64	-51.19%	2.02%	2.45%	-41.28%

* Financial Sector Average

Performance Comparison

DE:1PJ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:1PJ	Pjt Partners Inc.	137.00	-8.08	-5.57%
LAZ	Lazard Ltd.	41.90	-6.01	-12.54%
PIPR	Piper Sandler Companies	66.53	-13.42	-16.78%
MC	Moelis	56.29	-4.88	-7.98%
HLI	Houlihan Lokey Inc.	146.17	-31.07	-17.53%
PWP	Perella Weinberg Partners	13.87	-4.55	-24.69%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

PJT Partners AI Stock Analysis