PJT Partners Inc. (NYSE:PJT) reported financial results for the fourth quarter and full year 2025, delivering record annual revenue and earnings that surpassed analyst expectations. The advisory-focused investment bank's performance was driven by strength across its strategic advisory, restructuring, and fund placement businesses.
Fourth Quarter Earnings: A Mixed Beat
For the quarter ended December 31, 2025, PJT Partners posted total revenues of $535.2 million. This represents a 12% increase from the $477.3 million reported in the same period last year. The result came in slightly below the analyst consensus estimate of approximately $543.1 million.
The standout figure was the company's earnings per share. PJT reported an adjusted EPS of $2.55 for the quarter, which comfortably exceeded the analyst estimate of $2.38. This earnings beat was achieved despite the modest revenue shortfall, indicating effective expense management and a favorable revenue mix.
The company's performance was bolstered by growth in its core segments:
- Advisory Fees: Increased 9% year-over-year to $473.9 million, driven by higher restructuring revenues.
- Placement Fees: Surged 64% to $53.2 million, principally due to an increase in fund placement activity.
Full Year 2025: Record Performance
The full-year results underscore a period of significant growth for PJT Partners. Annual revenues reached a record $1.71 billion, a 15% increase over 2024's $1.49 billion. Adjusted pretax income for the year was $356.8 million, representing a 20.8% pretax margin, an improvement from 18.6% in the prior year.
Key annual financial highlights include:
- Record Advisory revenues of $1.50 billion (up 14%).
- Record Placement revenues of $181.6 million (up 24%).
- GAAP net income attributable to PJT Partners Inc. of $180.1 million, or $7.00 per basic share.
Market Reaction and Capital Management
Following the earnings release, the stock showed positive momentum in pre-market trading, indicating investor approval of the earnings beat and strong annual results. This initial reaction suggests the market is focusing on the robust profitability and growth trajectory rather than the slight quarterly revenue miss.
The company's capital management strategy remains a focal point. PJT ended the year with a strong, debt-free balance sheet holding $586 million in cash and equivalents. During 2025, the company aggressively returned capital to shareholders, repurchasing 2.4 million shares and share equivalents at an average price of $157.18. The Board also declared a quarterly dividend of $0.25 per share, payable in March 2026.
Looking Ahead
While the press release did not provide formal forward-looking financial guidance, the company's commentary points to continued strategic investment. Management cited expansion of its global office footprint and continued investments in technology and business applications as drivers behind increased non-compensation expenses.
Analysts currently project revenues of approximately $1.92 billion for the full year 2026. For the upcoming first quarter of 2026, the consensus estimates are for revenues of around $388.1 million and earnings per share of approximately $1.36. PJT's ability to meet or exceed these estimates will likely depend on sustained activity in its advisory and placement segments amid the broader economic and deal-making environment.
Conclusion
PJT Partners' fourth quarter capped a record year, characterized by double-digit revenue growth, expanding profit margins, and disciplined capital return. The earnings per share beat, coupled with strong annual metrics, appears to have resonated positively with investors in early trading. The firm's advisory-focused model and clean balance sheet position it to navigate market cycles, though its performance will remain tied to global M&A, restructuring, and fundraising activity.
For a detailed look at historical earnings, future estimates, and analyst projections for PJT Partners, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
