PJT Partners (PJT) has opened 2026 with Q1 revenue of US$418.2 million and basic EPS of US$2.31, setting the tone for how investors will read its latest update against a backdrop of steady earnings expansion in recent years. The company has seen quarterly revenue move from US$324.3 million in Q1 2025 to US$418.2 million in Q1 2026, while basic EPS over that same period has gone from US$2.12 to US$2.31. This gives investors a clear view of how the top line and per share profitability are tracking into the new year as they weigh the durability of margins and earnings power.
See our full analysis for PJT Partners.With the headline numbers on the table, the next step is to see how these results line up with the most common narratives around PJT’s growth, profitability and risk profile, and where those stories might need a reset.
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Margins Hold Around 10% Net
- Over the last 12 months, PJT converted US$1.8b of revenue into US$186.6 million of net income, which works out to a 10.3% net margin compared with 10.5% a year earlier.
- What stands out for a bullish view is that this steady 10.3% margin sits alongside five year earnings growth of about 11% per year and a stronger 19.8% earnings growth figure in the most recent year, which supports the idea of a business that has been growing while keeping profitability broadly intact.
- Bulls pointing to earnings durability can reference trailing basic EPS of US$7.20 on a last twelve month basis, compared with US$5.28 at the end of 2024.
- At the same time, quarterly net income moved from US$51.3 million in Q4 2024 to US$60.5 million in Q1 2026, giving supporters a concrete tie between multi year growth rates and the most recent profit run rate.
TTM Revenue Tops US$1.8b
- On a trailing basis, revenue over the last 12 months reached US$1.8b compared with US$1.5b at the end of 2024, and within that period quarterly revenue ranged between US$324.3 million and US$534.7 million, showing how advisory fee intake can move around from one period to the next.
- Skeptics with a bearish tilt often focus on how exposed advisory firms are to swings in deal activity, and the spread between Q4 2025 revenue of US$534.7 million and Q1 2026 revenue of US$418.2 million sits alongside forecast revenue growth of 7.3% per year that is below the 11.1% figure for the wider US market, which gives that concern some support while still sitting against a backdrop of 19.8% one year earnings growth.
- Bears highlighting cyclicality can point to the quarterly pattern in the last year, where revenue moved from US$479.1 million in Q4 2024 to US$406.7 million in Q2 2025 and then to US$446.9 million in Q3 2025 before the Q4 2025 peak.
- At the same time, those same periods produced growing trailing revenue from US$1.49b to US$1.71b, which means the revenue base referenced in the 7.3% forecast is being compared against a larger recent run rate rather than a low starting point.
P/E Sits Below Industry Levels
- PJT trades on a P/E of 19.7x against the US Capital Markets industry average of 42.2x and a peer average of 22.2x, while the current share price of US$152.05 also sits below a DCF fair value figure of US$189.27.
- What is interesting for a bullish narrative is that this lower P/E and gap to DCF fair value appear alongside a 10.3% trailing net margin and 11% five year earnings growth, which together give bulls a data set that is consistent with the view that the current price does not fully reflect the earnings profile investors have seen so far.
- Supporters who focus on valuation can point to the difference between the current share price of US$152.05 and the DCF fair value of US$189.27, which is larger than the gap between PJT’s P/E of 19.7x and the peer P/E of 22.2x.
- At the same time, trailing basic EPS of US$7.20 compared with US$6.13 a year earlier helps explain why some bullish investors are comfortable looking past near term revenue forecasts to focus on what the earnings history and margin profile say about the business today.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on PJT Partners's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
If this mix of bullish and cautious signals feels finely balanced, use the latest numbers to stress test your own thesis and act before sentiment shifts, starting with the 2 key rewards.
Explore Alternatives
While PJT’s earnings and margins have held up, the reliance on advisory revenue that moves around with deal activity and revenue growth forecasts below the wider US market can leave investors looking for steadier profiles.
If that cyclicality feels uncomfortable and you would prefer companies with pricing that still looks appealing relative to their fundamentals, use the 53 high quality undervalued stocks to quickly surface ideas that may better fit your risk and return expectations.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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