Detailed narrative
Record Financial Performance
PJT Partners reported record results for both the second quarter and first half of 2026. Second quarter revenues reached $486 million, marking a 20% increase year-over-year, while first half revenues grew 24% to $904 million. Adjusted pretax income for Q2 was $106 million, up 32%, and adjusted EPS was $1.97, a 28% increase. These figures represent the highest in the firm's history, driven by strong performance across all business segments, particularly Strategic Advisory and Restructuring.
CFO Transition
Helen Meates will be stepping down as Chief Financial Officer on October 1, 2026, after over a decade of service, and will remain through year-end for a seamless transition. Arun Kalra, currently Director of Finance, will be elevated to CFO. Management expressed confidence in Arun's ability to build upon the strong foundation established by Helen and contribute to the firm's continued growth.
Restructuring Market Outlook
The firm's market-leading restructuring team delivered record results, ranking #1 in global and U.S. announced and completed restructurings year-to-date. Management anticipates elevated restructuring activity for the foreseeable future due to high leverage, increased financing costs, and challenged operating models, playing out against broadly constructive macroeconomic conditions. The addressable market is expected to expand through geographical growth, deep domain expertise, and increased engagement with private equity firms.
PJT Park Hill Performance and Strategy
PJT Park Hill's revenues increased for both the second quarter and first half, with significant growth in Private Capital Solutions (PCS) offsetting declines in primary fundraising. The PCS business benefits from collaboration with Strategic Advisory and an extensive network of Global LPs. The firm continues to invest in PCS, leveraging its strong secular growth characteristics and integrated platform, while maintaining a differentiated, high-quality pipeline in primary fundraising despite market challenges🌐.
Strategic Advisory and M&A Backlog
Strategic Advisory delivered record revenues for Q2 and H1, significantly above prior-year levels. Despite geopolitical and AI uncertainties, the M&A market has gained momentum, with a sharp increase in companies investigating M&A opportunities. The firm's M&A backlog continues to build, with mandate counts at record levels, up over 20% year-over-year. The preannounced pipeline, reflecting revenue potential, is also at record levels, indicating strong future activity.
AI Impact on Investment Banking
Management believes AI disruptions will be net-net healthy for the business, leading to increased transaction activity. Companies rethinking competitive positions, potential take-privates of healthy companies, and the need for larger-scale operations are expected to drive M&A. Increased demand for PCS and secondary transactions, along with creative financings for data center build-outs, are also anticipated benefits, playing to the firm's strengths in differentiated advice.
Operating Leverage and Non-Comp Expense Management
PJT Partners remains committed to delivering operating leverage, primarily by growing top-line revenue while responsibly managing costs. While non-compensation expense growth is expected to be higher at 14% for FY26 due to investments in global office footprint, travel, professional fees, AI, and technology infrastructure, the firm emphasizes that these are long-term, value-enhancing investments. Management aims to balance growth with efficiency, avoiding short-term cost-cutting that could harm long-term franchise health.