Company Overview
PJT Partners is a specialized investment bank that’s been quietly building a powerhouse M&A advisory franchise since spinning off from Blackstone in 2015. With a $6.7 billion market cap and just 1,200 employees, this boutique firm punches well above its weight class—having advised on over $1 trillion in M&A transactions including landmark deals like AbbVie’s $63 billion Allergan acquisition and T-Mobile’s $59 billion Sprint merger.
What makes PJT particularly compelling right now is the timing: the company just reported record Q3 2025 results on November 4th showing revenues of $447.1 million (up 37% year-over-year) and then presented at the prestigious Goldman Sachs Financial Services Conference just this week on December 9th. With Trump administration policies encouraging M&A and deal volumes surging 15% in 2025 despite fewer transactions (indicating a shift toward megadeals where PJT excels), the boutique is positioned at the epicenter of what Bank of America and others predict will be a 2026 M&A boom as private equity deploys $2.5 trillion in dry powder.
Key Technical and Fundamental Drivers
Record Q3 Performance → 37% Revenue Surge PJT’s Q3 2025 results showed revenues of $447.1 million (up 37% YoY), GAAP pretax income of $91.0 million (up 84% YoY), and diluted EPS of $1.47 (up 86% YoY)—all records for the company.
Small-Cap Rotation Tailwind → Russell 2000 at All-Time Highs The Russell 2000 just hit record highs on December 10th as investors pivot from mega-cap tech to small-caps, with Bank of America predicting small-caps will outperform in 2026 as the Fed cuts rates.
M&A Market Acceleration → 2026 Boom Expected Global M&A deal values surged 15% in 2025 despite 9% fewer transactions, reflecting a shift toward larger, strategic deals where PJT’s expertise commands premium fees—analysts expect this trend to accelerate in 2026.
Just Presented at Goldman → December 9th Conference Chairman and CEO Paul Taubman presented at the Goldman Sachs Financial Services Conference this week, providing visibility into PJT’s strategy heading into what could be a blockbuster year for dealmaking.
Strong Balance Sheet → $521M Cash, Zero Debt PJT ended Q3 with $521 million in cash and short-term investments with no funded debt, while actively repurchasing shares (2.3 million YTD) and paying a quarterly dividend of $0.25 per share.
Market Takeaway
PJT Partners represents a rare opportunity to play the anticipated 2026 M&A boom through a pure-play boutique that’s already demonstrating explosive growth. While Goldman Sachs and JPMorgan dominate headlines, PJT’s specialized focus on strategic advisory and complex restructuring allows it to compete for high-value mandates while maintaining industry-leading margins of 21%. The company’s aggressive expansion—adding 10 partners in Q1 2025 alone, typically a full year’s worth—signals management’s confidence in the pipeline ahead.
The macro setup couldn’t be better: Trump administration policies favoring consolidation, private equity firms sitting on record dry powder, and CEO confidence at multi-year highs all point to robust dealmaking ahead. Recent blockbusters like the $85 billion Union Pacific-Norfolk Southern railroad merger exemplify the megadeal environment where boutiques like PJT can earn outsized fees. Trading at a modest 20.7x forward P/E—reasonable given the 37% revenue growth trajectory—PJT offers small-cap investors direct exposure to Wall Street’s most lucrative business without the regulatory overhang and capital requirements of bulge bracket banks. With the Russell 2000 rotation in full swing and M&A tailwinds building into 2026, this under-the-radar financial could be one of the year’s surprise performers.