Abstract
Perella Weinberg Partners will report second-quarter 2026 results on July 31, 2026 Pre-MKt, with the market looking for softer revenue and EPS versus last year amid uneven advisory activity and a mixed M&A backdrop.
Market Forecast
Consensus for the current quarter points to revenue of 155.68 million US dollars, an EBIT estimate of 15.73 million US dollars, and EPS of 0.05, implying year-over-year changes of approximately flat revenue, a 3.96% decline in EBIT, and a 34.55% decline in EPS; no explicit consensus gross margin or net profit margin has been provided. The company’s main advisory business remains the swing factor as announced and potential deal closings straddle quarter-end, with restructuring and private capital advisory expected to provide some offset; strategic advisory tied to large-cap M&A appears the most promising near-term driver by revenue scale, though year-over-year growth is not specified.
Last Quarter Review
In the first quarter of 2026, Perella Weinberg Partners reported revenue of 148.92 million US dollars, a gross profit margin of 96.02%, GAAP net income attributable to shareholders of 1.49 million US dollars with a net margin of 1.00%, and adjusted EPS of 0.05, with revenue down 29.70% year over year and adjusted EPS down 82.14% year over year. Net profit declined quarter over quarter by 84.17% as advisory fees were lighter than expected relative to the deal pipeline. The firm’s core advisory revenue carried the quarter while other lines offered stability, but no detailed segment revenue breakdown was disclosed.
Current Quarter Outlook (with major analytical insights)
Main advisory franchise
Perella Weinberg Partners’ revenue is predominantly driven by strategic advisory fees—M&A, restructuring, and private capital solutions—where revenue recognition hinges on transaction closings. With consensus revenue at 155.68 million US dollars and near-flat year-over-year growth implied by the tool’s estimate YoY at roughly 0.26%, investor attention focuses on the timing and size of announced deals and completion fees. The guidance sensitivity is high: a slip or acceleration of one or two large mandates can swing revenue and margins materially versus consensus. Given the previous quarter’s shortfall and a year-over-year decline in adjusted EPS, the bar for upside rests on better close rates and a healthier mix of large-cap mandates.
Most promising near-term driver: large-cap strategic M&A
Despite a mixed macro, the upper end of the M&A market has shown signs of thawing, where Perella Weinberg Partners’ brand and senior relationships can translate into higher fee yields per transaction. If closings skew toward large-cap deals this quarter, revenue mix would improve, potentially supporting EBIT even if total fee volume is only modestly higher than last year. Conversely, if the period skews to mid-market or if signings fail to convert, the expected EPS of 0.05 could remain pressured, consistent with the forecast 34.55% year-over-year decline.
Key stock-price swing factors this quarter
- Conversion of signed mandates to closed transactions: Fee realization remains the decisive variable for top-line delivery and margin capture.
- Mix between strategic M&A and restructuring/private capital advisory: A tilt toward larger strategic deals supports yield and EBIT, while heavier restructuring can stabilize volumes but may weigh on EPS given lower average fees.
- Expense discipline and compensation ratio: With advisory fee volatility, operating leverage runs through compensation accruals; management’s responsiveness will influence whether EBIT tracks the 15.73 million US-dollar estimate.
- Market risk appetite and financing conditions: Wider credit spreads or risk-off equity markets can delay closings, while tighter spreads and supportive equity issuance windows can accelerate completion rates.
Analyst Opinions
Across recent institutional commentary, the majority view skews cautious, emphasizing subdued EPS expectations and the risk of timing slippage on deal closings for the June quarter. Analysts highlighting the softer EPS trajectory relative to last year align with the forecast decline of approximately 34.55%, noting that expense flexibility and compensation accruals will be crucial to protect EBIT near the 15.73 million US-dollar estimate. The cautious camp points out that last quarter’s 29.70% revenue decline and the 84.17% sequential drop in net income raise the hurdle for upside surprises absent a wave of large-cap closings by quarter-end. Still, some commentaries acknowledge that an improving large-deal pipeline could offer second-half leverage if macro conditions remain constructive; the near-term test is whether those deals crystallize in time to offset the softer start to the year.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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