$EVR earnings report

Evercore delivered a sixth consecutive quarterly revenue record. Q3 2026 U.S. GAAP net revenues were $ 1,168,581, up 12 % from $ 1,038,884, while adjusted net revenues were $ 1,178,204, up 13 % from $ 1,047,076. Nine-month U.S. GAAP net revenues increased 38 % to $ 3,550,358. The principal growth engine was advisory: Q3 Advisory Fees increased 14 % to $ 1,011,092, reflecting revenue from large transactions and a greater number of advisory fees. Underwriting Fees increased 27 % to $ 55,590, supported by higher average fee size.

Investment Banking & Equities generated Q3 U.S. GAAP net revenues of $ 1,144,111. Investment Management generated $ 24,470, with Asset Management and Administration Fees increasing 8 % to $ 24,355 as associated AUM rose 5%, primarily from market appreciation. The revenue mix was not uniformly positive. Commissions and Related Revenue declined 4 % to $ 60,515 because of lower trading commissions and decreased trading volume. U.S. GAAP Other Revenue, net declined 35 % to $ 17,029, principally on lower performance of the investment funds portfolio.

Profitability improved on the adjusted presentation. Q3 adjusted operating income was $ 269,725, compared with $ 227,914, and adjusted diluted EPS was $ 4.28, compared with $ 3.48. The adjusted compensation ratio declined to 63.0 % from 65.0 %, despite adjusted compensation expense increasing 9 % to $ 742,157. Q3 adjusted operating margin increased to 22.9 % from 21.8 %. However, adjusted non-compensation costs increased 20 % to $ 166,322, led by technology and information services and travel and related expenses. U.S. GAAP results also included $ 1,960 of Special Charges, Including Business Realignment Costs.

Capital deployment remained substantial. The Company repurchased 0.5 million shares for $152.2 million during the quarter and purchased 2.8 million shares for $886.0 million year-to-date. The Board declared a quarterly dividend of $0.89 per share. Liquidity included $1.2 billion of cash and cash equivalents and $1.6 billion of investment securities and certificates of deposit, while Notes Payable amounted to $540.1 million. Evercore did not provide forward financial guidance, leaving transaction-fee timing, advisory conversion, trading activity, expense growth, and the effects of special charges as the key reported items to monitor.

Evercore reported record second-quarter U.S. GAAP net revenues of $ 990,199, up 19 % from $ 833,830. Adjusted net revenues were $ 999.5, also up 19%. Growth was broad based across the reported revenue categories, led by underwriting fees of $ 97,071, up 201 %, and advisory fees of $ 775,590, up 11 %. Management attributed advisory growth to revenue from large transactions and a greater number of advisory fees, while underwriting growth reflected a higher number of transactions.

Activity indicators supported the revenue increase. The company reported 296 total fees from advisory and underwriting client transactions, including 132 fees of at least $1 million. Underwriting transactions were 26, all of which were as a bookrunner. Wealth Management also contributed, with asset management and administration fees of $ 23,655, up 14 %, as associated AUM increased to $ 16,225 from $ 14,478 due to market appreciation and net inflows.

Profitability was mixed in the quarter on a U.S. GAAP basis. Operating income was $ 146.6 compared with $ 150.4, and operating margin was 14.8 % compared with 18.0 %. Employee compensation and benefits increased 17 % to $ 641,791, though the compensation ratio decreased to 64.8 % from 65.8 %. Non-compensation costs increased 34 % to $ 180,517, and the company reported $ 21,315 of special charges, including business realignment costs. Adjusted operating income was $ 189.7 and adjusted operating margin was 19.0 %.

First-half results showed substantially stronger operating leverage. U.S. GAAP net revenues increased 56 % to $ 2,381,777, operating income increased to $ 477.3 from $ 261.6, and operating margin increased to 20.0 % from 17.1 %. On an adjusted basis, first-half operating income was $ 544.2 and operating margin was 22.7 %. The adjusted results exclude specified acquisition-related, transition, intangible-amortization, contingent-consideration and special-charge items associated principally with Robey Warshaw.

Capital allocation remained significant, with $822.9 million returned to shareholders during the first six months of 2026 through dividends and repurchases of 2.3 million shares at an average price of $324.60. The board declared a quarterly dividend of $0.89 per share. No forward financial guidance was included in the provided filing text. The reported results point to strong transaction activity and expanding first-half margins, while the quarter's lower U.S. GAAP operating income and margin, higher non-compensation costs, and special charges warrant attention.