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Evercore Stock Gains 2.6% as Q2 Earnings & Revenues Beat Estimates

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Key Takeaways

  • EVR posted Q2 EPS of $2.42, beating estimates of $1.78 and rising from $1.81 a year ago.
  • Revenue rose 20.7% year over year to $838.9M, led by investment banking and management segments.
  • Operating margin improved to 18.7% from 16.4% despite a 17.6% rise in total expenses.

Shares of Evercore Inc. (EVR - Free Report) gained 2.6% in yesterday’s trading session in response to the announcement of better-than-expected second-quarter 2025 performance. The company’s adjusted earnings per share (EPS) of $2.42 surpassed the Zacks Consensus Estimate of $1.78. Also, the bottom line compared favorably with the prior-year quarter’s $1.81.

Results benefited from an increase in revenues generated from the Investment Management and Investment Banking & Equities segments. An improvement in assets under management (AUM) balance was another positive. However, the rise in expenses was an undermining factor.

Net income attributable to common shareholders (GAAP basis) was $97.2 billion, which surged 31.7% from the year-ago quarter.

EVR’s Revenues & Expenses Rise

In the second quarter of 2025, adjusted net revenues of $838.9 million beat the Zacks Consensus Estimate by 17.6%. Further, the top line increased 20.7% year over year.

Total expenses increased 17.6% year over year to $683.4 million. This was mainly due to a rise in all the components except professional fees and other operating expenses.

The adjusted compensation ratio was 65.4%, down from 66% in the prior-year quarter.

Adjusted operating margin was 18.7%, up from 16.4% in the prior-year quarter.

EVR’s Quarterly Segment Performance (GAAP Basis)

Investment Banking & Equities: Net revenues increased 21.2% year over year to $812.2 million. This rise was primarily driven by an increase in all the components of net revenues. Also, operating income surged 40.8% year over year to $145.9 million.

Investment Management: Net revenues were $21.7 million, up 12.7% from the prior-year quarter. Operating income was $4.4 million, down 3.5% year over year. AUM was $14.5 million as of June 30, 2025, up 10% year over year.

EVR’s Balance Sheet Position Strong

As of June 30, 2025, cash and cash equivalents were $617.3 million, and investment securities and certificates of deposit were $1.1 billion. Moreover, current assets exceeded current liabilities by $$1.6 billion as of the same date.

EVR’s Capital Distributions Activities

On July 29, 2025, the company declared a quarterly dividend of 84 cents per share. The dividend will be paid out on Sept. 12 to common stockholders of record as of Aug. 29.

In the reported quarter, Evercore repurchased 0.2 million shares at an average price of $237.79.

Our View on Evercore

EVR’s revenue growth primarily highlighted the strong momentum of its advisory solutions and revenues. Given the company’s decent liquidity position, enhanced capital distribution activities seem sustainable. However, a rising expense base is likely to impede bottom-line growth in the near term.

Evercore Inc Price, Consensus and EPS Surprise

Currently, Evercore carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Evercore’s Peers

The Goldman Sachs Group, Inc.’s (GS - Free Report) second-quarter 2025 adjusted EPS of $10.91 surpassed the Zacks Consensus Estimate of $9.43. This compares favorably with $8.62 in the year-ago quarter.

GS’s results benefited from solid growth in the Global Banking & Markets division. Yet, increased expenses and provisions were concerning.

Moelis & Company’s (MC - Free Report) adjusted earnings for the second quarter of 2025 were 53 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents. The bottom line improved significantly from 18 cents per share in the prior-year quarter.

Results benefited from a rise in revenues and other income. Also, MC had a solid liquidity position in the quarter. However, an increase in expenses was a headwind.


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