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Evercore Q3 Earnings Top Estimates, Revenues Cross $1B, Stock Falls

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Key Takeaways

  • Evercore's Q3 EPS of $3.48 topped estimates and rose from $2.04 in the prior-year quarter.
  • Record adjusted revenue of $1.05B climbed 41.6% year over year, led by Investment Banking gains.
  • Expenses rose 34.4% in the third quarter of 2025, offsetting margin strength.

Evercore Inc. (EVR - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $3.48, surpassing the Zacks Consensus Estimate of $3.01. Also, the bottom line compared favorably with the prior-year quarter’s $2.04.

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

Despite solid quarterly results, EVR shares fell 9.1% in yesterday’s trading session, probably because of the broader market trend.

The results include certain non-recurring items. After considering this, net income attributable to common shareholders (GAAP basis) was $144.6 million, up from $78.4 million in the year-ago quarter.

EVR’s Revenues & Expenses Rise

In the third quarter of 2025, the company reported record net revenues (adjusted) of $1.05 billion, beating the Zacks Consensus Estimate by 16.4%. Further, the top line increased 41.6% year over year.

Total expenses increased 34.4% year over year to $822.7 million. 

The adjusted compensation ratio was 65%, down from 66% in the prior-year quarter.

The adjusted operating margin was 21.8%, up from 28.9% in the prior-year quarter.

EVR’s Quarterly Segment Performance (GAAP Basis)

Investment Banking & Equities: Net revenues increased 41% year over year to $1.04 billion. This rise was primarily driven by significantly higher advisory fees, and solid growth in commissions and related revenues. Also, operating income surged 83.7% year over year to $213.8 million.

Investment Management: Net revenues were $22.7 million, up 5.8% from the prior-year quarter. Operating income was $2.5 million, down 56.2% year over year. AUM was $15.4 million as of Sept. 30, 2025, up 11% year over year.

EVR’s Balance Sheet Position Strong

As of Sept. 30, 2025, cash and cash equivalents were $851.9 million, and investment securities and certificates of deposit were $1.6 billion. Moreover, current assets exceeded current liabilities by $2 billion as of the same date. Amounts due related to the notes payable were $588.3 million at Sept. 30, 2025.

EVR’s Capital Distributions Activities

On Oct. 28, 2025, the company declared a quarterly dividend of 84 cents per share. The dividend will be paid out on Dec. 12 to common stockholders of record as of Nov. 28.

In the reported quarter, Evercore repurchased 0.2 million shares at an average price of $329.8.

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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of EVR Peers

Moelis & Company’s ( (MC - Free Report) third-quarter 2025 adjusted earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line improved significantly from 22 cents in the prior-year quarter.

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

The Goldman Sachs Group, Inc.’s ( (GS - Free Report) third-quarter 2025 adjusted earnings per share of $12.25 surpassed the Zacks Consensus Estimate of $11.11 per share. This compares favorably with $8.40 in the year-ago quarter.

GS’s results benefited from solid revenue growth in the Global Banking & Markets, and Asset & Wealth Management divisions. Yet, increased expenses were concerning.


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