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Evercore Stock Rises as Q4 Earnings Beat, Revenue Reaches Record Level

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Key Takeaways

  • EVR shares climbed 5.2% after Q4 adjusted EPS of $5.13 topped the $3.83 consensus estimate.
  • EVR posted record Q4 adjusted net revenue of $1.29B, primarily driven by Investment Banking & Equities growth.
  • EVR reported full-year 2025 adjusted EPS of $14.56 and record revenues of $3.88B despite higher costs.

Shares of Evercore Inc. (EVR - Free Report) gained 5.2% in yesterday’s trading session after reporting better-than-expected results. It reported fourth-quarter 2025 adjusted earnings per share (EPS) of $5.13, surpassing the Zacks Consensus Estimate of $3.83. Also, the bottom line compared favorably with the prior-year quarter’s $3.41.

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

The results include certain non-recurring items. After considering this, net income attributable to common shareholders (GAAP basis) was $2.03 billion, up from $1.40 billion in the year-ago quarter.

For 2025, the company reported adjusted EPS of $14.56. The metric rose from the prior-year quarter’s adjusted earnings of $9.42 per share. Net income was $5.91 billion, which rose 56.5% from the year-ago quarter.

EVR’s Revenues & Expenses Rise

In the fourth quarter of 2025, the company reported record net revenues (adjusted) of $1.29 billion, beating the Zacks Consensus Estimate by 22.2%. Further, the top line increased 32.4% year over year.

For 2025, total revenues were a record $3.88 billion, which rose 29.4% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $3.65 billion.

Total expenses increased 27.9% year over year to $976.1 million.

The adjusted compensation ratio was 62%, down from 65.2% in the prior-year quarter.

The adjusted operating margin was 26%, up from 22.2% in the prior-year quarter.

EVR’s Quarterly Segment Performance (GAAP Basis)

Investment Banking & Equities: Net revenues increased 32.6% year over year to $1.26 billion. This rise was primarily due to an increase in all the components of net revenues. Also, operating income surged 46.3% year over year to $304.5 million.

Investment Management: Net revenues were $23.5 million, up 10.1% from the prior-year quarter. Operating income was $7.6 million, up 70.9% year over year. AUM was $15.5 million as of Dec. 31, 2025, up 11.6% year over year.

EVR’s Balance Sheet Position Strong

As of Dec. 31, 2025, cash and cash equivalents were $1.4 billion, and investment securities and certificates of deposit were $1.6 billion. Moreover, current assets exceeded current liabilities by $2.1 billion as of the same date. Amounts due related to the notes payable were $588.2 million as of Dec. 31, 2025.

EVR’s Capital Distributions Activities

On Feb. 03, 2026, the company declared a quarterly dividend of 84 cents per share. The dividend will be paid out on March 13 to common stockholders of record as of Feb. 27.

In the reported quarter, Evercore repurchased 0.5 million shares at an average price of $317.8.

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

Citigroup Inc. (C - Free Report) reported fourth-quarter 2025 adjusted net income per share of $1.81, up 35.1% from the year-ago period. The metric also surpassed the Zacks Consensus Estimate by 9.7%.

C's results benefited from an increase in net interest income (NII) and lower provisions. It also registered a year-over-year increase of 38% in investment banking revenues, reflecting growth in Advisory and Equity Capital Markets. However, a decline in non-interest revenues, higher operating expenses, a loss related to the sale of its Russia business and a weaker capital position were undermining factors.

The Goldman Sachs Group, Inc.’s (GS - Free Report) fourth-quarter 2025 earnings per share of $14.01 surpassed the Zacks Consensus Estimate of $11.77 per share. This compares favorably with $11.95 in the year-ago quarter.

GS’s overall results have benefited from solid revenue growth in the Global Banking & Markets and Asset & Wealth Management divisions. These gains were further aided by a sizable net benefit from credit loss provisions related to reserve releases. However, the overall quarterly results were tempered by elevated operating expenses and a decline in net revenues stemming from markdowns tied to the transfer of the Apple Card loan portfolio.


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