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EVR's expenses rose on higher compensation, non-compensation costs and non-U.S. tax-related charges.
Evercore Inc. (EVR - Free Report) reported second-quarter 2026 adjusted earnings per share of $2.91, missing the Zacks Consensus Estimate of $3.02. However, the bottom line compared favorably with the prior-year quarter’s $2.42.
Results were pressured by higher expenses. However, growth in revenues from the Investment Banking & Equities and Investment Management segments helped offset some of the impact. Additionally, the increase in assets under management (AUM) provided further support to the overall performance.
The results include certain non-recurring items. After considering this, net income attributable to common shareholders (GAAP basis) was $95.3 million, down from $97.2 million in the year-ago quarter.
EVR’s Revenues & Expenses Rise
In the second quarter of 2026, the company reported record net revenues (adjusted) of $999.5 million, beating the Zacks Consensus Estimate of $993.5 million by 0.6%. The top line increased 19.2% from $838.9 million in the year-ago quarter.
Total expenses increased 23.4% year over year to $843.6 million. The rise reflected increases in employee compensation and benefits, and non-compensation costs, along with special charges related to an estimated loss provision for non-U.S. employment taxes for prior periods.
The adjusted compensation ratio was 63.5%, down from 65.4% in the prior-year quarter.
The adjusted operating margin was 19%, up from 18.7% in the prior-year quarter.
EVR’s Quarterly Segment Performance (GAAP Basis)
Investment Banking & Equities: Net revenues increased 19.1% year over year to $966.9 million. This rise was primarily due to increases in advisory fees, underwriting fees, and commissions and related revenues. However, operating income declined 2.4% to $142.5 million from $146 million in the year-ago quarter.
Investment Management: Net revenues were $23.3 million, up 7.7% from the prior-year quarter. Operating income was $4.1 million, down 7.6% year over year. AUM was $16.2 billion as of June 30, 2026, growing 12% year over year.
EVR’s Balance Sheet Position Strong
As of June 30, 2026, cash and cash equivalents were $1.3 billion, and investment securities and certificates of deposit were $1.1 billion. Current assets exceeded current liabilities by $1.9 billion as of the same date. Amounts due related to the notes payable were $540 million as of June 30, 2026.
EVR’s Capital Distribution Activities
In the reported quarter, Evercore repurchased an aggregate of 0.3 million shares at an average price of $339.79 per share.
Our View on Evercore
EVR’s performance continues to benefit from broad-based revenue growth, including strength in advisory and underwriting activities, which drove record second-quarter revenues. Higher AUM and solid segmental revenue growth were other positives. Given the company’s strong liquidity position, capital distribution activities seem sustainable. However, elevated expenses remain concerning.
The Goldman Sachs Group, Inc. (GS - Free Report) reported second-quarter 2026 earnings per share of $20.98, which topped the Zacks Consensus Estimate of $14.47. The metric also surged 92% from $10.91 a year ago.
Driven by robust client activity, GS posted record net revenues in Equities of $7.42 billion, which jumped 72% year over year, while fixed income, currencies and commodities revenues climbed 32% to $4.59 billion. Strong dealmaking activity lifted investment banking (IB) fees 55% to $3.40 billion, supported by solid growth in advisory, equity underwriting and record debt underwriting revenues.
Morgan Stanley’s (MS - Free Report) second-quarter 2026 earnings were $3.46 per share, which easily outpaced the Zacks Consensus Estimate of $2.89. The bottom line surged 62.4% from the prior-year quarter.
MS results benefited from robust client engagement and strength in IB and trading activities. IB revenues climbed 58.2% to $2.44 billion. Advisory revenues increased 57.1% on higher completed merger and acquisition transactions, while equity and fixed-income underwriting revenues jumped 70.2% and 48.1%, respectively.
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Evercore Q2 Earnings Miss Estimates, Revenues Rise on Deal Activity
Key Takeaways
Evercore Inc. (EVR - Free Report) reported second-quarter 2026 adjusted earnings per share of $2.91, missing the Zacks Consensus Estimate of $3.02. However, the bottom line compared favorably with the prior-year quarter’s $2.42.
Results were pressured by higher expenses. However, growth in revenues from the Investment Banking & Equities and Investment Management segments helped offset some of the impact. Additionally, the increase in assets under management (AUM) provided further support to the overall performance.
The results include certain non-recurring items. After considering this, net income attributable to common shareholders (GAAP basis) was $95.3 million, down from $97.2 million in the year-ago quarter.
EVR’s Revenues & Expenses Rise
In the second quarter of 2026, the company reported record net revenues (adjusted) of $999.5 million, beating the Zacks Consensus Estimate of $993.5 million by 0.6%. The top line increased 19.2% from $838.9 million in the year-ago quarter.
Total expenses increased 23.4% year over year to $843.6 million. The rise reflected increases in employee compensation and benefits, and non-compensation costs, along with special charges related to an estimated loss provision for non-U.S. employment taxes for prior periods.
The adjusted compensation ratio was 63.5%, down from 65.4% in the prior-year quarter.
The adjusted operating margin was 19%, up from 18.7% in the prior-year quarter.
EVR’s Quarterly Segment Performance (GAAP Basis)
Investment Banking & Equities: Net revenues increased 19.1% year over year to $966.9 million. This rise was primarily due to increases in advisory fees, underwriting fees, and commissions and related revenues. However, operating income declined 2.4% to $142.5 million from $146 million in the year-ago quarter.
Investment Management: Net revenues were $23.3 million, up 7.7% from the prior-year quarter. Operating income was $4.1 million, down 7.6% year over year. AUM was $16.2 billion as of June 30, 2026, growing 12% year over year.
EVR’s Balance Sheet Position Strong
As of June 30, 2026, cash and cash equivalents were $1.3 billion, and investment securities and certificates of deposit were $1.1 billion. Current assets exceeded current liabilities by $1.9 billion as of the same date. Amounts due related to the notes payable were $540 million as of June 30, 2026.
EVR’s Capital Distribution Activities
In the reported quarter, Evercore repurchased an aggregate of 0.3 million shares at an average price of $339.79 per share.
Our View on Evercore
EVR’s performance continues to benefit from broad-based revenue growth, including strength in advisory and underwriting activities, which drove record second-quarter revenues. Higher AUM and solid segmental revenue growth were other positives. Given the company’s strong liquidity position, capital distribution activities seem sustainable. However, elevated expenses remain concerning.
Evercore Inc Price, Consensus and EPS Surprise
Evercore Inc price-consensus-eps-surprise-chart | Evercore Inc Quote
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 Other Finance Stocks
The Goldman Sachs Group, Inc. (GS - Free Report) reported second-quarter 2026 earnings per share of $20.98, which topped the Zacks Consensus Estimate of $14.47. The metric also surged 92% from $10.91 a year ago.
Driven by robust client activity, GS posted record net revenues in Equities of $7.42 billion, which jumped 72% year over year, while fixed income, currencies and commodities revenues climbed 32% to $4.59 billion. Strong dealmaking activity lifted investment banking (IB) fees 55% to $3.40 billion, supported by solid growth in advisory, equity underwriting and record debt underwriting revenues.
Morgan Stanley’s (MS - Free Report) second-quarter 2026 earnings were $3.46 per share, which easily outpaced the Zacks Consensus Estimate of $2.89. The bottom line surged 62.4% from the prior-year quarter.
MS results benefited from robust client engagement and strength in IB and trading activities. IB revenues climbed 58.2% to $2.44 billion. Advisory revenues increased 57.1% on higher completed merger and acquisition transactions, while equity and fixed-income underwriting revenues jumped 70.2% and 48.1%, respectively.