Evercore (NYSE: EVR) reported Q3 2026 GAAP net revenue of $1.1686 billion, up 12% from $1.0389 billion a year earlier, while diluted EPS increased to $3.93 from $3.41. Advisory and underwriting fees drove the sixth consecutive quarterly revenue record, but a lower compensation ratio was offset by higher non-compensation costs, leaving the GAAP operating margin unchanged at 20.8%.
Core Financial Results
For the quarter ended September 30, advisory revenue benefited from more large transactions and a higher number of fees, while underwriting revenue increased because of larger average transaction fees. Adjusted results showed more margin expansion than GAAP results after excluding acquisition-related expenses, special charges and other specified items.
| Metric | Q3 2026 | Q3 2025 | YoY Change |
|---|---|---|---|
| GAAP net revenue | $1,168.6 million | $1,038.9 million | +12% |
| GAAP operating income | $242.6 million | $216.2 million | About +12% |
| GAAP operating margin | 20.8% | 20.8% | Unchanged |
| Net income attributable to Evercore | $160.8 million | $144.6 million | About +11% |
| GAAP diluted EPS | $3.93 | $3.41 | About +15% |
| Adjusted net revenue | $1,178.2 million | $1,047.1 million | +13% |
| Adjusted operating income | $269.7 million | $227.9 million | About +18% |
| Adjusted operating margin | 22.9% | 21.8% | +110 basis points |
| Adjusted diluted EPS | $4.28 | $3.48 | About +23% |
Adjusted results are non-GAAP measures. The principal exclusions included Robey Warshaw acquisition-related compensation and transition costs, intangible-asset amortization, deferred acquisition consideration expenses, contingent consideration remeasurement and special charges.
Business and Revenue Performance
Advisory remained the primary growth engine, increasing 14% as Evercore earned more revenue from large transactions and recorded more advisory fees. Underwriting fees rose 27% even though the number of underwriting transactions declined, reflecting higher average fees on completed assignments.
| Revenue Category | Q3 2026 | Q3 2025 | YoY Change |
|---|---|---|---|
| Advisory fees | $1,011.1 million | $883.7 million | +14% |
| Underwriting fees | $55.6 million | $43.7 million | +27% |
| Commissions and related revenue | $60.5 million | $62.8 million | -4% |
| Asset management and administration fees | $24.4 million | $22.5 million | +8% |
| Other revenue, net | $17.0 million | $26.1 million | -35% |
The number of advisory and underwriting client fees increased 21% to 324, including a 22% increase in fees of at least $1 million to 167. In contrast, underwriting transactions fell from 14 to 12, reinforcing that higher average fee size—not transaction volume—drove quarterly underwriting growth.
Commissions declined because of lower trading volume. Other revenue fell as weaker investment-fund performance more than offset higher interest income. Wealth-management assets under management increased 5% to $16.18 billion, primarily due to market appreciation, supporting the increase in asset-management fees.
Lower Compensation Ratio Was Offset by Higher Non-Compensation Costs
Employee compensation and benefits increased 10% to $749.1 million, but the compensation ratio declined to 64.1% from 65.5% because revenue grew faster than compensation expense. The dollar increase reflected higher base salaries, amortization of prior-period deferred compensation awards, new-hire expenses and $7.0 million of Robey Warshaw-related awards.
Non-compensation costs rose 23% to $174.9 million, pushing the corresponding expense ratio to 15.0% from 13.7%. Evercore cited higher technology and information-service spending, consulting and research costs, license fees, travel expenses, increased headcount and changes in the fair value of contingent consideration. This cost growth absorbed the benefit of the lower compensation ratio, keeping the GAAP operating margin flat.
Special charges totaled $2.0 million and included duplicate facility costs related to the planned relocation of Evercore’s U.K. headquarters and an estimated provision for non-U.S. employment taxes. On an adjusted basis, the compensation ratio fell to 63.0% from 65.0%, allowing the adjusted operating margin to expand despite a higher adjusted non-compensation ratio.
Capital Returns
Evercore declared a quarterly dividend of $0.89 per share. During the first nine months of 2026, the company returned $1.0 billion to shareholders through dividends and repurchases, including the repurchase of 2.8 million shares at an average price of $318.41.
Management’s View
Chairman and CEO John S. Weinberg characterized momentum as broad-based across nearly all businesses. Founder and Senior Chairman Roger C. Altman attributed the sixth consecutive revenue record to market-share gains, a broader platform and Evercore’s expanding global presence.
Recent Insider Transactions
Separate insider-transaction data shows 5,343 shares acquired across 10 transactions and 7,808 shares sold in one transaction during the reported six-month period. That resulted in net selling of 2,465 shares, equal to 0.30% of the reported 897,220 shares held by insiders.
| Date | Insider | Role | Transaction | Reported Details |
|---|---|---|---|---|
| June 11, 2026 | Timothy Gilbert Lalonde | CFO | Sale | Direct sale at $343.06 per share; reported value of $2.68 million |
| June 10, 2026 | Nine directors | Directors | Stock awards | Direct grants at a reported $0 grant price; quantities not provided |
The director grants involved Ellen V. Futter, Gail Block Harris, Robert B. Millard, William J. Wheeler, Pamela G. Carlton, Simon Robertson, Willard J. Overlock Jr., Christine A. Varney and Sarah K. Williamson. The disclosed transactions alone do not establish insiders’ views of Evercore’s prospects.
Risks Investors Should Watch
- Transaction-fee volatility: Evercore states that quarterly results can fluctuate significantly based on the timing and size of transaction fees. The quarter’s growth depended heavily on large advisory assignments.
- Rising non-compensation expenses: Technology, consulting, research, travel and headcount costs increased faster than revenue and prevented GAAP operating-margin expansion.
- Acquisition and special charges: Robey Warshaw-related expenses, contingent consideration changes, the U.K. office relocation and the non-U.S. employment-tax provision can continue to create differences between GAAP and adjusted results.
- Pressure in secondary revenue categories: Lower trading volume reduced commissions, while weaker investment-fund performance contributed to a 35% decline in other revenue.
Summary
Evercore’s Q3 2026 results were led by higher advisory activity and larger underwriting fees, producing a sixth consecutive quarterly revenue record and double-digit EPS growth. Revenue scale improved the compensation ratio, but higher technology, travel and other operating costs kept the GAAP margin flat; future results will depend on transaction-fee timing and whether expense growth moderates.
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