Snapshot
Evercore Inc. reported $1.39B of revenue in Q1 2026, up 101.4% year over year, with diluted EPS of $7.20 and an operating margin of 24.5%.
- Revenue
- $1.39B
- YoY growth
- +101.4%
- Diluted EPS
- $7.20
- Operating margin
- 24.5%
What management said
- •Our record first quarter results reflect the strong momentum that built throughout the second half of 2025, as well as the benefits of our multi-year investment strategy.
- •Firmwide adjusted net revenues were $1.4 billion, double from a year ago and a new quarterly record for the firm.
- •Revenues increased 8% sequentially from the fourth quarter, marking the first time in 15 years we've delivered growth from that period.
- •We are constructive on the outlook of our business and believe we are well positioned to serve our clients across a range of market environments.
- •Turning to talent, since our last call, three Senior Managing Directors have joined our investment banking practice in healthcare, equity capital markets, and private capital advisory.
- •3 additional SMDs have committed to join our franchise in key areas, including healthcare, industrials, and private capital advisory this year.
- •In total, we now have 182 SMDs in investment banking, with more than 45 ramping, positioning us to drive sustained growth in activity over time.
- •In North America Strategic Advisory, we achieved a new quarterly record for revenue, reflecting strong transaction announcements, trends carrying on from 2025, and strong activity levels across both corporates and financial sponsors.
- •Our EMEA Strategic Advisory business delivered a record first quarter with strong activity across a number of sectors and geographies.
- •Our private capital markets and debt advisory team remained active, particularly with structured minority deals, despite some lengthening in transaction timelines.
- •The Private Funds Group also delivered a record first quarter, despite a challenging environment for fundraising.
- •Our equity capital markets business had a solid quarter with revenues in line with the prior year.
What went well
- •Evercore delivered record first quarter results, with adjusted net revenues of approximately $1.4 billion, double the prior year period and a new quarterly record, up 8% sequentially from Q4 in the first such first-quarter growth in 15 years.
- •Performance was broad-based, including the strongest North American advisory quarter ever and record first quarters for EMEA advisory, private capital advisory, the Private Funds Group, equities, and wealth management.
- •Adjusted operating income rose 205% year over year to $354 million with adjusted operating margin expanding roughly 870 basis points to 25.3%, and adjusted EPS rose 116% to $7.53.
- •Adjusted advisory fees reached a record ~$1.2 billion, up 123%, driven by a significant increase in large transaction closings and rising productivity across the platform.
- •The firm returned a record $673 million of capital through repurchase of 1.9 million shares and dividends, and the adjusted compensation ratio improved to 64%, down about 170 basis points year over year.
- •Talent momentum continued with three Senior Managing Directors joining and three more committed, bringing investment banking SMDs to 182, with more than 45 ramping.
What went wrong
- •Management cautioned that Q1 benefited from the greatest number of large transaction closings in any quarter in Evercore's history, including deals pulled forward from Q2, so Q2 is expected to be closer to last year's Q2 level rather than continued sequential growth.
- •Conditions have become more mixed in recent months, with middle-market financial sponsor activity slowed and software M&A experiencing a slowdown, and geopolitical and macroeconomic uncertainty could extend transaction timelines.
- •Compensation ratio improvement this year is expected to be meaningfully more modest than the prior two years, and non-compensation expenses rose 21% on higher technology, professional fees, and travel costs.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Q2 2026 revenue | Q2 2026 | — | Closer to Q2 2025 (a record) rather than continued sequential growth | new |
| Compensation ratio improvement | FY2026 | Strong improvement in prior two years (~360 bps over two years) | Meaningfully more modest improvement than last two years | lower magnitude |
| Non-compensation expense growth | FY2026 | — | Similar growth rate to the last couple of years | new |
| Effective tax rate | Remaining three quarters FY2026 | 3% in Q1 (one-time RSU benefit) | More similar to prior-year levels in those quarters | higher than Q1 |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Adjusted net revenues | +100% to ~$1.4B | Significant increase in large transaction closings and broad-based strength across all businesses |
| Adjusted operating income | +205% to $354M | Strong environment and high first-quarter revenues driving operating leverage |
| Adjusted EPS | +116% to $7.53 | Record revenues and margin expansion |
| Adjusted advisory fees | +123% to ~$1.2B | Surge in large transaction closings plus continued productivity gains |
| Commissions and related revenue | +14% to $63M | Higher trading volumes amid market volatility |
| Adjusted asset management and administration fees | +8% to ~$24M | Growth in wealth management AUM |
| Adjusted operating margin | +~870 bps to 25.3% | Strong environment combined with high first-quarter revenues |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Large cap strategic M&A | Major part of the market for ~18 months | Continues to outperform, with CEO confidence, resilient economy, abundant financing, and scale seen as positive supporting further activity | improving |
| Middle-market financial sponsors | Slowest to rebound | Has slowed but not at a standstill; Evercore's pitch and win rates are up versus a year ago | improving |
| Software sector M&A | — | A slowdown but not a standstill, with consolidation opportunities and some restructuring activity emerging | deteriorating |
| Private capital advisory and secondaries | Record year prior | Record first quarter with balanced LP/GP-led activity and momentum in private credit and secondaries | improving |
| AI impact | — | Viewed as creating M&A and restructuring opportunities from industry structural change, plus internal productivity gains over time | improving |
| Talent competition | Competitive | Ante raised and more competitive, but Evercore finding success attracting A-plus players given franchise momentum | stable |
Q&A summary
Alexander Bond (KBW) asked about the software space slowdown's impact on deal activity and the restructuring opportunity if stress persists.
Weinberg said software has slowed but is not at a standstill and depends on the company, with consolidation opportunities emerging; restructuring is strong and broad-based across sectors with some software opportunities, but software is not dominating the business.
Ryan Kenny (Morgan Stanley) asked about Europe demand given EU merger rule changes and energy prices.
Weinberg said EMEA had a record first quarter from the firm's build-out, with rising dialogues and consequential strategic discussions; he does not expect Europe to slow due to merger-rule examination unless clients conclude deals cannot get done.
James Mitchell (Seaport) asked about financial sponsors in the middle market and factors holding sponsors back.
Weinberg agreed the middle market has slowed (not a standstill), while large-cap sponsor activity with high-quality assets remains robust; Evercore's pitch and win rates are up year over year, helped by its built-out sponsor business.
Daniel Cocchiara (Bank of America) asked why some deals accelerated from Q2 into Q1 and whether it is a continuing trend.
LaLonde said not to read too much into it; with many transactions in process, a couple happened to move faster and had significant fees attached, and there is no broader trend at play given the inherent lumpiness of the business.
Brendan O'Brien (Wolfe) asked about PCA dynamics and what is driving LP-led strength relative to GP-led.
Weinberg said PCA had a record year and record first quarter with a roughly balanced LP/GP mix, and the business is a powerful growth engine offering clients flexible liquidity alternatives and new creative products as secondaries grow.
James Yaro (Goldman Sachs) asked whether large strategic deals could accelerate further and about the ingredients driving large-cap activity and antitrust backdrop.
Weinberg cited high CEO confidence, a resilient economy, abundant financing markets, and scale being viewed positively, plus a more friendly regulatory environment for larger deals, supporting continued strength even if not every deal is welcomed.