Company Reports

Evercore has forged a strong reputation during its 30 years of existence. The firm is unusual relative to its bulge bracket competitors that regularly top the investment banking league table rankings in that it operates as essentially an advisory pure-play, with advisory revenue comprising more than 80% of the firm’s net sales. The remainder is split among underwriting, trading, and wealth management.

Evercore reported solid second-quarter earnings, with $990 million in revenue representing 19% growth from the year-ago period, while the firm's $2.91 in adjusted EPS represented 20% growth. Still, the firm's shares sold off by roughly 10% in July 29 trading on the back of cost-control concerns.

Evercore has forged a strong reputation during its 30 years of existence. The firm is unique relative to its bulge bracket competitors that regularly accompany it atop the investment banking league table rankings in that it operates as essentially an advisory pure-play, with advisory revenue comprising more than 80% of the firm’s net sales. The remainder is chopped up between underwriting, trading, and wealth management businesses.

Evercore reported record first-quarter 2026 earnings, with net revenue of $1.4 billion representing 100% annual growth. Diluted EPS was also up 107% year over year to $7.20. Shares fell roughly 3% during April 29 intraday trading, erasing mid-single-digit percentage gains from premarket trading.

Evercore has forged a strong reputation during its 30 years of existence. The firm is unique relative to its bulge bracket competitors that regularly accompany it atop the investment banking league table rankings in that it operates as essentially an advisory pure-play, with advisory revenue comprising more than 80% of the firm’s net sales. The remainder is chopped up between additional business lines in underwriting, trading, and wealth management.

Evercore has forged a strong reputation during its 30 years of existence. The firm is unique relative to its bulge bracket competitors that regularly accompany it atop the investment banking league table rankings in that it operates as essentially an advisory pure-play, with advisory revenue comprising more than 80% of the firm’s net sales. The remainder is chopped up between additional business lines in underwriting, trading, and wealth management.

Evercore reported outstanding fourth-quarter 2025 results amid a strong global investment banking environment, topping FactSet consensus revenue and EPS estimates by a striking 15.8% and 26.7%, respectively. Shares rose 3%-4% during Feb. 4 intraday trading.

Evercore reported third-quarter results, with strong advisory growth aligning with our expectations. Shares sold off nearly 10% during Oct. 29 intraday trading as investors reacted to management commentary regarding compensation expense growth.

Evercore has forged a strong reputation during its 30 years of existence. The firm is unique relative to its bulge bracket competitors that regularly accompany it atop the investment banking league table rankings in that it operates as essentially an advisory pure-play, with advisory revenue comprising more than 80% of the firm’s net sales. The remainder is chopped up between additional business lines in underwriting, trading, and wealth management.

Evercore has forged a strong reputation during its 30 years of existence. The firm is unique relative to its competitors that regularly join it atop the investment banking league table rankings in that it operates as essentially an advisory pure-play, with advisory revenue comprising more than 80% of the firm’s net sales. The remainder is chopped up between additional business lines in underwriting, trading, and wealth management.

We're initiating coverage of Evercore, an investment banking advisory specialist with roughly 7% revenue share of the global mergers and acquisition advisory revenue pool (Dealogic).

We’re dropping our coverage of Evercore. Morningstar provides research on approximately 1,500 publicly traded stocks, and we periodically revise our lists in response to client interest and changes in the business environment.

Evercore's US focus and disciplined hiring and promotion philosophies have resulted in an exceedingly productive workforce and looks poised for a rebound—if a protracted one—when economic uncertainty abates. The firm was able to capitalize on a surge in investment banking growth in its home market since the financial crisis, and appears to be on solid footing.

Narrow-moat-rated Evercore reported a strong finish to 2024, highlighted by revenue growth and operating margin expansion as the business continues to capitalize on the reacceleration in broader advisory and capital markets activity. We do not plan on changing our $215 fair value estimate for the firm as we incorporate fourth-quarter results and continue to view shares as overvalued.

We believe the election of Donald Trump as president and Republican control of the US Senate and House will be largely positive for capital markets and investment-services firms. We will adjust our valuation models as government policies solidify, but with a rally of over 10% for multiple capital markets companies after the election, we believe potential tailwinds have largely been incorporated into share prices. We view most capital markets and investment-services firms as fairly valued to slightly overvalued.

Evercore’s revenue continues to recover from the 2023 cyclical low, but operating margins remain far from previous highs. The company reported net income to common shareholders of $78 million, or $1.86 per diluted share, on $734 million of net revenue in the third quarter. Net revenue increased 29% from a relatively weak quarter the previous year and was 7% higher sequentially. The $734 million is also 11% lower than the 2021 quarterly average, even though the number of senior managing directors in the company’s investment banking business, about 145, is significantly higher than the 114 the company had in 2021. We don’t anticipate making a material change to our $215 fair value estimate for narrow-moat-rated Evercore and assess shares are overvalued after the runup in the stock’s price since the end of June.

We are increasing our fair value estimate to $215 per share from $177 for narrow-moat-rated Evercore. This corresponds to a forward price/adjusted earnings multiple of around 12 times and a forward enterprise value/EBITDA multiple of about 13 times. Of the net $38 increase in our fair value estimate, approximately $5 was from earnings since our previous valuation update, $18 is from increasing our forecast for senior managing director productivity by about 10%, $3 is from increasing our forecast for normalized operating margins by 0.5 percentage points, and the remaining $12 is from multiple adjustments, such as slightly higher senior managing director headcount growth, equities revenue growth, and investment management revenue growth.

Evercore’s revenue and earnings recovery has likely started and should last multiple years. Starting in the back half of 2020 and especially after successful covid-19 vaccines were announced, merger and acquisition volume picked up, and Evercore subsequently grew revenue over 45% in 2021. Revenue in 2021 was abnormally high and was destined to normalize lower, in our opinion. Net revenue in 2023 was 26% lower than the 2021 peak, as interest rates and economic uncertainty increased. With global interest rates likely having peaked and increasing market expectations of a relatively mild economic slowdown, in contrast to a recession, in the US, Evercore's revenue and earnings should be on an uptrend starting in 2024. However, we’re currently forecasting that it will take multiple years for the company to exceed its 2021 revenue level.

Narrow-moat-rated Evercore reported strong second-quarter results that reinforce the thesis of rising merger activity and earnings for the company over the medium term. The company reported net income to common shareholders of $74 million, or $1.81 per diluted share, on $689 million of net revenue. Net revenue increased 38% from the previous year and 19% sequentially, with about all of the increase from the company's financial advisory business. We're likely to moderately increase our forecast for the company's 2024 revenue, but we don't anticipate it will lead to a significant increase in our $177 fair value estimate. While we rated the company's shares as undervalued for much of the previous 1.5 years, we now believe shares are moderately overvalued after their recent runup.

Evercore reported a relatively slow start to 2024, especially compared with other investment banks that had a strong first quarter, but we feel the medium-term outlook for earnings remains positive. The company reported net income of $86 million, or $2.09 per diluted share, on $581 million of net revenue. Net revenue increased 2% from a year ago. While the company's core advisory revenue was down 7% to $430 million, it was offset by a 143% increase in underwriting revenue to $56 million, as well as other revenue. Along with first-quarter earnings, the company announced an increase in its quarterly dividend 5% to $0.80 per share. We don't anticipate making a material change to our $177 per share fair value estimate for narrow-moat Evercore and assess the shares as being fairly valued.