Why Is Evercore (EVR) Up 8.8% Since Last Earnings Report?

A month has gone by since the last earnings report for Evercore (EVR). Shares have added about 8.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Evercore due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Evercore Inc before we dive into how investors and analysts have reacted as of late.

Evercore Q3 Earnings Top Estimates, Revenues Cross $1B

Evercore reported third-quarter 2025 adjusted earnings per share (EPS) of $3.48, surpassing the Zacks Consensus Estimate of $3.01. Also, the bottom line compared favorably with the prior-year quarter’s $2.04.

Results benefited from an increase in revenues generated from the Investment Management and Investment Banking & Equities segments. An improvement in the assets under management 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 $144.6 million, up from $78.4 million in the year-ago quarter.

Revenues & Expenses Rise

In the third quarter of 2025, the company reported record net revenues (adjusted) of $1.05 billion, beating the Zacks Consensus Estimate by 16.4%. Further, the top line increased 41.6% year over year.

Total expenses increased 34.4% year over year to $822.7 million. 

The adjusted compensation ratio was 65%, down from 66% in the prior-year quarter.

The adjusted operating margin was 21.8%, up from 28.9% in the prior-year quarter.

Quarterly Segment Performance (GAAP Basis)

Investment Banking & Equities: Net revenues increased 41% year over year to $1.04 billion. This rise was primarily driven by significantly higher advisory fees, and solid growth in commissions and related revenues. Also, operating income surged 83.7% year over year to $213.8 million.

Investment Management: Net revenues were $22.7 million, up 5.8% from the prior-year quarter. Operating income was $2.5 million, down 56.2% year over year. AUM was $15.4 million as of Sept. 30, 2025, up 11% year over year.

Balance Sheet Position Strong

As of Sept. 30, 2025, cash and cash equivalents were $851.9 million, and investment securities and certificates of deposit were $1.6 billion. Moreover, current assets exceeded current liabilities by $2 billion as of the same date. Amounts due related to the notes payable were $588.3 million at Sept. 30, 2025.

Capital Distributions Activities

In the reported quarter, Evercore repurchased 0.2 million shares at an average price of $329.8.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

Currently, Evercore has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Evercore has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Evercore belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, The PNC Financial Services Group, Inc (PNC), has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

The PNC Financial Services Group reported revenues of $5.95 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $4.35 for the same period compares with $3.49 a year ago.

For the current quarter, The PNC Financial Services Group is expected to post earnings of $4.19 per share, indicating a change of +11.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

The PNC Financial Services Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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