It has been about a month since the last earnings report for Evercore (EVR). Shares have lost about 13.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Evercore due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Evercore Q4 Earnings Beat, Revenue Reaches Record Level
Evercore reported fourth-quarter 2025 adjusted earnings per share of $5.13, surpassing the Zacks Consensus Estimate of $3.83. Also, the bottom line compared favorably with the prior-year quarter’s $3.41
Results benefited from an increase in revenues generated from the Investment Management and Investment Banking & Equities segments. An increase 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 $2.03 billion, up from $1.40 billion in the year-ago quarter.
For 2025, the company reported adjusted EPS of $14.56. The metric rose from the prior-year quarter’s adjusted earnings of $9.42 per share. Net income was $5.91 billion, which rose 56.5% from the year-ago quarter.
Revenues & Expenses Rise
In the fourth quarter of 2025, the company reported record net revenues (adjusted) of $1.29 billion, beating the Zacks Consensus Estimate by 22.2%. Further, the top line increased 32.4% year over year.
For 2025, total revenues were a record $3.88 billion, which rose 29.4% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $3.65 billion.
Total expenses increased 27.9% year over year to $976.1 million.
The adjusted compensation ratio was 62%, down from 65.2% in the prior-year quarter.
The adjusted operating margin was 26%, up from 22.2% in the prior-year quarter.
Quarterly Segment Performance (GAAP Basis)
Investment Banking & Equities: Net revenues increased 32.6% year over year to $1.26 billion. This rise was primarily due to an increase in all the components of net revenues. Also, operating income surged 46.3% year over year to $304.5 million.
Investment Management: Net revenues were $23.5 million, up 10.1% from the prior-year quarter. Operating income was $7.6 million, up 70.9% year over year. AUM was $15.5 million as of Dec. 31, 2025, up 11.6% year over year.
Balance Sheet Position Strong
As of Dec. 31, 2025, cash and cash equivalents were $1.4 billion, and investment securities and certificates of deposit were $1.6 billion. Moreover, current assets exceeded current liabilities by $2.1 billion as of the same date. Amounts due related to the notes payable were $588.2 million as of Dec. 31, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 6.36% due to these changes.
VGM Scores
Currently, Evercore has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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. It comes with little surprise Evercore has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Evercore Inc (EVR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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