Highlights

  • Evercore shows 60.84% one-year basic EPS growth, a P/E of 14.22 and PEG of -8.76.
  • Third quarter net income attributable to Evercore was $160.8 million, against $144.6 million.
  • Third quarter advisory fees were $1,011,092 thousand, up 14%; nine-month fees rose 42%.
  • Evercore declared a $0.89 quarterly dividend and repurchased 2.8 million shares in nine months.

Basic earnings per share growth of 60.84% over one year, a trailing twelve-month P/E of 14.22 and a PEG of -8.76 on an expected basis define Evercore (NYSE:EVR) as an undervalued growth stock, with shares trading at USD 292.73 on October 28, 2026, up 12.65%. Alongside those figures, the independent investment banking advisory firm announced on October 18 that Nigel Dawn and Naveen Nataraj will become Co-Presidents effective January 1, 2027, declared a $0.89 per share quarterly dividend on October 27, and reported third quarter 2026 net income attributable to Evercore Inc. of $160.8 million on October 28.

Based in New York and incorporated in Delaware, Evercore was founded in 1995 and advises clients on mergers, acquisitions, divestitures, restructurings and capital structure. It also assists with raising capital and provides equity research, agency trading, and wealth and investment management. Its two segments are Investment Banking & Equities and Investment Management. The company employed approximately 2,835 people worldwide at September 30, 2026, including 191 Investment Banking Senior Managing Directors.

Growth: Third Quarter Earnings, Advisory Fees and Net Revenues

Net income attributable to Evercore Inc. was $160.8 million in the third quarter against $144.6 million a year earlier, and $557.3 million for the nine months against $388.0 million. Basic earnings per share were $4.19 against $3.73 in the quarter and $14.42 against $10.02 for nine months. Diluted earnings per share were $3.93 against $3.41 and $13.49 against $9.26.

Net revenues were $1,168.6 million against $1,038.9 million, up 12%, and $3,550.4 million for nine months against $2,567.5 million, up 38%. Advisory fees were $1,011,092 thousand, up 14%, and nine-month advisory fees were $3,031,421 thousand, up 42%; the company cited revenue from large transactions and a higher number of fees. Underwriting fees were $55,590 thousand, up 27%, while commissions and related revenue were $60,515 thousand, down 4%.

The company reported 324 advisory and underwriting fees against 268, and 167 fees of at least $1 million against 137.

Valuation: P/E of 14.22, PEG of -8.76 and Operating Margin

The P/E ratio of 14.22 is measured on trailing twelve-month earnings, and the PEG ratio of -8.76 on an expected basis. GAAP operating income was $242.6 million against $216.2 million, with an operating margin of 20.8% in both quarters. For nine months, the GAAP operating margin was 20.3% against 18.6%.

The GAAP compensation ratio was 64.1% against 65.5%. On the earnings call, Chief Financial Officer Tim LaLonde said the company is striving for further improvement in the compensation ratio over time and for a lower growth rate in non-compensation expense over the next several years.

Capital and Balance Sheet: Dividend, Repurchases and Liquidity

The Board declared a quarterly dividend of $0.89 per share on October 27, payable December 11, 2026 to holders as of November 27, 2026. In the third quarter, Evercore repurchased 0.5 million shares for $152.2 million at an average of $291.60. For nine months it purchased 2.8 million shares for $886.0 million at an average of $318.41, including 1.0 million shares for $323.4 million from employees for net settlement of stock-based awards. The company returned $1.0 billion to shareholders in the period.

At September 30, 2026, cash and cash equivalents were $1.2 billion, investment securities and certificates of deposit were $1.6 billion, and current assets exceeded current liabilities by $2.0 billion. Amounts due related to the Notes Payable were $540.1 million.

Disclosed Risks and Outlook

Evercore stated that quarterly results may fluctuate due to the timing and amount of transaction fees. Other revenue, net, fell 35% on lower performance of its investment funds portfolio. Non-compensation costs rose 23% to $174,946 thousand, and the non-compensation ratio was 15.0% against 13.7%. Special charges were $1,960 thousand in the quarter and $23,275 thousand for nine months, reflecting duplicate facilities costs for the planned relocation of the U.K. headquarters and an estimated loss provision for non-U.S. employment taxes, principally related to prior periods.

On the third quarter 2026 call, management cited interest rate uncertainty, geopolitical tensions and the evolving implications of AI as parts of a complex market backdrop. It said financial sponsor and middle market activity continues to run below historical levels. Based on its backlogs and other early indicators, management said it expects activity levels to remain at current levels, while remaining mindful of market uncertainty. Evercore issued no numerical guidance.