What Management Said
Read the full Q1 2026 transcript ↗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.
- 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.
- 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 | Current guidance |
|---|---|---|
| Q2 2026 revenue | Q2 2026 | Closer to Q2 2025 (a record) rather than continued sequential growth (new) |
| Compensation ratio improvement | FY2026 | 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 | More similar to prior-year levels in those quarters (higher than Q1) |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| 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
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