One of the world's largest independent investment banking firms, Evercore helps companies buy, sell, merge, and restructure, and runs research and wealth-management arms under brands like Evercore ISI and Evercore Wealth Management. Founded in 1995 by former Treasury official Roger Altman and two partners, it was built to give conflict-free advice rather than lend or trade for its own account. Its name blends "ever" and "core" for enduring client ties and its M&A focus, though stories tying it to grain alcohol are internet jokes.
Evercore Q2 net income flat at $95.3M as a $21.3M special charge and higher costs offset 19% revenue growth.
growth slowed sharply from the prior quarter's increase. Net revenues rose 19% to $998.5 million, but fell 2.4% to $147.6 million and declined 1.7% to $2.32, as a $21.3 million special charge for employment taxes and a 34% increase in non-compensation expenses consumed the revenue gain. The firm's core advisory business remains in a growth cycle, but costs are rising faster than the top line.
Key takeaways
was essentially flat at $95.3 million, down 2.0% , as a $21.3 million special charge for estimated non-U.S. employment taxes from prior periods and a 34% rise in non-compensation expenses offset the 19% increase in net revenues.
Advisory fees rose 11% to $775.6 million, a deceleration from the 123% increase in Q1 2026, driven by a higher number of fee-paying transactions over $1 million across both M&A and non-M&A assignments.
Underwriting fees rose 201% to $97.1 million, reflecting a sharp increase in the number of transactions as capital markets activity continued to recover.
Section summaries
Management's Discussion and Analysis
Evercore Q2 FY2026 net income flat at $95.3M as 19% revenue growth was offset by higher compensation and a $21.3M special charge.
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Net revenues rose 19% to $990.2M, driven by an 11% increase in Advisory Fees to $775.6M and a 201% surge in Underwriting Fees to $97.1M.
Employee Compensation and Benefits expense grew 17% to $641.8M, reflecting higher deferred award , base salaries, and incentive accruals, though the comp ratio improved slightly to 64.8% from 65.8%.
The employee improved slightly to 64.8% of net revenues from 65.8% a year ago, as the 19% increase marginally outpaced a 17% rise in compensation expense.
Non-compensation expenses rose 34% to $180.5 million, driven by higher travel, professional fees, and a larger .
The company repurchased $733.7 million in shares during the quarter, deploying a substantial portion of its authorization, while cash and equivalents rose 27.4% sequentially to $1.26 billion.
What changed
The advisory fee growth rate decelerated to 11% in Q2 2026 from 123% in Q1 2026, as flagged in prior quarters when comparisons became more demanding against the 52% increase in Q2 2024.
The improved only marginally to 64.8% from 65.8% a year ago, continuing the pattern noted in earlier filings where the ratio has remained stubbornly near 65% despite two years of recovery.
The normalized to 28.3% in Q2 2026 from a benefit of 2.7% in Q1 2026, as the $88.5 million from share-based award vesting that boosted Q1 did not repeat at the same scale.
A new $21.3 million special charge for non-U.S. employment taxes from prior periods was recorded, an item not present in any prior quarter of this cycle and not flagged in earlier watch items.
What to watch
Whether the advisory fee growth rate stabilizes or continues to decelerate in Q3 2026, given the 11% increase in Q2 compares against a 49% increase in Q3 2025.
Whether the can decline meaningfully from the 64-65% range if growth moderates further, given that the ratio improved only 0.2 points in the first half of 2026.
The pace of share repurchases after $733.7 million was deployed in Q2, against a cash balance of $1.26 billion and the remaining authorization.
Whether the $21.3 million special charge for non-U.S. employment taxes is a one-time item or signals a broader tax liability that could produce additional charges in future periods.
Non-compensation expenses increased 34% to $180.5M, primarily due to higher travel, professional fees, and a larger .
A $21.3M special charge was recorded for an estimated loss provision related to non-U.S. employment taxes for prior periods.
The Investment Management 's pre-tax income fell 3% to $5.1M, as a 14% rise in Wealth Management fees was offset by higher compensation and non-compensation costs.
Cash and equivalents decreased to $1.27B, with $890.1M used in financing activities mainly for $733.7M in share repurchases and payments.
Quantitative and Qualitative Disclosures About Market Risk
See "Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Credit Risk." We do not believe we face any material interest rate risk, foreign currency exchange risk, equity price risk or other market risk except as disclosed in Ite…
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See "Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Credit Risk." We do not believe we face any material interest rate risk, foreign currency exchange risk, equity price risk or other market risk except as disclosed in Item 2 " – Market Risk and Credit Risk" above.