An independent investment bank just reported its best quarter ever, with revenue nearly doubling year over year and earnings beating Wall Street by 39%, all driven by a surge in M&A advisory that has positioned it as the third-largest advisory firm globally.
Keep reading, and you get the full breakdown of whether the 19-year dividend streak and the $673 million returned in a single quarter make this the financial stock worth owning before the next advisory cycle peaks.
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Q1 2026 Revenue Hit $1.39B, Up 99%, and Beat Wall Street by 15.8%
Evercore Inc. (NYSE: EVR) reported Q1 CY2026 revenue of $1.39 billion, up 98.8% year over year, beating analyst estimates by 15.8%.
Adjusted EPS came in at $7.53, beating consensus by 38.8%. Operating income hit $354.5 million adjusted, up 205% year over year.
The driver is an M&A advisory.
Deal activity suppressed through 2023 and 2024 came back aggressively in 2025, and Evercore captured a disproportionate share, advising on Cox Communications’ merger with Charter, Warner Bros.
Discovery’s separation, and Foot Locker’s sale to DICK’S Sporting Goods.
Q1 revenue $1.39B, up 98.8% year over year: Beat analyst estimates by 15.8%.
Adjusted EPS $7.53, beat consensus by 38.8%: Not a small miss in the other direction.
The stock is up 73% over the past year and trades at 24x earnings with a PEG ratio of 0.42. You are paying a growth multiple on a firm growing faster than that multiple implies.
Action: Buy EVR now. The 0.42 PEG is cheap relative to the growth rate, even after the 73% run. Exit if operating margins drop below 20% for two consecutive quarters.
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Evercore raised its quarterly dividend 6% to $0.89 per share, the 19th consecutive annual increase. The firm has raised the payout through the 2008 crisis, the 2020 pandemic, and every market cycle between them.
The current quarterly payout of $0.89 equates to $3.56 annually, roughly 1% yield at $347.
The yield is modest because the stock has appreciated, but a 6% raise on the 19th consecutive increase tells you management is confident in 2026, not just last quarter.
Quarterly dividend raised to $0.89, up 6%: Payable to shareholders of record in Q2 2026.
Dividend raised alongside a 39% EPS beat: Management is not being conservative with the payout.
Nineteen years of consecutive increases through every downturn prove the business model holds across full cycles, not just in peak M&A environments.
Action: Reinvest the $0.89 quarterly dividend into additional shares. The combination of a growing dividend and 73% price appreciation compounds fast. Set up automatic reinvestment and let it run.
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In Q1 2026, Evercore returned $673.3 million to shareholders. That consisted of dividends paid plus the repurchase of 1.9 million shares at an average price of $322.00.
To put that in context, the company returned more capital in a single quarter than many mid-cap financial companies generate in total revenue in a year. This is aggressive capital return, not a token gesture.
The buyback executed at $322… below current levels. Management thought the stock was undervalued at $322, and the Q1 results validated that. Every share retired at $322 is worth more today.
$673.3M returned in Q1 alone: Dividends plus 1.9 million shares repurchased.
1.9 million shares retired in Q1: Float reduction compounds EPS growth.
Generating $354.5 million in operating income while returning $673.3 million in the same quarter means the balance sheet is also working. The firm can sustain this pace if deal activity holds near Q1 levels.
Action: On the Q2 print, if buybacks exceed 1.5 million shares again, add 10% to your position. That tells you management still thinks the stock is cheap and is backing that view with real capital.
New Senior Managing Director Hires Signal the Firm Is Investing in Future Deal Flow
Evercore added three new Senior Managing Directors since the last earnings call and has commitments from three more joining later in 2026.
Six additions to the senior revenue team in one quarter at a firm where each SMD brings years of client relationships and deal flow.
This hiring pace matters because Senior Managing Directors are the long-term revenue engine. The deals they close this year generate fees. The relationships they build over the next three to five years generate future fees.
Evercore hiring at this pace during a period of already-record revenue tells you management is not treating Q1 as a peak. It is treating it as a foundation and investing to grow from here.
3 new Senior Managing Directors added since last earnings call: Direct additions to the revenue team.
3 more Senior Managing Directors committed to join later in 2026: Forward-looking pipeline of talent.
At advisory firms, the talent is the product. Expanding the team during a record revenue quarter signals management expects deal activity to continue, not slow.
Action: If Q2 headcount shows three or more new Senior Managing Director additions, hold or add. A hiring pause is a signal to watch deal pipeline commentary more carefully on the same call.
How EVR Stacks Up Against Advisory Peers Right Now
Evercore’s 98.8% revenue growth in Q1 is not a sector-wide number. The broader M&A advisory market is recovering, but not every firm is capturing the same share.
Evercore has consistently taken advisory revenue share from larger bulge bracket banks over the past decade by operating independently without the conflicts of interest that come from balance sheet lending.
Clients pay a premium for advice from a firm that is not also trying to sell them a loan.
The PEG ratio of 0.42 at 24x earnings is the valuation argument in one number. Lazard, the closest comparable independent advisory firm, trades at a higher multiple on slower growth.
Houlihan Lokey trades at a premium for its middle-market positioning. Evercore sits between the two in size, runs faster on revenue growth, and trades cheaper on a growth-adjusted basis than either.
98.8% revenue growth vs sector recovery average: Taking share, not just riding the cycle.
Lazard and Houlihan Lokey at higher multiples on slower growth: EVR is the relative value in the peer set.
The independence advantage is not just a marketing line.
It has translated into 19 consecutive dividend increases and a 73% one-year return while bulge bracket banks dealt with regulatory and balance sheet constraints that Evercore does not carry.
Action: Holding Lazard or Houlihan Lokey at a higher multiple on slower growth? Rotate at least half into EVR.
The growth-adjusted valuation and advisory market share trend both favor Evercore.
Trivia: Warren Buffett bought his Coca-Cola stake for $1.3 billion in 1988. Roughly what is that same stake worth today?
The Risks Are Real, and Both Come Down to Deal Cycles and Rate Sensitivity
M&A advisory revenue is cyclical. The 99% revenue increase year over year is partly a function of the prior year being suppressed and partly a function of deal activity coming back sharply.
If interest rates stay elevated or rise further, the cost of financing acquisitions goes up, and deal volumes slow. Evercore has no diversification buffer here.
Its revenue is almost entirely advisory-driven, so a slowdown in M&A hits the top line directly and immediately.
At 24x earnings after a 73% run, you are paying for a continued strong deal environment. If Q2 advisory fees disappoint, the multiple contracts will fast.
The 15.8% Q1 beat means analysts revise estimates higher, and Q2 gets measured against those raised numbers.
24x earnings after 73% one-year run: Multiple at the high end for an advisory-only business.
Q1 15.8% beat sets a high Q2 comparison bar: Analysts revise estimates higher going into Q2.
Neither risk means sell. The 0.42 PEG gives you cushion. Watch Q2 advisory fees. Below $1.1 billion signals the cycle is slowing, and you reduce exposure.
Action: Hard stop at $290. If Q2 revenue misses estimates by more than 10%, plus a break below $290 means the deal cycle peaked in Q1 and the multiple collapses. Exit without waiting.
Final Word: The Deal Cycle Is Running Hot, and the Firm Is Capturing More Than Its Share
$1.39 billion in revenue, 99% growth, 39% EPS beat, $673 million returned, dividend raised for the 19th consecutive year, and six new senior hires in one quarter. That is a firm at its all-time best.
Buy EVR with a $290 hard stop. Q2 advisory fees are the first real test of whether the cycle holds.
Setup Scorecard
Entry Window: Current levels around $340 to $350. The 73% one-year run has already happened. Buy for the next leg, not to recapture the prior one.
Catalyst Watch: Q2 2026 earnings advisory fee total, Senior Managing Director headcount update, M&A volume data from Dealogic and Bloomberg, Federal Reserve rate commentary affecting deal financing.
Upside Setup: Deal cycle sustains through 2026, advisory fees stay above $1.1B per quarter, PEG rerates toward 0.6 as earnings grow. Target $400 to $420 on continued deal activity.
Downside Cushion: 0.42 PEG ratio, 19-year dividend streak, $673M quarterly capital return capacity, and third-place global advisory ranking all anchor the floor above $290.
What Moves It Next: Q2 advisory fee total vs revised analyst estimates, any large deal announcements where Evercore is named as advisor, and interest rate direction affecting M&A financing costs.
That's our coverage for today; thanks for reading! Reply to this email with feedback or any value names you want me to check out.
Best Regards,
—Noah Zelvis
Undervalued Edge
