에버코어(EVR) 2026년 3분기 실적 발표 콘퍼런스 콜: 사상 최대 매출 및 자문 백로그

핵심 요약

• 에버코어는 2026년 3분기 GAAP 기준 순매출 12억 달러, 영업이익 2억 4,300만 달러, 희석 EPS 3.93달러를 기록했다고 발표했습니다.
• 조정 순매출은 전년 동기 대비 13% 증가한 12억 달러에 육박하며 6분기 연속 분기 최대 매출 기록을 경신했습니다. 조정 EPS는 23% 증가한 4.28달러로 3분기 최고 기록을 달성했습니다.
• 조정 자문 수수료는 시장 점유율 확대, 시니어 매니징 디렉터당 생산성 향상, 수수료 발생 건수 증가에 힘입어 전년 동기 대비 14% 증가한 10억 달러로 사상 최대치를 기록했습니다.
• 연초 대비 누적 조정 순매출은 전년 동기 대비 38% 증가한 36억 달러로 사상 최대를 기록했으며, 조정 EPS는 전년 동기 대비 57% 상승했습니다.
• 경영진은 사상 최대의 수주 잔고, 건전한 신규 수주 보충, 견조한 고객 참여를 언급했습니다. 거래 활동이 2027년까지 건전하게 유지될 것으로 전망했으나, 수주 잔고의 매출 인식 시점에 대한 가이던스는 제공하지 않았습니다.
• 에버코어는 이번 분기에 1억 8,900만 달러, 2026년 첫 9개월 동안 10억 달러 이상을 주주에게 환원하여 기존 연간 최대 주주 환원 규모를 넘어섰습니다.

주요 재무 데이터

2026년 첫 9개월 동안 조정 순매출은 전년 동기 대비 38% 증가한 36억 달러로 사상 최고치를 기록했습니다. 연초 대비 누적 조정 보수 비율과 비보수 비용 비율은 각각 63.5%와 13.7%였습니다.

사업 및 영업 성과

전략 자문 부문이 핵심 성장 동력 역할을 지속했습니다. 에버코어는 시장 점유율 상승, 시니어 뱅커 생산성 향상, 수수료 발생 건수 증가를 사상 최대 자문 실적의 배경으로 꼽았습니다. EMEA 전략 자문 부문 역시 연초 대비 누적 기준으로 사상 최대 매출을 달성했습니다.

비M&A 사업 부문도 다각화 효과를 계속 제공했습니다. 견조한 M&A 활동에도 불구하고 지난 4개 분기 동안 회사 전체 조정 순매출의 40% 이상을 차지했습니다. 구조조정, 부채 자문, 주식 자본 시장(ECM), 사모 자본 자문 및 자금 조달 부문 모두 활발한 활동을 이어갔습니다.

디지털 인프라 금융은 영역을 확장 중인 핵심 분야입니다. 에버코어는 넥서스(Nexus) 데이터 센터의 156억 달러 규모 건설 금융과 630억 달러 규모의 AI 연산 용량 배치를 가능하게 한 브로드컴(Broadcom) 거래에 대해 자문을 제공했습니다. 경영진은 부채 자문 및 인프라 금융 파이프라인이 확대되고 있다고 밝혔으나, 공략 가능한 매출 기회 규모를 수치화하지는 않았습니다.

에버코어는 스폰서 커버리지 및 사모 자본 사업 전반에 걸쳐 재무적 스폰서를 담당하는 60명 이상의 시니어 뱅커를 보유하고 있습니다. 경영진은 제안 활동과 수주 성공률이 향상되었으며, 스폰서 거래 활동도 점점 회복되고 있다고 전했습니다. 또한 항공우주·방산, 물류, 헬스케어, 비즈니스 서비스 분야에서 중견기업 커버리지를 확대하고 있습니다.

에버코어의 투자은행 시니어 매니징 디렉터 인력은 2021년 이후 70% 가까이 증가했으며, 50명 이상의 시니어 뱅커가 아직 적응 및 역량 강화 단계에 있습니다. 파트너당 평균 매출은 지난 5년간 약 2,200만 달러, 최근 4개 분기 동안은 2,730만 달러를 기록했습니다.

자산관리 부문의 운용자산(AUM)은 분기 말 기준 162억 달러를 기록했습니다. 에버코어 ISI는 엑스텔(Extel)의 올아메리칸 리서치 애널리스트 설문조사에서 가중치 기준으로 5년 연속 1위를 차지했습니다.

경영진 전망

경영진은 사상 최대 수주 잔고, 건전한 신규 수주 보충 비율, 높은 고객 참여도가 2027년까지 견조한 거래 활동을 뒷받침할 것이라고 밝혔습니다. 또한 CEO 신뢰도, 자금 조달 여력, 견조한 주식시장, 전략적 필요성을 M&A에 우호적인 환경으로 꼽으면서도, 거래 완료 시점에 대한 예측은 말을 아꼈습니다.

에버코어는 보수 비율의 추가적인 개선을 추진하고 있습니다. 연초 대비 누적 63.5%의 인적 비용 적립률은 실적 발표 당시 경영진이 예상한 연간 최선의 추정치이나, 회사는 지속적으로 이를 낮추기 위해 노력하고 있다고 밝혔습니다.

경영진은 2026년 비보수 비용 비율을 2025년에 기록한 14.2% 수준 또는 이에 준하거나 다소 개선된 수준으로 목표하고 있습니다. 향후 수년간 기술, AI, 인프라 및 채용에 대한 투자가 이뤄진 후 비보수 비용의 증가율을 둔화시키는 것을 목표로 하고 있습니다.

주식 자본 시장(ECM) 활동은 3분기 초 호조를 보인 후 4분기에 접어들며 둔화되었습니다. 경영진은 이 사업의 장기적인 성장 잠재력에 대해 여전히 긍정적이지만, 단기 IPO 전망은 시장 상황에 달려 있다고 설명했습니다.

리스크 및 주요 점검 사항

• 경영진은 시장 불확실성을 유념하고 있으며 주식시장 심리가 빠르게 변화할 수 있다고 언급했습니다.
• 금리의 급격한 상승이나 변동성 확대는 거래 활동에 영향을 미칠 수 있습니다. 높은 금리 수준은 또한 기업들이 2028년 및 2029년 채무 만기에 도달함에 따라 구조조정 수요를 증가시킬 수 있습니다.
• 스폰서 거래는 여전히 선별적으로 이루어지고 있습니다. 경영진은 우량 자산의 매매는 진행될 수 있으나 비우량 자산은 더 큰 어려움에 직면해 있다고 밝혔습니다.
• 매출 인식은 거래 타이밍에 달려 있습니다. 경영진은 사상 최대의 수주 잔고가 언제 실적 매출로 전환될지 예측하기를 사양했습니다.
• 낮아진 변동성이 업계 전반의 거래량에 부담을 주면서 수수료 및 관련 매출이 감소했습니다.

애널리스트 Q&A 주요 내용

대형 M&A: 경영진은 현 사이클의 단계를 예측하기는 어렵지만, 사상 최대의 수주 잔고, 견조한 신규 수주 보충 및 광범위한 고객 참여를 바탕으로 2027년까지 거래 활동이 건전하게 유지될 수 있다는 확신을 가지고 있다고 밝혔습니다.

시니어 뱅커 생산성: 신규 채용된 시니어 매니징 디렉터는 첫해 부분 기간 동안에는 일반적으로 제한적인 매출을 창출하고, 첫 번째 전체 근무 연도에는 예상 생산성의 약 50%~3분의 2 수준에 도달하며, 두 번째 전체 근무 연도에 완전히 정상 궤도에 오릅니다.

재무적 스폰서 및 중견기업 시장: 에버코어는 시장 전반에서 스폰서 거래 활동이 완만하게 개선되고 있는 반면, 자사는 커버리지 확대로 인해 시장 수준을 상회하는 거래량을 축적하고 있다고 밝혔습니다. 또한 중견기업 섹터 팀에 대한 추가 투자를 계획하고 있습니다.

분기 매출 품질: 경영진은 3분기 조기 매출 실현(pull-forwards)이 평소보다 적었다고 말했습니다. 또한 워너 브라더스 디스커버리(Warner Bros. Discovery) 거래가 10월 6일에 마감되어 3분기가 아닌 4분기 매출에 포함된다고 덧붙였습니다.

인수 전략: 에버코어는 현재 추가 거래를 추진하고 있지 않으며, 개별 채용, 고객 커버리지 및 상품과 섹터의 유기적 확장을 계속해서 강조할 것이라고 밝혔습니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

John Weinberg

Our EMEA Strategic Advisory business delivered another strong quarter with our expanded presence in the region, resulting in record year-to-date revenues. Our strategic defense and Shareholder Advisory Group continues to see strong activity supported by elevated levels of shareholder activism. Globally, in the third quarter and into October, we advised on a number of significant transactions, including PTC on its $24 billion sale Schneider Electric GE Aerospace on its $11.75 billion acquisition of consolidated precision products, easyJet on its [5.6 billion pound] sale to Apollo, Sadr on its all-share combination with Prologis, Nexus data centers on the $15.6 billion construction financing of its inaugural data center and power development project. Broadcom on a transaction enabling the deployment of $63 billion of AI compute capacity to Anthoropic, which announced earlier this week.

Consistent with trends in the first half, our liability management and restructuring business maintained strong activity levels as companies continue to address upcoming debt maturities and particularly in a higher interest rate environment. Our private capital markets and debt advisory business is seeing growing levels of activity in innovative financing solutions supporting the expansion of digital infrastructure over the last year, as highlighted by several of the deals I just mentioned. Our market-leading private capital advisory and fundraising businesses, respectively, saw positive trends in the quarter, consistent with earlier in the year.

Our Equity Capital Markets business had a strong quarter, supported by a more constructive IPO market earlier in the quarter our equities business generated solid revenues. Evercore ISI achieved the #1 ranking on a weighted basis in Extel's All-American Research Analyst survey for the fifth consecutive year. And finally, our wealth management business ended the quarter with AUM of $16.2 billion and maintains a strong long-term performance.

Before I turn it over to Tim, I want to take a moment to reiterate a few important points about Evercore's position and the opportunity ahead. Over the past decade, we've expanded and diversified our platform across products, sectors, geographies and client segments, broadening the opportunities to serve clients while maintaining our strong focus on culture. While advising on many of the world's largest and most transformative M&A transactions is core to our strategy, our franchise extends across the full spectrum of the market with respect to both size and transaction type.

Specifically, we've made significant investments in expanding our financial sponsor coverage over the last several years. Today, across our financial sponsors coverage and private capital related businesses -- we have over 60 senior bankers specifically covering this important client segment working closely with our sector bankers. As we continue to build out the firm we have similarly expanded our middle market coverage by investing in high-quality bankers across sectors where we see significant opportunity, including recently in our Aerospace and Defense, logistics, health care, and services sectors. We believe we are now well positioned to take advantage of this part of the market. We also remain focused on hiring additional product specialists which is something we've been executing on over the last several years.

At the same time, we've continued to diversify our revenue base beyond M&A, building successful businesses across a range of other areas. Even with significant growth in M&A, non-M&A businesses have contributed more than 40% of firm-wide adjusted net revenues over the last 4 quarters providing greater diversification and resilience across market cycles. This growth has been supported by significant investment in our people. Our investment banking SMD base has grown nearly 70% since 2021, while productivity remains at market-leading levels. And it is important to note that we have more than 50 SMBs still ramping representing meaningful opportunity for future growth, and we continue to have a robust recruiting pipeline.

Together, these investments have meaningfully expanded our addressable market strengthened our competitive position and contributed to significant market share gains. Our results this quarter reflect the collective strength of our platform, our people and the strong momentum across our businesses. We believe substantial opportunity lies ahead and the Evercore is well positioned for the next phase of gross. With that, let me turn it over to Tim.

Timothy LaLonde

Thank you, John. Evercore's third quarter results reflect strong performance across our diversified mix of businesses. For the third quarter of 2026, net revenues, operating income and EPS on a GAAP basis were $1.2 billion, $243 million and $3.93 per share, respectively. My comments from here will focus on non-GAAP metrics, which we believe are useful when evaluating our results. Our standard GAAP reporting and a reconciliation of GAAP to adjusted results can be found in our press release, which is on our website.

Our third quarter adjusted net revenues of nearly $1.2 billion increased 13% year-over-year. This marks Evercore's 6th consecutive quarterly revenue record. Year-to-date, we have generated record adjusted net revenues of $3.6 billion, up 38% from the prior year period. Third quarter adjusted operating income of $270 million increased 18% [Technical Difficulty] to 2025. Adjusted earnings per share of $4.28 and was a record for the third quarter and increased 23% year-over-year.

For the 9 months, our adjusted EPS is up 57% compared to the prior year 9 months. Turning to the businesses. Record third quarter adjusted advisory fees of $1 billion increased 14% versus last year's record third quarter. This performance reflects continued market share gains, increased productivity per SMD and a higher number of fee events. Based on our record backlog and other early indicators, we expect activity levels to remain strong.

Our third quarter underwriting revenues were $56 million, up 27% from a year ago, driven by healthy IPO activity. Commissions and related revenue of $61 million was down 4% year-over-year amid lower volatility and industry-wide trading volumes. Third quarter adjusted asset management and administration fees of $26 million rose 9% year-over-year. Third quarter adjusted other revenue net was approximately $25 million, of which approximately $23 million was from interest income.

Turning to expenses. The adjusted compensation ratio for the third quarter is 63%, down 200 basis points from the prior year period and down 50 basis points from last quarter, marking significant improvement on both an annual and quarterly basis, [Technical Difficulty] further revenue growth and improvement in the compensation ratio over time. So equity market sentiment can change quickly and somewhat frequently, we believe the building blocks for a constructive M&A market, such as CEO confidence levels, financing availability, industry disruptions and compelling strategic rationale remain in place.

Adjusted noncompensation expenses in the quarter were $166 million, representing an adjusted noncomp ratio of 14.1%, which is down 340 basis points from last quarter. The second quarter's adjusted noncomp ratio was higher due to a combination of an investment in growth and some seasonal or episodic costs. The stronger adjusted net revenues this quarter also played a role in the improvement in the ratio. As discussed on our last quarter call, similar to revenues, noncomp expenses and ratios are best evaluated across multiple quarters.

Our year-to-date adjusted noncomp ratio is 13.7%. The increase in non-comp costs compared to the prior year was primarily driven by investments in technology, including AI initiatives, which we believe will result in increased future productivity and efficiencies, travel and related expenses, which are correlated with client activity and our investment in our near-term results, and search and placement fees related to hiring, which is an investment in growth.

The higher level of increase in noncomp expense seen in the last 3 years supported the doubling of our business as our adjusted net revenues have increased from $2.4 billion in '23 to approximately $4.9 billion in the latest 4 quarters. Over that same period of time, our noncomp expense ratio has declined from 16.6% and to 13.7% year-to-date. We are striving to achieve a lower growth rate in noncomp expense over the next several years.

Our adjusted tax rate for the quarter was 28.5%, down slightly from the third quarter of last year. Turning to our balance sheet. As of September 30, our cash and investment securities totaled approximately $2.8 billion, up from $2.4 billion a year ago. During the quarter, we returned $189 million of capital to shareholders through share repurchases and dividends, including the repurchase of approximately 520,000 shares at an average price of $291.60. This represented a record level of capital returned for a third quarter.

Through the first 9 months of the year, we returned over $1 billion to shareholders through share repurchases and dividends, exceeding the amount returned in any prior full year in the firm's history. We remain committed to returning capital to shareholders while maintaining a strong and durable balance sheet, allowing for financial flexibility to support continued investment in our business.

Lastly, our third quarter adjusted diluted share count was 43.5 million shares, down nearly 1.2 million shares year-over-year. We are pleased with our record performance through the first 9 months of this year. While we remain mindful of market uncertainty, we are optimistic about Evercore's medium- and long-term growth prospects. With that, we will now open the line for questions.

Operator

We will now conduct the question-and-answer portion of the conference. [Operator Instructions] Our first question today comes from Mike Brown with UBS.

Katy Haber

And Mike, just 1 second. First, just we apologize our understanding is that there was an issue with the connection to the webcast. We very much apologize for that. The replay as well as the transcript should be posted a live just right after this call. So again, once we very much apologize for the inconvenience. Michael, I'll turn it back to you.

질의응답

Michael Brown

Great. Just wanted to maybe start on the large-cap strategic M&A. That's been a key area of strength this year as you talked about in the prepared remarks. I guess intuitively, there's maybe a finite number of transactions that can play out in that space. So just curious how you think about, is it possible to continue to see growth from this cohort here? Because obviously, the U.S. regulatory backdrop remains quite favorable. So maybe can you talk about your confidence that activity can continue to accelerate from here. Maybe just touch on what your view is in terms of the inning that we're in, in terms of large cap M&A cycle.

John Weinberg

Thanks, Mike. Well, it's always difficult to call a cycle. Having said that, what we can tell you is what we're seeing in our business. And what we see is that we have record backlogs. Our replenishment rates are very healthy. And client engagement is really at a very high level. We're feeling very, very good about really our client engagement and our breadth of engagement with respect to across all of the different sectors. We expect activity to remain healthy into next year. The building blocks are in place for really the continued strength in the merger market. Those building blocks as we've talked about many times in the past are the CEO confidence level, access to capital, healthy equity markets and really strategic impetus -- so from our perspective, we see that strength will continue, and we feel good about the prospects going forward.

Operator

Our next question comes from Jim Mitchell with Seaport.

James Mitchell

So SMD head count is up 32% over the past 2 years. you've got more than 50 SMDs in ramp mode. So assuming the ramping SMDs can kind of match average productivity of the more seasoned bankers how should we think about the amount of revenue productivity that remains to be generated out of that group? Is it sort of 2/3 half? Just any kind of help on how much productivity you expect in S&D cohort?

John Weinberg

Yes. Sure, Jim. Happy to address this. So as you think about the (, you could get a sense probably from our press releases and so forth, about when they started. And then the way we normally think about it is it's difficult to do, given when people arrive during the course of the year, difficult to do much revenue at all in that first, what I would call, stub year. second year, which is that maybe their first full year, you could expect to see them at, let's call it, of 50% to 2/3. And then by the second full year, they should be fully ramped. And so if you look at our revenue per partner productivity statistics over the last 5 years, the average has been about $22 million. It's been particularly good so far in the last 4 quarters at about $27.3 million. And so -- and by the way, just as a side note, what I might say is that's especially encouraging to me, given the rates at which we've grown our SMD head count to be able to do so and retain those high and actually growing levels of productivity while we're doing it.

Operator

We'll go next to Brennan Hawken with BMO.

Brennan Hawken

Tim, the -- what's the right way we should be thinking about comp ratio for the year? I know you've spoken about last comp leverage than the preceding years. When we look at the year-to-date, you're at 63.5%, I believe, on an adjusted basis, does that align with your expectations? Or should we be more centered or focused on what you just printed here in 3Q as an indicator. I know sometimes it can switch.

Timothy LaLonde

Yes. Sure, Brennan. And thanks for the question. We I'd just like to remind our investors, in 2023, it was -- the comp ratio was 67.6%, then we brought it down to 65.7% in '24, 64.2% and '25. And then this year, as you correctly mentioned, year-to-date comp ratios on an adjusted basis, 65%. But what we booked for this quarter -- or pardon me, 63.5%. And about what we booked for this quarter is 63% and so we have made a pretty substantial progress.

From an accounting standpoint, if you look at our year-to-date, that would reflect an accrual. That's our best estimate of the full year, although what I would note is we continue to strive hard to reduce that, and I'm encouraged by the progress I've seen recently and hopeful that we can make additional progress.

Operator

We'll go next to Steven Chubak with wolfe research.

Steven Chubak

So I wanted to double click into the digital infra opportunity. The Broadcom been advisory mandate, certainly encouraging to see just given the market perception that the M&A independents are not as well positioned to participate in the digital infra capital markets fee pool, given the inability to expand balance sheet. And given the magnitude of financing activity as anticipated to support the build and expectations for issuance activity to remain elevated at least for the next 5-plus years.

I was hoping you could speak to how the debt advisory backlog is trending? And how would you frame the size of the revenue TAM for which you can compete?

John Weinberg

Well, from our perspective, really our capability in terms of driving infrastructure finance and really thinking about the advisory on debt financing and liability has really been somewhat of a new muscle for us, and we've built it out extensively over the last 2 or 3 years. And we're feeling really good about it. As you said, the Broadcom deal was something that really was a very strong deal. I think we're very happy with that result. We have driven Nexus data centers, a $15.6 billion financing of its inaugural data center. And it's to really pronounce their power. We see a number of these activities and these opportunities coming down the pike.

I wouldn't really give you projection as to where we're going to be on that other than to say the fact that we're able to do this, and we are starting to really build momentum, it's clear that really people are looking to Evercore and our brand and really the way we do a business that you can assume that there is a significant buildup of possibilities and activities and we're in the middle of looking at a lot of those. And so you should just assume that, that better is going to grow that we feel that we've really built that area well with very strong people and we think it's going to be a very high potential area for us going forward.

Operator

We'll go next to Devin Ryan with Citizens Bank .

Devin Ryan

The question on kind of the connection and financial sponsor investments and private capital coverage? And then also some of the commentary on the investments into the middle market coverage, which I know are active for sponsors. If you can unpack just a little bit more around kind of 2 things.

One, it sounds like you're seeing activity picking up with sponsors. So is that just a market comment? Or do you think that's an Evercore-specific comment from your initiatives? And then the bigger picture question is just around the middle market initiatives and how that can expand the opportunity for Evercore the connection to doing more with sponsors? And really just what the objective is in moving more into the middle markets?

John Weinberg

Thanks, Devin. Well, clearly, sponsors is picking up slowly in the general market. There is a trend upward, but it is slow. We feel like we're seeing above-market volume build because we spent a tremendous amount of effort and time really thinking about how do we cover sponsors, how do we leverage off of all the capabilities we have, how do we make sure that we are, in effect, driving our connectivity with relationships. And so I think probably we're ahead of that and going forward.

As we said, what's really happened is we cover sponsors better and we're really, in effect, able to satisfy more of their needs. Having said that, your question was also about the middle market and our build there. And really, that's been a pretty comprehensive effort over a number of years now for us. And just recently, we've added 2 very senior people in A&D who are very, very fast with respect to middle market area and covering. We've really added in the business services. We've added in logistics. And we continue to see people who are in these areas who want to come over because our platform is strong, and they're able to do a lot of things.

I mean, I think that 1 of the things I think we've really been able to build as a firm is we have such strong product capability that access to more clients is really going to drive more revenues. And we're seeing that. And so we see middle market being a very strong area of growth for us going forward. And I think that you're going to see more investment. As you've seen from us, what we do is we find areas which we think are good and solid growth areas, and we invest in those. And that's what we're going to do with middle market. So you're going to see that area grow.

Timothy LaLonde

Yes. The only thing I would add to that is just to reiterate a point that John made in his prepared remarks, which is that in the financial sponsor senior bankers across both our financial sponsor converses covering this, which I think is probably a lot more than what people might assume that we've seen our pitch activity has increased, and our win rate has strengthened. And so we are pleased with the progress we've seen in that area.

And then as John said, we certainly have made an intentional and concerted effort to broaden our reach in the middle market as well and feel like we're an area than we would have been just a few years ago.

John Weinberg

Yes. It's certainly an area of focus and investment for us.

Operator

[Operator Instructions] We'll go next to James Yaro with Goldman Sachs.

James Yaro

I wanted to touch on a little bit of a question -- a high-level question here. Could you just speak to the impact of whether currently more financing heavy capital markets activity is impacting independent adviser for market share temporarily? And more broadly, has the structural market share gain story among independent advisory firms changed more recently versus, let's say, the prior roughly 15 years or so?

John Weinberg

Well, let me answer that question a little bit more narrowly because I'm going to really answer it from Evercore's perspective and then maybe you can extend it beyond, which is -- from our perspective, we do see that there is more activity and much larger activity going forward and the financing is a big part. As you have seen, we've really built out our capabilities there. And the way we think about the extent of our business or the limits of our business is, it really, really has to do with the clients we're covering and the way we're able to really access the opportunities with those clients. we're seeing multiple opportunities going forward.

We've built a significant financing effort and expertise. And so what we're seeing is real opportunity. And so we actually are looking at the landscape right now and saying it's wide open for us. And I think that maybe it's because we do cover larger clients, we have been some of the other independents we certainly have a larger merger business than many. And so I think what we're looking at is really driving that and also using the financing capabilities that we've generated to really take advantage of the opportunity set.

So James, from our perspective, we are seeing multiple opportunities, and we feel like we're in a very good position. In terms of the broader landscape, couldn't really say. Certainly, we have competitors out there who are very capable. So I anticipate that a lot of them are going to see some of the benefit of this growth also.

Timothy LaLonde

Right. Just to put a little bit of detail on some of what John said, we do track what we consider to be a form of market share, which is just the advisory revenues of all the publicly traded investment banking firms that report advisory revenues. And based on that, I feel like Evercore has perhaps outperformed on that measure. And in fact, would rank right in the mix, if not above the market share gains you've seen by the bulge bracket firms.

Operator

Our next question comes from Alex Bond with KBW.

Alexander Bond

Just wanted to follow up on some of the commentary around the noncomp side. I think last quarter, Tim, you had spoken to your expectation that the year-over-year increase there on the non-comp expense side would be up modestly relative to last year. Is that still the case? And then maybe just a quick 1 on 3Q revenues. I think you had also mentioned that over the trailing 12 months, the non-M&A contribution was roughly 40% for -- in the advisory line. Was that the case in 3Q specifically? Or was that a little bit higher?

Timothy LaLonde

Yes. And so let me start with the non-comp question. And so just for all the listeners, just to remind people that the noncomp ratio for the quarter is 14.1%. For the year-to-date, it's 13.7%. And so of course, that's down substantially from last quarter, about 340 basis points. And for the year-to-date, it actually is lower than what we experienced last year as well. And I know I had talked about on previous calls trying to target a noncomp ratio that was in the vicinity of last year, just to remind people, is 14.2%. And it looks like we're striving to achieve that. Maybe something a little better. We'll see.

And I think what we feel good about we've made the necessary investments in our business, both on the technology side and then on the general infrastructure side, to support the growth we've been experiencing. And so as I mentioned on the call, our revenues over the last 3 years have doubled, while our noncomp ratio has declined from 16.6% in 2023 to the 14.1% you see this quarter and 13.7% year-to-date. So we're feeling better, I would say, about our positioning on the noncomp ratio side.

And then part of your other question on non-M&A revenues, we look at it because the results bounce around from quarter-to-quarter. So we look at it on a trailing 4-quarter basis. And on the trailing 4-quarter basis, we're still a little above 40%. Now what's particularly pleasing to me about that is that we're doing that in the context of an M&A market which has improved quite a bit. So you would have expected to see that come down quite significantly. But due to the success of our non-M&A businesses, they've been able to kind of keep pace so far during this part of the cycle.

Operator

We'll go next to Ryan Kenny with Morgan Stanley.

Ryan Kenny

Wanted to dig in a bit on the movement in interest rates that we've seen over the last quarter. Are you seeing any impact in client conversations particularly on the sponsor side from higher rates? And is this time more manageable than what we saw in 2022 to 2023 because that cycle was a much faster pace off of 0 and this 1 feels a little more manageable.

John Weinberg

What we're seeing is that dialogues and upper interest rates at this time. Clearly, if interest rates accelerate up or if there are more radical situations or volatility that may change. But right now, we're seeing it to be consistent. And it really remains that the really high-quality assets are very, very able to move and the ones that are kind of less high quality are not. And 1 of the things that will impact sponsors, as we all know, is that there's a maturity wall coming up at 2028 and 2029. And if rates are high, we can see that there will be more activity in areas like restructuring.

But at this time, what we are seeing is that things are actually pretty consistent and activity levels are really going as they were.

Operator

Our next question comes from Nathan Stein with Deutsche Bank.

Nathan Stein

So intra-quarter, there was some talk surrounding a potential merger of two of your competitors. So with that in mind, my question is, generally speaking, how are you all thinking about M&A right now as we're about a year post the [Rovi Orca] deal close?

John Weinberg

At this time, we do not see any opportunities for us. We clearly will always look at the landscape. But really, our custom and what we do is we hire people one by one. And so we are not looking for another deal to do. Honestly, we're seeing very focused on what we actually think we do well, which is really day-to-day business with clients. [Rob Warshaw] was a really outstanding opportunity for us. They were an extraordinary group of people who we have a great deal of respect for and had known a long time, and it was a really good fit for us. And that opportunity has gone very well.

But I think you should really -- if you're thinking about us, I think you should really assume that we're not going to be doing something.

Operator

Our next question comes from Gabriel Angelini with Bank of America.

Gabriel Angelini

On the topic that was just raised, I think there's been a fair amount of disruption across the industry recently, including the virtue that was mentioned. I'm not asking you to comment on that situation specifically -- but can you speak to how you've positioned Evercore to navigate uncertainty, whether that be taking advantage of strategic disruption at peers or navigating dislocation from a macro perspective?

John Weinberg

Well, actually, we're just going to stick with what we do, which is we have a strategy, the strategy is to cover more clients, expand our client base. It's to add products so that we can really service those clients better and to really be focused on what are the areas of growth throughout the economy and make sure that we are actually making -- participating in those areas of growth. And we're going to stick with that. And I think we feel like really no matter what the environment would be that's going to afford us real opportunities and allow us to grow appropriately and to create value for shareholders. So I think you're going to see us really stay very disciplined with what we think we do well.

Operator

[Operator Instructions] And we'll take a follow-up from Brennan Hawken with BMO.

Brennan Hawken

The revenues were rather substantially stronger than the public data suggested. Could you speak to either the level of non-M&A activity that you saw? Or whether or not there was a substantial notable level pull forwards that impacted this quarter? Just as we think about tactically how to frame fourth quarter and finishing up the year.

Timothy LaLonde

Yes, sure. Thanks for the question, Brennan. The -- with respect to the non-M&A activity, I think I would characterize it as follows: Restructuring remains strong. The equity capital markets business has had experienced a nice increase this year and a nice year-over-year increase for the quarter. talked at some length about our debt advisory business, which is also working quite well right now. And so I would say -- and of course, there's our equity sales and commission and our wealth management and PCA.

All of those businesses are performing well, and we're pleased with that. And so -- in a nutshell, I think the non-M&A businesses are just almost across the board performing at strong levels. With respect to the pull forward, -- the pull forward this quarter were actually lower than normal. And one, which was, of course, Warner Bros. discovery, closed on October 6. And so that would fall in our fourth quarter revenues, not third quarter.

Brennan Hawken

Great. Is it okay if I ask 1 more? Or do you want me to requeue?

Timothy LaLonde

Go ahead.

Brennan Hawken

Great. You guys also announced the leadership change, which I thought was really interesting. I don't recall any precedent around this. So [Nigel] is obviously someone who runs a really important business. Would love -- and so great to see that. Could you maybe help us contextualize what the right way we should think about this new role for Evercore? And what this means in your progression as an organization.

John Weinberg

Sure, absolutely. So really, as we look out at the landscape and really our growth in that landscape, we see that there's so much more scale, complexity global reach that is really required for us to do what our aspiration is for our firm. And as a result, 1 of the things that really we concluded is that a leadership structure, which allowed us to give additional management capacity and leadership to the opportunities at hand would actually be good for us. frankly, from my perspective, having real support in terms of looking globally at all the things that we can accomplish is going to help immensely.

Our leadership has always and will always be very much grounded in the client business. So you can assume that Nigel and Navin will both spend significant amounts of their time out with clients and driving the businesses. Nigel is going to continue to be Chairman of PCA, and Naveen is going to be very closely involved with investment banking continue to be 1 of our leading deal people in investment banking -- and I obviously will continue what I do, which is to get involved with clients and really try to get involved with our people, with those clients.

And so you're going to see a lot of that Frankly, it was the right time for us to add some senior leadership because we really felt like we could do with the capacity. And it allows us to give even more focus to collaboration and bringing our businesses together -- so from our perspective, this was the right time, and I think we got the right people to be addressing the issues of really helping us expand our business.

Brennan Hawken

That's great. Congratulations to them both. Appreciate the color.

Operator

Thank you. We'll go next to Jim Mitchell with Seaport.

James Mitchell

Sorry to prolong this, but just maybe a quick question on seasonality. Typically, you do have quite a bit in the fourth quarter from PCA PFG M&A and other drivers. So you did have a very strong third quarter. Should we sort of temper that sort of seasonal expectation? Or how should we think about the typical seasonal move?

Timothy LaLonde

Yes. What I would do is refer back to John's commentary and some of what I would call our joint consistent commentary for the last several quarters, which is -- the backlogs are strong. And in fact, this quarter, we noted that they are record backlogs. Activity levels are very healthy. And we believe that all of that will give us momentum into next year. But I want to stay away from predicting timing of when that backlog will be realized. .

James Mitchell

Perfectly fair.

Operator

And we'll go next to James Yaro with Goldman Sachs.

James Yaro

I was hoping that you might be able to update us on your equity capital markets outlook. In light of your comments around strong ECM earlier in the quarter, I think that was in your prepared remarks. -- within that answer, could you also perhaps comment on the ECM backdrop within health care specifically?

John Weinberg

So Health care in the earlier part of the quarter was very strong for us, and we continue to look upon that as being an area of strength in our equity capital markets business. We think there's been a slowdown in some of the IPO activity going into the fourth quarter, but we really wouldn't predict that. We would say though that we continue to spend a lot of time and have a very strong focus on really all the sectors that we cover in equity capital markets.

We feel like that's a real area of growth for us. We actually feel like we are really very well positioned to add and create value for clients. And so we're going to continue to attack those areas. I think you can assume that we'll -- we will participate helpfully, affect the word. In that area as it goes forward, we think the market may begin to pick up again, given some of the very recent success -- but we -- but I think that for us, it's going to be a little bit of a wait and see to see how that goes forward.

Operator

This does conclude today's question-and-answer session as well as the Evercore Third Quarter 2026 Earnings Conference Call. You may now disconnect.