Evercore posted its sixth straight quarter of record revenue, with adjusted net revenue up 12% to $1.18 billion. JLL's leasing revenue rose 27% and its adjusted earnings beat by about 11%.
Two businesses that depend on companies making big decisions, whether to merge or where to work, reported strong quarters on Wednesday.
Evercore: six records in a row
Evercore reported adjusted net revenue of $1.18 billion, up 12% from a year earlier and its sixth consecutive quarterly record. GAAP net revenue was $1.17 billion. Adjusted operating income was $269.7 million and GAAP operating income $242.6 million. The independent investment bank kept its quarterly dividend at 89 cents.
The shares rose about 12% to $291.23.
For an advisory firm, record revenue means deals are being completed. Wednesday's market provided its own evidence of an active M&A environment, with a take-private proposal for Wendy's, a competing bid for LCI Industries and GE Vernova's $9 billion agreement for Trench Group all disclosed the same morning.
JLL: the leasing rebound
JLL reported revenue of $7.3 billion, up 12%. Adjusted earnings rose 50% to $6.76 a share, above the $6.11 analysts expected, and adjusted EBITDA rose 33% to $460.2 million. Leasing advisory revenue rose 27% in local currency. The commercial real estate services firm also announced a new $500 million accelerated share repurchase.
The shares rose about 12.4% to $337.07.
Leasing growth of 27% suggests companies are signing space again, which supports both JLL's brokerage fees and the broader case that commercial property demand is improving.
Cycle turning, or cycle peaking?
The optimistic view: deal advice and leasing are both early-cycle signals, and records at Evercore and a strong leasing rebound at JLL point to a recovery in corporate activity that still has room to run.
The cautious view: both stocks rose about 12% in a day, both businesses are sensitive to interest rates and confidence, and the Fed's decision on Wednesday afternoon, with 10-year yields above 5%, could test how durable that recovery is.
What to watch
Evercore's comments on its pipeline for the fourth quarter, JLL's capital markets revenue as a read on property transactions, comments from Lazard and CBRE, which reported on Oct. 22, and whether M&A announcements continue at the current pace.