Financial Data and Key Metrics Changes - The company reported revenues of $717 million for Q3 2026, representing a 13% increase compared to the same period last year [4] - Adjusted earnings per share were $1.94, up 18% year-over-year [4] - The adjusted effective tax rate for the quarter was 30.6%, down from 33.3% in the same quarter last year [13] Business Line Data and Key Metrics Changes - Corporate Finance generated $474 million in revenue, a 12% increase year-over-year, with 177 transactions closed, up from 170 in the same period last year [5][10] - Financial Restructuring produced $156 million in revenue, a 19% increase compared to the same period last year, with 41 transactions closed, consistent with the previous year [5][10] - Financial and Valuation Advisory revenues were $87 million, a 6% increase year-over-year, with 1,103 fee events, up 10% from 1,005 in the same period last year [11] Market Data and Key Metrics Changes - The company noted an acceleration in private equity activity, with more portfolio companies exploring liquidity options due to improving investor sentiment and expectations of declining interest rates [4] - The European business is experiencing significant growth, bolstered by recent acquisitions, which are expected to enhance the company's footprint in the region [8][30] Company Strategy and Development Direction - The company aims to expand its workforce and capabilities in key markets, particularly in Europe, where it sees potential for growth comparable to its U.S. corporate finance business [8] - Recent acquisitions, including a controlling interest in Audere Partners, are part of the strategy to strengthen the company's position in France and enhance its Capital Solutions capabilities [8][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong visibility into deal activity and backlog, particularly in Corporate Finance [5] - The restructuring business may face revenue pressures as the market improves, but geopolitical events could create new opportunities for restructuring activity [6][18] Other Important Information - The company ended the quarter with approximately $1.2 billion in cash and investments [13] - Share repurchases totaled approximately 418,000 shares during the quarter, with ongoing evaluations of balance sheet flexibility for future acquisitions [14] Q&A Session Summary Question: Outlook for restructuring activity - Management acknowledged that while the market is improving for M&A, there are still pockets of opportunities for restructuring, but visibility into consistent new opportunities is unclear [18][19] Question: Corporate finance revenue expectations - Management confirmed that Corporate Finance is seeing strong growth, with good visibility into continued activity levels, particularly in private equity [21][22] Question: U.S. vs. non-U.S. growth outlook - Management highlighted that while the U.S. remains the largest market, the European business is growing well, and recent acquisitions will enhance growth potential in that region [28][30] Question: Sponsor engagement and activity levels - Management noted a steady improvement in sponsor engagement, with activity levels increasing across various sectors, despite some external geopolitical factors [41][43] Question: Capital management and acquisition pipeline - Management indicated a strong acquisition pipeline and a preference for using excess cash for strategic acquisitions, while also considering share repurchases [56][59]

For more, let's bring in Julian Emanuel. He's Evercore ISI's senior managing director. You sure have a rosecolored glasses on today for a market that's selling off pretty sharply.Why do you think all of this is just a negotiation tactic. uh to us and it makes sense again is that China had to build its sort of internal let's say fortitude knowing that there's a likelihood of this meeting um that that is due to take place at the end of the month uh in Asia and of course you know the President Trump President ...

Financial Sector Overview - Financials have gained over 7% in the past three months, driven by the Fed's rate cut and expectations of more cuts to come [1][2] - The current environment is favorable for banks, with a healthy spread between short-term deposits and lending at 6%, indicating a positive outlook for the yield curve [3] Bank Performance and Strategy - Different banks have varying exposures, with larger banks like Bank of America focusing on consumer exposure and regional banks like First Citizens excelling in shareholder value creation [4][6] - First Citizens has bought back 11% of its shares over the past year and has a $4 billion buyback plan in place, indicating strong capital management [7] Capital Markets and M&A Activity - The capital markets environment is healthy, with firms like Goldman Sachs showing strong performance and a positive outlook for M&A activity [7] - The regulatory environment is easing, encouraging strategic sponsors to pursue deals, which bodes well for investment banking and capital markets [7] Consumer Credit and Economic Indicators - Current trends in consumer credit appear healthy, with positive data from American Express and Capital One, alongside strong retail sales figures [8][9] - While there are some pockets of stress, the overall consumer outlook remains optimistic, particularly among larger banks [9]