Lazard Reports Q3 2026 Earnings: Revenue and Profit Growth

CoinDesk reports:

New York, October 22 /PRNewswire/ -- Lazard, Inc. (NYSE: LAZ) today announced net revenue of $814 million and adjusted net revenue of $805 million for the quarter ended September 30, 2026, under U.S. GAAP.

For the first nine months of 2026, Lazard's net revenue under U.S. GAAP was $2.378 billion, and its adjusted net revenue was $2.264 billion.

Under U.S. GAAP, Lazard's net income for the third quarter was $29 million, with diluted earnings per share of $0.26. For the first nine months of 2026, net income under U.S. GAAP was $135 million, with diluted earnings per share of $1.20. On an adjusted basis, Lazard's net income for the third quarter was $40 million, with diluted earnings per share of $0.36; adjusted net income for the first nine months of 2026 was $100 million, with diluted earnings per share of $0.90.

“The Lazard 2030 strategy is progressing as planned, and the company is experiencing strong momentum across the board,” said Peter R. Orszag, Chief Executive Officer and Chairman. “Our financial advisory business delivered record third-quarter revenue, with client activity and forward-looking indicators remaining robust as our investments in the business continue to yield results. In asset management, record total net inflows year-to-date reflect improved investment performance and targeted distribution efforts. With the launch of our new private capital advisory business, Lazard CL, in early November, we are building a more productive, diversified, and long-term profit-focused company.”

Chief Financial Officer Tracy Farr said: "The third-quarter results demonstrate that our efforts to transform the business are yielding increasingly visible results, with adjusted net revenue growing 11% year-over-year across the company. We continue to advance initiatives to simplify and modernize our operating model and are embedding AI company-wide with the goal of improving customer outcomes, enabling colleagues to work more efficiently, and enhancing margins over time."

Note: A reconciliation of U.S. GAAP to adjusted results can be found on pages 13 to 15. Footnotes are on page 5 of this press release.

Net revenue

Financial consulting

In the third quarter of 2026, financial advisory revenue under U.S. GAAP and on an adjusted basis was $470 million and $465 million, respectively, representing a 10% increase compared to the third quarter of 2025. This quarter’s revenue included a portion of revenue recognized in advance, with the related transactions closing shortly after September 30, consistent with Lazard’s average over the past two years.

For the first nine months of 2026, net revenue from financial advisory services was $1.279 billion and $1.266 billion under U.S. GAAP and adjusted bases, respectively, both down 1% compared to the same period in 2025.

Lazard is one of the world’s leading independent financial advisors, providing trusted services to clients in significant and complex mergers and acquisitions. During and after the third quarter of 2026, the firm advised on several high-profile transactions, including the merger between Emera and Canadian Utilities, which created an enterprise value of approximately CAD 72 billion, and the $50 billion divestiture of Vylor by Corteva Agriscience.

In addition, the company provided advisory services for the following transactions (client names italicized):

Vega plans to acquire the 16.2% stake in Vodafone Group held by e&, with the transaction valuing Vodafone's entire equity at over €30 billion.
OCS Group plans to acquire Mitie Group for £3.1 billion.
MasTec acquires The Superior Group for $1.7 billion
Vanguard acquires Altruist
Walmart acquires Vibe.co
Humata Health is being sold to R1
Rimac Group has sold Porsche's stake in Bugatti Rimac and Rimac Group to a consortium led by HOF Capital.

Lazard provides clients with customized advice, expertise, and access to a broad network of capital providers through its private capital advisory and capital solutions business. The private capital advisory business includes advising on follow-on funds for Blue Sea Capital, Exponent Private Equity, and M-One Capital, as well as advising on the closing of fundraising for Kingswood Capital Management’s Fund IV and Small Cap Fund I, LLCP Lower Middle Market Fund IV, Princeton Equity Group’s Fund III, and TruArc Fund V. In addition, Lazard provided advisory services on the financing of Ashurst Perkins Coie and CVE.

Lazard’s restructuring and liability management business has also undertaken a wide range of mandates, including acting as advisor to debtors in projects such as Braskem Idesa, Braskem SA, Republic National Distributing Company, Searles Valley Minerals, and Victoria, and as advisor to creditors in projects such as Brightline, Cubic, Dish, Foundever, GoldenPeaks Capital, and QVC. In addition, the company’s leading sovereign advisory practice remains active in providing advisory services to governments and public sector entities worldwide.

To view the complete list of publicly announced transactions, visit the company’s website or follow Lazard on LinkedIn.

Asset Management

In the third quarter of 2026, net revenue from asset management business was $357 million under U.S. GAAP and $330 million on an adjusted basis, representing increases of 9% and 12%, respectively, compared to the third quarter of 2025.

The adjusted management fee is $3.21 billion, representing an 18% increase from the third quarter of 2025 and a 4% increase from the second quarter of 2026.

The adjusted incentive fee for the third quarter was $1 million, compared to $9 million for the third quarter of 2025.

Adjusted other income for the third quarter was $8 million, compared to $14 million in the third quarter of 2025.

The average assets under management (AUM) for the third quarter were $287 billion, representing an 11% increase compared to the third quarter of 2025 and a 3% increase compared to the second quarter of 2026.

For the first nine months of 2026, net revenue from asset management services was $1.118 billion and $970 million under U.S. GAAP and adjusted bases, respectively, representing increases of 23% and 17% compared to the same period in 2025. Under U.S. GAAP, net revenue for the first nine months included a non-cash gain from the sale and cancellation of the Edgewater management tool.

Adjusted management fees for the first nine months amounted to $927 million, a 22% increase compared to the same period in 2025.

The adjusted incentive fees for the first nine months were $18 million, compared to $21 million for the same period in 2025.

Adjusted other income for the first nine months was $25 million, compared to $44 million for the same period in 2025.

The average AUM for the first nine months of 2026 was $277 billion, a 14% increase compared to the same period in 2025, with net inflows of $5.1 billion. As of September 30, 2026, AUM stood at $284 billion, a 7% increase compared to September 30, 2025, and roughly flat compared to June 30, 2026. The change from June 30 was primarily driven by $1.9 billion in market appreciation, $2.3 billion in net outflows, and $200 million in foreign exchange depreciation.

Operating expenses

Compensation and benefits expenses

In the third quarter of 2026, compensation and benefits expenses were $569 million and $562 million under U.S. GAAP and adjusted bases, respectively, compared to $498 million and $475 million in the third quarter of 2025. The adjusted compensation ratio for the third quarter of 2026 was 69.9%, compared to 65.5% in the third quarter of 2025.

For the first nine months of 2026, compensation and benefits expenses were $1.623 billion and $1.583 billion under U.S. GAAP and adjusted bases, respectively, compared to $1.448 billion and $1.400 billion for the first nine months of 2025. The adjusted compensation ratio for the first nine months of 2026 was 69.9%, compared to 65.5% for the first nine months of 2025.

The company stated that it focuses on the adjusted compensation ratio to manage costs and strike a balance between the current talent market environment and the goal of driving long-term shareholder value. As part of its Lazard 2030 vision and long-term growth strategy, the company aims to reduce the adjusted compensation ratio to 60% or below, with the timing dependent on market conditions.

Non-salary expenses

In the third quarter of 2026, non-compensation expenses under U.S. GAAP were $190 million, a 9% increase compared to the third quarter of 2025. On an adjusted basis, non-compensation expenses were $156 million, a 5% increase compared to the third quarter of 2025.

The adjusted non-compensation ratio for the third quarter was 19.3%, compared to 20.5% in the third quarter of 2025.

For the first nine months of 2026, non-compensation expenses under U.S. GAAP amounted to $573 million, a 10% increase compared to the first nine months of 2025. On an adjusted basis, non-compensation expenses were $476 million, a 5% increase compared to the first nine months of 2025.

The adjusted non-compensation ratio for the first nine months of 2026 was 21.0%, compared to 21.2% for the first nine months of 2025.

As part of its Lazard 2030 vision and long-term growth strategy, the company aims to maintain its adjusted non-compensation ratio between 16% and 20%, depending on market conditions.

Taxes

In the third quarter of 2026, the income tax provision was $25 million under both U.S. GAAP and adjusted bases, corresponding to effective tax rates of 45.8% and 38.1%, respectively.

For the first nine months of 2026, the income tax provisions under U.S. GAAP and adjusted口径 were $38 million and $39 million, respectively, corresponding to effective tax rates of 20.9% and 28.0%.

Capital Management and Balance Sheet

In the third quarter of 2026, Lazard returned $88 million to shareholders, consisting of: $49 million in dividends; $33 million in common stock repurchases; and $6 million to satisfy employee tax obligations arising from equity award vestings, in lieu of stock issuance.

In the first nine months of 2026, Lazard returned $366 million to shareholders, including: $145 million in dividends; $85 million in common stock repurchases; and $136 million to satisfy employee tax obligations upon equity award vesting, in lieu of stock issuance.

For the first nine months of 2026, the company repurchased 1.9 million shares at an average price of $43.68. As of September 30, 2026, the remaining authorized amount for share repurchases was approximately $224 million.

On October 21, 2026, Lazard announced a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend will be paid on November 13, 2026, with a record date of November 2, 2026.

Lazard's financial position remains strong. As of September 30, 2026, the company had $1.264 billion in cash and cash equivalents.

Telephone conference

Lazard will hold a conference call on October 22, 2026, at 8:00 AM Eastern Time to discuss the company’s third-quarter 2026 financial results. Investors can listen to a live audio webcast via the Investor Relations section of Lazard’s website at www.lazard.com, or dial +1 800-445-7795 (toll-free in the U.S. and Canada) or +1 785-424-1699 (outside the U.S. and Canada) 15 minutes prior to the start of the call. Conference ID: LAZQ326.

A replay of the conference call will be available on or around October 22, 2026, at 10:00 AM Eastern Time on Lazard’s Investor Relations website at www.lazard.com, or by calling +1 800-753-9197 (toll-free in the U.S. and Canada) or +1 402-220-0689 (outside the U.S. and Canada).

About Lazard

Founded in 1848, Lazard is a leading financial advisory and asset management firm with operations across North and South America, Europe, the Middle East, Asia, and Australia. Lazard advises on mergers and acquisitions, capital markets and capital solutions, restructuring and debt management, geopolitics, and other strategic matters, while also providing asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high-net-worth individuals. Lazard is listed on the New York Stock Exchange under Lazard, Inc., ticker symbol LAZ. For more information, visit Lazard.com and Lazard’s LinkedIn page.

Media Contact:
Shannon Houston
+1 212-632-6880
[email protected]

Investor Contact:
William Murdock
+1 212-632-1564
[email protected]

Cautionary note regarding forward-looking statements:

This press release contains "forward-looking statements" as defined under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "may," "might," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "target," "goal," "pipeline," "continue," and similar expressions in the negative or otherwise. These forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions about the company, which may include projections of future financial performance based on growth strategies, business plans and initiatives, and anticipated business trends. These forward-looking statements are based solely on the company’s current expectations and predictions regarding future events. Important factors may cause actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements.

These factors include, but are not limited to, those discussed in Item 1A, “Risk Factors,” of the company’s Annual Report on Form 10-K, as well as those discussed from time to time in the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including the following:

Adverse overall economic conditions or unfavorable conditions in global or regional financial markets;
Changes in international trade policies and practices, including the implementation of tariffs, proposed additional tariffs, responses from other jurisdictions, the risk of potential government shutdowns, and the resulting economic impacts, volatility, and uncertainty;
Company revenues have declined, such as due to an overall decrease in merger and acquisition activity, a reduction in the company’s market share in the M&A market, or a decline in assets under management (AUM);
Losses caused by third parties encountering financial or other issues;
Losses due to unrecognized or unforeseen risks;
The company's operations lack liquidity, meaning there is insufficient readily available funding for business operations;
Business competitive pressures and the company’s ability to retain and attract employees at current compensation levels; and
Changes in relevant tax laws, regulations, or treaties, or adverse interpretations of these matters.

These risks and uncertainties are not exhaustive. The company’s SEC filings also describe other factors that could adversely affect its business and financial performance. In addition, the company operates in a highly competitive and rapidly changing environment. New risks and uncertainties may arise from time to time, and management cannot predict all risks and uncertainties or assess the extent to which any factor, or combination of factors, may cause actual results to differ materially from any forward-looking statements.

Therefore, forward-looking statements in this press release are not guaranteed to be accurate or correct. Although the company believes the content reflected in these forward-looking statements is reasonable, it cannot guarantee future results, activity levels, performance, achievements, or events. Furthermore, neither the company nor any other party assumes responsibility for the accuracy or completeness of any forward-looking statements. Readers should not regard forward-looking statements as predictions of future events. The company has no obligation, and does not intend, to update any forward-looking statements after the date of this press release to reflect actual results or revised expectations.

Lazard, Inc. is committed to providing timely and accurate information to the investing public in compliance with legal and regulatory obligations. To this end, Lazard and its operating companies disseminate information about their business through their website and other social media platforms, including anticipated releases of quarterly financial results, quarterly financial, statistical, and business-related information, and updates on the assets under management for various mutual funds, hedge funds, and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can access Lazard and its operating companies’ websites via www.lazard.com.

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Note: In the first quarter of 2026, the company changed its accounting policy for compensation expenses related to equity incentive awards with service conditions only and certain deferred compensation arrangements. As a result, the cumulative effect of this change on prior periods has been reflected in the company’s condensed consolidated statement of financial position as of December 31, 2025.

This presentation includes non-GAAP metrics. Our non-GAAP metrics should not be viewed in isolation or as a substitute for the corresponding U.S. GAAP metrics, and should be read in conjunction with the consolidated financial statements prepared in accordance with U.S. GAAP. For detailed explanations of adjustments made to the corresponding U.S. GAAP metrics, see “Reconciliation of U.S. GAAP to Adjusted Results” and “Notes to Financial Statements.”

Note: Average AUM typically represents the average of the month-end AUM balances during the period. In 2026, the AUM asset categories were expanded to include multi-asset classifications. Comparative prior-period information has been restated to reflect the current presentation.

This presentation includes non-GAAP metrics. Our non-GAAP metrics should not be viewed in isolation or as a substitute for the corresponding U.S. GAAP metrics, and should be read in conjunction with the consolidated financial statements prepared in accordance with U.S. GAAP. For detailed explanations of adjustments made to the corresponding U.S. GAAP metrics, please refer to the notes to the financial statements.

Notes to financial statements source: Lazard