Lazard (LAZ) Q1 2026 earnings summary

Executive summary

• Focused on growth through a balanced business model in financial advisory, asset management, and private capital advisory, with a global presence and deep client relationships.

• Announced acquisition of Campbell Lutyens to create a leading global private capital advisory business, expected to close in the second half of 2026, with $500 million anticipated 2027 revenue.

• Strategic goals include doubling revenue by 2030 and achieving 10–15% average annual total shareholder return.

• Net revenue for Q1 2026 was $757 million (up 17% year-over-year); adjusted net revenue was $673 million (up 5%).

• U.S. GAAP net income was $101 million ($0.91 per diluted share), up 67% year-over-year; adjusted net income was $47 million ($0.42 per diluted share), down 23%.

Financial highlights

• Adjusted net revenue for 2025 was $3,030M, up 5% year-over-year; Q1 2026 adjusted net revenue was $673M.

• Adjusted operating income for 2025 was $432M, with an adjusted operating margin of 14%.

• Asset management AUM reached $259B in Q1 2026, with $9B+ net inflows and 67% in non-USD securities.

• Asset Management adjusted net revenue rose 17% year-over-year to $309M in Q1 2026; Financial Advisory adjusted net revenue fell 4% to $356M.

• Adjusted compensation ratio increased to 69.9% in Q1 2026 from 65.5% year-over-year; adjusted non-compensation ratio improved to 22.1% from 23.0%.

Outlook and guidance

• Targeting revenue to double by 2030, with continued expansion in key geographies and sectors.

• Aiming for 10–15% average annual total shareholder return through 2030.

• Long-term targets include reducing adjusted compensation ratio to 60% or below and non-compensation ratio to 16–20%, timing dependent on market conditions.

• Optimistic outlook for M&A activity, supported by 28 new Managing Directors added to Financial Advisory.

• Campbell Lutyens acquisition expected to close in H2 2026, subject to regulatory approvals.