Lazard (LAZ) Q2 2026 earnings summary

Executive summary

• Adjusted net revenue for Q2 2026 was $786 million and $1.5 billion for the first half, with Financial Advisory and Asset Management both showing strong year-over-year performance.

• Asset Management delivered record AUM of $285 billion and the best first-half net inflows in nearly 20 years.

• Financial Advisory achieved its best league table position since 2014 and advised on major transactions, including the largest energy deal in history.

• Strategic transformation under the Lazard 2030 plan is progressing, with significant investments in talent, technology, and AI adoption to drive long-term growth.

• Acquisition of Campbell Lutyens will establish a leading global private capital advisory business, expected to close in H2 2026 and be accretive to earnings in 2027 and beyond.

Financial highlights

• Adjusted net revenue for 2025 was $3,030 million, up 5% year-over-year; Q2 2026 adjusted net revenue was $786 million.

• Asset Management adjusted net revenue was $351 million for Q2 2026 and $761 million for the first half, with management fees up 23% year-over-year and AUM at $285 billion, up 15% from June 2025.

• Financial Advisory adjusted net revenue was $445 million for Q2 and $801 million for the first half, driven by M&A completions and strong restructuring results.

• Q2 2026 adjusted compensation ratio was 69.9% and adjusted non-compensation ratio was 21.8%.

• Q2 2026 adjusted operating margin was 8.3% (down from 14.1% year-over-year).

Outlook and guidance

• Revenue is targeted to double by 2030, with continued expansion in key geographies and sectors.

• Second-half revenue is expected to be stronger than the first half, supported by pipeline momentum and ramping productivity from new Managing Directors.

• Compensation ratio is expected to decline over time as productivity rises and efficiency initiatives take effect, with a significant downward trend anticipated in 2027 and 2028.

• Campbell Lutyens acquisition expected to close in H2 2026, forming a global leader in private capital advisory.

• Focus remains on operational efficiency and achieving an adjusted compensation ratio of 60% or below and adjusted non-compensation ratio of 16–20%, timing dependent on market conditions.