Lazard (LAZ) Q3 2026 earnings summary

Executive summary

• Q3 adjusted net revenue rose 11% YoY to $805M; adjusted operating income fell 14% to $87M and adjusted diluted EPS declined 36% to $0.36.

• 9M adjusted net revenue increased 6% to $2.264B, while adjusted net income fell 44% to $100M and adjusted diluted EPS declined 45% to $0.90.

• Record Q3 Financial Advisory revenue, strong client activity and record year-to-date Asset Management gross inflows supported the growth outlook.

• The 2030 strategy targets doubling revenue and average annual total shareholder returns of 10%–15%.

Financial highlights

• Q3 GAAP net revenue was $814.2M versus $748.1M YoY; GAAP operating income was $54.8M versus $94.9M, and net income attributable to Lazard was $29.2M versus $71.2M.

• Q3 adjusted net income was $40M versus $62M; adjusted operating income was $87M versus $100M YoY.

• 9M GAAP net revenue was $2.378B versus $2.192B; GAAP operating income was $181.9M versus $242.6M, and net income attributable to Lazard was $134.9M versus $187.0M.

• A $75.5M non-cash Edgewater sale gain contributed to 9M GAAP results and was excluded from adjusted results.

Outlook and guidance

• Lazard CL was expected to close and launch in early November 2026, subject to customary closing conditions; combined 2027E revenue is ~$500M, with expected earnings accretion before potential synergies.

• Weighted 2027 advisory pipeline at Oct. 22 was slightly more than 2x the weighted 2026 pipeline at the same date in 2025; both are probability-weighted revenue measures.

• Second-half advisory revenue was expected to exceed first-half revenue, with a stronger H2/H1 ratio than in 2025.

• Full-year adjusted effective tax rate was expected in the high-20% range, with positive Asset Management net flows expected for 2026.

• The 2030 strategy targets adjusted compensation and non-compensation ratios of 60% or below and 16%–20%; timing depends on market conditions. Simplification and workflow initiatives are expected to reduce expenses from 2027.