The tax-driven EPS miss will likely pressure the stock near-term, but the strong AUM inflows and record pipeline in advisory suggest the operational narrative remains intact. Watch the next quarter for tax rate normalization and advisory revenue reacceleration; the $200M buyback authorization provides a floor.
Price Chart
Executive Summary
Lazard reported Q2 2026 adjusted EPS of $0.12, a 71% miss vs consensus of $0.42, driven by an anomalously high effective tax rate (69.7% adjusted). While GAAP net revenue edged up 1% YoY to $808M, Financial Advisory revenue fell 9% YoY, partially offset by Asset Management revenue growth of 23% on record AUM of $285B. The board authorized an additional $200M in share repurchases, and the quarterly dividend held at $0.50. The earnings miss is largely tax-related, not operational, but the magnitude weighs on sentiment.
Key Financial Metrics
Key Facts
- Adjusted EPS $0.12 vs consensus $0.42 (-71.4% miss)
- GAAP net income $4.8M vs $55.3M in Q2 2025 (-91%)
- Adjusted net revenue $786M vs $770M (+2% YoY)
- Financial Advisory adjusted net revenue $445M vs $491M (-9% YoY)
- Asset Management adjusted net revenue $331M vs $268M (+23% YoY), record AUM $285B
- Adjusted compensation ratio rose to 69.9% from 65.5% YoY
- Board authorized $200M additional share repurchases (total ~$257M remaining)
- Quarterly dividend maintained at $0.50 per share
Financial Impact
Adjusted EPS miss of $0.30 vs consensus translates to a ~$0.30 per share shortfall, but management attributes it to an anomalous 69.7% adjusted tax rate; underlying operational trends are mixed (strong AUM growth vs advisory decline).
Risk Factors
- Sustained high effective tax rate beyond Q2
- Further deceleration in Financial Advisory revenue if M&A slows
- Compensation ratio remains elevated above 2030 target of 60%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-049278 |
| Document: laz-20260723.htm | 0001628280-26-049278 |
| Document: 0001628280-26-049278-index-headers.html | 0001628280-26-049278 |
| Document: 0001628280-26-049278-index.html | 0001628280-26-049278 |
| Document: 0001628280-26-049278.txt | 0001628280-26-049278 |
| 8-K Data (Synthetic) | 0001628280-26-049278 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 23, 2026 10w ago | 8-K | $43.05 $42.77 | ▲ +0.65% | ▲ +3.96% | $36.10 (+16.14%) |
Jul 7, 2026 12w ago | 8-K | $41.74 $43.19 | ▲ +3.47% | ▲ +2.14% | $36.10 (−13.51%) |
Apr 7, 2026 25w ago | DEFA14A | $44.33 $45.10 | ▲ +1.73% | ▼ −6.82% | $36.10 (−18.57%) |
US Market Status
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