The Q3 results show a clear sequential improvement from Q2's trough, but the persistent 69.9% compensation ratio and Q3 net outflows of $2.3B in Asset Management are headwinds. Watch the Q4 earnings call for any update on the 60% comp ratio timeline and whether Financial Advisory's record Q3 revenue sustains into Q4.
Price Chart
Executive Summary
Lazard reported Q3 2026 adjusted EPS of $0.36, a 36% YoY decline and a 16% miss vs the $0.43 consensus, while adjusted net revenue rose 11% YoY to $805M. Financial Advisory revenue hit a record third quarter (+10% YoY), and Asset Management management fees grew 18% YoY, but GAAP net income fell 59% YoY to $29M, and the adjusted compensation ratio remained elevated at 69.9% vs the 60% 2030 target. The sequential improvement from Q2's $0.12 adjusted EPS is notable, but the persistent margin pressure and earnings miss cap the bullish read-through.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted net revenue of $805M, up 11% YoY and 2% sequentially
- Adjusted diluted EPS of $0.36, down 36% YoY and missing consensus of $0.43 by ~16%
- Financial Advisory adjusted net revenue of $465M, a record third quarter, up 10% YoY
- Asset Management management fees on an adjusted basis were $321M, up 18% YoY and 4% sequentially
- Adjusted compensation ratio remained at 69.9%, well above the 60% 2030 target
- Adjusted operating margin of 10.8%, down from 14.0% in Q3 2025 but up from 8.3% in Q2 2026
- AUM of $284B, up 7% YoY but flat sequentially, with net outflows of $2.3B in Q3
- Returned $88M to shareholders in Q3 via dividends and buybacks; remaining buyback authorization of ~$224M
- Cash and cash equivalents of $1,264M as of September 30, 2026
Financial Impact
Adjusted net revenue up 11% YoY to $805M; adjusted EPS of $0.36 missed consensus by ~16%
Risk Factors
- Adjusted compensation ratio stuck at 69.9%, far above the 60% 2030 target, limiting margin expansion
- Asset Management saw net outflows of $2.3B in Q3, reversing the strong first-half inflows
- GAAP net income fell 59% YoY, and adjusted net income fell 35% YoY, showing underlying earnings pressure
- Elevated adjusted effective tax rate of 38.1% in Q3 vs 21.4% in Q3 2025
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-066781 |
| Document: laz-20261022.htm | 0001628280-26-066781 |
| Document: 0001628280-26-066781-index-headers.html | 0001628280-26-066781 |
| Document: 0001628280-26-066781-index.html | 0001628280-26-066781 |
| Document: 0001628280-26-066781.txt | 0001628280-26-066781 |
| 8-K Data (Synthetic) | 0001628280-26-066781 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $37.30 $37.21 | ▼ −0.24% | ▲ +0.28% | $37.70 (+1.07%) |
Oct 22, 2026 4d ago | Press Release | $37.30 $37.21 | ▲ +0.24% | ▼ −0.28% | $37.70 (−1.07%) |
Oct 21, 2026 5d ago | Press Release | $37.30 $37.21 | ▼ −0.24% | ▲ +0.28% | $37.70 (+1.07%) |
Oct 13, 2026 13d ago | 8-K | $34.66 $36.16 | ▲ +4.33% | ▲ +4.04% | $37.70 (+8.77%) |
Sep 22, 2026 4w ago | Institutional Cluster | $36.60 $36.82 | ▲ +0.60% | ▲ +1.32% | $37.70 (+3.01%) |
Jul 23, 2026 13w ago | 8-K | $43.05 $44.35 | ▼ −3.02% | ▼ −2.92% | $37.70 (+12.43%) |
Jul 7, 2026 15w ago | 8-K | $41.74 $40.79 | ▼ −2.28% | ▼ −1.97% | $37.70 (−9.68%) |
Apr 7, 2026 28w ago | DEFA14A | $44.33 $45.98 | ▲ +3.71% | ▲ +3.14% | $37.70 (−14.96%) |
US Market Status
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