Watch for Q4 2026 earnings to see if the elevated compensation ratio (69.9%) moderates toward the 60% target and whether Financial Advisory revenue momentum continues into Q4, which is typically the strongest advisory quarter. The $2.3B net outflow in Asset Management after strong inflows earlier in the year bears monitoring.
Price Chart
Executive Summary
Lazard reported Q3 2026 adjusted EPS of $0.36, missing consensus estimates of $0.41 by 12.2%. GAAP net revenue rose 9% YoY to $814M, driven by record Financial Advisory revenue and 12% growth in Asset Management adjusted revenue, but GAAP net income fell 59% YoY to $29M due to higher compensation costs and a 45.8% effective tax rate. The miss reflects elevated compensation ratio (69.9%) and lower incentive fees, partially offset by strong M&A advisory momentum.
Key Financial Metrics
Key Facts
- Adjusted EPS of $0.36 missed consensus of $0.41 (-12.2% surprise)
- GAAP net revenue $814M, up 9% YoY; adjusted net revenue $805M, up 11% YoY
- Financial Advisory GAAP revenue $470M, a record third quarter, up 10% YoY
- Asset Management adjusted revenue $330M, up 12% YoY; management fees up 18% YoY
- GAAP net income $29M, down 59% YoY; adjusted net income $40M, down 35% YoY
- Adjusted compensation ratio 69.9%, up from 65.5% a year ago
- Adjusted operating margin 10.8%, down from 14.0% a year ago
- AUM $284B, up 7% YoY; net outflows of $2.3B in Q3 vs inflows of $4.6B in Q3 2025
- Quarterly dividend declared at $0.50/share; $33M in share repurchases in Q3
- Cash and equivalents $1.26B; remaining buyback authorization ~$224M
Financial Impact
EPS miss of 12.2% vs consensus; GAAP net income down 59% YoY; adjusted operating margin compressed 320 bps to 10.8%
Risk Factors
- Compensation ratio remains elevated at 69.9%, well above the 60% Lazard 2030 target
- Asset Management saw net outflows of $2.3B in Q3 after $5.1B in net inflows in the first nine months
- GAAP net income down 59% YoY; adjusted net income down 35% YoY
- Effective tax rate spiked to 45.8% GAAP (38.1% adjusted) from 21.4% adjusted a year ago
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302916068 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $37.30 $37.21 | ▼ −0.24% | ▲ +0.28% | $37.70 (+1.07%) |
Oct 22, 2026 5d 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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