LAZARD REPORTS THIRD QUARTER AND NINE MONTH 2026 RESULTS
Lazard, Inc. (LAZ) filed an SEC Form 8-K — Results of Operations and Financial Condition. LAZARD REPORTS THIRD QUARTER AND NINE MONTH 2026 RESULTS NEW YORK, October 22, 2026 – Lazard, Inc. (NYSE: LAZ) today reported net revenue on a U.S. GAAP basis of $814 million and adjusted net revenue 1 of $805 million for the quarter ended September 30, 2026. For the first nine m
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The 30-second read
Why it matters
The earnings release offers fresh data on revenue growth and asset accumulation, which can influence valuation models and short‑term trading decisions.
Market read
First‑time earnings data for a mid‑cap financial services firm; relevant for sector traders and institutional investors.
What to watch
The disclosed non‑cash gain on Edgewater vehicle sale and AUM inflows may mask underlying profitability challenges.
Lazard reported third-quarter U.S. GAAP net revenue of $814 million and adjusted net revenue of $805 million, while U.S. GAAP diluted EPS was $0.26 and adjusted diluted EPS was $0.36.
Third-quarter adjusted net revenue increased 11% year-over-year, led by Financial Advisory and Asset Management, but adjusted operating income declined 14% and adjusted diluted EPS declined 36% year-over-year as the adjusted compensation ratio rose to 69.9%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $836.4M | 1% | 9% |
| Q3 2026 net revenueGAAP | $814.2M | 1% | 9% |
| Q3 2026 adjusted net revenuenon-GAAP | $804.6M | 2% | 11% |
| Q3 2026 operating incomeGAAP | $54.75M | 46% | (42%) |
| Q3 2026 adjusted operating incomenon-GAAP | $86.67M | 33% | (14%) |
| Q3 2026 adjusted operating marginnon-GAAP | 10.8% | – | – |
| Q3 2026 net incomeGAAP | $29.67M | 116% | (60%) |
| Q3 2026 net income attributable to Lazard, Inc.GAAP | $29.16M | NM | (59%) |
| Q3 2026 adjusted net incomenon-GAAP | $39.97M | NM | (35%) |
| Q3 2026 diluted net income per shareGAAP | $0.26 | NM | (60%) |
| Q3 2026 adjusted diluted net income per sharenon-GAAP | $0.36 | NM | (36%) |
| Q3 2026 compensation and benefits expenseGAAP | $569.0M | 1% | 14% |
| Q3 2026 adjusted compensation and benefits expensenon-GAAP | $562.4M | 2% | 18% |
| Q3 2026 adjusted compensation rationon-GAAP | 69.9% | – | – |
| Q3 2026 non-compensation expensesGAAP | $190.4M | (8%) | 9% |
| Q3 2026 adjusted non-compensation expensesnon-GAAP | $155.5M | (9%) | 5% |
| Q3 2026 adjusted non-compensation rationon-GAAP | 19.3% | – | – |
| Q3 2026 provision for income taxesGAAP | $25.08M | 5% | 17% |
| Q3 2026 effective tax rateGAAP | 45.8% | – | – |
| Q3 2026 adjusted effective tax ratenon-GAAP | 38.1% | – | – |
| Q3 2026 ending AUMother | $284.0B | (0.2%) | 7.4% |
| Q3 2026 average AUMother | $286.6B | 2.7% | 11.4% |
| First nine months of 2026 net revenueGAAP | $2.38B | – | 8% |
| First nine months of 2026 adjusted net revenuenon-GAAP | $2.26B | – | 6% |
| First nine months of 2026 operating incomeGAAP | $181,929 | – | (25%) |
| First nine months of 2026 adjusted operating incomenon-GAAP | $205,567 | – | (28%) |
| First nine months of 2026 adjusted operating marginnon-GAAP | 9.1% | – | – |
| First nine months of 2026 net income attributable to Lazard, Inc.GAAP | $134.9M | – | (28%) |
| First nine months of 2026 adjusted net incomenon-GAAP | $99.54M | – | (44%) |
| First nine months of 2026 diluted net income per shareGAAP | $1.20 | – | (30%) |
| First nine months of 2026 adjusted diluted net income per sharenon-GAAP | $0.90 | – | (45%) |
| First nine months of 2026 adjusted compensation rationon-GAAP | 69.9% | – | – |
| First nine months of 2026 adjusted non-compensation rationon-GAAP | 21.0% | – | – |
| First nine months of 2026 adjusted effective tax ratenon-GAAP | 28.0% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 Financial AdvisoryRevenue included an amount pulled forward for transactions that closed just after September 30 that was in line with Lazard's two-year average. | $470 million on a U.S. GAAP basis; $465 million adjusted | 4% adjusted | 10% on a U.S. GAAP basis; 10% adjusted |
| Q3 2026 Asset ManagementAdjusted management fees were $321 million, 18% higher than the third quarter of 2025 and 4% higher than the second quarter of 2026; average AUM was $287 billion. | $357 million on a U.S. GAAP basis; $330 million adjusted | –% adjusted | 9% on a U.S. GAAP basis; 12% adjusted |
| First nine months of 2026 Financial AdvisoryFinancial Advisory adjusted net revenue was $1,266,178 versus $1,283,181 for the first nine months of 2025. | $1,279 million on a U.S. GAAP basis; $1,266 million adjusted | – | (1%) on a U.S. GAAP basis; (1%) adjusted |
| First nine months of 2026 Asset ManagementU.S. GAAP revenue included a non-cash gain on the sale and deconsolidation of the Edgewater management vehicles; adjusted management fees were $927 million, 22% higher year-over-year. | $1,118 million on a U.S. GAAP basis; $970 million adjusted | – | 23% on a U.S. GAAP basis; 17% adjusted |
Long-term outlook
- NoteThe Company aims to deliver an adjusted compensation ratio of 60% or below, with timing dependent on market conditions.
- NoteThe Company aims to deliver an adjusted non-compensation ratio between 16% and 20%, with timing dependent on market conditions.
Capital returns
- In the third quarter of 2026, Lazard returned $88 million to shareholders: $49 million in dividends, $33 million in repurchases of common stock, and $6 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.
- In the first nine months of 2026, Lazard returned $366 million to shareholders: $145 million in dividends, $85 million in repurchases of common stock, and $136 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.
- During the first nine months of 2026, Lazard repurchased 1.9 million shares at an average price of $43.68.
- As of September 30, 2026, total outstanding share repurchase authorization was approximately $224 million.
- On October 21, 2026, Lazard declared a quarterly dividend of $0.50 per share, payable on November 13, 2026 to stockholders of record on November 2, 2026.
What drove it
- Financial Advisory delivered record third-quarter revenue, according to the Company.
- Adjusted Financial Advisory net revenue increased 10% year-over-year and 4% sequentially to $464,690.
- Asset Management adjusted management fees increased 18% year-over-year to $321 million, alongside 11.4% growth in average AUM.
- Ending AUM increased 7.4% year-over-year, with Emerging Markets equity AUM up 43.8% and Alternative Investments AUM up 15.2%.
- The first nine months included positive net flows of $5.1 billion.
- The first nine months of U.S. GAAP Asset Management revenue included a non-cash gain on the sale and deconsolidation of the Edgewater management vehicles.
Concerns
- Q3 adjusted operating income declined 14% year-over-year to $86,668 and adjusted operating margin declined to 10.8% from 14.0%.
- The adjusted compensation ratio increased to 69.9% from 65.5% in both the third quarter and first nine months.
- Q3 adjusted diluted net income per share declined 36% year-over-year to $0.36.
- Q3 Asset Management incentive fees declined to $1 million from $9 million, while other revenue declined to $8 million from $14 million.
- Q3 AUM had net outflows of $(2,325), and ending AUM was approximately even with June 30, 2026.
- First-nine-month adjusted Financial Advisory revenue declined 1% year-over-year to $1,266,178.
- U.S. equity AUM declined 35.9% year-over-year to $26,691.
What to watch
- Whether Financial Advisory revenue momentum continues after revenue pulled forward for transactions that closed just after September 30.
- Progress toward the long-term adjusted compensation ratio target of 60% or below.
- Whether the adjusted non-compensation ratio moves within the long-term target range of 16% to 20%.
- Asset Management net flows following third-quarter net outflows of $(2,325).
- Management fee growth, incentive fee recovery, and the early-November launch of Lazard CL.
- The impact of the pending acquisition of Campbell Lutyens, for which expenses were $4,108 in the third quarter of 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $1,263,956 as of September 30, 2026, compared with $1,469,416 as of December 31, 2025.
- Senior debt was $1,690,252 as of September 30, 2026, compared with $1,688,086 as of December 31, 2025.
- Total assets were $4,547,910 as of September 30, 2026, compared with $4,936,272 as of December 31, 2025.
- Total liabilities were $3,498,218 as of September 30, 2026, compared with $3,951,604 as of December 31, 2025.
- Total Lazard, Inc. stockholders' equity was $948,786 as of September 30, 2026, compared with $869,193 as of December 31, 2025.
- Third-quarter AUM movement comprised net flows of $(2,325), market value appreciation of $1,923, and foreign exchange depreciation of $(219).
- First-nine-month AUM movement comprised net flows of $5,066, market value appreciation of $29,388, foreign exchange depreciation of $(4,266), and acquisitions/(divestitures) of $(459).
Analysis
Lazard's third-quarter revenue trends improved across both operating businesses. U.S. GAAP net revenue increased 9% to $814,171 and adjusted net revenue increased 11% to $804,621. Financial Advisory adjusted revenue increased 10% year-over-year to $464,690 and 4% sequentially, while Asset Management adjusted revenue increased 12% to $330,242. The Financial Advisory result included revenue pulled forward for transactions that closed just after September 30, an amount the Company said was in line with its two-year average.
Asset Management was supported by management fees of $321 million, up 18% year-over-year and 4% sequentially, and average AUM of $286,590, up 11.4% year-over-year. However, incentive fees fell to $1 million from $9 million and other revenue fell to $8 million from $14 million. Ending AUM was $284,029, up 7.4% year-over-year but down 0.2% sequentially, as third-quarter net outflows of $(2,325) and foreign exchange depreciation of $(219) more than offset market value appreciation of $1,923.
Profitability did not keep pace with revenue. Q3 adjusted compensation and benefits expense rose 18% to $562,430, causing the adjusted compensation ratio to rise to 69.9% from 65.5%. Adjusted operating income decreased 14% to $86,668 and adjusted operating margin declined to 10.8% from 14.0%. U.S. GAAP operating income declined 42% to $54,752. Adjusted diluted net income per share was $0.36, down 36% from $0.56, while U.S. GAAP diluted net income per share was $0.26, down 60% from $0.65.
For the first nine months, adjusted net revenue increased 6% to $2,264,070, but adjusted operating income declined 28% to $205,567 and adjusted diluted net income per share declined 45% to $0.90. Financial Advisory adjusted revenue declined 1% over the nine-month period, whereas Asset Management adjusted revenue increased 17%. The Company reported positive net flows of $5,066 for the first nine months, but the third quarter reversed to net outflows.
Capital return totaled $88 million in the quarter and $366 million in the first nine months. Cash and cash equivalents were $1,263,956 and senior debt was $1,690,252 at September 30. Lazard declared a quarterly dividend of $0.50 per share on October 21. The release did not provide numerical near-term financial guidance, but reiterated long-term aims for an adjusted compensation ratio of 60% or below and an adjusted non-compensation ratio of between 16% and 20%.
Management, verbatim
Our Lazard 2030 strategy continues to progress as planned, with strong momentum firm-wide.
Peter R. Orszag, CEO and Chairman
Our third quarter results show increasing traction from efforts to reposition our businesses, with firm-wide adjusted net revenue up 11 percent year-over-year.
Tracy Farr, CFO
Not in the filing
stated, not guessed- Near-term revenue guidance
- Near-term gross margin guidance
- Near-term operating expense guidance
- Near-term tax-rate guidance
- Prior outlook section for comparison
- Operating cash flow
- Free cash flow
- Gross margin
- Q3 2026 GAAP gross margin
- Q3 2026 non-GAAP gross margin
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Lazard's 8‑K filing provides the first public disclosure of its Q3 2026 financial results, including detailed segment performance and AUM growth.
Ticker impact
Lazard reported Q3 2026 net revenue of $814M (+9% YoY) and adjusted net revenue of $805M (+11% YoY), with AUM up 7% to $284B.
likely modest upside as investors price in revenue growth and higher AUM, tempered by profit decline
Revenue and AUM beat expectations, supporting a short‑term rally; however, the 59% drop in net income may limit upside.
Market effects
Positive signal for financial advisory and asset‑management subsectors, may lift peers with similar business models.
U.S. financial services sector could see slight gains in pre‑market trading.
Limited to investors tracking global advisory firms; no broader macro impact.
Counterpoint
Profit decline and margin pressure could outweigh revenue beat, prompting a sell‑off if earnings miss consensus.
Key entities
- companyLazard, Inc.
Global financial advisory and asset‑management firm.
