Lazard (LAZ) investor relations material

Executive summary

• Announced acquisition of Campbell Lutyens, expected to close in H2 2026, creating a leading global private capital advisory business and anticipated to generate $500 million in 2027 revenue, accelerating the 2030 growth strategy.

• Q1 2026 net revenue was $757 million (up 17% year-over-year); adjusted net revenue was $673 million (up 5%), with Asset Management delivering $9 billion in net inflows and AUM reaching $259 billion.

• Net income attributable to shareholders rose to $101 million for Q1 2026, up 68% year-over-year, driven by a $78 million non-cash gain from the Edgewater sale and higher asset management fees.

• The business is positioned for long-term growth, leveraging diversification, AI capabilities, and global reach across public and private markets, with strategic goals to double revenue by 2030 and achieve 10–15% average annual total shareholder return.

Financial highlights

• Adjusted net revenue for Q1 2026 was $673 million, up 5% year-over-year; Asset Management adjusted net revenue rose 17% to $309 million, while Financial Advisory adjusted net revenue fell 4% to $356 million.

• Asset Management delivered $9 billion in net inflows, the highest in nearly 20 years, and AUM reached $259 billion as of March 31, 2026.

• Adjusted compensation expense was $471 million (69.9% of adjusted net revenue), and adjusted non-comp expense was $149 million (22.1%).

• EPS for Q1 2026 was $0.98 (diluted), up from $0.56 in Q1 2025.

Outlook and guidance

• Optimistic outlook for Financial Advisory and Asset Management, with strong client engagement, increased conflict clearances, and expectation for continued net inflows and stable fee rates.

• Targeting to double revenue by 2030, with ongoing expansion in key geographies and sectors, and aiming for 10–15% average annual total shareholder return.

• Expectation for compensation ratio to normalize closer to 65.5% for the full year as revenue grows and operational efficiency improves.

• Management expects continued volatility in M&A and asset management due to macroeconomic and geopolitical uncertainty.