Lazard (LAZ) Q2 2026 earnings summary

Executive summary

• Adjusted net revenue for Q2 2026 was $786 million (up 2% year-over-year), and $1.5 billion for the first half, with Asset Management delivering record AUM and best first-half net inflows in nearly 20 years, while Financial Advisory achieved its strongest half-year league table position since 2014.

• Strategic transformation under the Lazard 2030 plan is progressing, with significant investments in talent, technology, and AI adoption to drive long-term growth and productivity.

• The Campbell Lutyens acquisition, expected to close in H2 2026, will establish a leading global private capital advisory business and form a third business unit (Lazard CL).

• Net income for Q2 2026 was $5 million (down 91% year-over-year); adjusted net income was $13 million (down 77%).

• The company completed the sale and deconsolidation of Edgewater, resulting in a $76 million non-cash gain in H1 2026.

Financial highlights

• Q2 2026 net revenue was $808 million (up 1% year-over-year); adjusted net revenue was $786 million (up 2%).

• First half 2026 net revenue was $1.56 billion (up 8%); adjusted net revenue was $1.46 billion (up 3%).

• Asset Management AUM at June 30, 2026 was $285 billion, up 15% year-over-year and 10% sequentially, with $7.4 billion net inflows in the first half.

• Q2 2026 adjusted compensation ratio was 69.9% (up from 65.5%); adjusted non-compensation ratio was 21.8% (up from 20.4%).

• Q2 2026 adjusted operating margin was 8.3% (down from 14.1% year-over-year); Q2 2026 diluted EPS was $0.03 (down 94% year-over-year); adjusted diluted EPS was $0.12 (down 77%).

Outlook and guidance

• Revenue is targeted to double by 2030, with continued expansion in key geographies and sectors, and benefits from growth investments in advisory talent expected to mature into earnings.

• Management expects continued volatility in M&A and capital markets, with restructuring activity potentially increasing.

• Focus remains on operational efficiency and achieving an adjusted compensation ratio of 60% or below and adjusted non-compensation ratio of 16–20%, timing dependent on market conditions.

• Positive net flows are projected for Asset Management for the full year, supported by a robust won-but-not-funded pipeline.

• Campbell Lutyens acquisition is expected to be accretive to earnings in 2027 and beyond.