Lazard revenue rises 9% to $814 million in third quarter; net income falls 59%

Lazard, Inc. reported third-quarter 2026 net revenue of $814 million on a U.S. GAAP basis, up 9% from a year earlier, while net income fell 59% to $29 million, according to its earnings release.

What happened

The New York-listed financial advisory and asset management firm (NYSE: LAZ) reported adjusted net revenue of $805 million for the quarter ended September 30, up 11% from $725 million in the third quarter of 2025. Adjusted figures are a non-GAAP measure that the company reconciles to its GAAP results.

Net income was $29 million, or $0.26 per diluted share, on a GAAP basis, compared with $71 million, or $0.65, a year earlier. On an adjusted basis, net income was $40 million, or $0.36 per share, compared with $62 million, or $0.56.

Financial Advisory net revenue was $470 million on a GAAP basis, 10% higher than a year earlier. Lazard said the quarter includes an amount pulled forward for transactions that closed just after September 30, in line with its two-year average. Asset Management net revenue was $357 million, up 9%.

Assets under management ended the quarter at $284 billion, 7% above September 30, 2025 and approximately even with June 30, 2026. Lazard said the change from June reflected market appreciation of $1.9 billion, net outflows of $2.3 billion and foreign exchange depreciation of $0.2 billion.

"Financial Advisory delivered record third quarter revenue," said Peter R. Orszag, Lazard's chief executive and chairman.

Why it matters

Adjusted compensation and benefits expense was $562 million, up 18.3% from $475 million a year earlier, faster than the 11% rise in adjusted net revenue. That gave an adjusted compensation ratio of 69.9%, compared with 65.5% in the third quarter of 2025. Lazard has said it aims for an adjusted compensation ratio of 60% or below, with timing dependent on market conditions.

The adjusted non-compensation ratio was 19.3%, down from 20.5%. The company's target range is 16% to 20%. The effective tax rate was 45.8% on a GAAP basis and 38.1% on an adjusted basis.

Over the first nine months of 2026, GAAP net revenue was $2,378 million, up 8%, and GAAP net income was $135 million, down 28%. Financial Advisory revenue for the nine months was 1% lower than a year earlier, while Asset Management revenue rose 23% on a GAAP basis, a figure that includes a non-cash gain on the sale and deconsolidation of the Edgewater management vehicles.

Capital returns

Lazard returned $88 million to shareholders in the third quarter: $49 million in dividends, $33 million in share repurchases and $6 million to satisfy employee tax obligations on vesting equity grants. Its remaining repurchase authorization was approximately $224 million at September 30, and cash and cash equivalents were $1,264 million.

What to watch

The board declared a quarterly dividend of $0.50 per share on October 21, payable on November 13 to stockholders of record on November 2, according to the release. Lazard also said its new private capital advisory business, Lazard CL, is launching in early November.