Lazard Advisory Revenue Turns Higher After Second-Quarter Drop

The Tip Desk · October 25, 2026 · 3 min read

Adjusted net revenue reached $805 million, up 11% from a year earlier, as Financial Advisory posted a record third-quarter result.

Lazard, Inc. (LAZ), the financial advisory and asset management firm, reported adjusted net revenue of $805 million for the quarter ended September 30, 2026, an 11% increase from a year earlier after a 2% year-over-year rise in the second quarter. U.S. GAAP net revenue was $814 million.

Financial Advisory was the inflection. The practice reported net revenue of $470 million on a U.S. GAAP basis and $465 million on an adjusted basis, both 10% higher than the year-ago quarter, reversing a 9% year-over-year decline in the second quarter. Chief Executive Peter R. Orszag said Financial Advisory delivered record third-quarter revenue as investments in the business increasingly translated into results.

The quarter’s revenue included an amount pulled forward for transactions that closed just after September 30, which the company said was in line with its two-year average. During and since the quarter, Lazard advised on Emera’s announced merger with Canadian Utilities for a combined enterprise value of about C$72 billion and Corteva Agriscience’s $50 billion spinoff of Vylor, among other mandates.

Asset Management net revenue was $357 million on a U.S. GAAP basis and $330 million on an adjusted basis, 9% and 12% higher than a year earlier, after 20% and 23% year-over-year increases in the second quarter. Adjusted management fees were $321 million, 18% higher than the year-ago quarter and 4% higher than the second quarter of 2026. Adjusted incentive fees were $1 million, compared with $9 million a year earlier. Other revenue was $8 million.

Average assets under management were $287 billion, 11% higher than the year-ago quarter and 3% higher than the second quarter of 2026. Ending AUM was $284 billion as of September 30, 7% higher than a year earlier and approximately even with June 30, 2026. The sequential change from June included $1.9 billion of market appreciation, $2.3 billion of net outflows, and $0.2 billion of foreign-exchange depreciation. Orszag said record year-to-date gross inflows reflected improving investment performance and focused distribution efforts.

U.S. GAAP net income was $29 million, or $0.26 a share diluted, down 59% from $71 million, or $0.65 a share, a year earlier. Adjusted net income was $40 million, or $0.36 a share diluted, down 35% from $62 million, or $0.56 a share. Adjusted operating income was $87 million and the adjusted operating margin was 10.8%, versus $101 million and 14.0% a year earlier.

The adjusted compensation ratio was 69.9%, compared with 65.5% a year earlier. Adjusted non-compensation expenses were $156 million, 5% higher than the year-ago quarter; the adjusted non-compensation ratio was 19.3%. The company said it aims to deliver an adjusted compensation ratio of 60% or below under its Lazard 2030 vision, with timing dependent on market conditions.

In the third quarter, Lazard returned $88 million to shareholders, including $49 million of dividends, $33 million of share repurchases, and $6 million of tax-withholding in lieu of share issuances. Cash and cash equivalents were $1,264 million as of September 30. On October 21, the company declared a quarterly dividend of $0.50 a share, payable November 13.

Orszag said a new private capital advisory business, Lazard CL, would launch in early November.