Lazard (NYSE:LAZ) Posts Quarterly Earnings Results, Misses Expectations By $0.22 EPS

Lazard (NYSE:LAZ) announced its earnings results on Thursday. The asset manager reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.22), FiscalAI reports. Lazard had a net margin of 8.47% and a return on equity of 29.30%. The business had revenue of $786.47 million during the quarter, compared to analyst estimates of $736.29 million. During the same quarter last year, the business posted $0.52 earnings per share. The business’s quarterly revenue was up 1.5% compared to the same quarter last year.

Here are the key takeaways from Lazard’s conference call:

• Lazard reported firm-wide adjusted net revenue of $786 million in Q2 and $1.5 billion for the first half, with management saying the second half should be stronger than the first, especially in Financial Advisory.
• Financial Advisory momentum improved, with the best announced league table position since 2014, stronger conflict clearances, and a pipeline that management says is building faster than last year. The company also highlighted large transactions and continued strength in restructuring and private capital advisory.
• Asset Management had a strong first half, generating $7.4 billion of net inflows and reaching a record $285 billion in AUM, up 15% year over year. Management said client demand is broad-based across strategies and regions, and they remain on track for positive full-year net flows.
• Management said the Campbell Lutyens acquisition is on track to close later this year and should be accretive to earnings in 2027 and beyond, while expanding Lazard’s private capital advisory capabilities. They also said AI adoption is accelerating across the firm, but current AI spending remains modest.
• Q2 profitability was pressured by a 69.7% adjusted effective tax rate, which management called anomalous and linked to a catch-up adjustment on equity vesting. The company also kept compensation accruals elevated, so near-term margin improvement depends heavily on second-half revenue growth.

Lazard Trading Down 2.7%

LAZ stock traded down $1.17 during midday trading on Thursday, reaching $42.41. The stock had a trading volume of 185,942 shares, compared to its average volume of 1,647,514. The firm has a market cap of $4.74 billion, a price-to-earnings ratio of 16.80, a PEG ratio of 0.64 and a beta of 1.43. Lazard has a twelve month low of $38.67 and a twelve month high of $58.75. The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.94. The business has a fifty day simple moving average of $44.32 and a two-hundred day simple moving average of $46.84.

Lazard Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Monday, August 3rd will be issued a $0.50 dividend. The ex-dividend date is Monday, August 3rd. This represents a $2.00 annualized dividend and a yield of 4.7%. Lazard’s dividend payout ratio (DPR) is currently 79.05%.

Institutional Investors Weigh In On Lazard

A number of institutional investors and hedge funds have recently modified their holdings of the business. Invesco Ltd. boosted its stake in Lazard by 1.1% in the fourth quarter. Invesco Ltd. now owns 1,146,174 shares of the asset manager’s stock valued at $55,658,000 after acquiring an additional 12,011 shares during the last quarter. Corient Private Wealth LLC bought a new stake in shares of Lazard during the 4th quarter valued at $1,231,000. EP Wealth Advisors LLC bought a new stake in shares of Lazard during the 4th quarter valued at $211,000. NewEdge Advisors LLC lifted its stake in shares of Lazard by 455.3% in the 4th quarter. NewEdge Advisors LLC now owns 4,459 shares of the asset manager’s stock valued at $217,000 after purchasing an additional 3,656 shares during the period. Finally, Janus Henderson Group PLC lifted its stake in shares of Lazard by 1.7% in the 4th quarter. Janus Henderson Group PLC now owns 1,382,751 shares of the asset manager’s stock valued at $67,147,000 after purchasing an additional 23,284 shares during the period. 54.80% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on LAZ shares. Keefe, Bruyette & Woods decreased their price objective on shares of Lazard from $49.00 to $44.00 and set a “market perform” rating on the stock in a report on Friday, July 10th. The Goldman Sachs Group set a $40.00 target price on shares of Lazard in a research note on Friday, June 12th. Morgan Stanley reduced their target price on shares of Lazard from $53.00 to $47.00 and set an “underweight” rating on the stock in a research report on Thursday, July 9th. Argus decreased their price target on shares of Lazard from $63.00 to $52.00 and set a “buy” rating on the stock in a research note on Tuesday, May 5th. Finally, Citigroup reissued an “outperform” rating on shares of Lazard in a report on Friday, April 10th. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $51.00.

Key Headlines Impacting Lazard

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard said second-quarter adjusted net revenue was $786 million, above expectations, and management said forward indicators are starting to translate into revenue and earnings, suggesting some improvement ahead. Lazard Reports Second Quarter and First Half 2026 Results
• Positive Sentiment: The company maintained a quarterly dividend of $0.50 per share, which supports income-focused investors. Lazard Declares Quarterly Dividend of 0.50 per Share
• Neutral Sentiment: Management also highlighted plans for leaner future deal teams with AI and continued focus on asset-management opportunities, which could help margins over time but is not an immediate earnings catalyst. Lazard CEO: Future Deal Teams Will Be Leaner With AI
• Negative Sentiment: Q2 earnings came in at $0.12 per share, well below estimates, and Reuters said profit plunged 91% year over year due to a higher tax rate and weaker financial-advisory revenue. Lazard profit plunges on elevated tax rate, financial advisory volatility
• Negative Sentiment: The company also announced over 80 managing director cuts, signaling continued restructuring pressure in the business. Lazard has cut over 80 managing director roles, CEO says

About Lazard

Lazard Ltd. (NYSE: LAZ) is a leading global financial advisory and asset management firm, offering a comprehensive suite of services to corporations, governments and individuals. Founded in 1848, Lazard has built a reputation for providing independent advice and innovative solutions in complex financial transactions. The firm is publicly traded on the New York Stock Exchange under the ticker symbol LAZ and maintains its headquarters in Hamilton, Bermuda.

In its Financial Advisory segment, Lazard assists clients with mergers and acquisitions, restructurings, capital structure optimization and strategic planning.