Lazard (NYSE:LAZ) Announces Earnings Results, Misses Estimates By $0.06 EPS

Lazard (NYSE:LAZ) released its earnings results on Thursday. The asset manager reported $0.36 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.06), FiscalAI reports. The company had revenue of $805.00 million for the quarter, compared to analyst estimates of $844.23 million. Lazard had a net margin of 6.95% and a return on equity of 23.58%. Lazard’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.56 earnings per share.

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

• Financial advisory momentum strengthened: Third-quarter revenue rose 11% year over year to a record $465 million, driven primarily by M&A. Lazard cited its best announced league-table position in more than a decade, conflict clearances up over 30%, and a probability-weighted 2027 pipeline more than twice the comparable 2026 pipeline.
• Campbell Lutyens acquisition is on track to add scale: Lazard expects the new Lazard CL private-capital advisory platform to generate approximately $500 million of revenue and be earnings accretive in 2027, before potential synergies. Management also sees early cost savings and meaningful cross-referral opportunities with Lazard’s M&A and private-capital businesses.
• Asset-management operating trends improved: Management fees rose 18% year over year in the third quarter, while first-nine-month gross inflows reached a record $54 billion. Investment performance also improved, with 70% of client assets outperforming benchmarks over one year and 67% over three years.
• Asset management still experienced net outflows: Third-quarter AUM was approximately flat sequentially at $284 billion, reflecting $2.3 billion of net outflows, partly offset by market appreciation. Lazard said it remains on track for positive net flows for the full year, supported by demand for quantitative equity, emerging markets, infrastructure, and ETF offerings.
• Potential compensation-policy changes could pressure near-term reported margins: Lazard is considering reducing deferred compensation, which would increase current-year accounting expense and raise the reported compensation ratio by a few percentage points. Management expects the change, if adopted, to improve compensation flexibility, reduce share dilution, and lower amortization expense over the following two to three years.

Lazard Price Performance

Lazard stock traded down $1.43 during mid-day trading on Thursday, hitting $35.94. 341,871 shares of the company were exchanged, compared to its average volume of 1,651,666. The company has a quick ratio of 2.84, a current ratio of 2.84 and a debt-to-equity ratio of 1.87. The business has a fifty day moving average of $39.62 and a 200 day moving average of $43.00. Lazard has a 1-year low of $34.13 and a 1-year high of $58.75. The company has a market capitalization of $3.97 billion, a PE ratio of 17.62, a price-to-earnings-growth ratio of 1.22 and a beta of 1.47.

Lazard Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Monday, November 2nd will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 5.6%. The ex-dividend date is Monday, November 2nd. Lazard’s dividend payout ratio is 98.04%.

Analysts Set New Price Targets

Several analysts have issued reports on LAZ shares. Weiss Ratings lowered shares of Lazard from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Zacks Research upgraded shares of Lazard from a “strong sell” rating to a “hold” rating in a report on Monday, September 28th. Citigroup reaffirmed a “market outperform” rating on shares of Lazard in a research report on Friday, July 24th. UBS Group cut their price objective on shares of Lazard from $44.00 to $40.00 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. Finally, Morgan Stanley reduced their target price on shares of Lazard from $44.00 to $41.00 and set an “underweight” rating for the company in a research note on Thursday, October 8th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $46.25.

Insider Activity at Lazard

In other news, CEO Peter Orszag sold 125,000 shares of the company’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $43.52, for a total value of $5,440,000.00. Following the sale, the chief executive officer owned 260,942 shares of the company’s stock, valued at approximately $11,356,195.84. This represents a 32.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.95% of the company’s stock.

Lazard News Summary

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard declared a quarterly dividend of $0.50 per share, payable November 13 to shareholders of record on November 2. The annualized payout is $2.00 per share, providing an indicated yield of approximately 5.3%. Lazard Declares Quarterly Dividend of $0.50 per Share
• Neutral Sentiment: Third-quarter adjusted net revenue was $805 million, while U.S. GAAP net revenue was $814 million. Revenue increased 8.8% year over year, and nine-month adjusted net revenue reached $2.264 billion, indicating business growth despite the quarterly earnings shortfall. Lazard Reports Third Quarter and Nine Month 2026 Results
• Negative Sentiment: Lazard reported third-quarter adjusted earnings of $0.36 per share, below consensus estimates ranging from $0.42 to $0.43. Earnings also declined from $0.56 per share in the year-ago quarter, signaling weaker profitability than investors expected. Lazard Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: Adjusted revenue of $805 million also missed analysts’ approximately $844 million forecast. The combination of weaker-than-expected revenue and profit likely explains the negative investor reaction, particularly as Lazard’s shares were already trading well below their 50-day and 200-day moving averages. Lazard Reports Sales Below Analyst Estimates in Q3 2026

Lazard Company Profile

Lazard, Ltd. is a global financial advisory and asset management firm that serves corporations, financial institutions, governments, sovereign entities and individuals. Its Financial Advisory business provides advice on mergers and acquisitions, strategic matters, capital structure, restructuring, capital raising and other complex financial transactions.

Through its Asset Management business, Lazard offers investment strategies across equities, fixed income, private markets, alternatives and multi-asset portfolios.