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

Lazard (NYSE:LAZ) issued its earnings results on Thursday. The asset manager reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.22), FiscalAI reports. The business had revenue of $786.02 million for the quarter, compared to analysts’ expectations of $736.29 million. Lazard had a return on equity of 29.30% and a net margin of 8.47%.The company’s revenue for the quarter was up 1.5% on a year-over-year basis. During the same period last year, the business earned $0.52 EPS.

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 Stock Down 1.3%

Shares of LAZ opened at $43.01 on Friday. The firm has a market cap of $4.80 billion, a P/E ratio of 17.00, a PEG ratio of 0.64 and a beta of 1.43. Lazard has a 12 month low of $38.67 and a 12 month high of $58.75. The stock’s 50 day moving average is $44.26 and its two-hundred day moving average is $46.80. The company has a current ratio of 3.51, a quick ratio of 3.51 and a debt-to-equity ratio of 1.94.

Lazard Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Monday, August 3rd will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend is Monday, August 3rd. Lazard’s dividend payout ratio (DPR) is presently 79.05%.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Keefe, Bruyette & Woods reduced their price objective on Lazard from $49.00 to $44.00 and set a “market perform” rating for the company in a research note on Friday, July 10th. Morgan Stanley reduced their price target on Lazard from $53.00 to $47.00 and set an “underweight” rating for the company in a research report on Thursday, July 9th. Weiss Ratings upgraded Lazard from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 15th. Zacks Research raised shares of Lazard from a “strong sell” rating to a “hold” rating in a research note on Monday, July 6th. Finally, UBS Group reiterated a “neutral” rating and issued a $44.00 target price on shares of Lazard in a research note on Tuesday, June 9th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $51.00.

More Lazard News

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard reported Q2 revenue of $786.0 million, topping analyst forecasts, suggesting its business still generated solid top-line results despite a tougher quarter. Lazard Reports Second Quarter and First Half 2026 Results
• Positive Sentiment: The company reiterated its long-term growth plans, including a $500 million Lazard Capital (Lazard CL) 2027 revenue target and a goal of $10 million per managing director by 2028, which may support investor confidence in the turnaround strategy. Lazard targets $10m per MD by 2028 as it reiterates $500m Lazard CL 2027 revenue plan
• Neutral Sentiment: Lazard also announced a quarterly dividend of $0.50 per share, reinforcing its shareholder return profile. Lazard Declares Quarterly Dividend of 0.50 per Share
• Neutral Sentiment: Management said it has cut more than 80 managing director roles and is overhauling the advisory business, part of a broader restructuring effort to improve efficiency. Lazard has cut over 80 managing director roles, CEO says
• Negative Sentiment: Q2 adjusted EPS fell to $0.12, well below analyst estimates, and profit plunged 91% year over year due to a higher tax rate and weakness in financial advisory revenue. Lazard profit plunges on elevated tax rate, financial advisory volatility
• Negative Sentiment: The advisory unit overhaul and softer financial advisory performance are weighing on results, reinforcing concerns that earnings may remain volatile in the near term. Lazard revamps advisory business, posts 91% drop in quarterly profit

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD increased its holdings in Lazard by 13.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 8,807,320 shares of the asset manager’s stock worth $427,685,000 after acquiring an additional 1,047,869 shares in the last quarter. State Street Corp lifted its holdings in Lazard by 9.3% during the second quarter. State Street Corp now owns 2,108,229 shares of the asset manager’s stock valued at $101,153,000 after purchasing an additional 180,244 shares in the last quarter. Victory Capital Management Inc. grew its position in shares of Lazard by 2.1% in the fourth quarter. Victory Capital Management Inc. now owns 1,929,435 shares of the asset manager’s stock valued at $93,693,000 after purchasing an additional 39,901 shares during the period. Ameriprise Financial Inc. increased its stake in shares of Lazard by 11.3% during the third quarter. Ameriprise Financial Inc. now owns 1,884,093 shares of the asset manager’s stock worth $99,442,000 after purchasing an additional 192,008 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of Lazard by 6.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,726,416 shares of the asset manager’s stock worth $83,844,000 after purchasing an additional 106,134 shares in the last quarter. Hedge funds and other institutional investors own 54.80% of the company’s stock.

Lazard Company Profile

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.