Lazard's Q3 revenue rises 9%, but misses estimates

Lazard

22/10/2026 11:40

Overview
US financial advisory and asset management firm's Q3 revenue rose 9% yr/yr, but missed analysts' expectations
Adjusted EPS fell 36% yr/yr, and missed analyst expectations
Company returned $88 mln to shareholders via dividends and share repurchases in Q3

Outlook
Lazard aims to reduce adjusted compensation ratio to 60% or below, timing depends on market conditions
Company targets adjusted non-compensation ratio between 16% and 20%, timing depends on market conditions
Lazard says client activity and forward indicators remain strong in Financial Advisory

Result Drivers
FINANCIAL ADVISORY REVENUE - Record Q3 revenue in financial advisory, driven by investments in the business and transactions pulled forward into the period, according to CEO Peter Orszag
ASSET MANAGEMENT INFLOWS - Asset management segment saw record year-to-date gross inflows, reflecting improving investment performance and focused distribution efforts, per CEO Peter Orszag
HIGHER COMPENSATION COSTS - Adjusted compensation and benefits expense rose 18% yr/yr in Q3, raising the adjusted compensation ratio to 69.9% from 65.5% a year earlier

Company press release: ID:nPn1G8zYra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$814 mln
$837.57 mln (6 Analysts)
Q3 Adjusted EPS
Miss
$0.36
$0.47 (9 Analysts)
Q3 EPS
 
$0.26
 
Q3 Assets Under Management
 
$284.03 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Lazard, Inc. is $43.00, about 15.1% above its October 21 closing price of $37.37
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 21 - UK's Aberdeen posts Q3 net outflows as client withdrawals weigh, shares slip
Oct 21 - SEI Investments Q3 results beat estimates on revenue growth, margin expansion
Oct 21 - UK wealth manager Liontrust's quarterly outflows narrow, but retail withdrawals persist

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)