Lazard Q2 adjusted EPS misses estimates,  hurt by high tax rates

Lazard

23/07/2026 11:41

    

    Overview
  
Financial advisory and asset manager's Q2 revenue rose 1% yr/yr, beating analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company on July 22 authorized additional $200 mln in share repurchases, total authorization now $257 mln

    

    Outlook
  
Lazard aims for an adjusted compensation ratio of 60% or below, timing dependent on market conditions
Company targets adjusted non-compensation ratio between 16% to 20%, timing dependent on market conditions

    

    Result Drivers
  
ASSET MANAGEMENT GROWTH - Asset Management revenue rose 20% yr/yr, with record AUM and higher management fees driven by market appreciation and net inflows
ADVISORY REVENUE DECLINE - Financial Advisory revenue fell 9% yr/yr, reflecting lower deal activity or volumes
HIGH TAX RATE - Q2 earnings were impacted by an elevated effective tax rate, which the company said was not indicative of the full-year rate

    
Company press release: ID:nPn3P7ghla

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Revenue
Beat
$808 mln
$757.46 mln (6 Analysts)
Q2 Adjusted EPS
Miss
$0.12
$0.35 (9 Analysts)
Q2 EPS
 
$0.03
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "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 $47.50, about 9% above its July 22 closing price of $43.58
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

    

    Reuters Recommended Reads
  
July 22 - Stifel Q2 revenue beats estimates on investment banking strength
July 22 - Raymond James Q3 profit beats estimates on higher asset management fees
July 23 - Jupiter Fund's first-half pre-tax profit rises on strong inflows

    
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(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.)