New York, October 22nd / PRNewswire / -- Lazard, Inc. (New York Stock Exchange ticker: LAZ) Today, it was announced that for the quarter ending September 30, 2026, the net revenue calculated in accordance with Generally Accepted Accounting Principles (GAAP) was $814 million, and the adjusted net revenue was $805 million.

In the first nine months of 2026, Lazard reported a net revenue of $2.378 billion, calculated according to U.S and GAAP, with an adjusted net revenue of $2.264 billion.

Calculated according to U.S and GAAP, Lazard reported a net profit of 29 million US dollars in the third quarter, with earnings per share of 0.26 US dollars after dilution. In the first nine months of 2026, the net profit calculated according to U.S and GAAP was 135 million US dollars, with earnings per share of 1.20 US dollars after dilution. On an adjusted basis, Lazard had a net profit of 40 million US dollars in the third quarter, with earnings per share of 0.36 US dollars after dilution; the adjusted net profit for the first nine months of 2026 was 100 million US dollars, with earnings per share of 0.90 US dollars after dilution.

"The Lazard 2030 strategy is still advancing as planned, and the entire company is in strong momentum," said Peter R, CEO and Chairman. "The financial consulting business achieved record third-quarter revenue, and as our investment in the business gradually translates into results, customer activity and forward-looking indicators remain strong. In terms of asset management, the record total capital inflows from the beginning of the year reflect improved investment performance as well as targeted distribution efforts. With the new private equity consulting business Lazard CL set to launch in early November, we are building a more productive, diversified company geared towards long-term profit growth."

Chief Financial Officer Tracy Farr stated: "The third-quarter results show that our efforts to reshape the business are beginning to yield increasingly significant results. After adjustments, the company's net revenue increased by 11% year-over-year. We continue to advance measures to simplify and modernize our operational models and have embedded AI throughout the company with the goal of improving customer outcomes, supporting colleagues to work more efficiently, and enhancing profit margins over time."

Note: The reconciliation of U.S and GAAP with the adjusted results can be found on pages 13 to 15. Footnotes are located on page 5 of this press release.

Net Revenue

Financial Consulting

In the third quarter of 2026, the financial consulting business reported net revenues of $470 million and $465 million respectively, based on the U.S and GAAP metrics, as well as adjusted figures, representing a 10% increase from the third quarter of 2025. The revenue for this quarter included a portion of income that was recognized in advance, with related transactions being settled shortly after September 30th. This level is consistent with the average over the past two years according to the Lazard metric.

In the first nine months of 2026, the financial consulting business's net revenue according to U.S and GAAP, as well as the adjusted figures, were $1.279 billion and $1.266 billion respectively, both showing a 1% decline compared to the same period in 2025.

Lazard is one of the world's leading independent financial advisors, providing reliable services to clients in major and complex mergers and acquisitions transactions. Since the third quarter of 2026 and thereafter, the firm has been involved in several notable deals, including providing consulting for the merger announced between Emera and Canadian Utilities, which resulted in a combined enterprise value of approximately 72 billion Canadian dollars; as well as providing consulting for Corteva Agriscience's $50 billion divestiture of Vylor.

In addition, the company also provided advisory services for the following transactions (client names are shown in italics):

• Vega intends to acquire 16.2% of the equity in Vodafone Group held by e&, and the transaction price corresponds to the value of 100% of the equity in Vodafone exceeding 30 billion euros.
• OCS Group plans to acquire Mitie Group for £3.1 billion
• MasTec acquires The Superior Group for $1.7 billion
• Vanguard acquires Altruist
• Walmart acquires Vibe.co
• Humata Health sold to R1
• Rimac Group sold its holdings of Porsche in Bugatti Rimac and Rimac Group to a consortium led by HOF Capital.

Lazard provides customers with customized advice, professional expertise, and access to a wide range of capital providers through its private equity consulting and capital solutions services. The private equity consulting business includes providing consultancy for the renewal of funds for Blue Sea Capital, Exponent Private Equity, and M- One Capital, as well as consultancy on the completion of fundraising for Kingswood Capital Management's Fund IV and Small Cap Fund I, LLCP Lower Middle Market Fund IV, Princeton Equity Group's Fund III, and TruArc Fund V. In addition, Lazard also provides advisory services for the financing of Ashurst Perkins Coie and CVE.

The restructuring and debt management services provided by Lazard have also undertaken a wide range of mandates, including serving as debt advisor for projects such as Braskem Idesa, Braskem SA, Republic National Distributing Company, Searles Valley Minerals, and Victoria, as well as acting as creditor advisor for projects like Brightline, Cubic, Dish, Foundever, GoldenPeaks Capital, and QVC. In addition, the company's leading sovereign advisory business continues to be active in providing consulting services to governments and public sector entities around the world.

For a complete list of publicly announced transactions, please visit the company's website or follow Lazard on LinkedIn.

Asset Management

In the third quarter of 2026, the asset management business reported net revenues of $357 million and $330 million respectively under the U.S and GAAP metrics, as well as after adjustment, representing growth of 9% and 12% compared to the third quarter of 2025.

The adjusted management fee is $321 million, which represents a 18% increase from the third quarter of 2025 and a 4% increase from the second quarter of 2026.

The adjusted incentive fee for the third quarter is $1 million, whereas for the third quarter of 2025 it is $9 million.

Other revenues after adjustment in the third quarter were 8 million US dollars, compared to 14 million US dollars in the third quarter of 2025.

The average managed assets in the third quarter ($AUM) were 287 billion US dollars, representing a 11% increase from the third quarter of 2025 and a 3% increase from the second quarter of 2026.

In the first nine months of 2026, the asset management business reported net revenues of $1.118 billion and $970 million respectively, according to the U.S and GAAP metrics, as well as the adjusted metrics, representing year-over-year growth of 23% and 17% compared to the same period in 2025. Based on the U.S and GAAP metrics, the net revenues for the first nine months included non-cash gains from the sale and derecognition of the Edgewater management tool.

The adjusted management fee for the first nine months was $927 million, representing a 22% increase compared to the same period in 2025.

The adjusted incentive fee for the first nine months was 18 million US dollars, while for the same period in 2025 it was 21 million US dollars.

In the first nine months, adjusted other revenues amounted to 25 million US dollars, compared to 44 million US dollars during the same period in 2025.

In the first nine months of 2026, the average AUM was 277 billion US dollars, representing a 14% increase compared to the same period in 2025, and there was a net inflow of 5.1 billion US dollars. As of September 30, 2026, AUM amounted to 284 billion US dollars, a 7% increase from September 30, 2025, and it was roughly the same as on June 30, 2026. The changes compared to June 30 were mainly due to a market appreciation of 1.9 billion US dollars, a net outflow of 2.3 billion US dollars, and a depreciation of foreign exchange amounting to 200 million US dollars.

Operating Expenses

Salaries and benefits expenses

In the third quarter of 2026, the compensation and benefits expenses calculated based on U.S and GAAP, as well as after adjustment, were $569 million and $562 million respectively, compared to $498 million and $475 million in the third quarter of 2025. The adjusted compensation ratio in the third quarter of 2026 was 69.9%, whereas in the third quarter of 2025 it was 65.5%.

In the first nine months of 2026, the compensation and benefits expenses calculated according to U.S and GAAP, as well as after adjustment, were $1.623 billion and $1.583 billion respectively, compared to $1.448 billion and $1.400 billion in the first nine months of 2025. The adjusted compensation ratio in the first nine months of 2026 was 69.9%, whereas it was 65.5% in the first nine months of 2025.

The company stated that it is focused on adjusting the compensation ratio to strike a balance between managing costs and achieving the goal of driving long-term shareholder value in the current talent market environment. As part of the Lazard 2030 vision and long-term growth strategy, the company aims to reduce the adjusted compensation ratio to 60% or below, with the specific timing depending on market conditions.

Non-compensation expenses

In the third quarter of 2026, non-compensation expenses calculated using the U.S GAAP methodology amounted to 190 million US dollars, representing a 9% increase from the third quarter of 2025. Using the adjusted methodology, non-compensation expenses were 156 million US dollars, which is a 5% increase compared to the third quarter of 2025.

The adjusted non-compensation ratio for the third quarter was 19.3%, compared to 20.5% for the third quarter of 2025.

In the first nine months of 2026, non-compensation expenses calculated using the U.S and GAAP criteria amounted to 573 million US dollars, representing a 10% increase compared to the first nine months of 2025. Using the adjusted criteria, non-compensation expenses were 476 million US dollars, which is a 5% increase from the same period in 2025.

The adjusted non-compensation ratio for the first nine months of 2026 was 21.0%, compared to 21.2% for the first nine months of 2025.

As part of the Lazard 2030 vision and long-term growth strategy, the company aims to keep the adjusted non-compensation ratio between 16% and 20%, with the specific timing depending on market conditions.

Taxes

In the third quarter of 2026, the income tax provisions calculated based on U.S and GAAP, as well as after adjustment, were both $25 million, with corresponding effective tax rates of 45.8% and 38.1%, respectively.

In the first nine months of 2026, the income tax provisions calculated based on U.S and GAAP, as well as after adjustment for the relevant criteria, were $38 million and $39 million respectively, with corresponding effective tax rates of 20.9% and 28.0%.

Capital Management and Balance Sheet

In the third quarter of 2026, Lazard returned $88 million to its shareholders, which included: $49 million in dividends; $33 million in the repurchase of common stock; and $6 million to fulfill the tax obligations of employees when equity incentives were vested, in lieu of stock issuance.

In the first nine months of 2026, Lazard returned $366 million to its shareholders, which includes: $145 million in dividends; $85 million for the repurchase of common stock; and $136 million to fulfill employees' tax obligations when equity incentives were vested, in lieu of stock issuance.

In the first nine months of 2026, the company repurchased 1.9 million shares at an average price of $43.68 per share. As of September 30, 2026, the company's remaining stock repurchase authorization amounted to approximately $224 million.

On October 21, 2026, Lazard announced the distribution of a quarterly dividend of $0.50 per share, applicable to its issued common stock. The dividend will be paid on November 13, 2026, with the registration date being November 2, 2026.

The financial condition of Lazard remains robust. As of September 30, 2026, the company's cash and cash equivalents amounted to 1.264 billion US dollars.

Teleconference

Lazard will hold a teleconference on October 22, 2026, at 8:00 a.m. Eastern Time to discuss the company's financial results for the third quarter of 2026. Investors can listen to the live audio broadcast via the Lazard investor relations website www.lazard.com, or they can call +1 800-445-7795 (free in the United States and Canada) or +1 785-424-1699 (outside the United States and Canada) 15 minutes before the meeting begins. Meeting ID: LAZQ326.

The phone conference replay will be available on the Lazard Investor Relations website www.lazard.com around 10:00 a.m. Eastern Time on October 22, 2026, or you can listen by calling +1 800-753-9197 (free in the United States and Canada) or +1 402-220-0689 (outside the United States and Canada).

About Lazard

Lazard was established in 1848 and is a leading financial advisory and asset management company with operations spanning North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and debt management, geopolitics, and other strategic matters. It also offers asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high-net-worth individuals. Lazard is listed on the New York Stock Exchange under the ticker symbols Lazard and Inc, with the stock code LAZ. For more information, please visit the LinkedIn pages on Lazard.com and Lazard.

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Warning Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” as defined by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. In certain circumstances, forward-looking statements may be identified by the use of forward-looking language such as “may”, “might”, “will”, “should”, “could”, “would”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “target”, “goal”, “pipeline”, “continue”, and their negative forms, or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions about the company, and may include forecasts of future financial performance based on growth strategies, business plans and initiatives, as well as expected trends in business. These forward-looking statements are merely based on the company’s current expectations and predictions of future events. There are important factors that could cause actual results, levels of activity, performance, or achievements to differ significantly from those stated or implied in the forward-looking statements.

These factors include, but are not limited to, those discussed by the company in the 'Risk Factors' section 1A of its annual report Form 10-K, as well as those occasionally mentioned in the quarterly reports Form 10-Q and the current report Form 8-K, including the following aspects:

• Adverse overall economic conditions or unfavorable conditions in global or regional financial markets;
• Changes in international trade policies and practices, including the implementation of tariffs, proposed further tariff increases, responses from other jurisdictions, the risk of potential government shutdowns, and the resulting economic impacts, fluctuations, and uncertainties;
• A decline in company revenue, such as a general reduction in mergers and acquisitions activities, a decrease in the company's share of the M&A market, or a reduction in the scale of asset management ( AUM );
• Losses incurred by third parties due to financial or other problems;
• Losses resulting from unrecognized or unforeseen risks;
• The company's business lacks liquidity, which means there is a shortage of funds that can be used for business at any time;
• Business competition pressure, as well as the company's ability to retain and attract employees with the current level of compensation; and
• Changes in relevant tax laws, regulations, or treaties, or adverse interpretations of these contents.

These risks and uncertainties are not exhaustive. The company's SEC report also describes other factors that may have an adverse effect on business and financial performance. In addition, the company operates in a highly competitive and rapidly changing environment. New risks and uncertainties will emerge from time to time, and it is not possible for management to predict all of them, nor can they assess the impact of all factors on the business, or the extent to which a single factor or a combination of factors may lead to significant differences between actual results and any forward-looking statements.

Therefore, it cannot be guaranteed that the forward-looking statements in this press release are necessarily accurate or correct. Although the company believes that the content reflected in these forward-looking statements is reasonable, the company cannot guarantee future results, levels of activity, performance, achievements, or events. In addition, the company and no other party assumes any responsibility for the accuracy or completeness of any forward-looking statements. Readers should not regard forward-looking statements as predictions of future events. The company has no obligation to update any forward-looking statements after the date of issuance of this press release to make them consistent with actual results or revised expectations, nor does it intend to do so.

Lazard, Inc. Committed to providing information to the investing public in a timely and accurate manner, while complying with laws and regulatory obligations. To this end, Lazard and its operating companies will publish information about their business through websites and other social media platforms, including the expected release of quarterly financial results, quarterly financial, statistical, and business-related information, as well as updates on the asset management sizes of various mutual funds, hedge funds, and other investment products managed by Lazard Asset Management LLC, Lazard Fr, res, and Gestion SAS. Investors can access the websites of Lazard and its operating companies through the link www.lazard.com.

Mandatory requirements:

Note: In the first quarter of 2026, the company changed its accounting treatment principles for equity incentive awards that are based solely on service conditions, as well as for certain deferred compensation arrangements related to compensation expenses. Therefore, the cumulative impact of this change has been reflected in the company's condensed consolidated financial statements as of December 31, 2025.

This presentation contains indicators that are not GAAP. Our non-GAAP indicators should not be considered in isolation, nor should they replace the corresponding U.S indicators. The GAAP indicators should be read in conjunction with the consolidated financial statements prepared in accordance with U.S and GAAP. For detailed explanations of the adjustments made to the respective U.S and GAAP indicators, please refer to "U.S: Reconciliation with Adjusted Results" and "Financial Statement Notes".

This presentation contains indicators that are not GAAP. Our non-GAAP indicators should not be considered in isolation, nor should they replace the corresponding U.S indicators. The GAAP indicators should be read in conjunction with the consolidated financial statements prepared in accordance with U.S and GAAP. For detailed explanations of the adjustments made to the respective U.S and GAAP indicators, please refer to "U.S: Reconciliation with Adjusted Results" and "Financial Statement Notes".

Note: The average AUM typically represents the average of the balances at the end of each month for the period indicated by AUM. In 2026, the AUM asset category has been expanded to include multiple asset classifications. The comparable prior-period information has been restated to reflect the current presentation format.

This presentation contains indicators that are not GAAP. Our non-GAAP indicators should not be considered in isolation, nor should they replace the corresponding U.S indicators. The GAAP indicators should be read in conjunction with the consolidated financial statements prepared in accordance with U.S and GAAP. For detailed explanations of the adjustments made to the corresponding U.S and GAAP indicators, please refer to the notes to the financial statements.

This presentation contains indicators that are not GAAP. Our non-GAAP indicators should not be considered in isolation, nor should they replace the corresponding U.S indicators. The GAAP indicators should be read in conjunction with the consolidated financial statements prepared in accordance with U.S and GAAP. For detailed explanations of the adjustments made to the corresponding U.S and GAAP indicators, please refer to the notes to the financial statements.

This presentation contains indicators that are not GAAP. Our non-GAAP indicators should not be considered in isolation, nor should they replace the corresponding U.S indicators. The GAAP indicators should be read in conjunction with the consolidated financial statements prepared in accordance with U.S and GAAP. For detailed explanations of the adjustments made to the corresponding U.S and GAAP indicators, please refer to the notes to the financial statements.

Notes to the financial statements source: Lazard