LAZ · Lazard Ltd

Lazard's first-quarter 2026 results reflect a mixed performance across its two segments. On a GAAP basis, net revenue increased 17% year-over-year to $757 million, driven by a 42% surge in Asset Management revenue to $410 million, which included a non-cash gain on the sale and deconsolidation of Edgewater management vehicles. Financial Advisory revenue declined 2% to $360 million, impacted by the timing of M&A transactions. On an adjusted basis, net revenue grew 5% to $673 million, with Asset Management up 17% and Financial Advisory down 4%. GAAP net income rose 67% to $101 million ($0.91 per share), while adjusted net income fell 23% to $47 million ($0.42 per share), reflecting higher compensation and non-compensation expenses. The adjusted compensation ratio increased to 69.9% from 65.5%, above the long-term target of 60% or below. Asset Management reported positive net flows of $9 billion and ending AUM of $259 billion, up 14% year-over-year. Management commentary highlighted the acquisition of Campbell Lutyens as a strategic step to build a more productive and resilient firm, with the transaction expected to close in the second half of 2026. The company also declared a quarterly dividend of $0.50 per share. Overall, the results show strong asset management growth but pressure on advisory revenues and margins.