EL7.AI
StocksMediumUpdated•Originally published 22 September 2026•Updated 22 September 2026•
2 min read

Lazard Net Income Falls 91% as Advisory Revenue Drops 9%

Key Facts

1Second-quarter net income fell 91% to $5 million from $55 million, while net revenue rose 1% to $808 million.
2Financial Advisory revenue fell 9% to $450 million, and the effective tax rate was 63.5%.
3Asset Management revenue rose 20% to $351 million, and the business recorded $7.4 billion of positive first-half net flows.
4LAZ closed at $36.48 on September 21, 2026, within a $35.37-to-$37.10 range.

Lazard’s net income under U.S. accounting standards fell 91% to $5 million in the second quarter of 2026 from $55 million a year earlier. Total net revenue nevertheless rose 1% to $808 million, showing that the profit decline was not caused by a companywide revenue contraction alone.

Financial Advisory revenue declined 9% to $450 million, while adjusted segment revenue also fell 9% to $445 million. Compensation expense rose to $562 million from $519 million, non-compensation expense increased 13% to $208 million, and the effective tax rate reached 63.5%. This combination weakens operating leverage because lower advisory fees and rising costs can turn a small revenue increase into a much larger decline in net income.

Asset Management provided a partial offset: segment revenue rose 20% to $351 million and adjusted revenue increased 23% to $331 million. The business recorded $7.4 billion of positive net flows in the first half, while assets under management reached $285 billion at the end of June, up 15% year over year. Its more recurring management fees help balance volatile deal revenue but did not fully absorb the quarter’s expense and tax pressures.

LAZ closed at $36.48 on September 21, 2026, after trading between $35.37 and $37.10. The company had declared a quarterly dividend of $0.50 per share and returned $103 million to shareholders during the second quarter. An improvement in earnings and the stock’s valuation will depend on Lazard converting advisory activity into revenue faster than costs rise while sustaining Asset Management flows.