olivLaw · US equity research
Lazard, Inc. LAZ
Investment Advice · SIC 6282 · Vertical: Investment Advice (SIC 6282)
Lazard is a global financial advisory and asset management firm, founded in 1848, that advises on mergers and acquisitions, restructuring and asset management for institutions and investors. In 2026 the firm reports growth in asset management revenue under its Lazard 2030 strategy, while financial advisory revenue has been roughly flat. U.S. GAAP net revenue for the first nine months of 2026 was 2378 million USD, and ending AUM on 30 September 2026 was 284 billion USD.
At the close of 04 Nov 2026, Lazard, Inc. (LAZ) stock was 40.66 USD (+6.08% on the day), with market capitalisation 4.5 bn USD, P/E 24.4 on diluted EPS of 1.66 USD over the last 12 months, dividend yield 4.92%, beta 1.85, 52-week range 34.66–57.00 USD. Latest reported quarter (Q3 2026): revenue of 836.4 m USD (+8.5% YoY), net income of 29.2 m USD (−59.1% YoY), diluted EPS 0.26 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 62.9
- strong (55–70)
- Bollinger (20, 2)
- 34.54 – 40.22
- above the upper band · %B 1.08 · band width 15.2%
- SMA 50 / 200
- 38.44 / 44.03
- mixed trend
- MACD (12, 26, 9)
- 0.46 / 0.00
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +15.2% | −1.1% | +16.3 pp | — |
| 3 months | −7.1% | −0.5% | −6.6 pp | — |
| 6 months | −12.7% | +4.4% | −17.1 pp | — |
| Year to date | −16.3% | +12.3% | −28.6 pp | — |
| 1 year | −16.1% | +13.5% | −29.6 pp | −2.5% |
| 3 years | +41.4% | +76.4% | −35.0 pp | +24.7% |
| 5 years | −15.2% | +63.7% | −78.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 839.0 m | 669.2 m | 817.2 m | 770.8 m | 929.4 m | 779.4 m | 830.2 m | 836.4 m |
| Operating income | 107.1 m | 54.6 m | 93.1 m | 94.9 m | 85.0 m | 89.6 m | 37.6 m | 54.8 m |
| Depreciation & amortisation | 9.0 m | 8.4 m | 8.6 m ≈ | 8.5 m ≈ | 8.6 m | 7.8 m | 7.4 m ≈ | 7.4 m ≈ |
| Interest expense | 22.3 m | 21.0 m | 21.1 m | 22.6 m | 22.6 m | 22.7 m | 22.4 m | 22.0 m |
| Income tax | 28.8 m | -7.4 m | 31.8 m | 21.4 m | 30.7 m | -11.0 m | 23.9 m | 25.1 m |
| Net income | 86.3 m | 60.4 m | 55.3 m | 71.2 m | 49.9 m | 100.9 m | 4.8 m | 29.2 m |
| Diluted EPS | 0.81 ≈ | 0.56 | 0.52 | 0.65 | 0.46 ≈ | 0.91 | 0.03 | 0.26 |
| Operating cash flow | 362.9 m | -217.5 m | 49.7 m ≈ | 287.5 m ≈ | 399.7 m | -219.3 m | 203.4 m ≈ | 316.5 m ≈ |
| Capex | 14.9 m | 13.8 m | 11.7 m ≈ | 2.9 m ≈ | 3.6 m | 2.2 m | 3.9 m ≈ | 5.6 m ≈ |
| Dividends paid | 45.2 m | 45.0 m | 47.1 m ≈ | 47.2 m ≈ | 47.4 m | 47.0 m | 49.3 m ≈ | 48.7 m ≈ |
| Share repurchases | 15.6 m | 36.2 m | 3.8 m ≈ | 1.1 m ≈ | 50.0 m | 1.7 m | 50.0 m ≈ | 33.3 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 97 percentile of its own 36-quarter history (min 6.5, median 13.7, max 28.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.9 bn | 2.7 bn | 2.6 bn | 3.3 bn | 2.9 bn | 2.6 bn | 3.1 bn | 3.2 bn |
| Revenue YoY | +6.9% | −7.6% | −0.8% | +23.7% | −12.8% | −9.2% | +21.1% | +1.5% |
| Net income | 527.1 m | 286.5 m | 402.5 m | 528.1 m | 357.5 m | -75.5 m | 279.9 m | 236.8 m |
| Net income YoY | +107.9% | −45.6% | +40.5% | +31.2% | −32.3% | −121.1% | unavailable | −15.4% |
| Diluted EPS | 4.06 | 2.44 | 3.54 | 4.63 | 3.51 | -0.90 | 2.68 | 2.17 |
| Diluted EPS YoY | +112.6% | −39.9% | +45.1% | +30.8% | −24.2% | −125.6% | unavailable | −19.0% |
| net % | 18.3% | 10.7% | 15.2% | 16.1% | 12.5% | -2.9% | 8.9% | 7.4% |
| Free cash flow | 649.4 m | 635.2 m | 511.6 m | 826.4 m | 784.5 m | 136.4 m | 697.3 m | 487.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.5 bn USD
- Financial debt
- 1.7 bn USD
- Net debt
- 218.7 m USD
- Equity
- 906.3 m USD
- Total assets
- 4.9 bn USD
- Debt / equity
- 1.86x
- Current ratio
- unavailable
- ROE
- 29.8%
- ROA
- 4.9%
- FCF margin
- 15.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.6 bn | 3.3 bn | 2.9 bn | 2.6 bn | 3.1 bn | 3.2 bn | SEC (XBRL)· 23 Feb 2026verified |
| Operating income | 502.1 m | 723.8 m | 516.8 m | -80.0 m | 386.5 m | 327.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Depreciation & amortisation | 35.1 m | 38.3 m | 42.3 m | 42.9 m | 36.3 m | 34.2 m | SEC (XBRL)· 23 Feb 2026verified |
| EBITDA | 537.2 m ≈ | 762.2 m ≈ | 559.2 m ≈ | -37.1 m ≈ | 422.8 m ≈ | 361.8 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Interest expense | 80.6 m | 80.8 m | 81.5 m | 77.7 m | 88.1 m | 87.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Pre-tax income | — | — | — | -80.0 m | 386.5 m | 327.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Income tax | 99.4 m | 181.3 m | 124.4 m | -22.7 m | 99.8 m | 76.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Net income | 402.5 m | 528.1 m | 357.5 m | -75.5 m | 279.9 m | 236.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Diluted EPS | 3.54 | 4.63 | 3.51 | -0.90 | 2.68 | 2.17 | SEC (XBRL)· 23 Feb 2026verified |
| Weighted average diluted shares | 113.5 m | 113.7 m | 101.0 m | 89.0 m | 102.4 m | 106.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Dividend per share | 1.88 | 1.88 | 1.94 | 2.00 | 2.00 | 2.00 | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.4 bn | 1.5 bn | 1.2 bn | 971.3 m | 1.3 bn | 1.5 bn | SEC (XBRL)· 23 Feb 2026verified |
| Property, plant & equipment, net | 257.6 m | 250.0 m | 250.1 m | 232.5 m | 160.4 m | 168.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Goodwill | 383.9 m | 379.4 m | 377.2 m | 394.9 m | 393.6 m | 395.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Intangibles (excl. goodwill) | 210.0 k | 150.0 k | — | — | — | 0 | SEC (XBRL)· 28 Jul 2026verified |
| Total assets | 6.0 bn | 7.1 bn | 5.9 bn | 4.6 bn | 4.8 bn | 4.9 bn | SEC (XBRL)· 04 May 2026verified |
| Long-term debt | 1.7 bn | 1.7 bn | 1.7 bn | 1.7 bn | 1.7 bn | 1.7 bn | SEC (XBRL)· 23 Feb 2026verified |
| Total liabilities | 5.0 bn | 5.5 bn | 4.6 bn | 4.1 bn | 4.0 bn | 4.0 bn | SEC (XBRL)· 23 Feb 2026verified |
| Equity | 999.4 m | 1.1 bn | 675.4 m | 482.2 m | 680.7 m | 906.3 m | SEC (XBRL)· 04 May 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 575.9 m | 866.1 m | 834.0 m | 164.7 m | 742.8 m | 519.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Capex | 64.3 m | 39.7 m | 49.5 m | 28.3 m | 45.5 m | 31.9 m | SEC (XBRL)· 23 Feb 2026verified |
| Free cash flow | 511.6 m ≈ | 826.4 m ≈ | 784.5 m ≈ | 136.4 m ≈ | 697.3 m ≈ | 487.4 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Investing cash flow | -62.9 m | -39.1 m | -56.4 m | -38.3 m | 134.1 m | -82.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Financing cash flow | -547.4 m | 195.8 m | -1.4 bn | -1.6 bn | -439.7 m | -463.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Dividends paid | 196.6 m | 195.9 m | 181.9 m | 173.1 m | 179.0 m | 186.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Share repurchases | 95.2 m | 406.1 m | 691.7 m | 102.1 m | 59.5 m | 91.0 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 45 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 4.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet17
- Valuation44
- Quality63
- Growth16
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 12.54 – 172.40 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)100.82 – 172.40 (Mid 126.98)WACC 8.0% · starting FCFF 755.9 m USD · terminal value share of EV 77%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA12.54 – 28.46 (Mid 26.99)7 companies used · median multiple 11.4x · quartiles 6.0x – 11.9xABX, APAM, BEN, GCMG, MORN, VCTR, VRTS
- Peers: P/E19.73 – 49.86 (Mid 35.56)29 companies used · median multiple 21.4x · quartiles 11.9x – 30.0xAAMI, ABX, AMG, AMP, APAM, APO, ARES, BEN, BVC, BX, CG, EVR, FHI, GCMG, GROW, HLI, HNNA, KKR, MORN, NOAH, PAX, PJT, RILY, RPC, TROW, VALU, VCTR, VRTS, WHG
- Dividend discount (DDM)26.28 – 35.34 (Mid 30.15)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 45/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 15.3% | 67 (vs peers) | 11% |
| Net margin · Quality | 5.5% | 21 (vs peers) | 7% |
| FCF conversion · Quality | 370.8% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 3.7% | 31 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -14.8% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 1.4x | 14 (vs peers) | 11% |
| Interest coverage · Balance sheet | 3.0x | 23 (on a fixed band) | 7% |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 24.4x | 42 (vs peers) | 11% |
| EV/EBITDA · Valuation | 16.4x | 0 (vs peers) | 11% |
| FCF yield · Valuation | 15.3% | 100 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 7.3% | 100 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 28.1% | 100 (on a fixed band) | 4% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet17/100 · 2/3 factors with a value
- Growth16/100 · 2/2 factors with a value
- Quality63/100 · 3/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation44/100 · 3/3 factors with a value
Memo
LAZARD, INC. (LAZ). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 3.2 bn USD in 2025; YoY growth 1.5%; net margin 5.5%; ROE 20.6%; net debt/EBITDA 1.4x.
The estimated value range is 23.01–42.60 USD per share (median of 4 methods, agreement: high); assumptions are illustrative. Against the central value of 32.85 USD, the price of 40.66 USD leaves a potential of -19.2% (value / price − 1) and a margin of safety of -23.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 45/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 370.8%
- FCF yield: 15.3%
- Shareholder yield (distributions): 7.3%
- Payout ratio (FCF): 28.1%
What contradicts it
- Net margin: 5.5%
- EPS CAGR 3Y: -14.8%
- Net debt / EBITDA: 1.4x
- Interest coverage: 3.0x
- EV/EBITDA: 16.4x
Not assessed (insufficient data or a ratio without meaning): Current ratio.
Versus the vertical median
Investment Advice (SIC 6282) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BXBlackstone Inc. | 94.3 bn | 28.1 | 40.5% | 21.8% | +9.2% | −14% / +12% |
| KKRKkr & Co. Inc. | 91.0 bn | 28.9 | 10.6% | 14.8% | −11.0% | −17% / +34% |
| APOApollo Global Management, Inc. | 72.5 bn | 43.8 | 9.3% | 5.2% | +22.7% | −7% / +33% |
| AMPAmeriprise Financial, Inc. | 45.8 bn | 11.9 | 72.0% | 20.7% | +5.5% | +16% / +49% |
| TROWPrice T Rowe Group Inc | 24.0 bn | 11.3 | 19.7% | 28.4% | +3.1% | +10% / +12% |
| BENFranklin Resources Inc | 17.2 bn | 22.8 | 6.8% | 8.7% | +3.5% | +50% / +37% |
| CGCarlyle Group Inc. | 15.2 bn | 44.6 | 5.2% | 10.1% | −11.9% | −22% / +25% |
| ARESAres Management Corporation | 14.1 bn | 22.2 | 15.3% | 12.0% | +28.9% | −13% / +22% |
| IVZInvesco Ltd. | 12.9 bn | — | -0.6% | -1.2% | +5.1% | +20% / +106% |
| AMGAffiliated Managers Group, Inc. | 9.4 bn | 17.8 | 18.9% | 26.9% | +1.6% | +36% / +169% |
| MORNMorningstar, Inc. | 9.1 bn | 21.4 | 35.1% | 17.0% | +7.5% | +14% / −14% |
| VCTRVictory Capital Holdings, Inc. | 7.4 bn | 20.6 | 19.0% | 29.6% | +46.2% | +91% / +274% |
| MAASMAASE Inc. | 4.9 bn | — | -7.2% | -102.1% | −75.2% | +182% / −95% |
| LAZLazard, Inc. | 4.5 bn | 24.4 | 20.6% | 5.5% | +1.5% | −16% / +41% |
| PJTPJT Partners Inc. | 3.9 bn | 19.7 | 83.2% | 10.6% | +14.8% | −6% / +76% |
| APAMArtisan Partners Asset Management Inc. | 3.3 bn | 9.3 | 73.1% | 24.5% | +7.6% | −2% / +7% |
| AAMIAcadian Asset Management Inc. | 3.3 bn | 32.4 | — | 15.2% | +11.5% | +104% / +425% |
| NOAHNoah Holdings Ltd | 2.4 bn | 30.7 | 5.8% | 21.4% | +4.8% | −31% / −45% |
| ABXAbacus Global Management, Inc. | 885.0 m | 32.5 | 6.6% | 10.5% | +110.2% | +37% / +31% |
| VRTSVirtus Investment Partners, Inc. | 853.6 m | 7.4 | 12.6% | 14.0% | −6.0% | −19% / −34% |
| GCMGGCM Grosvenor Inc. | 550.6 m | 30.0 | 682.1% | 7.8% | +8.5% | +19% / +61% |
| VALUValue Line, Inc. | 416.6 m | 21.0 | 18.7% | 60.3% | −4.7% | +20% / +6% |
| WHGWestwood Holdings Group, Inc. | 182.5 m | 21.9 | 6.4% | 7.8% | +3.2% | +14% / +75% |
| RILYBRC Group Holdings, Inc. | 154.0 m | 0.3 | — | 35.9% | +29.6% | −12% / −79% |
| BVCBitVentures Limited | 138.6 m | 39.8 | 28.9% | 687.6% | unavailable | +1,203% / −76% |
1- and 3-year price returns: for LAZ from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 24.13 Total return -37% · Per year -37% | 42.67 Total return 9% · Per year 9% | 64.29 Total return 63% · Per year 63% |
| 3 years | 23.05 Total return -34% · Per year -13% | 45.91 Total return 26% · Per year 8% | 76.00 Total return 104% · Per year 27% |
| 5 years | 22.03 Total return -30% · Per year -7% | 49.40 Total return 45% · Per year 8% | 89.85 Total return 152% · Per year 20% |
- Exit P/E± 11.48
- Net margin± 8.03
- Annual revenue growth± 6.64
- Annual dilution± 0.68
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Lazard is a global financial advisory and asset management firm, founded in 1848, that advises on mergers and acquisitions, restructuring and asset management for institutions and investors. In 2026 the firm reports growth in asset management revenue under its Lazard 2030 strategy, while financial advisory revenue has been roughly flat. U.S. GAAP net revenue for the first nine months of 2026 was 2378 million USD, and ending AUM on 30 September 2026 was 284 billion USD.
SWOT
Strengths
- Lazard has a strong reputation as an independent advisor, a global network of relationships with business and government decision makers, and recognised expertise in sovereign and geopolitical advisory.
- Diversification between advisory and asset management helps stabilise revenue, because the two segments respond differently to economic cycles.
- The firm has a solid financial position, with significant cash and the capacity to return capital to shareholders through dividends and share repurchases.
Weaknesses
- Advisory revenue is concentrated in transactions, so it is hard to forecast and can vary significantly from quarter to quarter.
- The adjusted compensation ratio rose in 2026, compressing margins and remaining above management's long-term target.
- Advisory fees are not contracted long term, so the loss of large clients can quickly affect results.
Opportunities
- The Lazard 2030 strategy and new businesses such as Lazard CL could open access to private capital markets and diversify revenue.
- The Campbell Lutyens acquisition could extend the firm's advisory work for private funds, if integration proceeds as planned.
- A recovery in M&A activity and growth in cross-border deals could generate additional advisory revenue.
Threats
- Intense competition from global investment banks could pressure fees and reduce the firm's market share.
- Trade tensions, sanctions and geopolitical conflicts can reduce transaction activity and the value of managed assets.
- Cybersecurity risks and the use of artificial intelligence could cause financial and reputational losses if systems are not protected.
Risks
- Cyclicality of advisory revenuehigh
M&A and restructuring fees depend on completed transactions, which are affected by market conditions and financing availability.
- Dependence on assets under managementhigh
Asset management revenue falls when markets decline or clients withdraw funds, which could reduce profitability.
- Pressure on personnel costsmedium
Retaining talent is expensive, and a high compensation ratio can reduce margins if revenue does not grow enough.
- Acquisition integration riskmedium
Integrating Campbell Lutyens and the new Lazard CL business could run into difficulties, affecting costs and expected revenue.
- Cybersecurity and technology risklow
A breach of information systems or misuse of artificial intelligence could affect operations and the firm's reputation.
Investment thesis
What would need to be true (bull case)
- Asset management revenue grew strongly in 2026, and net inflows suggest that investment performance is attracting new clients.
- Geographic and product diversification, plus an institutional client base, could stabilise revenue even when M&A activity fluctuates.
- If the Lazard 2030 margin targets are achieved, the firm's profitability could rise significantly in the coming years.
What would break the thesis
- Advisory revenue dipped slightly in the first nine months of 2026, and U.S. GAAP net income fell compared with the prior year.
- The compensation ratio remains well above the long-term target, which could limit profit growth if revenue does not accelerate.
- Reliance on irregular transactions and financial markets makes the firm's results hard to forecast in the short term.
What to watch
- Advisory revenue trend after delayed transaction closingsQ4 2026
- Integration of Campbell Lutyens and launch of Lazard CLQ1 2027
- Adjusted compensation ratio relative to the 60% target2027
- AUM level and net flows in asset managementQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Lazard is a global financial advisory and asset management firm with operations in the Americas, Europe, the Middle East, Asia and Australia. It advises on mergers and acquisitions, capital markets, restructuring and liability management, geopolitics and other strategic matters, and offers investment solutions to institutions, governments, family offices and high net worth individuals. The annual report says the firm aims to offer independent advice grounded in what it calls 'contextual alpha'.
The business model rests on two main segments, Financial Advisory and Asset Management, plus a Corporate segment covering cash, investments, deferred tax assets and debt. Advisory revenue depends on completing transactions and is not contracted long term, with each engagement negotiated separately. Asset Management revenue depends mainly on the level of assets under management, which tracks capital market performance.
In the third quarter of 2026 the firm agreed to acquire Campbell Lutyens, a global private markets advisor, for an initial closing consideration of 460 million USD. Management also launched Lazard CL, a new private capital advisory business expected to start in early November 2026.
Segments
Financial Advisory
Financial Advisory offers M&A advisory, strategic capital solutions, shareholder advisory, sovereign and geopolitical advisory, and restructuring and liability management. U.S. GAAP net revenue for the first nine months of 2026 was 1279 million USD, 1% lower than a year earlier. Third-quarter revenue rose 10% to 470 million USD, though part of it was pulled forward from transactions that closed just after 30 September.
Market context
Advisory revenue is directly tied to the volume of M&A and restructuring transactions. According to Dealogic data cited in the annual report, the value of completed global M&A rose 24% in 2025 to 3909 billion USD, although the number of deals fell. In asset management, revenue follows equity indices, which rose strongly in 2025, including the MSCI World and the S&P 500.
The restructuring market was weaker in 2025, with the value of completed restructuring transactions down 22%, alongside fewer corporate defaults than in 2024. These swings show that results can vary from year to year depending on the economic cycle and transaction volumes in each market.
Trends
- Recovery in M&A activitytailwind
The rise in the value of announced and completed M&A in 2025 suggests a more active market, which could support advisory revenue if the trend continues.
- Geopolitical and trade uncertaintyheadwind
Changes in trade policy, tariffs and geopolitical conflict can reduce transaction volumes and affect assets under management if the uncertainty persists.
- Investment in private capitaltailwind
Private equity funds face pressure to monetise aging assets and raise new capital, which creates demand for fundraising and secondary advisory, if this pace is maintained.
- Market volatility and client withdrawalsmixed
Market swings can reduce the value of managed assets and lead clients to withdraw funds, which would hurt fee revenue, especially during downturns.
Competitive position
The financial advisory and asset management markets are highly competitive, and the firm notes it has no long-term contracted revenue. Clients can be lost to other investment banks, and fees can come under pressure in slow periods. The firm's advantages lie in its global network, independence and local expertise, but competition remains intense in every segment.
In asset management the firm competes with global fund managers, and access to clients through intermediaries and consultants is essential. A reduction in referrals from these intermediaries could weigh on revenue and on the ability to attract new clients.
- Goldman SachsGS
Direct competitor in M&A advisory and restructuring, named as part of the investment banking competitive landscape.
- Morgan StanleyMS
Competes in complex transaction advisory and in asset management for institutional and high net worth clients.
- EvercoreEVR
Independent transaction advisory firm competing for the same clients in M&A mandates.
- Houlihan LokeyHLI
Competes in restructuring advisory and capital transactions, an area where the firm plans to grow.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- UGG Lenders Pick Lazard for Talks Over Fiber Operator’s DebtBloomberg Markets · 14 Oct 2026 · EN
- Lazard Stock Slides 21% Over 9 Straight Down DaysYahoo Finance — News · 21 Sept 2026 · EN
- Lazard's Van Nostrand Says Markets Are Entering a Supply-Side EraBloomberg Markets · 17 Sept 2026 · EN
- Lazard (LAZ) Slid on Slower M&A ActivityYahoo Finance — News · 17 Sept 2026 · EN
- Lazard Fund Beating 93% of Peers Adds Samsung During Memory RoutBloomberg Markets · 07 Aug 2026 · EN
- Senegal Said to Pick Lazard as Financial Adviser on DebtBloomberg Markets · 15 Jul 2026 · EN
- Lazard Undercuts Rival Centerview in Battle for Venezuela DealBloomberg Markets · 14 Jun 2026 · EN
The latest news item in our archive is from 14 Oct 2026; the newest SEC filing is from 02 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report02 Nov 2026Material agreement · Item 3.02 · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report26 Oct 2026
- Current report22 Oct 2026Results of operations · Financial statements and exhibits
- Current report13 Oct 2026Departure or appointment of officers
- Quarterly report28 Jul 2026
- Current report23 Jul 2026Results of operations · Financial statements and exhibits
- Current report07 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report22 May 2026Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Quarterly report04 May 2026
- Current report01 May 2026Material agreement · Item 3.02 · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Lazard, Inc. · 23 Feb 2026
- [2] Form 10-Q, quarter ended 2026-09-30 · SEC / Lazard, Inc. · 26 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Lazard, Inc. · 22 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.