Lazard Q2 earnings plunge 91% as compensation costs surge, but record AUM and the Campbell Lutyens deal offer offsetting catalysts
LAZ is trading near its 52-week low of $38.67 (11% above the low).
Summary
Lazard's Q2 2026 net income fell 91% to $4.8M as compensation costs surged, but record AUM and the pending Campbell Lutyens acquisition highlight long-term growth bets.
Key Events · Earnings and Guidance · LAZ
-
Net Income Plunges 91%
Q2 2026 net income attributable to Lazard was $4.8M ($0.03 diluted EPS), down from $55.3M ($0.52 diluted EPS) in Q2 2025, driven by higher compensation and a 63.5% effective tax rate.
-
Compensation Ratio Spikes
Adjusted compensation and benefits expense rose to 69.9% of adjusted net revenue, up from 65.5% a year ago, reflecting investments in senior hires and higher revenue-related accruals.
-
Record AUM Reaches $284.7B
Assets under management hit a record $284.7 billion, up 12% from year-end 2025, driven by market appreciation and net inflows, boosting asset management fees 22% year-over-year.
-
Campbell Lutyens Acquisition Update
The pending $575M acquisition of Campbell Lutyens (initial $460M, deferred $115M, up to $85M earn-out) is expected to close in H2 2026, expanding private markets advisory capabilities.
Analysis · LAZ · Finance
Lazard's Q2 2026 net income collapsed to $4.8 million from $55.3 million a year ago, driven by a sharp increase in compensation expenses and a high effective tax rate. The adjusted compensation ratio jumped to 69.9%, well above the 65.5% target, signaling margin pressure. However, record assets under management of $284.7 billion and the pending $575 million Campbell Lutyens acquisition provide strategic offsets. The board also authorized an additional $200 million in share repurchases, and top executives adopted 10b5-1 trading plans for tax-related sales. The quarter reflects a transitional period with heavy investment in talent and M&A, while the asset management business shows strong growth.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 36.1% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, LAZ was trading at $42.76 on NYSE in the Finance sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $38.67 to $58.75. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.