Lazard Q2: Record AUM and Advisory League Table Highs, but Net Income Plunges on Tax Hit
LAZ is trading near its 52-week low of $38.67 (9.5% above the low).
Summary
Lazard reported Q2 2026 earnings with record AUM and advisory league table highs, but net income plunged 91% to $5 million due to an elevated tax rate. The board authorized an additional $200 million buyback.
Key Events · Earnings and Guidance · LAZ
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Q2 Net Income Plunges 91%
GAAP net income fell to $5 million ($0.03/share) from $55 million a year ago, driven by an elevated effective tax rate of 63.5% that the company says is not indicative of the full-year rate. Adjusted net income was $13 million ($0.12/share), down 77%.
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Record Asset Management AUM
AUM reached a record $285 billion, up 15% year-over-year, with the best first-half net inflows in nearly 20 years. Asset Management revenue rose 20% to $351 million.
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Advisory League Table Highs
Financial Advisory achieved its strongest announced half-year league table position since 2014, though revenue fell 9% to $450 million. The firm advised on the largest energy deal in history (NextEra/Dominion, $420B enterprise value).
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$200M Buyback Authorization Added
The board authorized an additional $200 million in share repurchases, bringing total outstanding authorization to approximately $257 million. In Q2, the company returned $103 million to shareholders via dividends and buybacks.
Analysis · LAZ · Finance
Lazard's second quarter tells a story of two businesses. Asset Management reached a record $285 billion in AUM and delivered the best first-half net inflows in nearly 20 years, while Financial Advisory posted its strongest announced half-year league table position since 2014. Yet GAAP net income collapsed to just $5 million from $55 million a year ago, driven by an abnormally high tax rate of 63.5% that the company says is not indicative of the full year. Adjusted net income also fell sharply to $13 million. The board authorized an additional $200 million in buybacks, signaling confidence, but the earnings miss and margin compression—adjusted operating margin fell to 8.3% from 14.1%—raise questions about near-term profitability as the firm invests heavily in talent ahead of the Campbell Lutyens acquisition.
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At the time of this filing, LAZ was trading at $42.33 on NYSE in the Finance sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $38.67 to $58.75. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.