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Lazard Q3 Earnings Beat Estimates, Advisory Revenues & AUM Rise Y/Y

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Key Takeaways

  • Lazard's adjusted EPS of 56 cents top estimates and improved from 38 cents in the year-ago quarter.
  • Quarterly revenues grew 12.4% y/y, driven by gains in advisory and asset management.
  • AUM climbed 16.9% to $264.5B, with inflows and stronger market and currency performance.

Lazard Inc.’s (LAZ - Free Report) third-quarter 2025 adjusted earnings per share of 56 cents beat the Zacks Consensus Estimate of 41 cents. This compared favorably with earnings of 38 cents per share in the year-ago quarter.

Lazard’s results were positively impacted by increases in revenues in the financial advisory and asset management, and corporate sectors. A rise in the assets under management (“AUM”) balances was another positive. However, elevated operating expenses acted as a spoilsport.

The results include certain non-recurring items. After considering those, Lazard’s net income (GAAP) was $71.2 million, which fell 34% from the prior-year quarter's reported level.

Lazard’s Revenues Increase

Quarterly adjusted net revenues were $724.6 million, which rose 12.4% year over year. Further, the top line surpassed the Zacks Consensus Estimate by 3.9%.

Lazard’s Expenses Increase

Operating expenses were $702.9 million, up 12.2% year over year. The performance was driven by strength in both Financial Advisory and Asset Management, reflecting improving market sentiment and Lazard’s diversified business model.

The ratio of adjusted compensation expenses to operating revenues was 65.5%, down from the year-earlier quarter’s 66%. The ratio of adjusted non-compensation expenses to operating revenues was 20.5%, down from the year-ago quarter’s 21.4%.

Lazard’s Segmental Performance

Financial Advisory: The segment’s adjusted operating revenues were $422.3 million, up 14% from the year-earlier quarter. Our estimate for the metric was $420.6 million.

Asset Management: Segmental adjusted operating revenues of $294.2 million increased 8% from the prior-year quarter. Our estimate for the metric was $256.6 million.

Corporate: Adjusted operating revenues from this segment were $8.1 million, up 46% from the year-earlier quarter. Our estimate for the metric was $9.9 million.

LAZ’s AUM Rises

As of Sept. 30, 2025, the total AUM was $264.5 billion, which increased 16.9% from the prior-year quarter. The company achieved in the quarter. We projected total AUM to be $259.6 billion.

LAZ’s third quarter witnessed a record inflow of $4.6 billion, and market and foreign exchange appreciation of $11.6 billion.

The average AUM in the reported quarter was $257.4 billion, up 4.6% year over year.

Lazard’s Balance Sheet Position Strong

The company’s cash and cash equivalents totaled $1.2 billion as of Sept. 30, 2025, up 19.8% from the prior quarter. Stockholders’ equity was $878.6 million, up 11.7% sequentially. Our estimate for cash and cash equivalents was $1.1 billion, while stockholders' equity was $732.2 million.

LAZ’s Share Repurchase Update

In the third quarter of 2025, Lazard repurchased $1 million of the common stock. As of Sept. 30, 2025, roughly $159 million of authorization remained available for repurchase.

Our View on LAZ

Lazard is focused on growing organically, as evidenced by an increase in revenues in the financial advisory and asset management segments. A strong liquidity position, along with higher AUM, will also aid its financials in the upcoming period. However, rising expenses are concerning.

Lazard, Inc. Price, Consensus and EPS Surprise

Currently, Lazard carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

Blackstone’s (BX - Free Report) third-quarter 2025 distributable earnings of $1.52 per share surpassed the Zacks Consensus Estimate of $1.22. The figure soared 50% from the prior-year quarter.

BX’s results benefited from higher segment revenues and a rise in assets under management. Further, a decrease in GAAP expenses was a positive.

BlackRock’s (BLK - Free Report) third-quarter 2025 adjusted earnings of $11.55 per share handily surpassed the Zacks Consensus Estimate of $11.25. The figure reflects a marginal rise from the year-ago quarter.

BLK’s results benefited from a rise in revenues. The AUM balance witnessed robust growth, reaching a record high of $13.46 trillion, driven by net inflows. However, higher expenses acted as a headwind.


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