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Lazard Shares Gain as Q4 Earnings Beat Estimates, AUM Rise Y/Y

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Key Takeaways

  • Lazard posted Q4 adjusted EPS of 80 cents, topping estimates, as net revenues rose 10% y/y.
  • LAZ saw Financial Advisory revenues rise 7% and Asset Management revenues climb 18% on stronger deal activity.
  • Lazard's AUM rose 12% y/y, while higher compensation drove a 16% increase in operating expenses.

Shares of Lazard Inc.’s (LAZ - Free Report) gained 2.2% in yesterday’s trading session on better-than-expected quarterly results. Its fourth quarter 2025 adjusted earnings per share of 80 cents beat the Zacks Consensus Estimate of 68 cents. This compared favorably with earnings of 78 cents in the year-ago quarter.

Lazard’s results were positively impacted by higher revenues in the Financial Advisory and Asset Management segments, driven by improved deal activity and higher management and incentive fees. Growth in average assets under management (AUM) also aided its performance. However, elevated compensation and operating expenses created a headwind.

The results excluded certain non-recurring items. After considering those, Lazard’s net income (GAAP) was $49.9 million, which declined 42% from the prior-year quarter.

For 2025, adjusted earnings per share of $2.44 beat the Zacks Consensus Estimate of $2.32. This compared favorably with earnings of $2.34 in the year-ago period. Net income (GAAP basis) was $2.36 billion, down 15% year over year.

Lazard’s Revenues Increase

Quarterly adjusted net revenues were $892.1 million, which rose 10% year over year. The top line also beat the Zacks Consensus Estimate by 10.1%.

Adjusted net revenues for 2025 were $3.02 billion, which rose 5% year over year. The top line also beat the Zacks Consensus Estimate of $2.95 billion.

Lazard’s Expenses Increase

Operating expenses increased 16% year over year to $821.8 million, primarily driven by higher compensation costs.

The ratio of adjusted compensation expenses to operating revenues was 65.5%, marginally lower than 65.6% in the year-ago quarter.

The ratio of adjusted non-compensation expenses to operating revenues was 17.8%, up from 19% in the prior-year quarter.

Lazard’s Segmental Performance

Financial Advisory: The segment’s adjusted operating revenues were $541.6 million, up 7% from the year-ago quarter. Strong advisory activity supported the performance.

Asset Management: Segmental adjusted operating revenues of $338.6 million increased 18% year over year, driven by higher management fees and incentive fees.

Corporate: Adjusted operating revenues from this segment were $11.9 million, down from $17.6 million in the year-ago quarter.

LAZ’s AUM Position

As of Dec. 31, 2025, total AUM was $254.3 billion, which increased 12% year over year.

The average AUM in the reported quarter was $261.1 billion, up 12% from the year-ago quarter.

Lazard’s Balance Sheet Position Strong

The company’s cash and cash equivalents totaled $1.47 billion as of Dec. 31, 2025, up from $1.31 billion in the prior quarter, reflecting a solid liquidity position. Total stockholders’ equity was $910.8 million, higher than the year-ago level.

LAZ’s Share Repurchase Update

In the fourth quarter of 2025, Lazard repurchased $50 million of common stock, equivalent to 1 million shares.

As of Dec. 31, 2025, approximately $109 million of authorization remained available for repurchase.

Our View on LAZ

Lazard continues to benefit from strong momentum in Financial Advisory and Asset Management, supported by higher revenues and improved market conditions. A solid liquidity position and higher year-over-year AUM remain positives. However, persistent cost pressures, particularly related to compensation, warrant close monitoring going forward.

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)   fourth-quarter 2025 distributable earnings of $1.75 per share handily surpassed the Zacks Consensus Estimate of $1.52. The figure rose 4% from the prior-year quarter.

BX's results benefited from a rise in the AUM balance. However, a decrease in quarterly segment revenues and higher GAAP expenses were the undermining factors.

Invesco’s (IVZ - Free Report) fourth-quarter 2025 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line increased 19.2% from the prior-year quarter.

IVZ's results were aided by an increase in adjusted revenues. Also, growth in the AUM balance to record levels supported the results. However, an increase in adjusted operating expenses was a headwind for Invesco.


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