Lazard Reports 67% Increase in Net Income and 16.5% Revenue Growth in Q1 2026

Lazard, Inc. reported a significant increase in its financial performance for the first quarter of 2026, with net income attributable to the company rising to $100.9 million, compared to $60.4 million in the same period last year. Total revenue for the quarter reached $779.4 million, marking a 16.5% increase from $669.2 million in the first quarter of 2025. The growth was driven primarily by a 24% increase in asset management fees, which totaled $327.3 million, while investment banking and advisory fees saw a slight decline of 1% to $357.4 million.

The company's operating expenses also increased, rising by 12.5% to $667 million, largely due to a 14% increase in compensation and benefits expenses, which totaled $491.9 million. This increase reflects ongoing investments in talent and strategic hires. Adjusted operating income, however, decreased by 27% to $53.7 million, with the adjusted operating income as a percentage of adjusted net revenue falling to 8.0% from 11.5% in the prior year. The effective tax rate for the quarter was reported at -12.3%, compared to -13.5% in the previous year, influenced by discrete tax benefits related to share-based compensation.

In terms of strategic developments, Lazard completed the sale and deconsolidation of its Edgewater management vehicles in February 2026, resulting in a pre-tax gain of $78 million recognized in the current quarter. The company also announced plans to acquire Campbell Lutyens, a global private markets advisor, for a total consideration of up to $660 million, which includes initial, deferred, and earn-out payments. This acquisition is expected to close in the second half of 2026, pending regulatory approvals.

Operationally, Lazard's total assets decreased to $4.24 billion as of March 31, 2026, down from $4.94 billion at the end of 2025. The decline was attributed to a reduction in cash and cash equivalents, which fell to $1.02 billion from $1.47 billion. The company’s headcount remained stable, with 394 managing directors and 3,293 total employees as of the end of the quarter. Lazard's assets under management (AUM) increased to $259.2 billion, reflecting a 2% rise from the previous quarter, driven by net inflows and market appreciation.

Looking ahead, Lazard's management expressed cautious optimism regarding future performance, noting that while the current economic environment presents challenges, it also offers opportunities, particularly in restructuring services. The company aims to leverage its diversified business model and expertise to navigate potential market volatility and capitalize on emerging client needs.