Lazard has posted net income of $5m for the second quarter of 2026, a decline of 91% from $55m in the year earlier period, driven by an “elevated tax rate” and weaker revenue in its advisory operations.
Average assets under management were $279bn in the second quarter of 2026, up 17% year-over-year (YoY).
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Second-quarter net revenue was $808m, up 1% from a year earlier.
The income tax provision for the quarter was $24m resulting in an effective tax rate of 63.5%.
In the second quarter of 2026, asset management net revenue increased 20% to $351m, while financial Advisory net revenue fell by 9% YoY to $450m.
Lazard returned $103m to shareholders during the quarter, made up of $49m in dividends, $50m in common stock repurchases and $4m used to satisfy employee tax obligations in place of share issuances linked to vesting equity awards.
Lazard CFO Tracy Farr said: “We are excited about the momentum and evidence of progress across both of our businesses. This quarter’s earnings were impacted by an elevated tax rate, which is not indicative of the full-year rate.
“In addition, as we exit the most substantial period of repositioning our advisory talent, the benefits of our growth investments will increasingly mature into earnings. Combined with our focus on operational efficiency, this supports our path toward long-term profitability and shareholder value.”
The firm had eliminated more than 80 managing director roles as part of a restructuring of its financial advisory business after a subdued performance, reported Reuters.
According to the bank, the reductions account for 40% of the total pool. It also said it would recruit bankers in sectors including healthcare, industrials and defence technology.
In a post-earnings call, chief executive Peter Orszag said: “That (the cuts) does create this interesting dynamic of kind of a loss of revenue associated with them, even if they were lower productivity, there still is some revenue associated with them.”
He said revenue from newly hired and promoted bankers was expected to ramp up through 2027.
Lazard plans to expand an IPO advisory business in the US, concentrating on advising companies without serving as an underwriter, the news agency added citing the company.
Lazard chairman and CEO Peter Orszag commented: “Lazard continues to progress toward our 2030 objectives, with underlying trends reinforcing our confidence in our long-term growth strategy.”
