Lazard

Q2 FY2026 EarningsQ2 FY26 results presented a significant divergence between top-line strength and bottom-line weakness: net revenue of $807.7M beat the $736.0M consensus by 9.74%, while GAAP diluted EPS of $0.03 missed the $0.328 expectation by 90.85%. The earnings miss was primarily driven by a surge in the adjusted compensation ratio to 69.9% (vs. 65.5% YoY) and an abnormally high effective tax rate of 63.5%. While Asset Management fees grew 22% YoY, Financial Advisory revenue fell 9% due to lower M&A completion volumes, and special items related to management transitions and acquisitions further pressured margins.