Lazard shares gain as record advisory revenue drives Q4 beat
Financial Advisory segment hits $1.8B full-year revenue while assets under management climb 12%
Lazard Ltd shares rose in pre-market trading Thursday after the global financial advisory and asset management firm reported fourth-quarter revenue that exceeded analyst expectations, driven by record performance in its Financial Advisory division.
The New York-based firm reported net revenue of $907 million for the final quarter of 2025, surpassing the average analyst estimate of $876.3 million, according to market data compiled by StockTitan. Adjusted earnings per share of $0.80 topped analyst forecasts which had ranged between $0.67 and $0.86.
Lazard's stock gained 1% in pre-market trading, changing hands at $51.89 after closing Wednesday at $51.37. The positive reaction marks a turnaround from recent analyst caution, with Zacks Research having downgraded the shares to "strong sell" earlier this month over concerns about earnings declines.
The standout performance came from Lazard's Financial Advisory segment, which achieved record full-year adjusted net revenue of $1.8 billion in 2025. The division specializes in mergers and acquisitions, restructuring, and capital raising advisory services, benefiting from sustained dealmaking activity despite broader market volatility.
"Our Financial Advisory business delivered exceptional results in 2025, achieving record full-year adjusted net revenue," Lazard said in its earnings announcement.
Assets under management in the company's Asset Management division climbed 12% year-over-year to $254 billion, providing evidence of strong client inflows and positive market performance. For the full year 2025, Lazard reported net revenue of $3.099 billion and adjusted net revenue of $3.030 billion.
The earnings beat comes at a moment of strategic transition for the 175-year-old firm. Lazard announced the appointment of Tracy Farr as chief financial officer, effective February 1, 2026. Farr, a managing director in Lazard's Capital Structure Advisory group, will succeed Mary Ann Betsch, who will transition to a senior advisor role. Farr brings over a decade of experience at Lazard, having previously held senior positions on the corporate development and strategy team, according to the company's statement.
Analyst sentiment ahead of the release was mixed. Morgan Stanley analyst Ryan Kenny lowered the firm's price target to $59 from $61 while maintaining an "Underweight" rating, citing expected lower Advisory revenue in the fourth quarter. Conversely, BofA Securities initiated coverage on Lazard with a "Buy" rating and a $65 price target just days before the earnings announcement, highlighting the firm's diversified business model and cyclical tailwinds in M&A activity.
The consensus analyst rating before the earnings report was generally a "Hold" with an average target price of $54.86, according to MarketBeat data. The company's shares have traded within a 52-week range of $30.95 to $57.48, reflecting broader volatility in the financial services sector.
Lazard's performance stands out against a challenging backdrop for investment banks, which have faced pressure from subdued dealmaking volumes and market uncertainty. The firm's ability to grow both its advisory business and assets under management suggests resilience in its dual-business model, which pairs high-margin advisory services with more stable asset management fees.
Looking ahead, investors will focus on whether Lazard can sustain the momentum in its Financial Advisory division given expectations for improved M&A activity in 2026. The firm's strong AUM growth also positions it to benefit from continued net inflows if market conditions remain favorable. The new CFO appointment, meanwhile, signals continuity in leadership at a time when Wall Street firms are navigating regulatory changes and evolving client demands.