2Q26 First Read: Comp Ratio Miss Overshadows Better-Than-Feared Revenue

Research evidence excerpt

2Q26 First Read: Comp Ratio Miss Overshadows Better-Than-Feared Revenue

Global Research

23 July 2026ab

First Read

EquitiesLazard

2Q26 First Read: Comp Ratio Miss Overshadows United States

Better-Than-Feared Revenue Diversified Financial

12-month rating Neutral *

12m price target US$44.00

Quick Take: Expect shares underperformance from comp ratio miss

Revenue was better than feared, but this was overshadowed by a higher compensation

ratio, with the tax rate also contributing to the miss. The adjusted comp ratio remained Price (22 Jul 2026) US$43.58

flat to 1Q's 69.9%, above the Street estimate of 66.7%. In the PR, management RIC: LAZ.N BBG: LAZ US

remains optimistic that advisory talent repositioning will drive better productivity and

Trading data and key metrics

revenue growth, though investors will need to see proof in the 2H with comp leverage

too. Despite already-negative sentiment, we expect shares to underperform today. Call 52-wk range US$57.75-39.11

at 8am. Market cap. US$4.13b

Shares o/s 94.9m (COM)

EPS LAZ reported adj EPS of $0.12, a miss to Street estimates of $0.34 and our Free float 98%

$0.37 estimate.

Avg. daily volume ('000) 746

Advisory revenues were stronger than expected, after management lowered Avg. daily value (m) US$32.9

expectations at an investor conference leading estimates to decrease 11% Common s/h equity (12/26E) US$0.98b

entering the print. Adv revs were a 29c beat to our estimates and 20c beat relative P/BV (12/26E) 4.6x

to the Street and down 9% Y/Y. Tier 1 ratio -

The public pipeline looks strong, with deal volumes up ~40% since last quarter, EPS (UBS, diluted) (USD)

and management has sounded confident around the outlook for 2H. 12/26E

Asset Management revenues were stronger than expected, with a 4c and 9c UBS Cons.