Lazard’s fourth quarter results were shaped by robust growth in both its Financial Advisory and Asset Management businesses, driving performance above Wall Street’s expectations. Management attributed the strong quarter to record advisory revenues, particularly in Europe, the Middle East, and private capital advisory, as well as double-digit asset growth and improved managing director productivity. CEO Peter Orszag described 2025 as a year where “investments in exceptional talent and a diversified platform yielded significant revenue gains,” while CFO Mary Ann Betsch highlighted the firm’s participation in several high-profile transactions as a key performance factor.
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Lazard (LAZ) Q4 CY2025 Highlights:
- Revenue: $892.1 million vs analyst estimates of $814.7 million (9.8% year-on-year growth, 9.5% beat)
- Adjusted EPS: $0.80 vs analyst estimates of $0.69 (16.2% beat)
- Adjusted EBITDA: $84.98 million vs analyst estimates of $129.4 million (9.5% margin, 34.3% miss)
- Operating Margin: 9.5%, down from 13.2% in the same quarter last year
- Market Capitalization: $5.24 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lazard’s Q4 Earnings Call
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Brennan Hawken (BMO Capital Markets) asked about the outlook for non-M&A advisory businesses. CEO Peter Orszag explained that non-M&A revenue is expected to grow, especially in private capital advisory and restructuring, with a long-term goal of a 50-50 split between M&A and non-M&A.
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Mike Brown (UBS) inquired about trends in private equity M&A activity and the outlook for continuation vehicles. Orszag responded that a spike in activity is expected in 2026 as LPs seek liquidity, and continuation funds are seen as a permanent feature in private equity.
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Brendan O'Brien (Wolfe Research) questioned whether geopolitical tensions and the U.S. midterm elections could impact deal activity. Orszag said he has seen no impact on corporate dialogue and does not expect material changes from the midterms.
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Daniel Coquiara (Bank of America) asked about geographic trends in M&A and expectations for domestic versus international deal activity. Orszag noted early signs of U.S. CEO confidence and highlighted global client interest, with European companies affected by worldwide economic shifts.
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Devin Ryan (Citizens Bank) probed how AI investments are translating into operational efficiency and comp leverage. Orszag detailed practical AI applications in deal preparation, client briefings, and workflow optimization, which are expected to raise productivity and reduce team sizes over time.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of M&A and restructuring activity as new mandates are executed, (2) the realization of positive net flows in Asset Management, and (3) the successful onboarding and productivity gains from new managing directors. Additional focus will be on how AI adoption impacts operational efficiency and client outcomes.
Lazard currently trades at $55.25, up from $52.61 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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