Lazard Exceeds Q3 Profit Forecast as M&A and Asset Management Surge
Lazard Surpasses Q3 Profit Estimates Amid Global Dealmaking Revival
October 23, 2025 — Global financial advisory and asset management firm Lazard Ltd (NYSE: LAZ) outperformed Wall Street expectations for its third-quarter profit, driven by a sharp rebound in mergers and acquisitions (M&A) and record results in its asset management division.
The resurgence in corporate dealmaking — fueled by robust equity markets and renewed client confidence — helped Lazard deliver adjusted earnings per share (EPS) of $0.56, beating analyst forecasts of $0.45, according to LSEG data.
“We see an increasingly constructive environment for both of our businesses, with substantial client engagement firmwide,” said Peter Orszag, CEO of Lazard.
Strong M&A Recovery Powers Advisory Revenue Growth
Lazard’s financial advisory revenue surged 14% year-over-year, reaching a record $422 million for the quarter. The uptick mirrors broader industry trends, with leading Wall Street institutions such as JPMorgan and Goldman Sachs also reporting strong pipelines amid revived global M&A activity.
The firm played a key role in several high-profile transactions, including:
- Ferrero Group’s $3.1 billion acquisition of WK Kellogg Co.
- Corteva Agriscience’s planned restructuring and separation into multiple businesses.
This wave of corporate activity underscores a rebound in strategic consolidation after years of muted dealmaking caused by elevated interest rates and global economic uncertainty.
Restructuring Advisory Division Shows Continued Strength
Lazard also remains one of Wall Street’s most active restructuring advisors, benefiting from continued volatility in credit markets. The firm’s restructuring and liability management unit handled several notable assignments, including Altice France and First Brands.
The division’s strong performance reflects Lazard’s ability to capitalize on both growth and downturn cycles, positioning itself as a trusted advisor across varying market conditions.
Record Asset Management Performance Adds to Gains
Lazard’s asset management business recorded 8% growth in adjusted revenue, climbing to $294 million in Q3 2025. The company reported record net inflows for the third quarter, buoyed by a surge in investor confidence amid a broad equity market rally.
Assets under management (AUM) rose to $265 billion as of September 30, up from $248 billion in the same period last year — reflecting gains across equity, fixed income, and alternative investment portfolios.
The strong performance in asset management underscores Lazard’s diversified revenue model, balancing cyclical investment banking income with stable, recurring fee-based earnings.
Total Revenue and Profit Outlook
Lazard’s overall adjusted revenue reached a record $725 million, up 12% year-over-year, driven by broad-based growth across both advisory and asset management businesses.
The firm’s solid earnings report reinforces its competitive edge among mid-sized investment banks, leveraging its global advisory expertise and growing institutional client base.
Looking ahead, Lazard executives expressed optimism about continued momentum in both deal advisory and asset management, citing improved corporate sentiment, easing interest rates, and rising market valuations.
Lazard Q3 2025 Earnings Highlights
| Financial Metric | Q3 2025 | Q3 2024 | Change YoY |
|---|---|---|---|
| Adjusted EPS | $0.56 | $0.40 | +40% |
| Total Adjusted Revenue | $725 million | $647 million | +12% |
| Financial Advisory Revenue | $422 million | $370 million | +14% |
| Asset Management Revenue | $294 million | $272 million | +8% |
| Assets Under Management | $265 billion | $248 billion | +7% |
Market Context and Industry Outlook
The broader investment banking sector is showing signs of revival, with global M&A volume rising after a two-year slump. Analysts attribute the surge to improved corporate balance sheets, easing inflation pressures, and resilient equity valuations near record highs.
As deal flow accelerates, Lazard’s expertise in both strategic advisory and restructuring positions it to maintain strong growth momentum into 2026.
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