Lazard Ltd

Lazard reported adjusted net revenue of $786 million for the second quarter of 2026, a 2% increase from the same period last year. On a U.S. GAAP basis, net revenue was $808 million, with net income of $5 million or $0.03 per diluted share, while adjusted net income was $13 million or $0.12 per diluted share. Asset Management adjusted net revenue rose 23% to $331 million, driven by record ending assets under management of $285 billion and the best first-half net inflows in nearly 20 years. Financial Advisory adjusted net revenue declined 9% to $445 million, though the firm achieved its strongest announced half-year league table position since 2014. CEO Peter Orszag highlighted progress toward the firm's 2030 objectives, and CFO Tracy Farr noted that an elevated quarterly tax rate is not indicative of the full-year rate.

Shares of Moelis and Lazard rose sharply in afternoon trading after major banks reported strong second-quarter earnings driven by surging investment banking and trading revenues. Moelis gained 4.4 percent and Lazard jumped 5 percent as JPMorgan's CFO described a booming environment for dealmaking, with M&A and IPO advisory fees reaching their highest levels since 2021. The rally reflects a broader bullish sentiment for corporate transactions, exemplified by Goldman Sachs beating profit expectations partly due to increased dealmaking activity. Lazard's move follows its recent role as financial advisor to Warburg Pincus on a 3.6 billion dollar private equity transaction involving a 130 million dollar investment in data infrastructure provider Oxylabs.

The cost of generating electricity from natural gas-fired power plants in the United States has climbed to its highest level in at least 17 years, according to new research published by Lazard Inc. The investment bank's latest analysis shows the levelized cost of energy for combined-cycle gas plants increased to $90 per megawatt-hour in 2026, up from $78 per megawatt-hour a year earlier, exceeding the previous high of $83 per megawatt-hour recorded in 2009. Lazard attributes much of the increase to surging electricity demand from artificial intelligence infrastructure and the rapid expansion of data centres across the United States. George Bilicic, Global Head of Power, Energy and Infrastructure at Lazard, said costs are likely to continue rising as additional computing capacity comes online to support AI applications. The levelized cost of utility-scale solar power increased to $69 per megawatt-hour, while onshore wind generation rose to $68 per megawatt-hour, both recording increases of more than 10% from the previous year and reaching their highest cost levels since at least 2014.

Lazard's 2026 Levelized Cost of Energy+ report finds renewable energy remains the lowest-cost option for new power generation despite inflationary pressures, tariffs, and supply chain constraints pushing up costs across virtually every generation technology. Solar and wind continue to offer the lowest unsubsidized levelized cost of new generation and are expected to account for most near-term U.S. capacity additions. The report argues that meeting rapidly growing electricity demand will require a diverse generation portfolio, and accelerating permitting and approval processes for new generation and transmission infrastructure will be critical to maintaining grid reliability. Battery energy storage costs increased this year, reversing recent declines, which Lazard attributed largely to tariffs on lithium-ion battery imports and new U.S. restrictions on batteries sourced from entities of concern. The report underscores a broader shift in power markets as developers prioritize technologies capable of delivering capacity quickly amid tightening supply-demand balances.

Lazard reported preliminary average assets under management of $279.1 billion for the second quarter of 2026, up from $265.5 billion in the first quarter. As of June 30, 2026, preliminary AUM stood at $284.7 billion, down marginally from $284.8 billion at the end of May. The month's AUM included market appreciation of $2.3 billion, foreign exchange depreciation of $3.3 billion, and a net increase of $0.8 billion, which comprised a $1 billion increase from acquiring a controlling interest in Elaia Partners and net outflows of $0.2 billion. Equity AUM totaled $214.36 billion, fixed income AUM amounted to $34.97 billion, multi-asset AUM came to $24.48 billion, and alternatives AUM was $10.82 billion. Positive net flows for the first half of 2026 reached $7.4 billion.

Several stocks made notable moves this week. Lazard rose 4.4% on Thursday after being named financial advisor to Warburg Pincus on a $3.6 billion private equity transaction. Cloudflare gained 6% on Tuesday following a Scotiabank upgrade to Sector Outperform and a price target increase to $300 from $225. DigitalOcean climbed 7% on Tuesday after pre-announcing record preliminary second-quarter 2026 results, with remaining performance obligations expected to top $800 million, more than ten times higher than a year earlier. Sonos advanced 2.5% on Tuesday after renewing an exclusive sales representative agreement with AdsWizz for its audio advertising inventory across Europe. Carnival rose 5.3% on Thursday after its board declared a quarterly dividend of $0.15 per share.