Lazard CEO on Q2 results: Forward indicators are starting to translate into revenue and earnings
Speakers
Peter Orszag
— CEO
Summary
Lazard CEO Peter Orszag discusses Q2 earnings, progress on the firm's 2030 plan, and a strong pipeline of forward indicators that he expects will boost revenue and stock price. He also notes that the US economy is increasingly a levered bet on AI, but highlights potential risks from open source models and airgapped local compute, which could reduce cloud reliance.
- Lazard Q2 earnings miss on bottom line due to anomalous tax rate, but revenue beats expectations.
- Asset management unit sees positive net flows, highest in 20 years, and record AUM.
- 40% of managing directors turned over to upgrade talent, creating a J-curve that is now turning positive.
- Weighted backlog for next year up over 100% YoY, with acceleration expected into 2027.
- CEO expects stock price to reflect execution as forward indicators convert to revenue and earnings.
- US economy described as a levered bet on AI, with evolving models but vulnerabilities around open source and local compute reducing cloud reliance.
- Lazard is investing in high-fee-pool sectors: healthcare, industrials, technology, and private capital.
- Acquisition of Campbell Lutchkins to make Lazard a leader in primary and secondary fundraising.
Ideas
Lazard execution will drive stock price
Lazard is emerging from its J-curve period after upgrading 40% of managing directors. Forward indicators such as backlog up over 100% year-over-year, best league table standing since 2014, and conflict clearances up 40% are starting to translate into revenue and earnings, with a significant positive shift expected by 2027. The stock price will reflect continued execution.
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Speakers: Peter Orszag · Tickers: LAZ