PRU

It has been about a month since the last earnings report for Prudential (PRU). Shares have lost about 0.3% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Prudential due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. PRU Q2 Earnings Beat Estimates on PGIM and International StrengthPrudential Financial, Inc. reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year. Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Results benefited from stronger PGIM and International Businesses earnings, while assets under management increased 3.9% to $1.64 trillion. Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion. Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion. These gains helped adjusted operating income before taxes increase 9.7% year over year to $1.83 billion. PGIM revenues increased 6.1% year over year to $1.11 billion. Adjusted operating income surged 28.4% year over year to $294 million, reflecting higher asset management fees driven by equity market appreciation and strong investment performance. The metric beat the Zacks Consensus Estimate by 12.6%. The segment also benefited from higher net service, distribution and other revenues. These gains were partially offset by the impact of net outflows and higher interest rates. PGIM assets under management increased 4% to $1.49 trillion, primarily driven by equity market appreciation and strong investment performance. Total net inflows were $1.6 billion, as third-party inflows of $4.6 billion more than offset affiliated outflows of $3 billion. U.S. Businesses generated adjusted operating income of $957 million, up from $955 million a year ago. A favorable impact from the annual assumption update offset higher expenses and less favorable underwriting.Retirement adjusted operating income declined slightly to $392 million from $397 million. Higher expenses and unfavorable mortality and run-off experience in the pension risk transfer block outweighed improved net investment spread results. Retirement account values increased 4.2% year over year to $362.73 billion. Quarterly sales totaled $6.8 billion, including $3.6 billion of retail annuity sales, supported by demand for registered index-linked annuity products. Group Insurance adjusted operating income increased 24% year over year to a record $155 million. The metric beat the Zacks Consensus Estimate by 31.4%. The increase reflected a favorable assumption update, better life underwriting from favorable mortality and higher spread income, partly offset by growth-related expenses.Year-to-date Group Insurance sales climbed 25.6% to $599 million. Growth was driven by disability products, including supplemental health offerings and continued momentum in the Premier middle-market segment.Individual Life adjusted operating income more than doubled to $176 million from $82 million. The metric beat the Zacks Consensus Estimate by 12.1%. More favorable assumption updates, improved underwriting and higher spread income supported the increase.Second-quarter Individual Life sales rose 9.2% year over year to a record $237 million, primarily due to sustained demand for variable accumulation products. U.S. Legacy Products adjusted operating income declined 33.3% year over year to $234 million. The metric missed the Zacks Consensus Estimate by 6.4%. The decrease reflected a less favorable assumption update, weaker guaranteed universal life underwriting and lower fee income from the continued run-off of traditional variable annuities. Legacy annuity account values decreased 7.1% year over year to $76.09 billion. Net outflows from the run-off block more than offset the benefit of market appreciation.Total benefits and expenses increased 4.1% year over year to $12.33 billion. Operating expenses rose 6.1% year over year to $1.73 billion, while interest credited to policyholders’ account balances increased 21.6% year over year to $1.38 billion. International Businesses adjusted operating income increased 12.4% year over year to $855 million. Results benefited from higher spread income, a favorable assumption update, increased joint venture earnings and continued business growth in Brazil. The metric beat the Zacks Consensus Estimate by 20.8%. These gains were partly offset by higher expenses and less favorable underwriting linked to Prudential of Japan’s voluntary sales suspension. Constant-dollar sales fell 32.5% year over year to $361 million, primarily due to the suspension.Corporate and Other recorded an adjusted operating loss of $279 million compared with the year-ago loss of $280 million. Prudential Financial now expects the segment’s full-year 2026 loss to total $1.55 billion. Parent company highly liquid assets totaled $4.2 billion, exceeding the company’s target of more than $3 billion. Total assets increased 3.2% year over year to $783.55 billion. Adjusted book value per share increased 4.7% year over year to $100.91. Adjusted operating return on equity expanded 150 basis points to 16.4%. Prudential Financial returned $743 million to shareholders during the quarter, including $250 million through share repurchases and $493 million in dividends. The quarterly dividend was $1.40 per share. It turns out, estimates revision have trended upward during the past month. Currently, Prudential has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a grade of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Prudential has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Prudential is part of the Zacks Insurance - Multi line industry. Over the past month, Everest Group (EG), a stock from the same industry, has gained 1.3%. The company reported its results for the quarter ended June 2026 more than a month ago. Everest Group reported revenues of $3.96 billion in the last reported quarter, representing a year-over-year change of -11.8%. EPS of $14.85 for the same period compares with $17.36 a year ago. For the current quarter, Everest Group is expected to post earnings of $8.58 per share, indicating a change of +13.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.7% over the last 30 days. Everest Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Prudential Financial, Inc.? Here are five stocks we like better. Prudential reported strong Q2 results: Adjusted operating income rose 14% year over year to approximately $1.4 billion, or $4.08 per share, while operating return on equity increased to 15.5%. The company is narrowing its focus: Prudential plans to concentrate on the U.S., Japan and select European markets, exit roughly six or seven emerging markets, and redirect more than $3 billion of supporting capital toward PGIM, retirement and U.S. protection businesses. Efficiency and growth targets increased: Prudential raised its cost-savings goal to $750 million in annual pre-tax run-rate benefits by the end of 2028, while targeting a substantially larger contribution from PGIM and continued expansion in annuities, group insurance and individual life. Will the Fed Cut or Pause? These Finance Stocks Can Win Either Way Prudential Financial (NYSE:PRU) outlined a refreshed multi-year strategy centered on narrowing its geographic footprint, expanding selected businesses, increasing the contribution from capital-light operations and reducing costs, while reporting second-quarter adjusted operating income that rose 14% from a year earlier. Chairman and Chief Executive Officer Andrew Sullivan said the company intends to focus its capital, talent and management attention on the U.S., Japan and select European markets. The plan calls for Prudential to reduce the footprint of its retirement and insurance operations by roughly half, exiting emerging markets while seeking to maximize the value of those businesses through sales. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Finance Stocks to Buy on Rising 10-Year Treasury Rates “The status quo is not an option,” Sullivan said, describing a strategy designed to build a simpler company with fewer priorities and stronger execution. Prudential said it expects to free up well north of $3 billion of supporting capital through its emerging-market exits. Sullivan told analysts that the company expects the exits, which encompass approximately six or seven markets, to be primarily sales of businesses rather than shutdowns. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Institutional Investors Bet $1B on These 4 Stocks—Should You? The company did not provide a timetable or identify specific markets, saying the process will take time as it seeks suitable buyers and outcomes for customers, employees and shareholders. Sullivan characterized the broader strategic effort as a longer-term, roughly five-year undertaking, though he said the company will actively pursue capital deployment opportunities throughout that period rather than waiting until the end. Prudential plans to rotate capital toward PGIM, its asset-management business; U.S. Group Insurance; and retirement capabilities, particularly in Europe. Sullivan said the company has broadened the range of areas in which it may pursue inorganic growth beyond asset management alone. → No Hangover: Revisiting Microsoft One Week After Earnings Chief Financial Officer Yanela Frias said emerging markets are not a major contributor to Prudential’s cash generation today because the operations have been growing and consuming capital. The company’s strategy centers on global retirement, asset management and selected U.S. protection businesses. Prudential expects PGIM’s share of annual adjusted operating income to rise to about 25%, more than double its current approximately 12% contribution. Sullivan said PGIM’s existing scale in credit, real estate and private placements provides a foundation for expansion into asset-backed finance and direct lending, as well as adjacent areas including infrastructure equity and primary private equity. The company also aims to increase PGIM’s international and retail presence. About one-quarter of PGIM’s third-party assets under management currently come from outside the U.S., according to management. In retirement, Prudential plans to build its retail annuity position in the U.S. and maintain its leadership in pension risk transfer transactions. It also intends to expand European retirement capabilities. Japan remains a core market, although Prudential of Japan is working through a voluntary sales suspension and plans to implement changes needed to resume sales by Nov. 5, with sales restarting Nov. 6. For U.S. protection businesses, Prudential is targeting growth in Group Insurance through product and customer-segment diversification, including the middle market, disability, absence management and supplemental health. The company said Individual Life will continue to pursue growth through disciplined pricing, product innovation and capital allocation. Prudential increased its efficiency target to approximately $750 million of pre-tax run-rate benefits by the end of 2028, compared with a prior target of $150 million in 2027. The full benefit is expected to be reflected in 2029 operating results. Frias said the program will include organizational simplification, fewer management layers, changes to the workforce footprint, expanded use of captive talent hubs in lower-cost global locations, streamlined technology and applications, and improved use of data and analytics. The company’s adjusted operating expense ratio improved by about 100 basis points year over year in 2025 to roughly the midpoint of its 8.5% to 10.5% target range. Prudential expects to improve the ratio by another 150 basis points over the next three years. Frias said the savings will provide capacity for investment as well as expense reduction, and management encouraged investors to assess progress through the operating expense ratio and PGIM’s operating margin rather than a fixed allocation of savings to the bottom line. Prudential’s stated long-term objective is “top-quartile” earnings growth excluding its legacy variable annuities business. Frias said that, in current terms, top-quartile earnings growth is in the high-single-digit range, but stressed that the company was not establishing a new specific earnings-growth target. Prudential reported after-tax adjusted operating income of approximately $1.4 billion, or $4.08 per share, up 14% year over year. Year-to-date operating return on average equity increased 110 basis points to 15.5%. Frias said results benefited from higher spread income, a net favorable assumption update and higher asset-management fees. Higher operating expenses related to the Prudential of Japan sales suspension and sales-related variable costs partially offset those gains. The company recorded a one-time pre-tax net benefit of $65 million to adjusted operating income from its annual assumption update, while the total pre-tax GAAP effect was a $379 million loss. PGIM: Pre-tax adjusted operating income rose 28% to $294 million, and adjusted operating margin increased 470 basis points to 28.2%. Institutional and retail third-party net flows totaled $4.6 billion, while active ETF assets under management increased nearly 21% sequentially to nearly $35 billion. Retirement: Retail annuity sales increased 14% to $3.6 billion, supported by registered index-linked annuities and fixed annuities. Pre-tax adjusted operating income was $392 million, essentially unchanged year over year. Prudential completed about $1 billion of longevity reinsurance sales across three U.K. middle-market transactions but had no material pension risk transfer activity during the quarter. Group Insurance: The segment reported record pre-tax adjusted operating income of $155 million, up 24% from a year earlier. Year-to-date sales increased 26% to $599 million. Individual Life: Pre-tax adjusted operating income more than doubled to $176 million, while sales reached a second-quarter record of $237 million. International: Pre-tax adjusted operating income increased 12% to $855 million. The Prudential of Japan sales suspension had a $105 million impact during the quarter, below management’s expectations. Prudential maintained its estimate that the Japan sales suspension will reduce full-year 2026 pre-tax adjusted operating income by approximately $525 million to $575 million. The company said it does not expect material effects on capital, economic solvency ratio or cash flows in 2026 and 2027 from the suspension. At quarter-end, Prudential had $4.2 billion of cash and liquid assets, above its $3 billion minimum liquidity target. The company lowered its expected 2026 corporate and other loss to $1.55 billion from $1.65 billion, primarily reflecting one-time items. Prudential Financial, Inc, headquartered in Newark, New Jersey, is a diversified financial services company with roots dating to 1875. The firm provides a range of insurance, retirement and investment products aimed at helping individual and institutional clients manage risk, accumulate and protect wealth, and plan for retirement. Prudential's long history in life insurance and related financial services has positioned it as a major participant in the U.S. insurance market and a provider of services to a broad client base. Prudential's core business activities include individual life insurance, annuities, retirement solutions and group insurance products for employers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Prudential Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

In early August 2026, Prudential Financial, Inc. reported higher net income of US$985 million and diluted EPS of US$2.80 for the second quarter, alongside the completion of a US$498.51 million share repurchase covering 4,875,776 shares announced in December 2025. Together, the stronger profitability and sizable buyback highlight management’s focus on capital return while continuing to weigh potential acquisitions that must clear a high hurdle for fit and economics. We’ll now examine how Prudential’s stronger quarterly earnings performance could influence the existing investment narrative around its growth, margins, and capital allocation. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. To own Prudential Financial, you need to believe it can translate its broad insurance and investment footprint into consistent earnings while balancing growth against disciplined capital returns. The latest quarter’s stronger net income and EPS, alongside ongoing share repurchases, supports that capital return story in the near term, while the most immediate risk remains execution across complex businesses where competition, regulation, and legacy blocks can quickly pressure margins. Overall, this news does not materially change that risk profile. The completion of the US$498.51 million buyback, retiring 4,875,776 shares, stands out as most relevant here, as it sits alongside higher first half net income of US$1,582 million and EPS of US$4.48. Together, they reinforce that management is currently prioritizing shareholder payouts even as they evaluate potential acquisitions, which ties directly into how investors think about Prudential’s capital allocation as a key catalyst. Yet while capital returns look appealing, investors still need to be aware of the ongoing earnings drag from Prudential’s legacy variable annuity runoff and how it could... Read the full narrative on Prudential Financial (it's free!) Prudential Financial's narrative projects $63.1 billion revenue and $5.4 billion earnings by 2029. This requires flat yearly revenue growth and a $1.5 billion earnings increase from $3.9 billion. Uncover how Prudential Financial's forecasts yield a $106.93 fair value, a 12% downside to its current price. Two fair value estimates from the Simply Wall St Community span roughly US$107 to US$239 per share, showing how far apart individual views can sit. You can weigh these against the current focus on buybacks and disciplined acquisition hurdles, which many see as central to Prudential’s ability to manage earnings volatility and capital needs over time. Explore 2 other fair value estimates on Prudential Financial - why the stock might be worth as much as 97% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Prudential Financial research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision. Our free Prudential Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Prudential Financial's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Outshine the giants: these 16 early-stage AI stocks could fund your retirement. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PRU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Prudential Financial, Inc. PRU reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year.Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Results benefited from stronger PGIM and International Businesses earnings, while assets under management increased 3.9% to $1.64 trillion. Prudential Financial, Inc. price-consensus-eps-surprise-chart | Prudential Financial, Inc. Quote Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion.Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion. These gains helped adjusted operating income before taxes increase 9.7% year over year to $1.83 billion. PGIM revenues increased 6.1% year over year to $1.11 billion. Adjusted operating income surged 28.4% year over year to $294 million, reflecting higher asset management fees driven by equity market appreciation and strong investment performance. The metric beat the Zacks Consensus Estimate by 12.6%. The segment also benefited from higher net service, distribution and other revenues. These gains were partially offset by the impact of net outflows and higher interest rates.PGIM assets under management increased 4% to $1.49 trillion, primarily driven by equity market appreciation and strong investment performance. Total net inflows were $1.6 billion, as third-party inflows of $4.6 billion more than offset affiliated outflows of $3 billion. U.S. Businesses generated adjusted operating income of $957 million, up from $955 million a year ago. A favorable impact from the annual assumption update offset higher expenses and less favorable underwriting.Retirement adjusted operating income declined slightly to $392 million from $397 million. Higher expenses and unfavorable mortality and run-off experience in the pension risk transfer block outweighed improved net investment spread results.Retirement account values increased 4.2% year over year to $362.73 billion. Quarterly sales totaled $6.8 billion, including $3.6 billion of retail annuity sales, supported by demand for registered index-linked annuity products. Group Insurance adjusted operating income increased 24% year over year to a record $155 million. The metric beat the Zacks Consensus Estimate by 31.4%. The increase reflected a favorable assumption update, better life underwriting from favorable mortality and higher spread income, partly offset by growth-related expenses.Year-to-date Group Insurance sales climbed 25.6% to $599 million. Growth was driven by disability products, including supplemental health offerings and continued momentum in the Premier middle-market segment.Individual Life adjusted operating income more than doubled to $176 million from $82 million. The metric beat the Zacks Consensus Estimate by 12.1%. More favorable assumption updates, improved underwriting and higher spread income supported the increase.Second-quarter Individual Life sales rose 9.2% year over year to a record $237 million, primarily due to sustained demand for variable accumulation products. U.S. Legacy Products adjusted operating income declined 33.3% year over year to $234 million. The metric missed the Zacks Consensus Estimate by 6.4%. The decrease reflected a less favorable assumption update, weaker guaranteed universal life underwriting and lower fee income from the continued run-off of traditional variable annuities.Legacy annuity account values decreased 7.1% year over year to $76.09 billion. Net outflows from the run-off block more than offset the benefit of market appreciation.Total benefits and expenses increased 4.1% year over year to $12.33 billion. Operating expenses rose 6.1% year over year to $1.73 billion, while interest credited to policyholders’ account balances increased 21.6% year over year to $1.38 billion. International Businesses adjusted operating income increased 12.4% year over year to $855 million. Results benefited from higher spread income, a favorable assumption update, increased joint venture earnings and continued business growth in Brazil. The metric beat the Zacks Consensus Estimate by 20.8%. These gains were partly offset by higher expenses and less favorable underwriting linked to Prudential of Japan’s voluntary sales suspension. Constant-dollar sales fell 32.5% year over year to $361 million, primarily due to the suspension.Corporate and Other recorded an adjusted operating loss of $279 million compared with the year-ago loss of $280 million. Prudential Financial now expects the segment’s full-year 2026 loss to total $1.55 billion. Parent company highly liquid assets totaled $4.2 billion, exceeding the company’s target of more than $3 billion. Total assets increased 3.2% year over year to $783.55 billion.Adjusted book value per share increased 4.7% year over year to $100.91. Adjusted operating return on equity expanded 150 basis points to 16.4%.Prudential Financial returned $743 million to shareholders during the quarter, including $250 million through share repurchases and $493 million in dividends. The quarterly dividend was $1.40 per share. Prudential Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Assurant, Inc. AIZ reported second-quarter 2026 adjusted earnings of $6.41 per share, beating the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year. Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%. Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million. Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments.Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Gross written premiums declined 19.4% year over year to $3.77 billion. Our estimate was $3.8 billion. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion.Total claims and expenses fell 10.8% year over year to $3.28 billion. Our estimate was $3.4 billion. Incurred losses and loss-adjustment expenses declined 12.2%, while commission, brokerage, taxes and fees decreased 7.5%. Other underwriting expenses fell 11.4%.Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Prudential (PRU) reported $14.16 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 4.8%. EPS of $4.08 for the same period compares to $3.58 a year ago. The reported revenue represents a surprise of +0.02% over the Zacks Consensus Estimate of $14.15 billion. With the consensus EPS estimate being $3.47, the EPS surprise was +17.58%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Prudential performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: U.S. Businesses - Retirement - Account Values - Ending account value, net: $362.73 billion versus the three-analyst average estimate of $371.56 billion. Assets Under Management and Administration - PGIM - Affiliated: $546.00 billion versus $545.92 billion estimated by three analysts on average. U.S. Businesses - U.S. Legacy Products - Account Values - Net flows: $-3.54 billion versus the three-analyst average estimate of $-3.24 billion. U.S. Businesses - U.S. Legacy Products - Account Values - Ending account value, net: $76.09 billion versus $72.86 billion estimated by three analysts on average. Total Revenues- Adjusted Operating Income (Loss) basis- Net investment income: $5.15 billion compared to the $4.93 billion average estimate based on four analysts. The reported number represents a change of +12% year over year. Total Revenues- Adjusted Operating Income (Loss) basis- Policy charges and fee income: $1.14 billion versus the four-analyst average estimate of $1.09 billion. The reported number represents a year-over-year change of +6.4%. Total Revenues- Adjusted Operating Income (Loss) basis- Premiums: $6.33 billion versus the four-analyst average estimate of $6.7 billion. The reported number represents a year-over-year change of -1.6%. Total Revenues- Corporate and Other: $145 million versus the three-analyst average estimate of $47.42 million. The reported number represents a year-over-year change of +158.9%. Premiums- U.S. Businesses- Individual Life: $232 million versus the three-analyst average estimate of $233.7 million. Policy charges and fee income- U.S. Businesses- Individual Life: $460 million versus the three-analyst average estimate of $447.6 million. Net investment income- U.S. Businesses- Individual Life: $377 million compared to the $363.49 million average estimate based on three analysts. Asset management fees, commissions and other income- U.S. Businesses- Individual Life: $92 million compared to the $86.67 million average estimate based on three analysts. View all Key Company Metrics for Prudential here>>> Shares of Prudential have returned +7.6% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. After-Tax Adjusted Operating Income: $1.4 billion, or $4.08 per share, up 14% year over year. Operating Return on Average Equity (ROE): 15.5% year-to-date, up 110 basis points. PGIM Pre-Tax Adjusted Operating Income: $294 million, up 28% year over year. PGIM Adjusted Operating Margin: 28.2%, up 470 basis points year over year. US Businesses Pre-Tax Adjusted Operating Income: Approximately $1 billion, essentially unchanged versus the prior year quarter. Retirement Pre-Tax Adjusted Operating Income: $392 million, essentially unchanged year over year. Retail Annuity Sales: $3.6 billion in the quarter, a 14% increase. Retail Annuity Account Values: Rose more than 30% to $66 billion. Net Account Values (Retirement): $363 billion at quarter end, up 4% year over year. Group Insurance Pre-Tax Adjusted Operating Income: Record $155 million, up 24% versus the prior year period. Group Insurance Total Benefits Ratio: Improved to 80.4% in the quarter. Group Insurance Year-to-Date Sales: Totaled $599 million, increasing 26% from the prior-year period. Individual Life Pre-Tax Adjusted Operating Income: $176 million in the quarter, more than doubling year over year. Individual Life Sales: $237 million, a second-quarter record. US Legacy Products Pre-Tax Adjusted Operating Income: $234 million, down 33% year over year. International Businesses Pre-Tax Adjusted Operating Income: $855 million, up 12% year over year. Impact of Prudential of Japan Sales Suspension: Totaled $105 million in the quarter. PGIM Private Capital (Trades, Portfolio) Deployment: Nearly $21 billion in the second quarter, up nearly 60% sequentially. PGIM Third-Party Net Flows: Totaled $4.6 billion. PGIM Active ETF AUM: Approaching $35 billion, up nearly 21% sequentially. Longevity Reinsurance Sales: $1 billion completed in the quarter. Cash and Liquid Assets: $4.2 billion at quarter end. Prudential Holdings of Japan ESR Ratio: Estimated in the range of 170% to 190% as of June 30. Annual Assumption Update: One-time pre-tax net benefit of $65 million to AOI. Corporate and Other Loss Guidance: Lowered expected 2026 loss to $1.55 billion. Warning! GuruFocus has detected 7 Warning Sign with PRU. Is PRU fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Prudential Financial Inc (NYSE:PRU) reported strong Q2 results with after-tax adjusted operating income of $1.4 billion or $4.08 per share, up 14% year-over-year, and year-to-date operating ROE increased 110 basis points to 15.5%. The company outlined a refreshed strategy to narrow its geographic footprint, focusing on large developed markets (US, Japan, select European countries) and exiting emerging markets, which is expected to free up well north of $3 billion in capital for redeployment into higher-growth areas. PGIM delivered strong performance with a 28% increase in pre-tax adjusted operating income and a 470 basis point improvement in adjusted operating margin to 28.2%, driven by higher asset management fees and strong investment performance. Group Insurance achieved record quarterly earnings, up 24% year-over-year, with a benefits ratio of 80.4% below the target range, reflecting favorable underwriting and successful claims management investments. The company raised its efficiency target to $750 million in pre-tax run-rate benefits by year-end 2028, up from the original $150 million target, and expects to improve its adjusted operating expense ratio by an additional 150 basis points over the next three years. Retail annuity sales grew 14% to $3.6 billion, driven by strong demand for RILA products like FlexGuard 2.0, and Individual Life sales set a second-quarter record, reflecting successful product innovation and distribution expansion. Prudential Financial Inc (NYSE:PRU) continues to face significant headwinds from the voluntary sales suspension at Prudential of Japan, with an expected full-year 2026 pre-tax AOI impact of $525 million to $575 million, and the suspension is not expected to be lifted until November 5. The company's strategy execution will take time and progress is expected to be non-linear, with no new earnings growth target set, which may create uncertainty for investors. Pension risk transfer (PRT) sales remained muted in Q2 with a notable absence of jumbo transactions, and the company anticipates 2026 transaction volumes will remain below recent record levels. PGIM experienced affiliated net outflows of $3 billion, primarily due to variable annuity runoffs, and had to overcome approximately $5 billion in equity outflows from the industry-wide shift from active to passive management. The annual assumption update resulted in a one-time pre-tax GAAP loss of $379 million, primarily due to unfavorable lapse and mortality assumptions in retirement and long-term care within divested businesses. The company faces execution risks in exiting emerging markets, as the process will take time and involve finding suitable buyers, with no guarantee of achieving maximum value. Q: How will the capital from exiting emerging markets be freed up, and over what period? Will these be sales or shutdowns?A: Andy Sullivan, Chairman and CEO, stated that the company plans to exit roughly six or seven emerging markets, with the priority being to maximize value. He expects the capital freed up to be "well north of $3 billion." The exits will primarily be sales of businesses rather than shutdowns, as these are valuable platforms. The process will take time to find the right buyers, and the strategy is a longer-term, five-year execution plan. Q: What is the expected earnings growth target under the new strategy, and how does it compare to the previous 5% to 8% EPS growth target?A: CFO Yanela Frias clarified that the new objective is "top quartile earnings growth," which translates to around high-single-digit growth, excluding the Legacy Variable Annuities business. She noted that the company is not setting a new formal target today because the strategy will build progressively and requires the resumption of sales at Prudential of Japan. The previous 5% to 8% target was for EPS growth, which is impacted by buybacks and capital deployment. Q: Can you unpack the drivers of the better-than-expected POJ sales suspension impact in Q2, and why doesn't this translate to a lower full-year guidance?A: CFO Yanela Frias explained that the Q2 impact was $105 million, down from $130 million in Q1, primarily due to a $45 million customer reimbursement accrual booked last quarter. Approximately $70 million related to Life Planner compensation. While surrenders moderated below expectations, it is premature to lower the full-year guidance of $525 million to $575 million because the impacts are not linear. Lost sales and surrenders compound through the year, and Life Planner compensation grows as they are paid a percentage of new business. Q: What is the breakdown of the $750 million in pre-tax run rate cost savings, and will these savings fall to the bottom line or be reinvested?A: CFO Yanela Frias stated that the $750 million in savings is part of a comprehensive approach to simplify and optimize the organization, focusing on the "what, where, and how" of work. It is viewed as a source of capacity and capital to invest in growth. The company will measure success through its operating expense ratio, which it expects to improve by 150 basis points over the next three years, and the PGIM margin. Q: How does the new strategy differ from past strategies, and what gives you confidence in execution?A: CEO Andy Sullivan highlighted two key differences: focus and execution. The company is making difficult decisions to narrow its geographic footprint and concentrate capital on markets where it can scale and win, a major shift from past expansion efforts. He also noted a raised bar on capital deployment and changes to performance and compensation systems to drive accountability, evidenced by meeting or exceeding expectations in five of the last six quarters. Q: Are there any changes to the capital management philosophy, including buybacks, dividends, or issuing equity to fund a bigger deal?A: CFO Yanela Frias confirmed the capital deployment philosophy remains consistent: maintaining financial strength, investing in growth, and returning capital to investors. The bar for issuing equity or adjusting the buyback strategy is very high and would require a clear, credible path to value creation that justifies dilution. The company has multiple tools to source capital, including balance sheet optimization and reinsurance. Q: How much of the $750 million in cost savings is from streamlining ongoing operations versus exiting businesses?A: CFO Yanela Frias said the company is looking at the entire organization to simplify and remove complexity, without providing a specific breakdown by business. The focus includes corporate functions and fixed costs, with the goal of being as streamlined and efficient as possible while investing in the growth of chosen businesses. Q: What specific capabilities or asset types is PGIM particularly interested in for inorganic growth?A: CEO Andy Sullivan stated that PGIM will build on its established strength in credit, which is highly synergistic with the insurance businesses. The company is also looking to expand into infrastructure equity and primary private equity. Globalization is a key focus, as only a quarter of business comes from outside the US. Acquisitions could range from bolt-ons adding single capabilities to more holistic deals, provided they hit multiple strategic buckets and work for shareholders long-term. Q: What gives you confidence in the ability to resume and grow new business production in Japan after the sales suspension?A: CEO Andy Sullivan expressed confidence based on the resilience of the franchise. Despite POJ sales being suspended, other areas of the Japan business are performing well, and earnings have remained strong. The company has a broad product portfolio, expanded retirement and yen-based offerings, and strong distribution partnerships. He noted clear evidence that the market wants Prudential to succeed, and the company is on plan to resume sales by November 5. Q: How should we think about the free cash flow conversion uplift from the strategy?A: CFO Yanela Frias explained that the strategy aims to improve the balance between capital-light and capital-intensive businesses. Growing capital-light, fee-based businesses like PGIM, which is highly cash-generative, will support improved free cash flow generation and enterprise capital efficiency over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is narrowing the geographic footprint by roughly half to concentrate capital and talent on large developed markets, specifically the U.S., Japan, and select European countries. The strategy prioritizes rotating capital, expected to be well north of $3 billion, from emerging market exits toward PGIM and high-growth retirement and protection businesses. Performance is anchored by a 'powerful ecosystem' where insurance businesses generate liabilities that PGIM manages to deliver differentiated risk-adjusted returns. In Japan, the business is shifting toward a retirement and investment-oriented model, which now comprises approximately 75% of new business production. The U.S. retail annuity strategy has more than tripled its addressable market in three years through product innovation and expansion into the IMO distribution channel. Management attributes strong Q2 results to higher spread income, a net favorable assumption update, and higher asset management fees, despite the temporary sales suspension at Prudential of Japan (POJ). Targeting approximately $750 million in pretax run rate efficiency benefits by year-end 2028, a significant increase from the previous $150 million target. Aiming for PGIM to contribute 25% of enterprise adjusted operating income, more than doubling its current contribution to improve fee-based earnings quality. Expects to improve the adjusted operating expense ratio by an additional 150 basis points over the next three years through organizational simplification and global talent hubs. Anticipates resuming POJ sales by November 5, 2026, following a phased rollout of governance and agency redesign measures. Guidance for the full-year 2026 impact of the Japan sales suspension remains at $525 million to $575 million, as lost sales and compensation costs are expected to compound. The annual assumption update resulted in a $65 million pretax net benefit to AOI, though it caused a $379 million GAAP loss primarily due to lapse and mortality updates. Management flagged a 'notable absence' of jumbo pension risk transfer (PRT) transactions in the U.S. during the first half of the year, though activity is expected to accelerate. The exit from emerging markets is described as a value-maximization strategy through sales rather than shutdowns, expected to take place over a multi-year period. PGIM's acquisition of the remaining interest in Deerpath Capital is intended to enhance capabilities in the lower middle market direct lending space. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the capital freed from exits will be 'well north of $3 billion' and the rotation is a longer-term strategy executed over roughly five years. Exits will prioritize maximizing value through sales of platforms rather than liquidations, with proceeds targeted for PGIM, Group Insurance, and European retirement. Management defined 'top quartile' earnings growth as high single digits, though they declined to set a specific new target until POJ sales resume. The focus is on earnings growth excluding the legacy variable annuity (VA) block to demonstrate the performance of core, sustainable businesses. The bar for issuing equity to fund acquisitions remains 'really high,' requiring a clear path to value creation that justifies dilution. Management is 'opening the aperture' for inorganic growth beyond just asset management to include group insurance and institutional retirement capabilities.

Prudential (PRU) came out with quarterly earnings of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 per share. This compares to earnings of $3.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +17.58%. A quarter ago, it was expected that this financial services company would post earnings of $3.24 per share when it actually produced earnings of $3.61, delivering a surprise of +11.42%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Prudential, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $14.16 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.02%. This compares to year-ago revenues of $13.51 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Prudential shares have added about 9% since the beginning of the year versus the S&P 500's gain of 11%. While Prudential has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Prudential was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.42 on $14.51 billion in revenues for the coming quarter and $13.20 on $58.5 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, MBIA (MBI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This insurance and reinsurance company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +70.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. MBIA's revenues are expected to be $20 million, down 13% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report MBIA, Inc. (MBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEWARK, N.J., August 04, 2026--(BUSINESS WIRE)--Prudential Financial, Inc. (NYSE: PRU) today reported second quarter 2026 results. Net income attributable to Prudential Financial, Inc. of $985 million or $2.80 per Common share versus net income of $533 million or $1.48 per share for the year-ago quarter. After-tax adjusted operating income of $1.438 billion or $4.08 per Common share versus $1.284 billion or $3.58 per share for the year-ago quarter. Book value per Common share of $90.50 versus $85.98 per share for the year-ago quarter; adjusted book value per Common share of $100.91 versus $96.41 per share for the year-ago quarter. Parent company highly liquid assets(1) of $4.2 billion versus $3.9 billion for the year-ago quarter. Assets under management(2) of $1.642 trillion versus $1.580 trillion for the year-ago quarter. Capital returned to shareholders totaled $743 million, including $250 million of share repurchases and $493 million of dividends, versus $735 million of capital returned to shareholders in the year-ago quarter. Dividends paid in the second quarter were $1.40 per Common share, representing a yield on adjusted book value of over 5%. Members of Prudential’s senior management team will host an extended conference call on Wednesday, August 5, 2026, at 11:00 a.m. ET to provide an update on the Company’s strategy and long-term vision at the beginning of its second quarter earnings call. The call is expected to last approximately 90 minutes and will be available via live webcast. "Our second quarter results were strong as we continued to execute with discipline and build momentum," said Andy Sullivan, Chairman and Chief Executive Officer of Prudential Financial. "The strength of our business and the progress we are making to operate more consistently and effectively is evident. PGIM delivered another quarter of strong investment performance and progressed its platform integration. Our U.S. Businesses continued to see benefits of investments in distribution and product diversification to meet evolving customer needs while supporting growth. Our International businesses generated strong earnings despite the impact of the sales suspension in Prudential of Japan, reflecting resilience of the underlying businesses and continued growth in Brazil. Prudential is a uniquely integrated financial services company with a strong foundation in businesses and markets benefiting from favorable structural growth trends, reinforced by clear competitive advantages. Our strategy is to build on those advantages by unlocking the full power of our asset management, retirement, and protection capabilities through deeper integration and greater leverage of our scale and expertise. We are confident this will enhance our ability to win in the markets where we choose to compete, accelerating earnings and free cash flow growth while creating sustainable shareholder value." OVERVIEW Net income attributable to Prudential Financial, Inc. ("Prudential" or the "Company") was $985 million ($2.80 per Common share) for the second quarter of 2026, compared to net income of $533 million ($1.48 per Common share) for the second quarter of 2025. After-tax adjusted operating income was $1.438 billion ($4.08 per Common share) for the second quarter of 2026, compared to $1.284 billion ($3.58 per Common share) for the second quarter of 2025. Consolidated adjusted operating income and adjusted book value are non-GAAP measures. A discussion of these measures, including definitions thereof, how they are useful to investors, and certain limitations thereof, is included later in this release under "Non-GAAP Measures," and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.(3) RESULTS OF ONGOING OPERATIONS Prudential's ongoing operations include PGIM, U.S. Businesses, International Businesses, and Corporate & Other. In the following business-level discussion, adjusted operating income refers to pre-tax results. PGIM PGIM, the Company’s global investment management business, reported adjusted operating income of $294 million for the second quarter of 2026, up compared to $229 million in the year-ago quarter. This increase primarily reflects higher asset management fees, mainly driven by equity market appreciation and strong investment performance, partially offset by the impact of net outflows and higher interest rates. This increase also includes higher net service, distribution, and other revenues. PGIM assets under management of $1.491 trillion increased 4% from the year-ago quarter, primarily driven by equity market appreciation and strong investment performance. Total net inflows in the quarter of $1.6 billion reflected third-party net inflows of $4.6 billion, partially offset by affiliated net outflows of $3.0 billion. Third-party institutional net inflows were $3.1 billion as public and private credit inflows were partially offset by public equity outflows. Third-party retail net inflows of $1.5 billion were primarily driven by public credit inflows, partially offset by public equity outflows. Third-party public equity outflows were consistent with the ongoing industry trend away from active equities. U.S. Businesses U.S. Businesses, which includes the Company's Retirement, Group Insurance, Individual Life, and U.S. Legacy Products segments, reported adjusted operating income of $957 million for the second quarter of 2026, essentially unchanged compared to $955 million in the year-ago quarter. These results include a favorable comparable impact from our annual assumption update and other refinements of $26 million. Excluding this amount, the year-over-year decrease primarily reflects higher expenses to support continued business growth and less favorable underwriting results, partially offset by higher net investment spread results. Retirement: Reported adjusted operating income of $392 million in the quarter, essentially unchanged compared to $397 million in the year-ago quarter. These results include a favorable comparable impact from our annual assumption update and other refinements of $2 million. Excluding this amount, the year-over-year decrease primarily reflects higher expenses, driven by continued business growth, and less favorable underwriting results, driven by mortality and run-off in our PRT block, partially offset by higher net investment spread results. Net account values of $363 billion increased 4% from the year-ago quarter, reflecting the benefits of market appreciation and business growth. Total sales in the quarter of $6.8 billion included $3.6 billion of retail annuity sales, reflecting continued strong momentum following the December 2025 launch of our latest registered index-linked annuity product. Group Insurance: Reported adjusted operating income of $155 million in the quarter, up compared to $125 million in the year-ago quarter. This increase includes a favorable comparable impact from our annual assumption update and other refinements of $17 million. Excluding this amount, the year-over-year increase primarily reflects more favorable mortality in the working-age population in life underwriting results and higher net investment spread results, partially offset by higher expenses to support continued business growth. Year-to-date sales of $599 million increased 26% from the prior year period, driven by strong growth in disability product sales, including supplemental health products, and continued momentum in the Premier middle-market segment. Individual Life: Reported adjusted operating income of $176 million in the quarter, more than doubling compared to $82 million in the year-ago quarter. This increase includes a favorable comparable impact from our annual assumption update and other refinements of $56 million. Excluding this amount, the year-over-year increase primarily reflects more favorable underwriting results and higher net investment spread results. Record second quarter sales of $237 million increased 9% from the year-ago quarter, primarily driven by variable accumulation products. U.S. Legacy Products: Effective January 1, 2026, Prudential established the U.S. Legacy Products reporting segment, consisting of traditional variable annuities with guaranteed living benefit riders and certain other annuities products, previously included in the former Individual Retirement Strategies segment, as well as guaranteed universal life policies previously included in the Individual Life segment. This reporting segment represents run-off blocks consisting of products that are no longer being sold in U.S. markets. Reported adjusted operating income of $234 million in the quarter, down compared to $351 million in the year-ago quarter. This decrease includes an unfavorable comparable impact from our annual assumption update and other refinements of $49 million. Excluding this amount, the year-over-year decrease primarily reflects less favorable underwriting results related to the guaranteed universal life block and lower net fee income resulting from the continued run-off of the traditional variable annuity block, partially offset by market appreciation, and lower net investment spread results. Net legacy annuities account values of $76 billion decreased 7% from the year-ago quarter, driven by net outflows from the continued run-off of the block, partially offset by market appreciation. International Businesses International Businesses reported adjusted operating income of $855 million for the second quarter, up compared to $761 million in the year-ago quarter. This increase includes a favorable comparable impact from our annual assumption update and other refinements of $81 million. Excluding this amount, the year-over-year increase primarily reflects higher net investment spread results, higher joint venture earnings, and business growth in Brazil. These were partially offset by the impact of the Prudential of Japan sales suspension, including higher expenses, as well as less favorable underwriting results. Constant dollar basis sales(4) of $361 million in the quarter decreased 33% from the year-ago quarter, primarily driven by the Prudential of Japan sales suspension. Corporate & Other Corporate & Other reported a loss, on an adjusted operating income basis, of $279 million for the second quarter of 2026, essentially unchanged compared to a loss of $280 million in the year-ago quarter. These results include a favorable comparable impact from our annual assumption update and other refinements of $4 million. NET INCOME Net income of $985 million in the quarter included $655 million of pre-tax net realized investment losses and related charges and adjustments, including $76 million of pre-tax net credit-related losses, $71 million of pre-tax losses related to the net change in value of market risk benefits, $20 million of pre-tax losses related to market experience updates, and $123 million of pre-tax earnings from divested and run-off businesses. Net income of $533 million in the year-ago quarter included $516 million of pre-tax net realized investment losses and related charges and adjustments, including $78 million of pre-tax net credit-related losses, $426 million of pre-tax losses related to the net change in value of market risk benefits, $6 million of pre-tax losses from divested and run-off businesses, and $42 million of pre-tax gains related to market experience updates. EARNINGS CONFERENCE CALL Members of Prudential’s senior management team will host an extended conference call on Wednesday, August 5, 2026, at 11:00 a.m. ET to review these results and provide an update on Prudential’s strategy and long-term vision. The call is expected to last approximately 90 minutes and will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes prior to the start of the call in the event necessary software needs to be downloaded. Institutional investors, analysts, and other interested parties are invited to listen to the call by dialing one of the following numbers: (877) 407-8293 (domestic) or (201) 689-8349 (international). A replay will also be available on the Investor Relations website through August 19. To access a replay via phone starting at 3:00 p.m. ET on August 5 through August 19, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13761358. FORWARD-LOOKING STATEMENTS Certain of the statements included in this release, including those regarding our strategy and prospects for future performance and our ability to deliver earnings and free cash flow growth while creating sustainable shareholder value constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "anticipates," "includes," "plans," "assumes," "estimates," "projects," "intends," "should," "will," "shall" and words that express a degree of confidence in a potential outcome, or variations of such words, are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements include, among others, that our remediation efforts at Prudential of Japan may be unsuccessful or take longer than we expect, that we may uncover additional misconduct, that the sales suspension may continue for longer than we expect, losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; losses on insurance products due to mortality experience, and morbidity experience or policyholder behavior experience that differs significantly from our expectations when we price our products. Additional factors and uncertainties that could cause actual results to differ can be found in the "Risk Factors" and "Forward-Looking Statements" sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document. NON-GAAP MEASURES Consolidated adjusted operating income and adjusted book value are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in this release. We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at investor.prudential.com. Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes "Realized investment gains (losses), net, and related charges and adjustments". A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as capital and other factors. Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments, are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, adjusted operating income excludes the impact of annual assumption updates and other refinements included in the above items. Adjusted operating income excludes "Change in value of market risk benefits, net of related hedging gains (losses)", which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and discontinued operations and earnings attributable to noncontrolling interests and redeemable noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. "Earnings attributable to noncontrolling interests and redeemable noncontrolling interests" is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments. Adjusted operating income does not equate to "Net income" as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above. Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative change in fair value of funds withheld embedded derivatives, and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions. FOOTNOTES Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.6 trillion in assets under management as of June 30, 2026, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for over 150 years. For more information, please visit news.prudential.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804055055/en/ Contacts MEDIA CONTACT: Ashley Pope, [email protected] INVESTOR RELATIONS CONTACT: Tina Madon, [email protected]