Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Prudential Financial (PRU) delivered a strong FY2025 with net income surging 31.1% to $3.58B and EPS rising 33.3% to $10.05, even as total revenue declined 13.7% to $60.77B, reflecting the volatile nature of insurance and investment income in a large diversified financial services firm.
Revenue
$60.77B
-13.68% YoY
EPS (Diluted)
$9.99
+33.20% YoY
Source: SEC XBRL
Prudential Financial (PRU) reported FY2025 revenue of $60.77B, down 13.7% year over year. Operating cash flow was $6.27B, down 26.2% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.08 | 3.56 | Beat +14.5% |
| Mar 2026 | 3.61 | 3.13 | Beat +15.4% |
| Dec 2025This filing | 3.30 | 3.40 | Miss -3.0% |
| Sep 2025 | 4.26 | 3.73 | Beat +14.1% |
Reported EPS of $3.30 versus the $3.40 analyst consensus — a -3.0% miss for Dec 2025.
Compiled by AI from this SEC filing
Total revenue fell 13.7% year-over-year from $70.41B to $60.77B in FY2025, yet net income rose 31.1% to $3.58B, suggesting improved underwriting discipline, favorable claims experience, or reduced investment losses compared to the prior year.
Source: 10-K Income Statement, Financial Data
Net margin expanded to approximately 5.88% in FY2025, up from roughly 3.87% in the prior year, indicating that profitability improved materially even as top-line revenues contracted — a hallmark of cost control or favorable actuarial adjustments.
Source: 10-K Income Statement & Key Ratios, Financial Data
Total assets grew 5.2% to $773.74B, supported by a 16.4% increase in stockholders' equity to $32.44B, though the debt-to-equity ratio remains very high at 22.76x, which is typical for large insurance holding companies given their liability-heavy balance sheets.
Source: 10-K Balance Sheet, Financial Data
Operating cash flow fell 26.2% to $6.27B from $8.50B in the prior year, which may reflect changes in policyholder reserves, timing of premium collections, or investment portfolio activity — a metric worth monitoring for sustainability of capital returns.
Source: 10-K Cash Flow Statement, Financial Data
PRU maintained $1.0B in share buybacks in FY2025, unchanged from the prior year, demonstrating a steady commitment to returning capital to shareholders even amid the decline in operating cash flow.
Source: 10-K Cash Flow Statement, Financial Data
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
PRU's debt-to-equity ratio stands at an extremely elevated 22.76x, reflecting the insurance industry's inherent reliance on policyholder liabilities. While typical for large insurers, any adverse shift in interest rates, credit spreads, or claims experience could pressure capital adequacy and solvency ratios.
Source: 10-K Balance Sheet & Key Ratios, Financial Data
Operating cash flow declined sharply by 26.2% to $6.27B in FY2025, a significant drop that could constrain the company's ability to fund investments, service debt, and sustain capital return programs if the trend continues. The divergence between net income growth and cash flow decline warrants close scrutiny.
Source: 10-K Cash Flow Statement, Financial Data
Revenue dropped 13.7% year-over-year to $60.77B, highlighting the sensitivity of PRU's top line to market conditions, interest rate movements, and actuarial assumptions. Large insurers like PRU can experience significant swings in reported revenue due to fair value changes in investment portfolios.
Source: 10-K Income Statement, Financial Data
ROA of only 0.46% reflects the capital-intensive and liability-heavy nature of PRU's balance sheet, meaning the company generates relatively modest earnings per dollar of assets. Any deterioration in investment yields or increase in claims could further compress this already thin ratio.
Source: 10-K Key Ratios, Financial Data
D&A fell 66.6% from $383M to $128M, a dramatic reduction that may reflect asset disposals, changes in intangible asset amortization schedules, or business mix shifts. This warrants further investigation as it could signal changes in the company's asset base or accounting estimates.
Source: 10-K Cash Flow Statement, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 60.77 $B | 70.41 $B | -13.68% |
Net Income $B | 3.58 $B | 2.73 $B | +31.13% |
EPS (Basic) $ | 10.05 $ | 7.54 $ | +33.29% |
EPS (Diluted) $ | 9.99 $ | 7.50 $ | +33.20% |
Answers draw on this SEC filing and the data on this page
Prudential Financial's net income nearly doubled in Q2 FY2026 on higher investment returns and favorable markets, but the Japan sales suspension and assumption reviews introduced volatility.
PRU reported Q1 FY2026 revenue of $15.5B (+15.3% YoY) but net income fell 15.6% to $597M, reflecting margin compression despite strong top-line growth.
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