AI Takeaway
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.
Revenue
$15.53B
++15.26% YoY
EPS (Basic)
$1.69
-14.21% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Prudential Financial generated $15.5B in revenue in Q1 FY2026, up 15.3% from $13.5B in Q1 FY2025, indicating robust premium and fee income growth across its insurance and financial services segments.
Source: Source: 10-Q Income Statement
Net income fell 15.6% YoY to $597M from $707M, suggesting significant cost pressures, higher claims, or investment losses that offset the strong revenue performance, compressing net margin to approximately 3.8%.
Source: Source: 10-Q Income Statement
Operating cash flow improved dramatically to $1.0B in Q1 FY2026 from -$2.5B in Q1 FY2025, a swing of over $3.5B, indicating improved cash generation from core operations and better working capital management.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockDespite a 15.3% increase in revenue, net income declined 15.6%, indicating that costs, claims, or investment losses are rising faster than revenues. Sustained margin compression could erode profitability and shareholder value over time.
Source: Source: 10-Q Income Statement
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Upgrade to unlockReported EPS of $3.61 versus the $3.13 analyst consensus — a +15.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $15.53B | $13.47B | +15.26% |
Net Income | $597M | $707M | -15.56% |
EPS (Basic) | $1.69 | $1.97 | -14.21% |
EPS (Diluted) | $1.68 | $1.96 | -14.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $765.4B | $739.26B | +3.54% |
Total Liabilities | $730.47B | $707.04B | +3.31% |
Stockholders' Equity | $31.98B | $29.88B | +7.00% |
Cash & Equivalents | $15.94B | $16.06B | -0.79% |
Long-Term Debt | $18.88B | $19.54B | -3.37% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.01B | $-2.51B | +140.22% |
Investing Cash Flow | $-10.18B | $-5.46B | -86.20% |
Financing Cash Flow | $5.44B | $5.5B | -1.07% |
Share Buybacks | $246M | $246M | 0.00% |
D&A | $143M | — | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 3.8% | — | — |
ROE | 1.9% | — | — |
ROA | 0.1% | — | — |
Debt to Equity | $22.845 | — | — |
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Prudential Financial reported Q1 FY2026 revenue of $15.5B, up 15.3% YoY, but net income declined 15.6% to $597M. EPS fell to $1.69 basic and $1.68 diluted, down from $1.97 and $1.96 respectively in Q1 FY2025.
PRU's revenue grew 15.3% to $15.5B in Q1 FY2026, but net income dropped 15.6% to $597M, suggesting that costs, claims, or investment losses rose faster than revenues. This compressed the net margin from approximately 5.2% to 3.8% YoY.
Prudential's balance sheet shows total assets of $765.4B and stockholders' equity of $32.0B, with a very high debt-to-equity ratio of approximately 22.8x typical of large insurers. Cash and equivalents stood at $15.9B, and operating cash flow improved significantly to $1.0B from -$2.5B in the prior year period.
PRU's share buybacks remained flat at $246M in Q1 FY2026, unchanged from $246M in Q1 FY2025, indicating a consistent but not accelerated capital return program during the quarter.
Key risks for PRU include significant margin compression (net income fell 15.6% despite 15.3% revenue growth), extreme financial leverage with a debt-to-equity ratio of approximately 22.8x, and nearly doubled investing cash outflows of $10.2B suggesting aggressive capital deployment that could underperform if markets deteriorate.