Segment Reorganization
Effective January 1, 2026, Prudential created a new U.S. Legacy Products segment for run-off blocks and combined retirement businesses into a single Retirement segment, applied retrospectively.
Source: 10-Q Item 2 MD&A
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 reported a sharp increase in net income for the second quarter of fiscal 2026, driven by higher investment income and favorable equity markets. The company attributed the gains primarily to increased net investment income, favorable changes in market risk benefits, and a lower effective tax rate. The ongoing suspension of new sales in Japan, following employee misconduct, dented International segment earnings by an estimated $235 million in pre-tax adjusted operating income over the first half. The annual review of assumptions had a mixed impact, boosting adjusted segment profits but weighing on U.S. GAAP results. Overall, net income surged 85% year-over-year, though headwinds from Japan and elevated expenses remain.
Revenue
$15.66B
+14.10% YoY
EPS (Diluted)
$2.80
+89.19% YoY
Source: SEC XBRL
Prudential Financial (PRU) reported Q2 FY2026 revenue of $15.66B, up 14.1% year over year. PRU's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 4.08 | 3.54 | Beat +15.2% |
| Mar 2026 | 3.61 | 3.13 | Beat +15.4% |
| Dec 2025 | 3.30 | 3.40 | Miss -3.0% |
| Sep 2025 | 4.26 | 3.73 | Beat +14.1% |
Adjusted (non-GAAP) EPS of $4.08 versus the $3.54 analyst consensus — a +15.2% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.80.
Compiled by AI from 10-Q Item 2 of this filing
Effective January 1, 2026, Prudential created a new U.S. Legacy Products segment for run-off blocks and combined retirement businesses into a single Retirement segment, applied retrospectively.
Source: 10-Q Item 2 MD&A
The voluntary suspension of new sales at Prudential of Japan, extended through November 2026, reduced International Businesses' pre-tax adjusted operating income by an estimated $235 million in the first half, with a projected full-year 2026 hit of $525–575 million.
Source: 10-Q Item 2 MD&A
The annual review of actuarial assumptions added a net $65 million to segment adjusted operating income before taxes but resulted in a $379 million unfavorable impact on consolidated pre-tax income due to reserve strengthening.
Source: 10-Q Item 2 MD&A
Prudential announced a multi-year efficiency program targeting $750 million in annual operating expense reductions by year-end 2028, focusing on technology and simplification.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Total liabilities of $749.0 billion against $31.6 billion in equity yield a debt-to-equity ratio of 23.7x, exposing the company to significant solvency risk if asset values decline.
Source: 10-Q Balance Sheet (XBRL)
Large swings in realized investment gains/losses and changes in market risk benefits create substantial earnings unpredictability, as seen in the period's net income surge.
Source: 10-Q Income Statement (XBRL)
Cash and equivalents fell 8.9% year-over-year to $15.2 billion while long-term debt rose 5.4% to $19.7 billion, potentially limiting financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
Return on equity of 3.1% and net margin of 6.3% indicate thin profitability that could constrain capital generation and shareholder returns over time.
Source: 10-Q Income Statement (XBRL)
Investing activities consumed $17.4 billion in the first half of fiscal 2026, far exceeding operating cash flow of $3.4 billion, raising concerns about funding and asset quality.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 15.66 $B | 13.73 $B | +14.10% |
Net Income $M | 985.00 $M | 533.00 $M | +84.80% |
EPS (Basic) $ | 2.81 $ | 1.49 $ | +88.59% |
EPS (Diluted) $ | 2.80 $ | 1.48 $ | +89.19% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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.
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