Prudential Financial, Inc. Announces Third Quarter 2026 Results
PRUDENTIAL FINANCIAL INC (PFH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 November 3, 2026 Prudential Financial, Inc. Announces Third Quarter 2026 Results NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported third quarter 2026 results. • Net income attributable to Prudential Financial, Inc. of $1.388 billion or $3.96 per Co
How this was made
The 30-second read
Why it matters
The earnings miss may lead to short-term price weakness, but continued capital returns and AUM growth provide a longer-term support narrative.
Market read
Large-cap insurer earnings miss; potential short-term sell-off in financials.
What to watch
Strong cash return to shareholders and record private asset inflows may offset earnings weakness.
Prudential Financial, Inc. Announces Third Quarter 2026 Results
After-tax adjusted operating income declined to $1.321 billion from $1.444 billion and Japan Businesses adjusted operating income fell to $559 million from $750 million, while PGIM and Individual Life improved, total assets under management increased to $1,616.2 billion, and the company returned $741 million to shareholders.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to Prudential Financial, Inc. - three months ended September 30GAAP | $1.39B | – | – |
| Net income attributable to Prudential Financial, Inc. per Common share - three months ended September 30GAAP | $3.96 per Common share | – | – |
| After-tax adjusted operating income - three months ended September 30non-GAAP | $1.32B | – | – |
| After-tax adjusted operating income per Common share - three months ended September 30non-GAAP | $3.77 per Common share | – | – |
| Total adjusted operating income before income taxes - three months ended September 30non-GAAP | $1.65B | – | – |
| Income before income taxes and equity in earnings of joint ventures and other operating entities - three months ended September 30GAAP | $1.64B | – | – |
| Net income - three months ended September 30GAAP | $1.41B | – | – |
| Income attributable to noncontrolling interests and redeemable noncontrolling interests - three months ended September 30GAAP | $17M | – | – |
| Income after-tax before equity in earnings of joint ventures and other operating entities - three months ended September 30GAAP | $1.38B | – | – |
| Income taxes applicable to adjusted operating income - three months ended September 30other | $325M | – | – |
| Net income attributable to Prudential Financial, Inc. - nine months ended September 30GAAP | $2.97B | – | – |
| After-tax adjusted operating income - nine months ended September 30non-GAAP | $3.85B | – | – |
| Total adjusted operating income before income taxes - nine months ended September 30non-GAAP | $4.81B | – | – |
| Net income attributable to Prudential Financial, Inc. per Common share - nine months ended September 30GAAP | $8.43 | – | – |
| After-tax adjusted operating income per Common share - nine months ended September 30non-GAAP | $10.91 | – | – |
| Weighted average number of outstanding common shares - basic - three months ended September 30other | 344.5 | – | – |
| Weighted average number of outstanding common shares - diluted - three months ended September 30other | 346.4 | – | – |
| Weighted average number of outstanding common shares - basic - nine months ended September 30other | 346.2 | – | – |
| Weighted average number of outstanding common shares - diluted - nine months ended September 30other | 348.0 | – | – |
| GAAP book value (total PFI equity) at end of periodGAAP | $29.51B | – | – |
| GAAP book value excluding AOCI at end of periodGAAP | $36.37B | – | – |
| Adjusted book value at end of periodnon-GAAP | $35.60B | – | – |
| End of period number of common shares - dilutedother | 347.7M | – | – |
| GAAP book value per common share - dilutedGAAP | $84.88 | – | – |
| GAAP book value excluding AOCI per share - dilutedGAAP | $104.59 | – | – |
| Adjusted book value per common share - dilutednon-GAAP | $102.39 | – | – |
| PGIM adjusted operating income before income taxes - three months ended September 30non-GAAP | $263M | – | – |
| U.S. Businesses adjusted operating income before income taxes - three months ended September 30non-GAAP | $1.17B | – | – |
| Japan Businesses adjusted operating income before income taxes - three months ended September 30non-GAAP | $559M | – | – |
| Corporate and Other adjusted operating loss before income taxes - three months ended September 30non-GAAP | −$349M | – | – |
| PGIM assets under management at end of periodother | $1.47T | – | essentially unchanged |
| PGIM third-party institutional net additions, excluding realizations, distributions and money market - three months ended September 30other | $7.7B | – | – |
| PGIM third-party retail net additions, excluding money market - three months ended September 30other | $1.3B | – | – |
| PGIM affiliated net additions (withdrawals), excluding realizations, distributions and money market - three months ended September 30other | −$1.6B | – | – |
| Retirement gross sales and additions - three months ended September 30other | $8.19B | – | – |
| Retirement net sales and additions (withdrawals) - three months ended September 30other | −$976M | – | – |
| Retirement total account value at end of period, netother | $363.7B | – | increased 3% |
| Group Insurance total annualized new business premiums - nine months ended September 30other | $682M | – | increased 23% |
| Individual Life total annualized new business premiums - three months ended September 30other | $230M | – | decreased 7% |
| U.S. Legacy Products total annuities account value at end of period, netother | $71.82B | – | decreased 12% |
| Japan Businesses annualized new business premiums - constant exchange rate basis - three months ended September 30other | $291M | – | decreased 36% |
| Total assets at end of periodGAAP | $771.4B | – | – |
| Total assets under management at end of periodother | $1.62T | – | – |
| Assets under administration at end of periodother | $191.5B | – | – |
| Total assets under management and administration at end of periodother | $1.81T | – | – |
| Parent company highly liquid assetsother | $4B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PGIMAdjusted operating income was $263 million, up from $244 million, reflecting lower expenses due to the absence of a reorganization charge in the prior year and higher asset management fees, partially offset by lower other related revenues. | Not reported | – | – |
| U.S. BusinessesAdjusted operating income was $1.173 billion, down from $1.188 billion, as higher variable expenses, lower joint venture earnings and lower fee income from traditional variable annuity run-off were partly offset by higher net investment spread results and more favorable underwriting results. | Not reported | – | – |
| RetirementAdjusted operating income was $620 million, down from $637 million. Total sales were $8.2 billion, including $3.9 billion of retail annuity sales. | Not reported | – | – |
| Group InsuranceAdjusted operating income was $101 million, up from $90 million, primarily reflecting higher life underwriting results and continued growth in supplemental health. | Not reported | – | – |
| Individual LifeAdjusted operating income was $199 million, up from $153 million, primarily reflecting more favorable underwriting results driven by a reserve refinement and higher net investment spread results. | Not reported | – | – |
| U.S. Legacy ProductsAdjusted operating income was $253 million, down from $308 million, primarily reflecting lower net fee income from traditional variable annuity run-off and less favorable underwriting on the guaranteed universal life block. | Not reported | – | – |
| Japan BusinessesAdjusted operating income was $559 million, down from $750 million, primarily due to the Prudential of Japan sales suspension, including higher expenses, less favorable underwriting results and lower net investment spread results. | Not reported | – | – |
| Corporate & OtherReported an adjusted operating loss of $349 million, essentially unchanged compared to a loss of $353 million in the year-ago quarter. | Not reported | – | – |
Capital returns
- Capital returned to shareholders totaled $741 million, including $250 million of share repurchases and $491 million of dividends, versus $731 million of capital returned to shareholders in the year-ago quarter.
- Dividends paid in the third quarter were $1.40 per Common share, representing a yield on adjusted book value of over 5%.
What drove it
- PGIM recorded third-party net inflows of $9.0 billion, consisting of $7.7 billion of institutional net inflows and $1.3 billion of retail net inflows, partially offset by $1.6 billion of affiliated net outflows.
- Retirement retail annuity sales were $3.9 billion, reflecting record Registered Index-Linked Annuities sales driven by continued strong momentum.
- Individual Life results benefited from a reserve refinement in the current quarter.
- The company announced sales of Prudential of Brazil, Prudential of Mexico and its South Africa insurance business, and closed sales of businesses in Indonesia and Kenya.
Concerns
- Japan Businesses constant dollar basis sales of $291 million decreased 36% from the year-ago quarter, primarily driven by the Prudential of Japan sales suspension.
- Japan Businesses adjusted operating income declined to $559 million from $750 million due to the sales suspension, higher expenses, less favorable underwriting and lower net investment spread results.
- U.S. Legacy Products adjusted operating income declined to $253 million from $308 million, and net legacy annuities account values decreased 12% to $72 billion.
- Net income attributable to Prudential Financial, Inc. declined to $1.388 billion from $1.431 billion, while after-tax adjusted operating income declined to $1.321 billion from $1.444 billion.
What to watch
- The duration and earnings impact of the Prudential of Japan sales suspension.
- Whether PGIM can sustain third-party institutional and retail inflows following $9.0 billion of third-party net inflows in the quarter.
- Retirement net sales and additions (withdrawals), which were $(976) million despite $8,194 million of gross sales and additions.
- The effect of the announced Brazil, Mexico and South Africa dispositions and completed Indonesia and Kenya sales on Corporate & Other and Divested and Run-off Businesses.
Balance sheet and cash flow
- Parent company highly liquid assets were $4.0 billion versus $3.9 billion for the year-ago quarter.
- Total assets were $771.4 billion versus $776.3 billion as of September 30, 2025.
- Total assets under management were $1,616.2 billion versus $1,612.0 billion as of September 30, 2025.
- Total assets under management and administration were $1,807.7 billion versus $1,806.6 billion as of September 30, 2025.
Analysis
Prudential reported lower third-quarter earnings on both a GAAP and adjusted basis. Net income attributable to Prudential Financial, Inc. was $1.388 billion, or $3.96 per Common share, compared with $1.431 billion, or $4.01 per share, in the year-ago quarter. After-tax adjusted operating income was $1.321 billion, or $3.77 per Common share, compared with $1.444 billion, or $4.05 per share. Total adjusted operating income before income taxes was $1,646 million, compared with $1,829 million.
Japan Businesses was the central pressure point. Adjusted operating income was $559 million versus $750 million, and constant dollar basis sales of $291 million decreased 36% from the year-ago quarter. The company attributed the decline primarily to the Prudential of Japan sales suspension, including higher expenses and less favorable underwriting results, as well as lower net investment spread results. The company also changed its segment reporting structure, renaming International Businesses as Japan Businesses and moving emerging-market operations into Divested and Run-off Businesses within Corporate and Other.
The U.S. operations produced mixed underlying results. U.S. Businesses adjusted operating income was $1,173 million versus $1,188 million. Retirement adjusted operating income was $620 million versus $637 million, with $8,194 million of gross sales and additions and $(976) million of net sales and additions (withdrawals). Group Insurance adjusted operating income increased to $101 million from $90 million, and Individual Life increased to $199 million from $153 million. U.S. Legacy Products declined to $253 million from $308 million as traditional variable annuity run-off reduced fee income.
PGIM was a positive contributor. Its adjusted operating income increased to $263 million from $244 million, supported by lower expenses and higher asset management fees. PGIM had $1,465.0 billion of assets under management and generated $9.0 billion of third-party net inflows, including $7.7 billion from institutional customers and $1.3 billion from retail customers. Total company assets under management increased to $1,616.2 billion from $1,612.0 billion.
Capital allocation remained active. Prudential returned $741 million to shareholders, consisting of $250 million of share repurchases and $491 million of dividends. Parent company highly liquid assets were $4.0 billion. GAAP book value per common share was $84.88 versus $90.69, while adjusted book value per common share was $102.39 versus $99.25. The release provided no forward financial guidance.
Management, verbatim
Our third quarter results demonstrate the discipline and consistency with which we are executing across Prudential.
Andy Sullivan, Chairman and Chief Executive Officer of Prudential Financial
While the Prudential of Japan sales suspension remained a headwind, our broader Japan franchise continued to demonstrate resilience.
Andy Sullivan, Chairman and Chief Executive Officer of Prudential Financial
Together, these outcomes strengthen our conviction in our strategy and our ability to deliver long-term value.
Andy Sullivan, Chairman and Chief Executive Officer of Prudential Financial
Not in the filing
stated, not guessed- Total revenue was not reported.
- Revenue by segment was not reported.
- Gross margin was not reported.
- Operating margin was not reported.
- Operating expenses as a consolidated line item were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and total debt were not reported.
- Forward financial guidance was not provided.
- A prior outlook section was not provided.
- Prior-quarter comparisons were not reported for the disclosed metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Prudential Financial reported its third quarter 2026 results, highlighting a slight decline in net income and operating income, while noting strong cash returns and AUM growth.
Ticker impact
Q3 2026 earnings released with net income down 3% YoY and adjusted operating income down, indicating a miss.
likely downward pressure as market prices in the earnings shortfall
Revenue and profit declines are material for a large-cap insurer; investors often react quickly to earnings misses.
Market effects
Insurance sector may see modest pullback as peers' earnings are compared to Prudential's miss.
U.S. financials could face slight pressure in early trading.
Limited; primarily affects U.S. insurers and asset managers.
Counterpoint
The miss is modest and underlying AUM growth remains strong; could be a buying opportunity.
Key entities
- CompanyPrudential Financial, Inc.
U.S.-listed insurer and asset manager reporting Q3 2026 results.
