Prudential Financial, Inc. Announces Second Quarter 2026 Results
NEWARK, N.J.--( BUSINESS WIRE)--Prudential Financial, Inc. ( NYSE: PRU) today reported second quarter 2026 results.
“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:
Group Insurance:
Individual Life:
U.S. Legacy Products:
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
(1)
Highly liquid assets predominantly include cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. For more information about highly liquid assets, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
(2)
For more information about assets under management, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Segment Measures” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
(3)
While not a traditional U.S. GAAP measure, adjusted operating income is the Company's segment performance measure, which is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standards Codification (ASC) 280 - Segment Reporting. Where presented by segment, we have provided a reconciliation to the corresponding consolidated U.S. GAAP total in accordance with the disclosure requirements as articulated in ASC 280.
(4)
For more information about constant dollar basis sales, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations by Segment – International Businesses” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
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.
Financial Highlights
(in millions, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Adjusted operating income (loss) before income taxes (1):
PGIM
$
294
$
229
$
484
$
385
U.S. Businesses
957
955
1,913
1,886
International Businesses
855
761
1,665
1,609
Corporate and Other
(279
)
(280
)
(609
)
(695
)
Total adjusted operating income (loss) before income taxes
$
1,827
$
1,665
$
3,453
$
3,185
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments
$
(655
)
$
(516
)
$
(1,276
)
$
(762
)
Change in value of market risk benefits, net of related hedging gains (losses)
(71
)
(426
)
(366
)
(777
)
Market experience updates
(20
)
42
(5
)
81
Divested and Run-off Businesses:
Closed Block division
(12
)
(18
)
(23
)
(40
)
Other Divested and Run-off Businesses
135
12
199
(39
)
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
(25
)
(18
)
(67
)
(15
)
Other adjustments (2)
(1
)
(1
)
(4
)
27
Total reconciling items, before income taxes
(649
)
(925
)
(1,542
)
(1,525
)
Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities
$
1,178
$
740
$
1,911
$
1,660
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc.
$
985
$
533
$
1,582
$
1,240
Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
51
33
60
68
Net income (loss)
1,036
566
1,642
1,308
Less: Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
51
33
60
68
Income (loss) attributable to Prudential Financial, Inc.
985
533
1,582
1,240
Less: Equity in earnings of joint ventures and other operating entities, net of taxes and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
25
(12
)
18
(18
)
Income (loss) (after-tax) before equity in earnings of joint ventures and other operating entities
960
545
1,564
1,258
Less: Total reconciling items, before income taxes
(649
)
(925
)
(1,542
)
(1,525
)
Less: Income taxes, not applicable to adjusted operating income (loss)
(171
)
(186
)
(390
)
(311
)
Total reconciling items, after income taxes
(478
)
(739
)
(1,152
)
(1,214
)
After-tax adjusted operating income (loss) (1)
1,438
1,284
2,716
2,472
Income taxes, applicable to adjusted operating income
389
381
737
713
Adjusted operating income (loss) before income taxes (1)
$
1,827
$
1,665
$
3,453
$
3,185
See footnotes on last page.
Financial Highlights
(in millions, except per share data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Earnings per share of Common Stock:
Net income (loss) attributable to Prudential Financial, Inc.
$
2.80
$
1.48
$
4.48
$
3.44
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments
(1.88
)
(1.45
)
(3.66
)
(2.14
)
Change in value of market risk benefits, net of related hedging gains (losses)
(0.20
)
(1.20
)
(1.05
)
(2.19
)
Market experience updates
(0.06
)
0.12
(0.01
)
0.23
Divested and Run-off Businesses:
Closed Block division
(0.03
)
(0.05
)
(0.07
)
(0.11
)
Other Divested and Run-off Businesses
0.39
0.03
0.57
(0.11
)
Difference in earnings allocated to participating unvested share-based payment awards
0.01
0.02
0.04
0.04
Other adjustments (2)
—
—
(0.01
)
0.08
Total reconciling items, before income taxes
(1.77
)
(2.53
)
(4.19
)
(4.20
)
Less: Income taxes, not applicable to adjusted operating income (loss)
(0.49
)
(0.43
)
(0.98
)
(0.77
)
Total reconciling items, after income taxes
(1.28
)
(2.10
)
(3.21
)
(3.43
)
After-tax adjusted operating income (loss)
$
4.08
$
3.58
$
7.69
$
6.87
Weighted average number of outstanding common shares - basic
346.4
353.1
347.0
353.7
Weighted average number of outstanding common shares - diluted
348.1
354.9
348.8
355.5
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc.
$
985
$
533
$
1,582
$
1,240
Less: Earnings allocated to participating unvested share-based payment awards
12
6
21
16
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation
$
973
$
527
$
1,561
$
1,224
After-tax adjusted operating income (loss) (1)
$
1,438
$
1,284
$
2,716
$
2,472
Less: Earnings allocated to participating unvested share-based payment awards
17
13
34
29
After-tax adjusted operating income (loss) for earnings per share of Common Stock calculation (1)
$
1,421
$
1,271
$
2,682
$
2,443
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period
$
31,577
$
30,582
Less: Accumulated other comprehensive income (AOCI)
(4,060
)
(3,921
)
GAAP book value excluding AOCI
35,637
34,503
Less: Cumulative change in fair value of funds withheld embedded derivatives
20
67
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses)
410
144
Adjusted book value
$
35,207
$
34,292
End of period number of common shares - diluted
348.9
355.7
GAAP book value per common share - diluted
$
90.50
$
85.98
GAAP book value excluding AOCI per share - diluted
$
102.14
$
97.00
Adjusted book value per common share - diluted
$
100.91
$
96.41
See footnotes on last page.
Financial Highlights
(in millions, or as otherwise noted, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period) :
Institutional customers - Third Party
$
663.0
$
647.6
Retail customers - Third Party
282.3
256.7
Affiliated
546.0
536.4
Total PGIM
$
1,491.3
$
1,440.7
Institutional Customers - Assets Under Management (in billions):
Gross additions, excluding money market
$
22.3
$
22.1
$
47.0
$
45.9
Net additions (withdrawals), excluding realizations, distributions and money market
$
3.1
$
2.6
$
4.7
$
10.2
Retail Customers - Assets Under Management (in billions):
Gross additions, excluding money market
$
19.9
$
16.0
$
41.5
$
33.7
Net additions (withdrawals), excluding money market
$
1.5
$
(2.8
)
$
1.7
$
(3.0
)
Affiliated - Assets Under Management (in billions):
Gross additions, excluding money market
$
16.8
$
19.8
$
35.0
$
40.4
Net additions (withdrawals), excluding realizations, distributions and money market
$
(3.0
)
$
0.6
$
(4.9
)
$
0.5
U.S. Businesses:
Retirement:
Gross sales and additions (3)
$
6,847
$
11,989
$
14,216
$
22,513
Net sales and additions (withdrawals)
$
220
$
5,801
$
(468
)
$
9,033
Total account value at end of period, net
$
362,730
$
348,056
Group Insurance:
Annualized New Business Premiums (4):
Group life
$
17
$
35
$
228
$
260
Group disability
56
42
371
217
Total
$
73
$
77
$
599
$
477
Individual Life:
Annualized New Business Premiums (4):
Term life
$
42
$
39
$
80
$
71
Universal life
20
18
37
36
Variable life
175
160
371
314
Total
$
237
$
217
$
488
$
421
U.S. Legacy Products:
Total annuities account value at end of period, net (5)
$
76,094
$
81,870
Total guaranteed universal life policyholder account balance, net (6)
$
5,645
$
5,642
International Businesses:
International Businesses:
Annualized New Business Premiums (4)(7):
Actual exchange rate basis
$
376
$
541
$
805
$
1,117
Constant exchange rate basis
$
361
$
535
$
785
$
1,113
See footnotes on last page.
Financial Highlights
(in billions, as of end of period, unaudited)
June 30,
2026
2025
Assets and Assets Under Management and Administration:
Total assets
$
783.6
$
759.0
Assets under management (at fair market value):
PGIM
$
1,491.3
$
1,440.7
U.S. Businesses
122.1
113.8
International Businesses
22.0
19.4
Corporate and Other
6.7
6.4
Total assets under management
1,642.1
1,580.3
Assets under administration
193.7
193.2
Total assets under management and administration
$
1,835.8
$
1,773.5
(1)
Adjusted operating income is a non-GAAP measure of performance. See "Non-GAAP Measures" within the earnings release for additional information.
(2)
Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3)
Represents retail annuities, longevity reinsurance, fee-based stable value, pension risk transfer, spread-based stable value, structured settlements and funding agreement-backed notes.
(4)
Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the Company’s domestic individual life and international operations are included in annualized new business premiums based on a 10% credit.
(5)
Represents discontinued annuities, guaranteed living benefits, alliance deposits and supplementary contracts.
(6)
Includes fixed rate funds and deferred revenues on guaranteed universal life products.
(7)
Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 147 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.