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Prudential (PRU) Up 5% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Prudential (PRU - Free Report) . Shares have added about 5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Prudential due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Prudential Financial, Inc. reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. The quarterly results reflect continued positive momentum with solid sales across global retirement and insurance businesses as well as strong investment performance in PGIM.
Behind the Headlines
Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums.
Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter. This decrease was due to lower insurance and annuity benefits. The figure was lower than our estimate of $12 billion.
Quarterly Segment Update
Prudential Global Investment Management’s (PGIM) adjusted operating income of $229 million increased 11.2% year over year. The Zacks Consensus Estimate was pegged at $240 million. Our estimate was $235 million. This increase primarily reflects higher asset management fees, partially offset by higher expenses to support business growth.
PGIM’s assets under management of $1.441 trillion were up 8% year over year, driven by fixed income and equity market appreciation, net inflows, and strong investment performance.
The U.S. Businesses delivered an adjusted operating income of $955 million, which declined 6.6% year over year. This decrease reflects an unfavorable comparable impact from the annual assumption update and other refinements of $111 million. The metric beat the Zacks Consensus Estimate by 2%. Our estimate was $442 million.
International Businesses’ adjusted operating income improved 8.4% year over year to $761 million in the second quarter. This increase reflects a favorable comparable impact from our annual assumption update and other refinements of $53 million. Our estimate was $814 million.
Corporate and Other incurred an adjusted operating loss of $280 million, narrower than a loss of $371 million reported a year ago, reflecting lower expenses and higher net investment income. The Zacks Consensus Estimate was pegged at a loss of $451 million, and our estimate was a loss of $509.9 million.
Capital Deployment
Prudential Financial returned $735 million in capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $485 million in the second quarter.
Financial Update
PRU exited the second quarter with cash and cash equivalents of $16.1 billion, which decreased 13.2% from the end of 2024. Total debt balance of $20.9 billion increased 4% from 2024-end. As of June 30, 2025, Prudential Financial’s assets under management and administration rose 6.5% year over year to $1.8 trillion.
Adjusted book value per common share, a measure of the company’s net worth, came in at $85.98, which increased 10.9% year over year. Operating return on average equity was 14.9% in the second quarter, which grew 140 basis points year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Prudential has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Prudential has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Prudential belongs to the Zacks Insurance - Multi line industry. Another stock from the same industry, CNO Financial (CNO - Free Report) , has gained 7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
CNO reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $0.87 for the same period compares with $1.05 a year ago.
CNO is expected to post earnings of $0.95 per share for the current quarter, representing a year-over-year change of -14.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
CNO has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Prudential (PRU) Up 5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Prudential (PRU - Free Report) . Shares have added about 5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Prudential due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Prudential Financial Q2 Earnings Beat Estimates, Revenues Decline Y/Y
Prudential Financial, Inc. reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. The quarterly results reflect continued positive momentum with solid sales across global retirement and insurance businesses as well as strong investment performance in PGIM.
Behind the Headlines
Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums.
Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter. This decrease was due to lower insurance and annuity benefits. The figure was lower than our estimate of $12 billion.
Quarterly Segment Update
Prudential Global Investment Management’s (PGIM) adjusted operating income of $229 million increased 11.2% year over year. The Zacks Consensus Estimate was pegged at $240 million. Our estimate was $235 million. This increase primarily reflects higher asset management fees, partially offset by higher expenses to support business growth.
PGIM’s assets under management of $1.441 trillion were up 8% year over year, driven by fixed income and equity market appreciation, net inflows, and strong investment performance.
The U.S. Businesses delivered an adjusted operating income of $955 million, which declined 6.6% year over year. This decrease reflects an unfavorable comparable impact from the annual assumption update and other refinements of $111 million. The metric beat the Zacks Consensus Estimate by 2%. Our estimate was $442 million.
International Businesses’ adjusted operating income improved 8.4% year over year to $761 million in the second quarter. This increase reflects a favorable comparable impact from our annual assumption update and other refinements of $53 million. Our estimate was $814 million.
Corporate and Other incurred an adjusted operating loss of $280 million, narrower than a loss of $371 million reported a year ago, reflecting lower expenses and higher net investment income. The Zacks Consensus Estimate was pegged at a loss of $451 million, and our estimate was a loss of $509.9 million.
Capital Deployment
Prudential Financial returned $735 million in capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $485 million in the second quarter.
Financial Update
PRU exited the second quarter with cash and cash equivalents of $16.1 billion, which decreased 13.2% from the end of 2024. Total debt balance of $20.9 billion increased 4% from 2024-end. As of June 30, 2025, Prudential Financial’s assets under management and administration rose 6.5% year over year to $1.8 trillion.
Adjusted book value per common share, a measure of the company’s net worth, came in at $85.98, which increased 10.9% year over year. Operating return on average equity was 14.9% in the second quarter, which grew 140 basis points year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Prudential has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Prudential has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Prudential belongs to the Zacks Insurance - Multi line industry. Another stock from the same industry, CNO Financial (CNO - Free Report) , has gained 7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
CNO reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $0.87 for the same period compares with $1.05 a year ago.
CNO is expected to post earnings of $0.95 per share for the current quarter, representing a year-over-year change of -14.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
CNO has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.