It has been about a month since the last earnings report for Prudential (PRU Quick QuotePRU - Free Report) . Shares have added about 4.7% 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? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Prudential Financial, Inc. before we dive into how investors and analysts have reacted as of late.

Prudential Financial Q3 Earnings Beat Estimates on Lower Expenses

Prudential Financial, Inc. reported third-quarter 2025 adjusted operating income of $4.26 per share, which beat the Zacks Consensus Estimate by 16.3%. The bottom line increased 28% year over year. Prudential Financial's third-quarter results reflect higher assets under management, improved net investment spread, favorable underwriting results and lower expenses, partially offset by lower premiums.

PRU’s Q3 Operational Update

Total revenues of $16.2 billion beat the Zacks Consensus Estimate by 16%. The top line, however, declined 16.6% year over year. The decrease in revenues was due to lower premiums. Total benefits and expenses amounted to $14.3 billion, which declined 20.3% year over year in the third quarter. This decrease was due to lower insurance and annuity benefits and operating expenses. The figure was higher than our estimate of $12.4 billion.

Quarterly Segment Update of PRU

Prudential Global Investment Management’s (PGIM) adjusted operating income of $244 million in the reported quarter increased 1.2% year over year. This increase primarily reflects higher asset management fees and other related revenues, driven by higher agency earnings and seed and co-investment income, and a gain from the sale of the Taiwan business. It was partially offset by higher expenses, including a reorganization charge. The figure was higher than our estimate of $168.2 million. The Zacks Consensus Estimate was $229 million. PGIM assets under management of $1.470 trillion increased 5% year over year. The increase was driven by equity market and fixed income appreciation and net inflows.

The U.S. Businesses delivered an adjusted operating income of $1.149 billion, which increased 10.4% year over year. The increase was fueled by higher net investment spread results, including higher alternative investment income, and more favorable underwriting results. It was partially offset by lower net fee income and higher expenses to support business growth. The figure was higher than our estimate of $951.8 million. The Zacks Consensus Estimate was $1 billion.

International Businesses’ adjusted operating income increased 15% year over year to $881 million in the third quarter. The year-over-year increase primarily reflects higher net investment spread results, including higher alternative investment income, as well as more favorable underwriting results. It was partially offset by higher expenses to support business growth. The figure was higher than our estimate of $812.5 million. The Zacks Consensus Estimate was $787 million.

Corporate and Other incurred an adjusted operating loss of $327 million, narrower than a loss of $487 million reported a year ago. This lower loss was primarily due to lower expenses and favorable foreign exchange remeasurement impacts. The figure was narrower than our estimate of a loss of $331.4 million. The Zacks Consensus Estimate was pegged at a loss of $417 million.

Capital Deployment

Prudential Financial managed to return capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $481 million in the third quarter.

Financial Update by Prudential Financial

PRU exited the third quarter with cash and cash equivalents of $17.5 billion, which decreased 5.5% from 2024-end. The total debt balance of $20.2 billion increased 0.2% from 2024-end. As of Sept. 30, 2025, Prudential Financial’s assets under management and administration increased 3.3% year over year to $1.81 trillion.

Adjusted book value per common share, a measure of the company’s net worth, was $99.25, which increased 0.5% year over year. Operating return on average equity was 17.5% in the third quarter, which expanded 390 basis points year over year.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Prudential has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, 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 is part of the Zacks Insurance - Multi line industry. Over the past month, Principal Financial (PFG Quick QuotePFG - Free Report) , a stock from the same industry, has gained 2.3%. The company reported its results for the quarter ended September 2025 more than a month ago.

Principal Financial reported revenues of $3.9 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.10 for the same period compares with $1.76 a year ago.

Principal Financial is expected to post earnings of $2.22 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 +1.5%.

Principal Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.