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PRU Gears Up to Report Q4 Earnings: Here's What to Expect
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Key Takeaways
PRU's U.S. business likely benefited from higher investment spread income and improved underwriting results.
PGIM likely saw gains from higher asset management fees and stronger service revenues.
PRU expenses likely increased due to higher policyholder benefits and deferred acquisition cost amortization.
Prudential Financial Inc. (PRU - Free Report) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 3, after the closing bell.
The Zacks Consensus Estimate for PRU’s fourth-quarter revenues is pegged at $13.69 billion, indicating a 5.2% drop from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at $3.38 per share. The estimate suggests a year-over-year increase of 14.1%. The Zacks Consensus Estimate for PRU’s third-quarter earnings has moved north by 0.6% in the past 30 days.
What the Zacks Model Unveils for PRU
Our proven model does not conclusively predict an earnings beat for Prudential Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.
Earnings ESP: PRU has an Earnings ESP of -0.81%. This is because the Most Accurate Estimate of $3.35 is pegged lower than the Zacks Consensus Estimate of $3.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PRU carries a Zacks Rank #3 at present.
Factors Likely to Shape PRU’s Q4 Results
The U.S. business is expected to have benefited from higher net investment spread income in Retirement Strategies, including the benefit from stronger alternative investment income, coupled with more favorable underwriting results from Individual Life and Group Insurance. The upside is likely to have been offset by lower fee income resulting from the runoff of legacy variable annuity block and higher expenses to support business growth.
Prudential Financial’s international businesses are likely to have benefited from higher net investment spread results, including the benefit from stronger alternative investment income and more favorable underwriting. Higher expenses are likely to have offset the upside.
The Individual Retirement Strategies business is likely to have benefited from higher net investment income due to growth in indexed variable and fixed annuities and higher income from non-coupon investments. The upside is likely to have been partially offset by lower asset management and service fees, as well as lower policy charges and fee income.
PGIM is likely to have benefited from higher net asset management fees and higher net service, distribution and other revenues. Assets under management are likely to have benefited from market appreciation, positive net flows, and strong investment performance. Higher other related revenues from strong Fannie Mae and Freddie Mac originations and gains on seed and co-investment should also add to the upside.
Net investment income is likely to have gained from growth in indexed variable and fixed annuities and higher income from non-coupon investments, growth in both variable and investment products in Japan, and higher reinvestment rates, lower losses from derivatives.
Expenses are likely to have risen because of higher policyholders’ benefits and amortization of deferred policy acquisition costs.
Continued share buybacks are likely to have added to the bottom line.
Stocks to Consider
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +0.39% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.89, indicating a year-over-year increase of 45.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIG’s earnings beat estimates in each of the last four reported quarters.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +13.61% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $5.55, indicating a year-over-year increase of 15.8%.
AIZ’s earnings beat estimates in each of the last four reported quarters.
Goosehead Insurance (GSHD - Free Report) has an Earnings ESP of +4.03% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 54 cents, indicating a year-over-year decrease of 31.6%.
GSHD’s earnings beat estimates in two of the last four reported quarters, while missing in the other two.
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PRU Gears Up to Report Q4 Earnings: Here's What to Expect
Key Takeaways
Prudential Financial Inc. (PRU - Free Report) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 3, after the closing bell.
The Zacks Consensus Estimate for PRU’s fourth-quarter revenues is pegged at $13.69 billion, indicating a 5.2% drop from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at $3.38 per share. The estimate suggests a year-over-year increase of 14.1%. The Zacks Consensus Estimate for PRU’s third-quarter earnings has moved north by 0.6% in the past 30 days.
What the Zacks Model Unveils for PRU
Our proven model does not conclusively predict an earnings beat for Prudential Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.
Earnings ESP: PRU has an Earnings ESP of -0.81%. This is because the Most Accurate Estimate of $3.35 is pegged lower than the Zacks Consensus Estimate of $3.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Prudential Financial, Inc. Price and EPS Surprise
Prudential Financial, Inc. price-eps-surprise | Prudential Financial, Inc. Quote
Zacks Rank: PRU carries a Zacks Rank #3 at present.
Factors Likely to Shape PRU’s Q4 Results
The U.S. business is expected to have benefited from higher net investment spread income in Retirement Strategies, including the benefit from stronger alternative investment income, coupled with more favorable underwriting results from Individual Life and Group Insurance. The upside is likely to have been offset by lower fee income resulting from the runoff of legacy variable annuity block and higher expenses to support business growth.
Prudential Financial’s international businesses are likely to have benefited from higher net investment spread results, including the benefit from stronger alternative investment income and more favorable underwriting. Higher expenses are likely to have offset the upside.
The Individual Retirement Strategies business is likely to have benefited from higher net investment income due to growth in indexed variable and fixed annuities and higher income from non-coupon investments. The upside is likely to have been partially offset by lower asset management and service fees, as well as lower policy charges and fee income.
PGIM is likely to have benefited from higher net asset management fees and higher net service, distribution and other revenues.
Assets under management are likely to have benefited from market appreciation, positive net flows, and strong investment performance. Higher other related revenues from strong Fannie Mae and Freddie Mac originations and gains on seed and co-investment should also add to the upside.
Net investment income is likely to have gained from growth in indexed variable and fixed annuities and higher income from non-coupon investments, growth in both variable and investment products in Japan, and higher reinvestment rates, lower losses from derivatives.
Expenses are likely to have risen because of higher policyholders’ benefits and amortization of deferred policy acquisition costs.
Continued share buybacks are likely to have added to the bottom line.
Stocks to Consider
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +0.39% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.89, indicating a year-over-year increase of 45.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIG’s earnings beat estimates in each of the last four reported quarters.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +13.61% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $5.55, indicating a year-over-year increase of 15.8%.
AIZ’s earnings beat estimates in each of the last four reported quarters.
Goosehead Insurance (GSHD - Free Report) has an Earnings ESP of +4.03% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 54 cents, indicating a year-over-year decrease of 31.6%.
GSHD’s earnings beat estimates in two of the last four reported quarters, while missing in the other two.