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PRU Q1 Earnings & Revenues Top Estimates on Solid Investment Spread
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Key Takeaways
PRU Q1 EPS rose 9.7% and beat estimates, driven by higher premiums and investment income.
Prudential revenues jumped 13.6% to $15.2B on asset fees, new business growth and spreads.
PRU saw PGIM income rise 22% with AUM up 3%, while International Business income dipped on higher expenses.
Prudential Financial, Inc. (PRU - Free Report) reported first-quarter 2026 adjusted operating income of $3.61 per share, which beat the Zacks Consensus Estimate by 11.4%. The bottom line rose 9.7% year over year.
Total revenues of $15.2 billion increased 13.6% year over year and beat the Zacks Consensus Estimate by 7.3%. The increase in revenues was due to higher premiums and improved net investment income.
Prudential Financial's quarterly results reflected higher asset management fees, new business growth, and improved net investment spread results, offset by higher expenses.
Prudential Financial, Inc. Price, Consensus and EPS Surprise
Total benefits and expenses amounted to $13.6 billion, which increased 14.4% year over year in the first quarter. This increase was due to higher insurance and annuity benefits, interest credited to policyholders' account balances, interest expense, amortization of acquisition costs and operating expenses.
Quarterly Segment Update of PRU
Prudential Global Investment Management’s (PGIM) adjusted operating income of $190 million increased 22% year over year. The metric missed the Zacks Consensus Estimate by 11.2%. This increase primarily reflects higher asset management fees and other related revenues, mainly driven by agency earnings. It was partially offset by higher expenses resulting from growth initiatives.
PGIM’s assets under management of $1.433 trillion in the reported quarter increased 3% year over year.
The U.S. Businesses delivered an adjusted operating income of $956 million, which grew 3% year over year. The metric beat the Zacks Consensus Estimate by 2.4%. This increase primarily reflects higher net investment spread results. It was partially offset by higher expenses in all businesses related to investments in enhancing service and distribution, and lower net fee income resulting from the continued run-off of the traditional variable annuity block.
International Businesses’ adjusted operating income declined 4% year over year to $810 million in the first quarter. The metric beat the Zacks Consensus Estimate by 15.1%. This decrease primarily reflects higher expenses related to the suspension of Prudential Japan sales. It was partially offset by higher net investment spread results and more favorable underwriting results, primarily driven by new business growth in Brazil, which had a record earnings quarter.
Corporate and Other incurred an adjusted operating loss of $330 million, narrower than the loss of $415 million reported a year ago. This lower loss primarily reflects lower expenses and favorable foreign exchange remeasurement impacts. The figure was narrower than the Zacks Consensus Estimate of a loss of $395 million.
Capital Deployment of PRU
Prudential Financial managed to return capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $496 million in the first quarter.
PRU’s Financial Update
PRU exited the first quarter with cash and cash equivalents of $15.9 billion, which decreased 19.2% from the end of 2025.
Total debt balance of $19.8 billion decreased 2.3% from 2025-end.
As of March 31, 2026, Prudential Financial’s assets under management and administration rose 3.8% year over year to $1.76 trillion.
Adjusted book value per common share, a measure of the company’s net worth, came in at $99.79, which increased 3.5% year over year.
Operating return on average equity was 14.6% in the first quarter, which expanded 80 basis points year over year.
Zacks Rank
Prudential Financial currently carries a Zacks Rank #4 (Sell).
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%. Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Principal Financial Group, Inc. (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%. Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims and settlement expenses as well as operating expenses. As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, included within assets under administration of $1.8 trillion.
Markel Group Inc. (MKL - Free Report) reported first-quarter 2026 adjusted operating income of $21.61 per share, which missed the Zacks Consensus Estimate by 18.1%. The bottom line deteriorated 16% year over year. Including one-time items, MKL reported a net loss of $18.90 per share in the first quarter of 2026. Total operating revenues of $3.5 billion, up 0.1% year over year, which missed the Zacks Consensus Estimate by 4%.
Earned premiums decreased 2% year over year to $2 billion in the quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 8% year over year to $255.9 million in the first quarter. The figure was lower than the Zacks Consensus Estimate of $262 million. However, this was more than offset by substantial net investment losses of $728 million. Total operating expenses of Markel Group decreased 0.6% year over year to $3.1 billion.
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PRU Q1 Earnings & Revenues Top Estimates on Solid Investment Spread
Key Takeaways
Prudential Financial, Inc. (PRU - Free Report) reported first-quarter 2026 adjusted operating income of $3.61 per share, which beat the Zacks Consensus Estimate by 11.4%. The bottom line rose 9.7% year over year.
Total revenues of $15.2 billion increased 13.6% year over year and beat the Zacks Consensus Estimate by 7.3%. The increase in revenues was due to higher premiums and improved net investment income.
Prudential Financial's quarterly results reflected higher asset management fees, new business growth, and improved net investment spread results, offset by higher expenses.
Prudential Financial, Inc. Price, Consensus and EPS Surprise
Prudential Financial, Inc. price-consensus-eps-surprise-chart | Prudential Financial, Inc. Quote
Operational Update
Total benefits and expenses amounted to $13.6 billion, which increased 14.4% year over year in the first quarter. This increase was due to higher insurance and annuity benefits, interest credited to policyholders' account balances, interest expense, amortization of acquisition costs and operating expenses.
Quarterly Segment Update of PRU
Prudential Global Investment Management’s (PGIM) adjusted operating income of $190 million increased 22% year over year. The metric missed the Zacks Consensus Estimate by 11.2%. This increase primarily reflects higher asset management fees and other related revenues, mainly driven by agency earnings. It was partially offset by higher expenses resulting from growth initiatives.
PGIM’s assets under management of $1.433 trillion in the reported quarter increased 3% year over year.
The U.S. Businesses delivered an adjusted operating income of $956 million, which grew 3% year over year. The metric beat the Zacks Consensus Estimate by 2.4%. This increase primarily reflects higher net investment spread results. It was partially offset by higher expenses in all businesses related to investments in enhancing service and distribution, and lower net fee income resulting from the continued run-off of the traditional variable annuity block.
International Businesses’ adjusted operating income declined 4% year over year to $810 million in the first quarter. The metric beat the Zacks Consensus Estimate by 15.1%. This decrease primarily reflects higher expenses related to the suspension of Prudential Japan sales. It was partially offset by higher net investment spread results and more favorable underwriting results, primarily driven by new business growth in Brazil, which had a record earnings quarter.
Corporate and Other incurred an adjusted operating loss of $330 million, narrower than the loss of $415 million reported a year ago. This lower loss primarily reflects lower expenses and favorable foreign exchange remeasurement impacts. The figure was narrower than the Zacks Consensus Estimate of a loss of $395 million.
Capital Deployment of PRU
Prudential Financial managed to return capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $496 million in the first quarter.
PRU’s Financial Update
PRU exited the first quarter with cash and cash equivalents of $15.9 billion, which decreased 19.2% from the end of 2025.
Total debt balance of $19.8 billion decreased 2.3% from 2025-end.
As of March 31, 2026, Prudential Financial’s assets under management and administration rose 3.8% year over year to $1.76 trillion.
Adjusted book value per common share, a measure of the company’s net worth, came in at $99.79, which increased 3.5% year over year.
Operating return on average equity was 14.6% in the first quarter, which expanded 80 basis points year over year.
Zacks Rank
Prudential Financial currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Multi-Line Insurers
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Total operating revenues of about $4 billion declined 4.6% year over year. The top line missed the Zacks Consensus Estimate by 7.7%. Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Principal Financial Group, Inc. (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%. Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims and settlement expenses as well as operating expenses. As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, included within assets under administration of $1.8 trillion.
Markel Group Inc. (MKL - Free Report) reported first-quarter 2026 adjusted operating income of $21.61 per share, which missed the Zacks Consensus Estimate by 18.1%. The bottom line deteriorated 16% year over year. Including one-time items, MKL reported a net loss of $18.90 per share in the first quarter of 2026. Total operating revenues of $3.5 billion, up 0.1% year over year, which missed the Zacks Consensus Estimate by 4%.
Earned premiums decreased 2% year over year to $2 billion in the quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 8% year over year to $255.9 million in the first quarter. The figure was lower than the Zacks Consensus Estimate of $262 million. However, this was more than offset by substantial net investment losses of $728 million. Total operating expenses of Markel Group decreased 0.6% year over year to $3.1 billion.