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Prudential (PRU) Up 0.6% 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 0.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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.
PRU Q1 Earnings & Revenues Top Estimates on Solid Investment Spread
Prudential Financial, Inc. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Prudential has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. 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 looks promising. It's no surprise Prudential has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Prudential (PRU) Up 0.6% 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 0.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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.
PRU Q1 Earnings & Revenues Top Estimates on Solid Investment Spread
Prudential Financial, Inc. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Prudential has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. 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 looks promising. It's no surprise Prudential has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.