It has been about a month since the last earnings report for Prudential (PRU Quick QuotePRU - Free Report) . Shares have lost about 0.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Prudential due for a breakout? 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.

PRU Q2 Earnings Beat Estimates on PGIM and International Strength

Prudential Financial, Inc. reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year. Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Results benefited from stronger PGIM and International Businesses earnings, while assets under management increased 3.9% to $1.64 trillion.

PRU Benefits From Higher Investment Income

Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion. Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion. These gains helped adjusted operating income before taxes increase 9.7% year over year to $1.83 billion.

PRU's PGIM Delivers Strong Earnings Growth

PGIM revenues increased 6.1% year over year to $1.11 billion. Adjusted operating income surged 28.4% year over year to $294 million, reflecting higher asset management fees driven by equity market appreciation and strong investment performance. The metric beat the Zacks Consensus Estimate by 12.6%. The segment also benefited from higher net service, distribution and other revenues. These gains were partially offset by the impact of net outflows and higher interest rates. PGIM assets under management increased 4% to $1.49 trillion, primarily driven by equity market appreciation and strong investment performance. Total net inflows were $1.6 billion, as third-party inflows of $4.6 billion more than offset affiliated outflows of $3 billion.

PRU's U.S. Businesses Post Mixed Results

U.S. Businesses generated adjusted operating income of $957 million, up from $955 million a year ago. A favorable impact from the annual assumption update offset higher expenses and less favorable underwriting.

Retirement adjusted operating income declined slightly to $392 million from $397 million. Higher expenses and unfavorable mortality and run-off experience in the pension risk transfer block outweighed improved net investment spread results. 

Retirement account values increased 4.2% year over year to $362.73 billion. Quarterly sales totaled $6.8 billion, including $3.6 billion of retail annuity sales, supported by demand for registered index-linked annuity products.

PRU's Protection Businesses Gain Momentum

Group Insurance adjusted operating income increased 24% year over year to a record $155 million. The metric beat the Zacks Consensus Estimate by 31.4%. The increase reflected a favorable assumption update, better life underwriting from favorable mortality and higher spread income, partly offset by growth-related expenses.

Year-to-date Group Insurance sales climbed 25.6% to $599 million. Growth was driven by disability products, including supplemental health offerings and continued momentum in the Premier middle-market segment.

Individual Life adjusted operating income more than doubled to $176 million from $82 million. The metric beat the Zacks Consensus Estimate by 12.1%. More favorable assumption updates, improved underwriting and higher spread income supported the increase.
Second-quarter Individual Life sales rose 9.2% year over year to a record $237 million, primarily due to sustained demand for variable accumulation products.

PRU Legacy Results Face Run-Off Pressure

U.S. Legacy Products adjusted operating income declined 33.3% year over year to $234 million. The metric missed the Zacks Consensus Estimate by 6.4%. The decrease reflected a less favorable assumption update, weaker guaranteed universal life underwriting and lower fee income from the continued run-off of traditional variable annuities. Legacy annuity account values decreased 7.1% year over year to $76.09 billion. Net outflows from the run-off block more than offset the benefit of market appreciation.

Total benefits and expenses increased 4.1% year over year to $12.33 billion. Operating expenses rose 6.1% year over year to $1.73 billion, while interest credited to policyholders’ account balances increased 21.6% year over year to $1.38 billion.

Prudential International Earnings Rise Despite Japan

International Businesses adjusted operating income increased 12.4% year over year to $855 million. Results benefited from higher spread income, a favorable assumption update, increased joint venture earnings and continued business growth in Brazil. The metric beat the Zacks Consensus Estimate by 20.8%. 
These gains were partly offset by higher expenses and less favorable underwriting linked to Prudential of Japan’s voluntary sales suspension. Constant-dollar sales fell 32.5% year over year to $361 million, primarily due to the suspension.

Corporate and Other recorded an adjusted operating loss of $279 million compared with the year-ago loss of $280 million. Prudential Financial now expects the segment’s full-year 2026 loss to total $1.55 billion.

PRU Maintains Strong Capital and Liquidity

Parent company highly liquid assets totaled $4.2 billion, exceeding the company’s target of more than $3 billion. Total assets increased 3.2% year over year to $783.55 billion. Adjusted book value per share increased 4.7% year over year to $100.91. Adjusted operating return on equity expanded 150 basis points to 16.4%. Prudential Financial returned $743 million to shareholders during the quarter, including $250 million through share repurchases and $493 million in dividends. The quarterly dividend was $1.40 per share.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

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 grade 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 trending upward for the stock, and the magnitude of these revisions looks promising. 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 is part of the Zacks Insurance - Multi line industry. Over the past month, Everest Group (EG Quick QuoteEG - Free Report) , a stock from the same industry, has gained 1.3%. The company reported its results for the quarter ended June 2026 more than a month ago.

Everest Group reported revenues of $3.96 billion in the last reported quarter, representing a year-over-year change of -11.8%. EPS of $14.85 for the same period compares with $17.36 a year ago.

For the current quarter, Everest Group is expected to post earnings of $8.58 per share, indicating a change of +13.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.7% over the last 30 days.

Everest Group 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.