Prudential tops Q3 profit estimates, misses on revenue

Prudential Financial (PRU) topped profit estimates for the third quarter of 2026, but revenue fell short. The company said on Nov. 3 that after-tax adjusted operating income was $1.321 billion, or $3.77 per share, for the quarter ended Sept. 30. That topped the $3.40 consensus estimate for adjusted earnings per share.

Shares were little changed in after-hours trading as of 5:14 p.m. ET, from a regular-session close of $118.85.

Revenue of $13.49 billion missed the $14.99 billion consensus estimate.

Prudential Financial, with about $1.6 trillion in assets under management as of Sept. 30, 2026, has operations in the United States, Asia, Europe and Latin America.

Here's how the company did:

• Net income attributable to Prudential Financial: $1.388 billion, or $3.96 per share, vs. $1.431 billion, or $4.01 per share, a year earlier
• Adjusted EPS: $3.77 vs. $4.05 a year earlier, against the $3.40 consensus estimate
• Revenue: $13.49 billion vs. $15.74 billion a year earlier, below the $14.99 billion consensus estimate

Japan earnings fell because of the sales suspension at Prudential of Japan, which the company said more than offset solid fundamentals at PGIM and in its U.S. Businesses.

Chairman and Chief Executive Officer Andy Sullivan said, “Our third quarter results demonstrate the discipline and consistency with which we are executing across Prudential.”

Segment results

PGIM, the company’s global investment management business, reported adjusted operating income of $263 million, up from $244 million a year earlier. The company said the increase reflected lower expenses after a reorganization charge in the prior year and higher asset management fees.

The company said PGIM’s third-party net flows reached their highest level in 10 quarters.

U.S. Businesses reported adjusted operating income of $1.173 billion, down from $1.188 billion. The company attributed the decline to higher variable expenses, lower joint venture earnings and lower fee income from the run-off of the traditional variable annuity block.

Total Retirement sales were $8.2 billion, including $3.9 billion of retail annuity sales, which the company said reached their highest quarterly level since 2013.

Japan Businesses reported adjusted operating income of $559 million, down from $750 million. The company said the decrease primarily reflects the Prudential of Japan sales suspension, including higher expenses and less favorable underwriting results.

Corporate and Other reported a loss of $349 million on an adjusted operating income basis, compared with a loss of $353 million a year earlier.

Net income of $1.388 billion included $368 million of pre-tax net realized investment losses and related charges.

Capital and book value

Total capital returned to shareholders was $741 million, including $250 million of share repurchases and $491 million of dividends, against $731 million a year earlier. Dividends paid were $1.40 per share.

Book value per common share was $84.88, down from $90.69 a year earlier. Adjusted book value per common share was $102.39, up from $99.25.

Parent company highly liquid assets were $4.0 billion, versus $3.9 billion a year earlier. Assets under management reached $1.616 trillion, from $1.612 trillion.

Divestitures and segment changes

The company said it announced the sales of Prudential of Brazil, Prudential of Mexico and its South Africa insurance business. It also closed the sales of its businesses in Indonesia and Kenya.

On Oct. 15, the company changed its segment reporting. The former International Businesses segment was renamed Japan Businesses and no longer includes emerging market operations, including Brazil and Mexico. Those operations are now reflected in Corporate and Other. The company’s indirect 40% stake in Administradora de Fondos de Pensiones Habitat S.A. moved into the Retirement segment.

Prudential will hold a conference call on Nov. 4 at 11 a.m. ET to discuss the results.