Prudential Financial, Inc. Announces Second Quarter 2026 Results

Prudential Financial, Inc. (NYSE: PRU) today reported second quarter 2026 results.

• Net income attributable to Prudential Financial, Inc. of $985 million or $2.80 per Common share versus net income of $533 million or $1.48 per share for the year-ago quarter.
  • The current quarter included a net after-tax charge from our annual assumption update and other refinements of $299 million or $0.85 per Common share versus a charge of $134 million or $0.37 per share in the year-ago quarter.

• After-tax adjusted operating income of $1.438 billion or $4.08 per Common share versus $1.284 billion or $3.58 per share for the year-ago quarter.
  • The current quarter included a net after-tax benefit from our annual assumption update and other refinements of $51 million or $0.15 per Common share versus a charge of $36 million or $0.10 per share in the year-ago quarter.

• Book value per Common share of $90.50 versus $85.98 per share for the year-ago quarter; adjusted book value per Common share of $100.91 versus $96.41 per share for the year-ago quarter.

• Parent company highly liquid assets⁽¹⁾ of $4.2 billion versus $3.9 billion for the year-ago quarter.

• Assets under management⁽²⁾ of $1.642 trillion versus $1.580 trillion for the year-ago quarter.

• Capital returned to shareholders totaled $743 million, including $250 million of share repurchases and $493 million of dividends, versus $735 million of capital returned to shareholders in the year-ago quarter. Dividends paid in the second quarter were $1.40 per Common share, representing a yield on adjusted book value of over 5%.

• Members of Prudential’s senior management team will host an extended conference call on Wednesday, August 5, 2026, at 11:00 a.m. ET to provide an update on the Company’s strategy and long-term vision at the beginning of its second quarter earnings call. The call is expected to last approximately 90 minutes and will be available via live webcast.

“Our second quarter results were strong as we continued to execute with discipline and build momentum,” said Andy Sullivan, Chairman and Chief Executive Officer of Prudential Financial. “The strength of our business and the progress we are making to operate more consistently and effectively is evident.

PGIM delivered another quarter of strong investment performance and progressed its platform integration. Our U.S. Businesses continued to see benefits of investments in distribution and product diversification to meet evolving customer needs while supporting growth. Our International businesses generated strong earnings despite the impact of the sales suspension in Prudential of Japan, reflecting resilience of the underlying businesses and continued growth in Brazil.

Prudential is a uniquely integrated financial services company with a strong foundation in businesses and markets benefiting from favorable structural growth trends, reinforced by clear competitive advantages. Our strategy is to build on those advantages by unlocking the full power of our asset management, retirement, and protection capabilities through deeper integration and greater leverage of our scale and expertise. We are confident this will enhance our ability to win in the markets where we choose to compete, accelerating earnings and free cash flow growth while creating sustainable shareholder value.”

OVERVIEW

Net income attributable to Prudential Financial, Inc. (“Prudential” or the “Company”) was $985 million ($2.80 per Common share) for the second quarter of 2026, compared to net income of $533 million ($1.48 per Common share) for the second quarter of 2025. After-tax adjusted operating income was $1.438 billion ($4.08 per Common share) for the second quarter of 2026, compared to $1.284 billion ($3.58 per Common share) for the second quarter of 2025.

Consolidated adjusted operating income and adjusted book value are non-GAAP measures. A discussion of these measures, including definitions thereof, how they are useful to investors, and certain limitations thereof, is included later in this release under “Non-GAAP Measures,” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.⁽³⁾

RESULTS OF ONGOING OPERATIONS

Prudential’s ongoing operations include PGIM, U.S. Businesses, International Businesses, and Corporate & Other. In the following business-level discussion, adjusted operating income refers to pre-tax results.

PGIM

PGIM, the Company’s global investment management business, reported adjusted operating income of $294 million for the second quarter of 2026, up compared to $229 million in the year-ago quarter. This increase primarily reflects higher asset management fees, mainly driven by equity market appreciation and strong investment performance, partially offset by the impact of net outflows and higher interest rates. This increase also includes higher net service, distribution, and other revenues.

PGIM assets under management of $1.491 trillion increased 4% from the year-ago quarter, primarily driven by equity market appreciation and strong investment performance. Total net inflows in the quarter of $1.6 billion reflected third-party net inflows of $4.6 billion, partially offset by affiliated net outflows of $3.0 billion. Third-party institutional net inflows were $3.1 billion as public and private credit inflows were partially offset by public equity outflows. Third-party retail net inflows of $1.5 billion were primarily driven by public credit inflows, partially offset by public equity outflows. Third-party public equity outflows were consistent with the ongoing industry trend away from active equities.

U.S. Businesses

U.S. Businesses, which includes the Company’s Retirement, Group Insurance, Individual Life, and U.S. Legacy Products segments, reported adjusted operating income of $957 million for the second quarter of 2026, essentially unchanged compared to $955 million in the year-ago quarter. These results include a favorable comparable impact from our annual assumption update and other refinements of $26 million. Excluding this amount, the year-over-year decrease primarily reflects higher expenses to support continued business growth and less favorable underwriting results, partially offset by higher net investment spread results.

Retirement:

• Reported adjusted operating income of $392 million in the quarter, essentially unchanged compared to $397 million in the year-ago quarter. These results include a favorable comparable impact from our annual assumption update and other refinements of $2 million. Excluding this amount, the year-over-year decrease primarily reflects higher expenses, driven by continued business growth, and less favorable underwriting results, driven by mortality and run-off in our PRT block, partially offset by higher net investment spread results.

• Net account values of $363 billion increased 4% from the year-ago quarter, reflecting the benefits of market appreciation and business growth.

• Total sales in the quarter of $6.8 billion included $3.6 billion of retail annuity sales, reflecting continued strong momentum following the December 2025 launch of our latest registered index-linked annuity product.

Group Insurance:

• Reported adjusted operating income of $155 million in the quarter, up compared to $125 million in the year-ago quarter. This increase includes a favorable comparable impact from our annual assumption update and other refinements of $17 million. Excluding this amount, the year-over-year increase primarily reflects more favorable mortality in the working-age population in life underwriting results and higher net investment spread results, partially offset by higher expenses to support continued business growth.

• Year-to-date sales of $599 million increased 26% from the prior year period, driven by strong growth in disability product sales, including supplemental health products, and continued momentum in the Premier middle-market segment.

Individual Life:

• Reported adjusted operating income of $176 million in the quarter, more than doubling compared to $82 million in the year-ago quarter. This increase includes a favorable comparable impact from our annual assumption update and other refinements of $56 million. Excluding this amount, the year-over-year increase primarily reflects more favorable underwriting results and higher net investment spread results.

• Record second quarter sales of $237 million increased 9% from the year-ago quarter, primarily driven by variable accumulation products.

U.S. Legacy Products:

• Effective January 1, 2026, Prudential established the U.S. Legacy Products reporting segment, consisting of traditional variable annuities with guaranteed living benefit riders and certain other annuities products, previously included in the former Individual Retirement Strategies segment, as well as guaranteed universal life policies previously included in the Individual Life segment. This reporting segment represents run-off blocks consisting of products that are no longer being sold in U.S. markets.

• Reported adjusted operating income of $234 million in the quarter, down compared to $351 million in the year-ago quarter. This decrease includes an unfavorable comparable impact from our annual assumption update and other refinements of $49 million. Excluding this amount, the year-over-year decrease primarily reflects less favorable underwriting results related to the guaranteed universal life block and lower net fee income resulting from the continued run-off of the traditional variable annuity block, partially offset by market appreciation, and lower net investment spread results.

• Net legacy annuities account values of $76 billion decreased 7% from the year-ago quarter, driven by net outflows from the continued run-off of the block, partially offset by market appreciation.

International Businesses

International Businesses reported adjusted operating income of $855 million for the second quarter, up compared to $761 million in the year-ago quarter. This increase includes a favorable comparable impact from our annual assumption update and other refinements of $81 million. Excluding this amount, the year-over-year increase primarily reflects higher net investment spread results, higher joint venture earnings, and business growth in Brazil. These were partially offset by the impact of the Prudential of Japan sales suspension, including higher expenses, as well as less favorable underwriting results.

Constant dollar basis sales⁽⁴⁾ of $361 million in the quarter decreased 33% from the year-ago quarter, primarily driven by the Prudential of Japan sales suspension.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $279 million for the second quarter of 2026, essentially unchanged compared to a loss of $280 million in the year-ago quarter. These results include a favorable comparable impact from our annual assumption update and other refinements of $4 million.

NET INCOME

Net income of $985 million in the quarter included $655 million of pre-tax net realized investment losses and related charges and adjustments, including $76 million of pre-tax net credit-related losses, $71 million of pre-tax losses related to the net change in value of market risk benefits, $20 million of pre-tax losses related to market experience updates, and $123 million of pre-tax earnings from divested and run-off businesses.

Net income of $533 million in the year-ago quarter included $516 million of pre-tax net realized investment losses and related charges and adjustments, including $78 million of pre-tax net credit-related losses, $426 million of pre-tax losses related to the net change in value of market risk benefits, $6 million of pre-tax losses from divested and run-off businesses, and $42 million of pre-tax gains related to market experience updates.

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management team will host an extended conference call on Wednesday, August 5, 2026, at 11:00 a.m. ET to review these results and provide an update on Prudential’s strategy and long-term vision. The call is expected to last approximately 90 minutes and will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes prior to the start of the call in the event necessary software needs to be downloaded. Institutional investors, analysts, and other interested parties are invited to listen to the call by dialing one of the following numbers: (877) 407-8293 (domestic) or (201) 689-8349 (international). A replay will also be available on the Investor Relations website through August 19. To access a replay via phone starting at 3:00 p.m. ET on August 5 through August 19, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13761358.

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this release, including those regarding our strategy and prospects for future performance and our ability to deliver earnings and free cash flow growth while creating sustainable shareholder value constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” and words that express a degree of confidence in a potential outcome, or variations of such words, are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements include, among others, that our remediation efforts at Prudential of Japan may be unsuccessful or take longer than we expect, that we may uncover additional misconduct, that the sales suspension may continue for longer than we expect, losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; losses on insurance products due to mortality experience, and morbidity experience or policyholder behavior experience that differs significantly from our expectations when we price our products. Additional factors and uncertainties that could cause actual results to differ can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.

NON-GAAP MEASURES

Consolidated adjusted operating income and adjusted book value are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in this release.

We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at investor.prudential.com.

Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments”. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as capital and other factors.

Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments, are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, adjusted operating income excludes the impact of annual assumption updates and other refinements included in the above items.

Adjusted operating income excludes “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and discontinued operations and earnings attributable to noncontrolling interests and redeemable noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. “Earnings attributable to noncontrolling interests and redeemable noncontrolling interests” is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.

Adjusted operating income does not equate to “Net income” as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.

Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative change in fair value of funds withheld embedded derivatives, and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.

FOOTNOTES

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.6 trillion in assets under management as of June 30, 2026, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for over 150 years. For more information, please visit news.prudential.com.

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