AI Earnings Predictions for Prudential Financial Inc. (PRU)

EX-99.1

2 exhibit991-2q26qfsrestatem.htm

EX-99.1

Document

Table of Contents

Exhibit 99.1

Prudential Financial, Inc. (PRU)

As Adjusted for International Businesses Segment Reporting Changes

Quarterly Financial Supplement

Second Quarter 2026

Reference is made to Prudential Financial, Inc.'s (PFI) filings with the Securities and Exchange Commission for general information and consolidated financial information. All financial information in this document is unaudited.

i

Table of Contents

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2026

TABLE OF CONTENTS

Page

HIGHLIGHTS

Financial Metrics Summary

1

Financial Highlights

2

Other Financial Highlights

3

Operations Highlights

4

Combined Statements of Operations

5

Consolidated Balance Sheets

6

Combining Balance Sheets

7

Short-Term and Long-Term Debt - Unaffiliated

8

PGIM

Statements of Operations

9

Supplementary Revenue and Assets Under Management Information

10

Supplementary Assets Under Management Information

11

U.S.BUSINESSES

Combined Statements of Operations

12

Statements of Operations - Retirement

13

Retirement Sales Results and Account Values

14

Statements of Operations - Group Insurance

15

Group Insurance Supplementary Information

16

Statements of Operations - Individual Life

17

Individual Life Supplementary Information

18

Statements of Operations - U.S. Legacy Products

19

U.S. Legacy Products Supplementary Information

20

U.S. Legacy Products Market Risk Benefit Features

21

JAPAN BUSINESSES

Statements of Operations - Japan Businesses

22

Sales Results and Supplementary Information

23

CORPORATE AND OTHER

Statements of Operations

25

INVESTMENT PORTFOLIO

Investment Portfolio Composition

26

Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations

27

Investment Results

28

Investment Results - Japanese Insurance Operations

29

Investment Results - Excluding Japanese Insurance Operations

30

ADJUSTED OPERATING INCOME IMPACT FROM ANNUAL ASSUMPTION UPDATES AND OTHER REFINEMENTS

31

COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES

32

KEY DEFINITIONS AND FORMULAS

36

RATINGS AND INVESTOR INFORMATION

39

ii

Table of Contents

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2026

Segment Reporting Changes Related to International Businesses Segment

In August 2026, the Company announced its intent to exit certain of its Emerging Markets businesses previously included within the International Businesses segment.

As a result, effective in the third quarter of 2026, (i) the operating results of certain businesses, including its Brazil and Mexico operations, are reflected in Other Divested and Run-off Businesses included within Corporate and Other operations, and (ii) the former International Businesses segment has been renamed “Japan Businesses.” In connection with this change, the results of the Company’s indirect 40% ownership interest in Administradora de Fondos de Pensiones Habitat S.A. ("AFP Habitat"), previously included within the International Businesses’ segment results, are now included within the Retirement segment results.

The previously reported International Businesses and restated Japan Businesses Statements of Operation can be found on pages iv and v, respectively. The impact of the Emerging Market businesses, excluding AFP Habitat, on historical results, and the impact of AFP Habitat, now reflected in Retirement, can be found on pages vi and vii, respectively.

The updates made for these revisions are highlighted in yellow throughout Exhibit 99.1.

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Table of Contents

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2026

STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES (AS PREVIOUSLY REPORTED)

(in millions)

20252026Year-to-date

2Q3Q4Q1Q2Q20252026% change

Revenues (1):

Premiums2,709 2,800 2,627 2,949 2,755 5,766 5,704 -1%

Policy charges and fee income92 96 104 117 114 180 231 28%

Net investment income1,451 1,540 1,569 1,607 1,643 2,920 3,250 11%

Asset management fees, commissions and other income147 159 116 114 179 271 293 8%

Total revenues4,399 4,595 4,416 4,787 4,691 9,137 9,478 4%

Benefits and expenses (1):

Insurance and annuity benefits2,446 2,559 2,428 2,667 2,368 5,235 5,035 -4%

Change in estimates of liability for future policy benefits32 (21)5 20 187 29 207 614%

Interest credited to policyholders' account balances369 390 402 414 425 716 839 17%

Interest expense1 2 1 3 6 — 9 —%

Deferral of acquisition costs(297)(308)(286)(263)(240)(603)(503)17%

Amortization of acquisition costs174 175 179 173 179 339 352 4%

Operating expenses467 466 499 563 535 903 1,098 22%

Variable expenses446 451 431 400 376 909 776 -15%

Total benefits and expenses3,638 3,714 3,659 3,977 3,836 7,528 7,813 4%

Adjusted operating income (loss) before income taxes761 881 757 810 855 1,609 1,

EX-99.1

2 exhibit991-2q26earningspre.htm

EX-99.1

Document

Exhibit 99.1

August 4, 2026

Prudential Financial, Inc. Announces

Second Quarter 2026 Results

NEWARK, N.J. – 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.

- more -

Prudential Financial, Inc. Second Quarter 2026 Earnings Release Page 2

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 str

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 15, 2026

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

New Jersey001-1670722-3703799

(State or other jurisdiction(Commission(I.R.S. Employer

of incorporation)File Number)Identification Number)

751 Broad Street

Newark, NJ 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered

Common Stock, Par Value $.01PRUNew York Stock Exchange

5.950% Junior Subordinated NotesPRHNew York Stock Exchange

5.625% Junior Subordinated NotesPRSNew York Stock Exchange

4.125% Junior Subordinated NotesPFHNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

The information contained in Item 7.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.02.

Item 7.01    Regulation FD Disclosure.

Prudential Financial, Inc. (the “Company”) is furnishing this Current Report to disclose (1) certain preliminary financial information regarding the quarter ended June 30, 2026, prior to the availability of the Company’s quarterly earnings release and quarterly financial supplement for the period, scheduled for release on August 4, 2026; and (2) the expected quarterly impact to adjusted operating income (“AOI”)(1) from the update of actuarial assumptions and other refinements.

Assets Under Management of the PGIM Segment

As of June 30, 2026, assets under management of the PGIM segment were $1.49 trillion.

Other Related Revenues, Net of Related Expenses, of the PGIM Segment

For the quarter ended June 30, 2026, PGIM’s other related revenues, net of related expenses, were approximately $60 million on an AOI basis. “Other related revenues” include incentive fees, transaction fees, and revenues from seed and co-investments and mortgage originations.

Alternative Investment Income of the General Account

For the quarter ended June 30, 2026, the alternative investment income of the Company’s General Account, excluding the Closed Block Division and Funds Withheld portfolios, (the “GA Portfolio”) is estimated to be approximately $20 - $40 million below the Company’s near-term expectations. “Alternative investment income” includes the AOI of the GA Portfolio’s interests in private equity, hedge fund and real estate-related investments, as well as real estate investments held through direct ownership, and excludes the results from those interests held by Divested Businesses and unaffiliated investors that have been consolidated on the Company’s balance sheet.

Annual Review and Update of Actuarial Assumptions and Other Refinements

During the second quarter of each year, the Company performs an annual comprehensive review of assumptions. Following the conclusion of this process for 2026, the Company expects to update its actuarial assumptions and make other refinements.

Below is a summary of the estimated material impacts to AOI by business segment that will be recorded in the quarter ended June 30, 2026. We do not expect any mat