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Equitable Holdings (EQH)
NYSE:EQH
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Equitable Holdings
(NYSE:EQH)
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Rating:45Neutral
Price Target:
$44.00
▼(-1.79% Downside)
The score is held down primarily by weak financial performance (declining revenue, negative profitability, sharp free-cash-flow deterioration) and high balance-sheet leverage, reinforced by bearish technicals with the stock trading below major moving averages. These negatives are partially offset by a more encouraging earnings-call backdrop of record AUM, strong flows in key fee businesses, and active capital return/deleveraging, while valuation support is limited due to losses despite a moderate dividend yield.
Positive Factors
Scale of AUM
A $1.1 trillion AUM base creates a durable, fee-generating revenue stream that smooths earnings over time. Scale supports recurring management fees, distribution leverage with advisors, and cross-selling into retirement/wealth products, improving long-term revenue predictability and competitive positioning.
Active capital deployment
Targeted buybacks and debt paydown demonstrate disciplined capital allocation that can enhance returns and strengthen the balance sheet. Sustained deployment toward repurchases and deleveraging improves shareholder economics and financial flexibility over a multiyear horizon.
High-margin asset management
AllianceBernstein's margin improvement and earnings growth reflect a durable, fee-rich business that diversifies Equitable's revenue beyond insurance spreads. Strong fee margins and private markets expansion support cash generation and offset life insurance margin cyclicality over the medium term.
Negative Factors
High leverage
Extremely high leverage materially raises financial risk and interest sensitivity, constraining strategic optionality. In stressed markets or if cash generation weakens, debt servicing limits capital returns, investment capacity, and increases the likelihood of balance-sheet-driven actions that dilute long-term value.
Free cash flow deterioration
A near-total collapse in free cash flow significantly reduces the company's ability to self-fund operations, repay debt, and invest in growth. Even with pockets of free cash coverage, such a large deterioration implies structural pressure on liquidity and restricts durable capital allocation choices.
Earnings volatility from reinsurance
Large reinsurance and asset-transfer actions improve regulatory capital but induce sizable GAAP losses and alter fee mix. These structural transactions create recurring comparability issues and can depress future fee revenue if low-fee assets migrate, increasing medium-term earnings volatility and forecasting difficulty.
Equitable Holdings (EQH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.84B
Dividend Yield2.15%
Average Volume (3M)2.27M
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth7.70%
EPS Growth-155.12%
CountryUS
Employees8,000
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.73
Shares Outstanding286,532,040
10 Day Avg. Volume3,143,183
30 Day Avg. Volume2,268,982
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)9.56
Price to Sales (P/S)1.22
P/FCF Ratio10.20
Enterprise Value/Market Cap-9.09
Enterprise Value/Revenue-9.71
Enterprise Value/Gross Profit-16.95
Enterprise Value/Ebitda-153.26
Forecast
1Y Price Target
$61.33Price Target Upside36.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Equitable Holdings Business Overview & Revenue Model
Company DescriptionEquitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related solutions to various clients through institutional, retail, and private wealth management channels; and distributes its institutional research products and solutions. The Protection Solutions segment provides various variable universal life, indexed universal life, and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners; and a suite of life, short- and long-term disability, dental, and vision insurance products to small and medium-size businesses. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.
How the Company Makes MoneyEquitable Holdings generates revenue through multiple key streams. Primarily, the company earns money through the sale of life insurance policies and annuities, which contribute to its premiums and investment income. The investment management segment also plays a crucial role, as Equitable manages assets for both individual and institutional clients, earning management fees. Additionally, the company benefits from fees associated with its retirement solutions, including 401(k) plans and other retirement accounts. Significant partnerships with financial advisors and distribution networks further enhance its reach and revenue potential. Furthermore, the performance of its investment portfolio, which includes equities, fixed income, and alternative investments, influences its earnings through capital gains and investment income.
Equitable Holdings Key Performance Indicators (KPIs)
Equitable Holdings Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented meaningful commercial momentum: record AUM (+10%), strong organic inflows in Wealth (+13%) and Retirement (+4%), substantial private markets growth at AB (+18%), improved capital flexibility (RGA deal freed $2B and cut mortality exposure 75%), and solid cash generation with a path to $2.0B by 2027. However, 2025 was also impacted by elevated mortality, AB net outflows, a Corporate & Other loss and modest spread compression that restrained EPS growth versus targets. Management provided constructive 2026 guidance (cash ~$1.8B, EPS growth expected to accelerate and exceed 12%–15% target range) and multiple remediation levers (expense saves, buybacks, less mortality volatility). Overall the call balances clear progress and optimistic guidance against tangible near-term headwinds and execution risks.Q4-2025 Updates
Positive Updates
Record Assets Under Management and Administration
AUM/A ended 2025 at a record $1.1 trillion, up 10% year-over-year, providing a tailwind for fee and spread-based earnings.
Solid Cash Generation and Capital Return
Full-year organic cash generation was $1.6 billion (in line with $1.6B–$1.7B guidance). The company returned $1.8 billion to shareholders in 2025 (including $500M incremental buybacks) and reduced shares outstanding by 9% year-over-year.
Earnings Per Share and Guidance
Full-year non-GAAP operating earnings were $5.64 per share ($6.21 after notable items), up 1% vs. 2024. Management expects EPS growth to accelerate in 2026 and projects 2026 EPS growth, excluding notable items, to exceed the company’s 12%–15% target.
Retirement Business Momentum
Retirement produced $5.9 billion of net flows in 2025, a 4% organic growth rate; net interest margin grew sequentially and management expects mid- to high-single-digit pretax earnings growth for the segment in 2026.
Wealth Management Strength
Wealth Management reported $8.4 billion of net inflows in 2025 (13% organic growth) and Q4 earnings rose 40% year-over-year. The business reached its $200M annual earnings target two years early and increased the number of wealth planners by 12%.
AllianceBernstein Private Markets and Margins
AB private markets AUM grew 18% to $82 billion, with a target of $90B–$100B by end-2027. AB reported a 33.7% adjusted operating margin for 2025, at the upper end of its targeted range, and Q4 performance fees of $82 million.
Balance Sheet Derisking and Capital Actions
Life reinsurance transaction with RGA freed $2.0 billion of capital and reduced net mortality exposure by 75%. The company also has an adjusted debt-to-capital ratio of ~25% and expects NAIC RBC around 475% at year-end 2025.
Expense and Investment Initiatives
On track to realize $150 million of expense savings by 2027 with $120 million currently in the run rate; achieved $110 million target for incremental investment income from shifting to private markets.
Negative Updates
Elevated Mortality Experience in 2025
Higher-than-expected mortality claims held back EPS growth in 2025; Q4 recorded approximately $25 million of adverse mortality and management increased GAAP mortality assumptions and folded prudence into 2026 guidance.
Earnings Growth Lag vs. Targets
EPS growth has been 8% through the first three years of the 2027 plan, below the targeted 12%–15% CAGR; company acknowledged EPS is the one area below target and is relying on 2026 improvement and other levers to close the gap.
AllianceBernstein Net Outflows
AB experienced overall net outflows of $11.3 billion in 2025 (includes $4.0B of low-fee outflows related to the RGA transaction), creating headwinds for fee revenue despite private markets growth.
Corporate and Other Losses and Volatility
Corporate & Other reported a Q4 loss of $123 million (higher than expected), driven by a $10 million write-off, elevated mortality (~$25M) and seasonal variability; management forecasts a 2026 Corporate & Other loss of $350M–$400M.
Spread Compression and NIM Pressure
Retirement experienced modest NIM spread compression (about 2–4 basis points expected in H1 2026) due to runoff of a very profitable older RILA block and timing noise in investment income.
Commission and Distribution Expense Increase
Commission and distribution expense increased sequentially (noted ~$25 million pickup), driven by sales mix and a one-time allocation true-up between Retirement and Wealth Management.
Valuation Gap and Investor Concerns
Management acknowledged a valuation gap between the value of the AB stake and Equitable’s stock price; investor concerns persist around private credit exposure (though company describes exposure as immaterial) and disclosure changes that complicate outside analysis.
Company Guidance
Management guided 2026 to roughly $1.8 billion of total cash generation (up >10% YoY from ~$1.6B in 2025 and on track to $2.0B in 2027) and said 2026 EPS (excluding notable items) should grow by more than their 12%–15% target range; segment guidance included mid‑ to high‑single‑digit pretax growth in Retirement (spreads to stabilize in H2 after modest 2–4 bps compression in H1), Asset Management visibility to at least $80–$100 million of performance fees in 2026, Wealth Management double‑digit earnings growth (with a ~$60M quarterly run rate and FY2025 earnings already >$200M), and Corporate & Other a full‑year loss of $350–$400M (with seasonal mortality volatility in Q1/Q4); they expect a consolidated tax rate of ~20% (segment: Retirement ~16%, Wealth ~26%, Asset Mgmt ~28%), year‑end holding company cash of ~$1.1B (min target $500M), record AUM/A of $1.1T (+10% YoY), combined NAIC RBC ~475%, and reiterated that 2025 total cash generation was $2.6B (including $1.0B RGA proceeds) with organic cash ~$1.6B.Equitable Holdings Financial Statement Overview
Summary
Overall fundamentals are pressured: revenue declined (-11.93% TTM), profitability weakened with a negative net margin, and free cash flow fell sharply (-93.04% TTM). The balance sheet is a key risk with very high leverage (debt-to-equity 25.90) and negative ROE, despite a still-strong gross margin (66.42%).Income Statement
Equitable Holdings has experienced a significant decline in revenue over the TTM period, with a negative revenue growth rate of -11.93%. The gross profit margin remains relatively strong at 66.42%, but the net profit margin has turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The company's balance sheet shows high leverage, with a debt-to-equity ratio of 25.90, indicating significant reliance on debt financing. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is low, highlighting potential financial instability.30
Negative
Cash Flow
Equitable Holdings' cash flow situation is concerning, with a dramatic decline in free cash flow growth of -93.04% over the TTM period. The operating cash flow to net income ratio is zero, indicating cash flow challenges. However, the free cash flow to net income ratio is relatively healthy, suggesting some ability to cover net income with free cash flow.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.01B | 12.44B | 10.53B | 12.64B | 7.61B | 12.41B |
| Gross Profit | 6.88B | 6.60B | 5.19B | 7.58B | 7.32B | 2.90B |
| EBITDA | 761.00M | 3.20B | 1.78B | 3.83B | 3.37B | 864.00M |
| Net Income | -696.00M | 1.31B | 1.30B | 2.15B | 1.75B | -648.00M |
Balance Sheet | ||||||
| Total Assets | 314.51B | 295.87B | 276.81B | 252.70B | 292.26B | 275.40B |
| Cash, Cash Equivalents and Short-Term Investments | 42.94B | 8.20B | 9.41B | 67.64B | 83.40B | 11.73B |
| Total Debt | 6.36B | 6.78B | 6.33B | 5.85B | 5.89B | 5.28B |
| Total Liabilities | 312.57B | 292.30B | 271.66B | 249.11B | 278.70B | 258.08B |
| Stockholders Equity | 148.00M | 1.58B | 2.65B | 1.40B | 11.52B | 15.58B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | 1.49B | -325.00M | -417.00M | -313.00M | -168.00M |
| Operating Cash Flow | 1.25B | 1.64B | -208.00M | -250.00M | -193.00M | -61.00M |
| Investing Cash Flow | -13.85B | -15.36B | -4.85B | -7.49B | -12.69B | -7.82B |
| Financing Cash Flow | 16.60B | 12.10B | 9.00B | 7.04B | 11.95B | 9.67B |
Equitable Holdings Technical Analysis
Negative
44.80
Price Trends
47.04
Negative
47.87
Negative
49.98
Negative
Market Momentum
-0.56
Positive
37.53
Neutral
42.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQH, the sentiment is Negative. The current price of 44.8 is below the 20-day moving average (MA) of 46.54, below the 50-day MA of 47.04, and below the 200-day MA of 49.98, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 42.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQH.
Equitable Holdings Risk Analysis
Equitable Holdings disclosed 51 risk factors in its most recent earnings report. Equitable Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Equitable Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $36.31B | 9.54 | 17.81% | ― | 16.68% | -28.54% | |
77 Outperform | $39.25B | 10.58 | 21.66% | 1.55% | 7.11% | 22.52% | |
75 Outperform | $21.18B | 14.03 | 13.74% | 3.44% | 12.33% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $11.79B | 8.62 | 14.42% | 5.77% | -6.19% | ― | |
64 Neutral | $41.21B | 13.69 | 7.68% | 2.02% | -23.02% | 52.43% | |
45 Neutral | $12.84B | -8.99 | -41.33% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
EQH
Equitable Holdings
43.40
-7.77
-15.18%
AEG
Aegon
7.81
1.55
24.76%
AIG
American International Group
76.37
3.35
4.59%
ACGL
Arch Capital Group
100.13
6.25
6.66%
HIG
Hartford Insurance
140.86
29.27
26.22%
PFG
Principal Financial
96.40
19.39
25.18%
Equitable Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Equitable Holdings Reports 2025 Results and Strategic Progress
Positive
Feb 4, 2026
On February 4, 2026, Equitable Holdings reported its full-year and fourth-quarter 2025 results, highlighting $1.6 billion in organic cash generation for 2025, a figure the company expects to rise in 2026, alongside a full-year net loss of $1.4 billion despite Non-GAAP operating earnings of $1.7 billion, or $1.9 billion after adjusting for notable items. For 2025, the company posted strong net inflows of $5.9 billion in Retirement and $8.4 billion in Wealth Management against $11.3 billion of outflows in Asset Management, ended the year with a 10% increase in assets under management and administration to $1.1 trillion, and returned $1.8 billion to shareholders, while executing major strategic actions including reinsuring 75% of its in-force individual life block to RGA, completing a Bermuda reinsurance transaction, deploying most of its $20 billion capital commitment to support AB’s expanding private markets franchise, and progressing on cost savings and capital strength metrics such as a combined NAIC RBC ratio of about 475%.
The most recent analyst rating on (EQH) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on Equitable Holdings stock, see the EQH Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.