Prudential Financial (PRU)
NYSE:PRU
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Prudential Financial
(NYSE:PRU)
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Rating:60Neutral
Price Target:
$101.00
â–²(7.12% Upside)
Action:ReiteratedDate:03/11/26
The score is anchored by acceptable but uneven financial performance (improving profitability and moderate leverage, but volatile revenue/equity and a sharp 2025 cash-flow drop). Valuation is supportive with a low P/E and high dividend yield, but weak technicals (below major moving averages, negative MACD) and earnings-call guidance for a meaningful 2026 Japan-related earnings hit cap the overall rating.
Positive Factors
Improved Profitability & ROE
Prudential has moved from multi-year losses to consistent positive earnings, with net margin near 6.4% and ROE recovering to ~11% in 2025. Sustained improvement in underwriting and investment spread supports internal capital generation, dividend continuity and reinvestment capacity over the medium term.
Negative Factors
Japan misconduct and sales suspension
The internal misconduct finding in Japan and a voluntary 90‑day sales halt create lasting operational and reputational risk in an important international market. Management estimates a $300–$350M 2026 hit; remediation, higher surrenders and potential regulatory action could depress growth and margins in Japan for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & ROE
Prudential has moved from multi-year losses to consistent positive earnings, with net margin near 6.4% and ROE recovering to ~11% in 2025. Sustained improvement in underwriting and investment spread supports internal capital generation, dividend continuity and reinvestment capacity over the medium term.
Read all positive factors
Prudential Financial (PRU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.81B
Dividend Yield4.73%
Average Volume (3M)2.43M
Price to Earnings (P/E)11.1
Beta (1Y)0.89
Revenue Growth-19.35%
EPS Growth-35.23%
CountryUS
Employees37,936
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.30
Shares Outstanding348,000,000
10 Day Avg. Volume2,752,309
30 Day Avg. Volume2,425,274
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)1.22
Price to Sales (P/S)0.65
P/FCF Ratio6.33
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit2.46
Enterprise Value/Ebitda9.74
Forecast
1Y Price Target
$110.11Price Target Upside16.78% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)14.22
Revenue Forecast (FY)$57.97B
Prudential Financial Business Overview & Revenue Model
Company Description
Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through eight segments: PGIM, Retirement, Group ...
How the Company Makes Money
Prudential makes money primarily by (1) collecting premiums and fees for insurance and retirement products, (2) earning investment income and returns on assets it manages to back policyholder obligations, and (3) charging fees for asset management...
Prudential Financial Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call mixed strong company-wide operating momentum, capital strength and strategic progress (AUM growth, improved ROE, robust retirement sales, share repurchase authorization) with a significant governance and operational setback in Japan (POJ misconduct) that carries a material near-term earnings and reputational hit (estimated $300M–$350M impact to 2026). PGIM flows showed both large annual inflows in key asset classes (> $30B) and a lumpy quarter with ~$10B of outflows tied to active-to-passive industry shifts and a single large client redemption. Management reiterated confidence in diversification, capital positions and remediation actions, but flagged potential downside to intermediate EPS targets if the Japan issue persists or worsens.Positive Updates
Strong Full-Year Financial Results and Improved ROE
Full-year pretax adjusted operating income of $6.6 billion ($14.43 per share). Adjusted operating return on equity of ~15%, up nearly 200 basis points year-over-year. Returned nearly $3.0 billion to shareholders via dividends and buybacks during 2025.
Negative Updates
Material Misconduct in Japan (POJ) and 90-Day Voluntary Sales Suspension
Internal investigation at Prudential of Japan (POJ) found employee misconduct. Company voluntarily halted new sales in the Life Planner channel for an initial 90-day period (may be extended) and will not resume until internal compliance and oversight are deemed sufficient. This is a material reputational and operational issue in an important market.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Results and Improved ROE
Full-year pretax adjusted operating income of $6.6 billion ($14.43 per share). Adjusted operating return on equity of ~15%, up nearly 200 basis points year-over-year. Returned nearly $3.0 billion to shareholders via dividends and buybacks during 2025.
Read all positive updates
Company Guidance
Prudential guided that the POJ misconduct and voluntary 90‑day sales suspension will reduce 2026 pretax adjusted operating income by $300–$350 million — made up of $150–$180 million from the suspension (including roughly 20% from lost sales and ~20% from higher surrenders with the remainder supporting the distribution force), about $70 million of one‑time costs (≈70% of which is customer reimbursement), and roughly $80 million of lower earnings as sales ramp (management expects POJ sales to be ~50% below normal in 2026 and to ramp to ~90% by year‑end); this could push Prudential to the low end of its 5–8% intermediate EPS growth target for 2024–2027. Other metric guidance/context: Q4 after‑tax adjusted operating income was ~$1.2B ($3.30/share; ex‑$107M one‑time charge $3.60/share, +22% YoY), FY2025 pretax adjusted operating income was $6.6B ($14.43/share) with adjusted operating ROE ≈15% (up ~200 bps), PGIM AUM ≈$1.5T (up 7% YoY) with ~ $10B net outflows in the quarter but >$30B net inflows last year from key asset classes and an expected >200 bps margin expansion in 2026 toward a 25–30% target, Institutional Retirement sales ~ $26B (FY), Individual Retirement sales $14B (FY) and >$3B/quarter, Group Insurance sales >$600M (FY) with Q4 benefit ratio 82.5%, Individual Life sales $955M (FY), International sales $525M (Q4, +4% cc) and emerging markets record FY sales $386M (+6% cc), expected VA account runoff of $3–4B quarterly in 2026 (≈$10–$15M pretax AOI per quarter; ~$100–$150M annually), excess 2025 surrenders estimated to reduce 2026 earnings by ~$50M, cash & liquid assets $3.8B (above $3B target), board‑authorized buybacks up to $1B for 2026, dividend increased for the 18th consecutive year, ESR remains well above the 150% operating target despite recent JGB moves (management says it would remain within the operating range even with another ~90–100 bps rise in long‑dated Japanese rates), and a $135M pretax restructuring charge is expected to deliver ~$150M pretax run‑rate savings in 2027.Prudential Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 60.77B | 70.67B | 54.27B | 56.99B | 71.15B |
| Gross Profit | 25.55B | 17.52B | 17.55B | 11.89B | 28.28B |
| EBITDA | 4.91B | 3.59B | 3.00B | -1.77B | 11.04B |
| Net Income | 3.58B | 2.73B | 2.49B | -1.65B | 8.87B |
Balance Sheet | |||||
| Total Assets | 773.74B | 735.59B | 721.21B | 689.03B | 937.58B |
| Cash, Cash Equivalents and Short-Term Investments | 26.13B | 66.39B | 340.75B | 329.56B | 391.96B |
| Total Debt | 33.28B | 21.57B | 20.87B | 21.06B | 19.62B |
| Total Liabilities | 738.16B | 705.46B | 691.34B | 657.11B | 874.97B |
| Stockholders Equity | 32.44B | 27.87B | 27.82B | 30.59B | 61.88B |
Cash Flow | |||||
| Free Cash Flow | 6.27B | 8.50B | 6.51B | 5.16B | 10.55B |
| Operating Cash Flow | 6.27B | 8.50B | 6.51B | 5.16B | 9.81B |
| Investing Cash Flow | -25.89B | -28.59B | -12.12B | -7.64B | -5.34B |
| Financing Cash Flow | 20.77B | 19.39B | 7.74B | 4.93B | -3.01B |
Prudential Financial Technical Analysis
Negative
94.29
Price Trends
102.52
Negative
105.38
Negative
103.33
Negative
Market Momentum
-2.76
Negative
39.62
Neutral
30.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRU, the sentiment is Negative. The current price of 94.29 is below the 20-day moving average (MA) of 96.34, below the 50-day MA of 102.52, and below the 200-day MA of 103.33, indicating a bearish trend. The MACD of -2.76 indicates Negative momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRU.
Prudential Financial Risk Analysis
Prudential Financial disclosed 14 risk factors in its most recent earnings report. Prudential Financial 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
Prudential Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.80B | 9.74 | 20.64% | 0.74% | 3.73% | 17.47% | |
73 Outperform | $55.07B | 10.60 | 13.05% | 2.10% | 2.31% | 15.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $35.80B | 3.72 | 26.87% | 1.49% | 42.45% | 304.26% | |
65 Neutral | $11.99B | 18.10 | 6.63% | 2.22% | 1.80% | -44.44% | |
60 Neutral | $32.81B | 11.10 | 11.44% | 4.73% | -19.35% | -35.23% | |
58 Neutral | $45.11B | 15.53 | 12.01% | 2.78% | 0.82% | 7.18% |
* Financial Sector Average
PRU
Prudential Financial
94.29
-14.28
-13.16%
AFL
AFLAC
106.65
-0.75
-0.70%
MET
Metlife
69.18
-12.14
-14.93%
PUK
Prudential
28.98
7.97
37.90%
GL
Globe Life
137.38
8.54
6.63%
UNM
Unum Group
73.25
-7.89
-9.72%
Prudential Financial Corporate Events
Business Operations and StrategyExecutive/Board Changes
Prudential Financial CEO Andrew Sullivan Also Named Chairman
Positive
Mar 11, 2026
On March 10, 2026, Prudential Financial’s board appointed Chief Executive Officer Andrew Sullivan as chairman, consolidating the top leadership roles as part of a planned transition. He succeeds Charles Lowrey, who resigned as executive chai...
Business Operations and StrategyRegulatory Filings and Compliance
Prudential Gibraltar Addresses Data Handling Incident in Japan
Negative
Mar 6, 2026
On March 6, 2026, Prudential Gibraltar Financial Life Insurance reported that 11 seconded employees had improperly removed 379 instances of operational information from seven partner financial institution agencies in Japan. The data related mainly...
Business Operations and StrategyExecutive/Board Changes
Prudential Financial Updates 2026 Executive Incentive Programs
Neutral
Feb 11, 2026
Prudential Financial has defined the annual incentive payment criteria for its executive officers for awards to be granted in 2026, based on performance in 2025 under its Annual Incentive Program. The framework sets out how executives’ short...
Business Operations and StrategyExecutive/Board Changes
Prudential Financial Adds Marathon CEO Maryann Mannen to Board
Positive
Feb 10, 2026
Prudential Financial Inc. has elected Maryann T. Mannen to its Board of Directors as an independent director, with her appointment effective May 12, 2026 and contingent on shareholder approval. She will join the Corporate Governance and Business E...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Prudential Financial posts stronger 2025 results, raises dividend
Positive
Feb 3, 2026
On February 3, 2026, Prudential Financial reported that 2025 was a significantly stronger year, with net income rising to $3.576 billion, or $9.99 per share, from $2.727 billion in 2024, and after-tax adjusted operating income increasing to $5.161...
Business Operations and StrategyRegulatory Filings and Compliance
Prudential of Japan Discloses Misconduct Investigation Findings
Negative
Jan 20, 2026
On January 16, 2026, Prudential of Japan, a subsidiary of Prudential Financial, reported the findings of an internal investigation into incidents of misconduct involving current and former employees, disclosing the outcome via a press release made...
Financial Disclosures
Prudential Financial Issues Preliminary Fourth-Quarter 2025 Results
Neutral
Jan 15, 2026
For the quarter ended December 31, 2025, Prudential Financial reported preliminary figures showing PGIM segment assets under management of $1.47 trillion and approximately $55 million in other related revenues, net of related expenses, on an adjus...
Business Operations and StrategyExecutive/Board Changes
Prudential Financial Unveils New Streamlined Leadership Structure
Neutral
Dec 22, 2025
On Dec. 18, 2025, Prudential Financial announced a realignment of its senior leadership structure intended to streamline operations in its largest markets and sharpen its focus on key growth opportunities. Under the new structure, the heads of the...
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.