Prudential Financial (PRU) AI Stock Analysis

• Market Cap: $34.94B
• Dividend Yield: 4.73%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.88
• Revenue Growth: -19.35%
• EPS Growth: -35.23%
• Country: US
• Employees: 37,936
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 3.30
• Shares Outstanding: 348,000,000
• 10 Day Avg. Volume: 2,149,359
• 30 Day Avg. Volume: 2,349,164
• PEG Ratio: 0.32
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.33
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: 10.18
• 1Y Price Target: $113.70
• Price Target Upside: 12.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 14.46
• Revenue Forecast (FY): $57.72B

• Rating: 63 Neutral
• Price Target: $112.00 ▲(11.05% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

PRU scores in the low-60s driven primarily by improving profitability and moderate leverage, tempered by volatile cash flow and revenue. Valuation is a key positive (low P/E and high dividend yield), but technicals are weak and the earnings outlook is clouded by the Japan misconduct issue and its guided 2026 earnings impact.

Positive Factors

Improved profitability and ROE

Prudential has meaningfully recovered from earlier losses, with net margin near 6.4% and ROE ~11% in 2025. That sustained profitability improves internal capital generation, supports underwriting resilience and provides a more durable earnings base to fund dividends, buybacks and strategic investments.

Scale and AUM growth at PGIM

PGIM's $1.5T scale and recent AUM growth diversify Prudential's fee revenue and reduce dependence on insurance underwriting cycles. Expansion into private credit, direct lending and a $1T global credit platform supports structural margin improvement and recurring fee income over the medium term.

Solid capital, liquidity and shareholder actions

Liquidity above the stated minimum, a healthy ESR and a $1B buyback plus the 18th consecutive dividend increase signal disciplined capital management. This balance of buffer and shareholder returns indicates the company can withstand shocks while returning excess capital over the medium term.

Negative Factors

Japan misconduct and sales suspension

Internal misconduct in Prudential of Japan and a voluntary 90-day Life Planner sales halt create a lasting reputational and operational drag in a key international market. Beyond the immediate $300–$350M 2026 hit, remediation, regulatory scrutiny and slower trust rebuilding can suppress multi-year growth and margins in Japan.

Volatile and weakening cash generation

A more than 50% drop in operating and free cash flow versus 2024 reduces confidence in recurring cash generation. For an insurer with large reserve and investment sensitivities, this volatility weakens financial flexibility for capital returns, debt servicing and reserve strengthening over the medium term.

PGIM outflows and active-to-passive headwinds

Quarterly $10B outflows and Jennison active-equity pressures highlight flow volatility and exposure to secular shifts toward passive strategies. Asset-management fee income and margins can remain lumpy, making overall earnings more sensitive to market and client behavior over the medium term.

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 Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block. The company offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. It also provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; and group life, long-term and short-term group disability, and group corporate-, bank-, and trust-owned life insurance in the United States, primarily to institutional clients for use in connection with employee and membership benefits plans, as well as sells accidental death and dismemberment, and other supplemental health solutions; and provides plan administration services in connection with its insurance coverages. In addition, the company develops and distributes individual variable and fixed annuity products, principally to the mass affluent and affluent markets; and individual variable, term, and universal life insurance products to the mass middle, mass affluent, and affluent markets in the United States. Further, it provides third-party life, health, Medicare, property and casualty, and term life products to retail shoppers through its digital and independent agent channels. The company offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.

How the Company Makes Money

Prudential Financial generates revenue through multiple key streams, primarily focusing on its insurance and investment management operations. The company earns income from premiums collected on life insurance policies, which represents a significant portion of its revenue. Additionally, Prudential collects fees from the management of mutual funds and other investment products, including variable annuities. Another substantial revenue source comes from the sales of retirement-related products and services, where Prudential charges fees for asset management and advisory services. The company also benefits from investment income generated from its large portfolio of fixed-income and equity investments. Significant partnerships with financial advisors, broker-dealers, and other financial institutions enhance Prudential's distribution capabilities and market reach, contributing to its overall earnings growth.

Prudential Financial Financial Statement Overview

Summary

Profitability and ROE have recovered (net margin ~6.4% in 2025; ROE ~11%), and leverage improved (debt-to-equity ~0.63). Offsetting this, revenue and especially cash generation have been volatile, with 2025 operating/free cash flow dropping sharply versus 2024, reducing confidence in consistency.

Income Statement

Profitability has improved meaningfully from the 2020–2022 loss period to positive earnings in 2023–2025, with net margin rising to ~6.4% in 2025 (vs. ~3.9% in 2024). However, revenue has been volatile—strong growth in 2024 followed by a ~3.9% decline in 2025—and margin trends are inconsistent across years, pointing to a less stable earnings profile than top-tier peers.

Balance Sheet

Leverage looks manageable for a life insurer, with debt-to-equity improving to ~0.63 in 2025 from ~0.77 in 2024, and return on equity rebounding to ~11% in 2025 (from ~9–10% in 2023–2024, after a negative year in 2022). The main watchout is capital variability: equity is well below 2020–2021 levels, and the balance sheet remains heavily asset-driven (as expected in insurance), making results sensitive to market and reserve movements.

Cash Flow

Cash generation weakened in 2025: operating cash flow and free cash flow fell to ~$2.45B versus ~$8.50B in 2024 (about a 53% decline). While free cash flow still remains positive across all years shown, the sharp swing year-over-year reduces confidence in consistency and financial flexibility, especially compared with the stronger 2021–2024 run-rate.

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

• Technical Analysis Sentiment: Negative
• Last Price: 100.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 100.86 is below the 20-day moving average (MA) of 103.47, below the 50-day MA of 109.04, and below the 200-day MA of 103.73, indicating a bearish trend. The MACD of -2.02 indicates Negative momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRU.

Prudential Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GL	78 Outperform	$11.33B	10.11	―	0.74%	3.73%	17.47%
AFL	73 Outperform	$58.94B	16.49	15.33%	2.10%	2.31%	15.46%
PUK	73 Outperform	$37.83B	11.73	20.19%	1.49%	42.45%	304.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRU	63 Neutral	$34.94B	10.04	11.86%	4.73%	-19.35%	-35.23%
UNM	63 Neutral	$11.73B	16.77	6.69%	2.22%	1.80%	-44.44%
MET	58 Neutral	$49.13B	15.99	12.10%	2.78%	0.82%	7.18%

Prudential Financial Corporate Events

Prudential Financial Updates 2026 Executive Incentive Programs

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-term compensation will be determined, reinforcing the company’s emphasis on performance-based pay and alignment with corporate goals.

The company has also set the terms and conditions for 2026 awards of performance shares and restricted stock units to executive officers under its 2021 Omnibus Incentive Plan, forming the basis of its 2026 Long-Term Incentive Program. This structure is designed to link executive rewards with long-term shareholder value and strengthen retention of senior leadership through equity-based compensation.

The most recent analyst rating on (PRU) stock is a Hold with a $113.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential Financial Adds Marathon CEO Maryann Mannen to Board

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 Ethics Committee and the Compensation and Human Capital Committee, and will receive standard compensation for non-employee directors.

The Feb. 10, 2026 announcement underscores Prudential’s bid to bolster its board with deep operational and financial expertise drawn from Mannen’s more than 30-year career in the global energy sector, including her current role as chairman, president and CEO of Marathon Petroleum. Executives highlighted that her leadership and financial acumen are expected to support Prudential’s strategic evolution toward becoming a higher-growth company and may influence its governance, compensation, and human capital priorities.

The most recent analyst rating on (PRU) stock is a Hold with a $113.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential Financial posts stronger 2025 results, raises dividend

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 billion, or $14.43 per share. Fourth-quarter 2025 results also improved sharply, swinging from a net loss of $57 million a year earlier to net income of $905 million, supported by higher investment spreads, better underwriting, disciplined costs, and higher assets under management, which climbed to $1.609 trillion. The company highlighted a transformative year for PGIM as it unified its asset management platform, continued to grow in retirement markets globally, and returned nearly $3 billion to shareholders in 2025; it also boosted its quarterly dividend by 4% to $1.40 per share and has a $1 billion share repurchase authorization for 2026. At the same time, Prudential faces reputational and operational challenges in Japan, where its Prudential of Japan unit has voluntarily suspended new sales for 90 days to address previously disclosed employee misconduct, with measures including customer reimbursement and stronger oversight aimed at restoring trust in a key international market.

The most recent analyst rating on (PRU) stock is a Sell with a $94.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential of Japan Discloses Misconduct Investigation Findings

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 available in English through the company’s newsroom. The announcement underscores Prudential Financial’s efforts to address employee misconduct within its Japanese life insurance operations, with potential implications for its governance practices, regulatory scrutiny, and stakeholder confidence in that key international market.

The most recent analyst rating on (PRU) stock is a Hold with a $124.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential Financial Issues Preliminary Fourth-Quarter 2025 Results

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 adjusted operating income basis, reflecting income from incentive and transaction fees, seed and co-investments, and mortgage originations. Over the same period, alternative investment income in the company’s General Account portfolio was estimated to be $5 million to $25 million below near-term expectations, and management emphasized that these unaudited figures are based on preliminary data and may differ materially once financial closing procedures are completed and full quarterly results are released in early February 2026.

The most recent analyst rating on (PRU) stock is a Hold with a $126.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential Financial Unveils New Streamlined Leadership Structure

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 company’s U.S. businesses, Emerging Markets, the Japan Group and its asset management arm, PGIM, will report directly to CEO Andy Sullivan, a move designed to support Prudential’s long-term growth agenda, strengthen accountability and reinforce a high-performance culture. As part of these changes, Phil Waldeck, currently head of Multi-Asset and Quantitative Solutions at PGIM and a former chief transformation officer and Retirement president at Prudential, has been appointed executive vice president and head of U.S. Businesses effective Feb. 2, 2026, while Emerging Markets head David Legher, Japan Group President and CEO Brad Hearn, and PGIM President and CEO Jacques Chappuis will also report directly to Sullivan. The reorganization eliminates the role of global head of Retirement and Insurance, leading to the departure of Executive Vice President Caroline A. Feeney, who will remain in her current role until Feb. 2, 2026 and is expected to stay briefly thereafter, marking a significant leadership transition as Prudential seeks more agile execution and more consistent performance across its global franchises.

The most recent analyst rating on (PRU) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.

Prudential Financial Announces $1 Billion Share Buyback

Prudential Financial, Inc. announced that its Board of Directors has authorized a share repurchase program of up to $1.0 billion of its outstanding Common Stock for the year 2026. This strategic move is expected to be influenced by market conditions and other considerations, potentially impacting the company’s market positioning and shareholder value.

The most recent analyst rating on (PRU) stock is a Buy with a $123.00 price target. To see the full list of analyst forecasts on Prudential Financial stock, see the PRU Stock Forecast page.