Prudential Financial (PRU)
NYSE:PRU
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Prudential Financial
(NYSE:PRU)
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Rating:64Neutral
Price Target:
$108.00
â–²(6.25% Upside)
Action:Reiterated
Date:06/05/26
PRU scores as a moderate opportunity: attractive valuation (low P/E and high dividend) and improving earnings/cash generation support the stock, but the overall score is held back by balance-sheet risk signals (notably the very high TTM leverage reading), quantified Japan disruption and underwriting headwinds, and only neutral technical momentum.
Positive Factors
Asset-management strength (PGIM)
PGIM’s scale, fee-bearing AUM and margin expansion are durable drivers of fee revenue and cash generation. Sustained margin improvement and private-asset deployments diversify income, reduce sensitivity to insurance spread cycles, and create repeatable high-margin earnings over multiple years.
Negative Factors
Japan sales suspension (POJ)
The extended Japan sales suspension is a structural headwind to international growth and in-force earnings. Multi-quarter lost sales, elevated surrenders and a slow productivity ramp create persistent revenue and margin pressure in a key market, raising medium-term execution and reputational risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-management strength (PGIM)
PGIM’s scale, fee-bearing AUM and margin expansion are durable drivers of fee revenue and cash generation. Sustained margin improvement and private-asset deployments diversify income, reduce sensitivity to insurance spread cycles, and create repeatable high-margin earnings over multiple years.
Read all positive factors
Prudential Financial Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by business line so investors can see which products and regions drive top‑line growth. It highlights diversification and the company’s growth engines, showing whether revenue gains are broad‑based or dependent on a single segment or market cycle.
Breaks down revenue by business line so investors can see which products and regions drive top‑line growth. It highlights diversification and the company’s growth engines, showing whether revenue gains are broad‑based or dependent on a single segment or market cycle.
Data provided by:
The Fly
The FlyPrudential Financial (PRU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.97B
Dividend Yield4.73%
Average Volume (3M)2.24M
Price to Earnings (P/E)10.4
Beta (1Y)0.88
Revenue Growth4.08%
EPS Growth54.01%
CountryUS
Employees37,936
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)9.83
Shares Outstanding347,000,000
10 Day Avg. Volume1,792,873
30 Day Avg. Volume2,235,933
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 Cap1.11
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit1.88
Enterprise Value/Ebitda7.93
Forecast
1Y Price Target
$99.27Price Target Upside-2.34% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering12
EPS Forecast (FY)13.68
Revenue Forecast (FY)$58.30B
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 primarily generates earnings from (1) insurance and retirement product economics and (2) fee-based asset management. In its insurance and retirement businesses, revenue and profitability are driven by premium income and policy charges o...
Prudential Financial Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational progress and several strong business-level performance metrics (10% AOI growth, PGIM margin and earnings expansion, Retirement and Individual Life momentum, AUM growth and private-assets deployment). These positives were balanced by a material but quantified and contained near-term headwind from the Prudential of Japan sales suspension (estimated $525M–$575M 2026 pretax impact), weaker Group disability underwriting, and runoff in legacy annuity blocks. Management emphasized capital strength, liquidity, active portfolio and portfolio exits, targeted expense actions, and confidence in executing a more focused strategy—indicating the positives slightly outweigh the near-term challenges.Positive Updates
Overall Earnings Growth and ROE
Reported adjusted operating income of $1.6 billion pretax (after-tax adjusted operating income ~ $1.3 billion), $3.61 per common share, up 10% year over year, with an adjusted operating return on equity of approximately 15%.
Negative Updates
Prudential of Japan (POJ) Sales Suspension and Earnings Drag
Voluntary POJ sales suspension extended through November 5; first-quarter financial impact of the suspension totaled $130 million. Company expects aggregate 2026 pretax adjusted operating income impact of approximately $525 million–$575 million, with in-force earnings down an estimated ~10% in year one and ~15% in year two before recovery assumptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Overall Earnings Growth and ROE
Reported adjusted operating income of $1.6 billion pretax (after-tax adjusted operating income ~ $1.3 billion), $3.61 per common share, up 10% year over year, with an adjusted operating return on equity of approximately 15%.
Read all positive updates
Company Guidance
Prudential revised full‑year 2026 tax guidance down to 21%–22% (from 23%–24%) and said it does not expect the Prudential of Japan (POJ) sales suspension to materially affect capital, ESR or cash flows in 2026–2027, while estimating an aggregate 2026 pretax adjusted operating income impact from POJ of ~$525–$575M (Q1 impact ~$130M), with POJ in‑force earnings assumed down ~10% in year one and ~15% in year two, no sales through Nov. 5 and a gradual ramp to ~50% Life Planner productivity on average in 2027 amid elevated surrenders; company ESR was estimated at ~170%–190% (vs. 150% target) and cash & liquid assets were $3.7B (above a $3.0B minimum). Management reiterated PGIM is on track to deliver ~ $100M of gross annual run‑rate savings and >200 bps of margin expansion in 2026 toward a 25%–30% margin target (Q1 PGIM margin 19.1%, +260 bps YoY; AUM $1.4T, +3%; third‑party net inflows ~ $1.8–2.0B; affiliated net outflows $1.9B), noted a prior $135M restructuring charge that will yield ~$150M of run‑rate savings in 2027, said expense actions will show benefits in 2027, and confirmed no update to corporate guidance at this time.Prudential Financial Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.96B | 60.77B | 70.67B | 54.27B | 56.99B | 71.15B |
| Gross Profit | 20.71B | 25.55B | 17.52B | 17.55B | 11.89B | 28.28B |
| EBITDA | 4.90B | 4.91B | 3.59B | 3.00B | -1.77B | 11.04B |
| Net Income | 3.47B | 3.58B | 2.73B | 2.49B | -1.65B | 8.87B |
Balance Sheet | ||||||
| Total Assets | 765.40B | 773.74B | 735.59B | 721.12B | 689.92B | 937.58B |
| Cash, Cash Equivalents and Short-Term Investments | 22.85B | 91.53B | 364.79B | 361.94B | 346.80B | 414.20B |
| Total Debt | 19.83B | 22.96B | 28.37B | 26.93B | 27.65B | 29.80B |
| Total Liabilities | 730.47B | 738.16B | 705.46B | 691.34B | 672.71B | 874.97B |
| Stockholders Equity | 31.98B | 32.44B | 27.87B | 27.82B | 16.25B | 61.88B |
Cash Flow | ||||||
| Free Cash Flow | 9.79B | 6.27B | 8.50B | 6.51B | 5.16B | 10.55B |
| Operating Cash Flow | 9.79B | 6.27B | 8.50B | 6.51B | 5.16B | 9.81B |
| Investing Cash Flow | -30.60B | -25.89B | -28.59B | -12.12B | -7.64B | -5.34B |
| Financing Cash Flow | 20.71B | 20.77B | 19.39B | 7.74B | 4.93B | -3.01B |
Prudential Financial Technical Analysis
Positive
101.65
Price Trends
99.23
Positive
100.66
Positive
102.90
Positive
Market Momentum
0.75
Positive
57.24
Neutral
50.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRU, the sentiment is Positive. The current price of 101.65 is below the 20-day moving average (MA) of 101.99, above the 50-day MA of 99.23, and below the 200-day MA of 102.90, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 57.24 is Neutral, neither overbought nor oversold. The STOCH value of 50.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.74B | 10.28 | 20.32% | 0.74% | 3.96% | 18.81% | |
76 Outperform | $13.34B | 17.83 | 7.07% | 2.22% | 4.19% | -45.74% | |
75 Outperform | $52.09B | 15.04 | 12.88% | 2.78% | 5.57% | -16.00% | |
73 Outperform | $35.44B | 9.08 | 36.71% | 1.49% | 66.84% | 83.13% | |
71 Outperform | $58.28B | 12.76 | 17.20% | 2.10% | 7.25% | 37.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $34.97B | 10.36 | 10.91% | 4.73% | 4.08% | 54.01% |
* Financial Sector Average
PRU
Prudential Financial
103.32
3.59
3.60%
AFL
AFLAC
115.29
15.22
15.20%
MET
Metlife
83.46
7.19
9.43%
PUK
Prudential
26.11
3.06
13.26%
GL
Globe Life
154.31
35.55
29.94%
UNM
Unum Group
84.91
6.78
8.68%
Prudential Financial Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Prudential Financial Issues $750 Million Junior Subordinated Notes
Positive
Jun 4, 2026
On June 4, 2026, Prudential Financial, Inc. closed the sale of $750 million aggregate principal amount of its 6.250% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2056. The successful issuance of these junior subordinated notes strengthe...
Executive/Board ChangesShareholder Meetings
Prudential Shareholders Back Directors, Pay and Auditor Choices
Positive
May 12, 2026
At Prudential Financial’s Annual Meeting of Shareholders held on May 12, 2026, all director nominees were elected to one-year terms, with each candidate receiving strong majority support despite some variation in opposition levels. Sharehold...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Prudential Financial Reports Mixed First-Quarter 2026 Results
Neutral
May 5, 2026
On May 5, 2026, Prudential Financial reported first-quarter 2026 net income of $597 million, down from $707 million a year earlier, while after-tax adjusted operating income rose to $1.278 billion from $1.188 billion, and assets under management i...
Business Operations and StrategyRegulatory Filings and Compliance
Prudential Extends Japan Life Unit Sales Suspension Review
Negative
Apr 21, 2026
On April 21, 2026, Prudential Financial and its subsidiary The Prudential Life Insurance Company, Ltd. in Japan said they would extend Prudential of Japan’s voluntary suspension of new sales by an additional 180 days, following a 90‑da...
Business Operations and StrategyFinancial Disclosures
Prudential Updates PGIM Metrics and Revises Segment Reporting
Neutral
Apr 14, 2026
For the quarter ended March 31, 2026, Prudential reported preliminary data showing PGIM assets under management at $1.43 trillion and approximately $35 million in PGIM other related revenues on an adjusted operating income basis, while alternative...
Business Operations and StrategyRegulatory Filings and Compliance
Prudential Financial Rejects Deeply Discounted Mini-Tender Offer
Neutral
Apr 13, 2026
On April 13, 2026, Prudential Financial, Inc. disclosed that it had received an unsolicited mini-tender offer from Potemkin Limited to buy up to 100,000 shares, or about 0.03 percent of its outstanding common stock. The offer price of $60.70 per s...
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...
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.