Prudential Financial (PRU) Q3 earnings topped the Wall Street consensus on Wednesday, helped by growth across its businesses and favorable market conditions.
Q3 adjusted operating EPS of $4.26, soaring past the average analyst estimate of $3.72, jumped from $3.58 in Q2 and $3.33 in last year’s Q3.
Adjusted book value per common share increased to $99.25 at Sept. 30, 2025, topping the Visible Alpha estimate of $98.80, from $96.41 at June 30 and $98.71 at Sept. 30, 2024.
“Our third quarter adjusted operating income earnings per share reached a record-high, up 28% from the year-ago quarter, driven by earnings growth in every business,” said CEO Andy Sullivan. “This performance reflects continued momentum in sales and flows, as well as favorable market conditions, resulting in year-to-date adjusted operating return on equity of over 15%.”
Prudential Financial (PRU) stock rose 0.7% in after-hours trading.
Q3 adjusted operating return on average equity surged to 17.9% from 14.9% in the prior quarter and 13.6% a year ago.
Assets under management of $1.61T at Sept. 30, 2025, climbed from $1.58T at June 30, 2025, and $1.56 at Sept. 30, 2024.
Net investment income rose to $4.87B in Q3 from $4.60B in Q2 and $4.44B in last year’s Q3.
Its global investment management division, PGIM, posted adjusted operating income before taxes of $244M vs. $241M in Q3 2024, reflecting higher asset management fees, higher other related revenues, driven by higher agency earnings and seed and co-investment income, and a gain from the sale of its Taiwan business, partially offset by higher expenses, including a reorganization charge.
PGIM AUM of $1.47T, missing the Visible Alpha consensus of $1.48T, increased 5% Y/Y on equity market and fixed income appreciation and net inflows. Total net flows of $2.4B reflect affiliated net inflows of $1.8B and third-party net inflows of $0.6B.
U.S. business adjusted operating income before taxes grew to $1.15B from $1.04B a year ago, reflecting higher net investment spread results, including higher alternative investment income, and more favorable underwriting results, partly offset by lower net fee income, driven by the run-off of our legacy traditional variable annuity block, and higher expenses to support business growth.
International businesses’ adjusted operating income before taxes of $881M rose from $766M a year ago, reflecting higher net investment spread results, including higheralternative investment income, and more favorable underwriting results, partly offset by higher expenses to support business growth.
Q3 benefits and expenses of $14.3B compared with $11.8B in Q2 and $17.9B in Q3 2024.
Conference call on Oct. 30 at 11:00 AM ET.