Prudential Financial (PRU) produced Q4 earnings that missed the consensus estimate as its assets under management were roughly flat compared with the prior quarter.
The company also announced that Prudential of Japan voluntarily suspended new sales for 90 days to address previously disclosed employee misconduct. The company said certain employees of the business made inappropriate investment solicitations. Kan Mabara, president and CEO of POJ, has left Prudential of Japan as of Feb. 1, 2026, and won’t be an adviser to the company.
Prudential Financial’s (PRU) Q4 adjusted operating EPS of $3.30, trailing the average analyst estimate of $3.36, fell from $4.26 in Q3 and $2.96 in Q4 2024.
Adjusted book value per common share increased to $100.17 at Dec. 31, 2025, vs. the Visible Alpha estimate of $101.25, from $99.25 at Sept. 30 and $95.82 at Dec. 31, 2024.
“2025 was a transformative year for PGIM, as we integrated our asset management capabilities into one unified platform, positioning us as one of the largest and most differentiated credit managers in the industry,” said CEO Andy Sullivan. “Our U.S. and International businesses delivered solid sales, reflecting the actions taken over the last year to sharpen our focus and leverage our competitive strengths as we benefited from the secular tailwinds driving growth in the retirement markets globally.”
Prudential Financial (PRU) stock dipped 1.6% in Tuesday after-hours trading.
Q4 adjusted operating return on average equity fell to 13.3% from 17.5% in the prior quarter and increased from 12.2% a year ago.
Assets under management of $1.61T at Dec. 31, 2025, were roughly flat vs. $1.61T at Sept. 30, 2025, and increased from $1.51T at Dec. 31, 2024.
Net investment income rose to $4.95B in Q4 from $4.87B in Q3 and $4.60B in the prior year’s Q3.
Its global investment management division, PGIM, posted adjusted operating income before taxes of $249M vs. $259M in Q4 2024, reflecting higher expenses and lower other related revenues, driven by lower seed and co-investment income, partly offset by higher asset management fees.
PGIM AUM of $1.47T, vs. the Visible Alpha consensus of $1.48T, rose 7% Y/Y on equity market and fixed income appreciation and strong investment performance.
U.S. business adjusted operating income before taxes grew to $1.05B from $860M a year ago, reflecting higher net investment spread results, more favorable underwriting results, and lower expenses, partly offset by lower net fee income.
International businesses’ adjusted operating income before taxes of $757M vs. $742M a year ago on higher net investment spread results and more favorable underwriting results, partially offset by higher expenses.
Q4 benefits and expenses of $13.0B declined from $14.3B in Q3 and climbed from $11.6B in Q4 2024.
Conference call on Feb. 4 at 11:00 AM ET.