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Prudential Financial
(NYSE:PRU)
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Rating:67Neutral
Price Target:
$123.00
â–²(2.37% Upside)
Action:Reiterated
Date:10/10/26
PRU’s score is driven primarily by improved financial performance and strong cash generation, supported by attractive valuation (low P/E and high dividend yield). These positives are tempered by weak near-term technical momentum and elevated Japan-related regulatory/operational risk plus execution risk tied to the multi-year strategic transition.
Positive Factors
Strong cash generation
Prudential’s substantial operating and free cash flow provides internal funding for dividends, buybacks, investment, and strategic repositioning. The close relationship between free cash flow and net income also supports earnings conversion, strengthening financial resilience over the next several quarters.
Negative Factors
Extended Japan regulatory sanctions
The extended suspension makes the Japan misconduct issue a continuing operational and franchise challenge rather than a short-lived earnings event. Lost sales, remediation demands, and required governance changes may pressure growth and stakeholder confidence until regulators approve normalization.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Prudential’s substantial operating and free cash flow provides internal funding for dividends, buybacks, investment, and strategic repositioning. The close relationship between free cash flow and net income also supports earnings conversion, strengthening financial resilience over the next several quarters.
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
$39.02B
Dividend Yield4.91%
Average Volume (3M)1.52M
Price to Earnings (P/E)10.1
Beta (1Y)0.73
Revenue Growth9.38%
EPS Growth144.26%
CountryUS
Employees36,607
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)11.15
Shares Outstanding345,000,000
10 Day Avg. Volume1,522,659
30 Day Avg. Volume1,520,910
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)1.22
Price to Sales (P/S)0.65
P/FCF Ratio6.30
Enterprise Value/Market Cap1.93
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit3.78
Enterprise Value/Ebitda14.25
Forecast
1Y Price Target
$114.78Price Target Upside-4.47% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering11
EPS Forecast (FY)14.46
Revenue Forecast (FY)$59.44B
Prudential Financial Business Overview & Revenue Model
Company Description
Prudential Financial, Inc., together with its subsidiaries, provides financial products and services in the United States, Japan and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and Internatio...
How the Company Makes Money
Prudential primarily makes money through (1) insurance and annuity underwriting and related fees, (2) investment income earned on assets supporting policyholder obligations, and (3) asset management and administrative fees.
1) Insurance premiums ...
Prudential Financial Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated a clear, focused multi-year strategy (narrowing geographic footprint, scaling chosen businesses, optimizing capital deployment and improving efficiency) and reported solid near-term operating results—notably 14% YoY AOI growth, meaningful PGIM margin expansion, record Group Insurance results and strong Individual Life momentum. Major near-term headwinds include the Prudential Japan sales suspension with a material full-year pretax AOI impact ($525M–$575M), ongoing variable annuity runoff and the multi-year execution required to realize capital rotation from emerging market exits. The tone balanced confidence in long-term value creation and quantified targets against realistic timing and execution risks; overall, positives (growth, margin expansion, capital and liquidity strength, and raised efficiency targets) outweigh the lowlights that are largely transitional or execution-timing related.Positive Updates
Strong Overall Quarterly Results
After-tax adjusted operating income of $1.4 billion ($4.08 per share), up 14% year-over-year; year-to-date operating return on average equity increased 110 basis points to 15.5%.
Negative Updates
Prudential Japan (POJ) Sales Suspension Impact
POJ voluntary sales suspension reduced quarterly results (impact of $105 million in the quarter) and is expected to reduce full-year 2026 pretax adjusted operating income by approximately $525 million to $575 million; sales resumption targeted for November 5/6 and execution risk remains.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Overall Quarterly Results
After-tax adjusted operating income of $1.4 billion ($4.08 per share), up 14% year-over-year; year-to-date operating return on average equity increased 110 basis points to 15.5%.
Read all positive updates
Company Guidance
Prudential framed a multiyear, sequenced plan with three shareholder objectives—top‑quartile earnings growth ex‑VA (described as high single‑digit), improved free cash‑flow conversion and sustained strong returns on capital—and a set of measurable targets: grow PGIM’s contribution from ~12% of PFI AOI to roughly 25% (PGIM Q2 pretax AOI $294M, adj. operating margin 28.2% up 470 bps YoY, >200 bps margin expansion expected in 2026 toward a >30% longer‑term target), realize about $750M pretax run‑rate efficiency savings by year‑end 2028 (up from a $150M 2027 target) with full benefit reflected in 2029 and an expected 150 bps improvement in the adjusted operating expense ratio over three years (after ~100 bps improvement in 2025 to the midpoint of the 8.5%–10.5% target), rotate well north of $3B of capital from exits of ~6–7 emerging markets into PGIM, Group Insurance and Retirement over the coming ~5 years, and manage near‑term impacts including a $525M–$575M FY‑2026 pretax headwind from the Prudential Japan sales suspension (Q2 hit ≈$105M), a lowered 2026 corporate/other loss from $1.65B to $1.55B, Q2 after‑tax AOI of ~$1.4B ($4.08/share, +14% YoY), YTD operating ROAE of 15.5% (up 110 bps), liquidity of $4.2B (vs $3B minimum) and Prudential Japan ESR estimated 170%–190% as of 6/30 (vs 150% operating target).Prudential Financial Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
62
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.83B | 60.97B | 70.67B | 54.27B | 56.99B | 71.15B |
| Gross Profit | 19.94B | 18.94B | 17.52B | 17.55B | 11.89B | 28.28B |
| EBITDA | 5.28B | 4.79B | 3.59B | 3.00B | -1.77B | 11.04B |
| Net Income | 3.84B | 3.58B | 2.73B | 2.49B | -1.65B | 8.87B |
Balance Sheet | ||||||
| Total Assets | 783.55B | 773.74B | 735.59B | 721.12B | 689.92B | 937.58B |
| Cash, Cash Equivalents and Short-Term Investments | 348.69B | 91.53B | 364.79B | 361.94B | 346.80B | 414.20B |
| Total Debt | 20.62B | 22.96B | 28.37B | 26.93B | 27.65B | 29.80B |
| Total Liabilities | 751.62B | 738.16B | 705.46B | 691.34B | 672.71B | 874.97B |
| Stockholders Equity | 31.58B | 32.44B | 27.87B | 27.82B | 16.25B | 61.88B |
Cash Flow | ||||||
| Free Cash Flow | 10.97B | 6.27B | 8.50B | 6.51B | 5.16B | 10.55B |
| Operating Cash Flow | 10.97B | 6.27B | 8.50B | 6.51B | 5.16B | 9.81B |
| Investing Cash Flow | -32.05B | -25.89B | -28.59B | -12.12B | -7.64B | -5.34B |
| Financing Cash Flow | 19.76B | 20.77B | 19.39B | 7.74B | 4.93B | -3.01B |
Prudential Financial Technical Analysis
Negative
120.15
Price Trends
118.72
Negative
113.77
Negative
106.66
Positive
Market Momentum
-1.65
Positive
38.21
Neutral
32.18
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 120.15 is above the 20-day moving average (MA) of 116.03, above the 50-day MA of 118.72, and above the 200-day MA of 106.66, indicating a neutral trend. The MACD of -1.65 indicates Positive momentum. The RSI at 38.21 is Neutral, neither overbought nor oversold. The STOCH value of 32.18 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $62.49B | 18.73 | 12.94% | 2.36% | 8.96% | -11.62% | |
74 Outperform | $12.62B | 10.79 | 20.28% | 0.77% | 5.24% | 21.35% | |
72 Outperform | $29.22B | 8.37 | 18.25% | 2.32% | 38.57% | 10.07% | |
71 Outperform | $57.42B | 12.29 | 16.42% | 2.10% | 13.57% | 110.75% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $39.02B | 10.14 | 12.00% | 4.91% | 9.38% | 144.26% | |
67 Neutral | $14.51B | 21.37 | 6.43% | 2.06% | 3.34% | -48.74% |
* Financial Sector Average
PRU
Prudential Financial
113.09
16.93
17.61%
AFL
AFLAC
114.54
6.54
6.05%
MET
Metlife
98.33
19.75
25.14%
PUK
Prudential
23.92
-2.68
-10.07%
GL
Globe Life
164.17
28.81
21.29%
UNM
Unum Group
91.67
17.99
24.42%
Prudential Financial Corporate Events
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
Prudential Financial’s Japan Units Face Extended Regulatory Sanctions
Negative
Oct 9, 2026
On October 9, 2026, Prudential Financial’s Japanese life insurance subsidiaries Prudential of Japan, Gibraltar Life, and Prudential Holdings of Japan received business suspension and business improvement orders from Japan’s Financial S...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
Prudential of Japan Announces Reforms After Misconduct Probe
Negative
Oct 8, 2026
On October 8, 2026, Prudential of Japan published the findings of a Special Investigation Committee into previously disclosed inappropriate monetary conduct by current and former sales employees, concluding that the misconduct was a structural iss...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Prudential Financial posts strong Q2 2026 earnings results
Positive
Aug 4, 2026
On August 4, 2026, Prudential Financial reported strong second quarter 2026 results, with net income rising to $985 million, or $2.80 per share, from $533 million a year earlier, and after-tax adjusted operating income increasing to $1.438 billion...
Business Operations and StrategyRegulatory Filings and Compliance
Prudential Japan Updates Customer Reimbursements, Strengthens Governance
Negative
Jul 24, 2026
On July 24, 2026, Prudential’s Japanese subsidiaries reported progress on reimbursing customers harmed by inappropriate monetary conduct by current and former sales representatives, including money borrowing, investment solicitation and impr...
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.