| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 92 | 10.8x | 17.8x | Top tier | |
Growth | 47 | 9.4% | 7.1% | Around median | |
Quality | 73 | — | — | Top tier | |
Safety | 8 | — | — | Bottom tier | |
Capital Return | 53 | 4.61% | 2.12% | Around median | |
Momentum | 85 | 15.4% | 2.9% | Top tier | |
Sentiment | 62 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Prudential Financial (PRU) operates as an integrated financial system combining retirement solutions, insurance, and asset management. Its retirement and protection businesses generate long-term liabilities and premiums, while PGIM manages public and private assets and earns fees from managing client funds; the company’s other pillars include group insurance, individual life insurance, and its Japan business. The strategy announced on August 7, 2026, aims to focus operations on the United States, Japan, and selected European countries, while reducing by about half the number of countries in which the retirement and insurance businesses operate and exiting emerging markets primarily through asset sales.
In fiscal Q2 2026, revenue reached $15.7 billion, compared with $15.5 billion in fiscal Q1 2026, while net income was $985 million and earnings per share were $2.80, compared with $597 million and $1.68, respectively, in the previous quarter. Net income equaled approximately 6.3% of revenue, while the provided data did not include a gross profit figure. On an adjusted operating basis, the company recorded after-tax income of $1.4 billion, or $4.08 per share, up 14% year over year, while year-to-date adjusted operating return on average equity increased 110 basis points to 15.5%.
The earnings mix in fiscal Q2 2026 showed strength in PGIM and insurance, with adjusted operating income before tax of $294 million for PGIM, $155 million for group insurance, $176 million for individual life insurance, and $855 million for the international businesses. The U.S. businesses generated approximately $1 billion in total, while the retirement businesses recorded $392 million and the legacy U.S. products recorded $234 million. Management wants to increase PGIM’s contribution from approximately 12% of annual adjusted operating income to around 25%, increasing the weight of fee-based, less capital-intensive earnings.
The analyst consensus on PRU is Neutral, with an average price target of $105.22 and a wide range between $87 and $128; the highest target is slightly above the 52-week range high of $127.72, while the lowest target is below the range low of $91.89. This divergence reflects the market’s balancing of PGIM’s growth and the $750 million benefits plan on one hand, against the expected fiscal 2026 impact of the Prudential Japan sales suspension of between $525 million and $575 million and restructuring execution risks on the other, while the data does not include a valid price-to-earnings multiple for an additional comparison.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Fiscal Q2 2026 revenue was approximately $15.7 billion, net income was $985 million, and earnings per share were $2.80. On an adjusted operating basis, after-tax income increased 14% year over year to $1.4 billion, or $4.08 per share. The improvement came primarily from higher spread income, increased asset management fees, and a net benefit from the assumption update, partially offset by higher expenses related to the Prudential Japan sales suspension and distribution expenses associated with sales growth.
PGIM represents approximately 12% of the company’s annual adjusted operating income, and management is targeting an increase to around 25%. In fiscal Q2 2026, its adjusted operating income before tax increased 28% to $294 million, and its margin improved 470 basis points to 28.2%. Its drivers include the deployment of approximately $21 billion in private capital, growth in active ETF fund assets of approximately 21% from the previous quarter to around $35 billion, and the GreenSky transaction valued at up to $3 billion, announced on August 21, 2026.
The impact of the sales suspension on adjusted operating income before tax was $105 million in fiscal Q2 2026, compared with approximately $130 million in the previous quarter. Management continues to estimate the total fiscal 2026 impact at between $525 million and $575 million, because the effects of lost sales, policyholder behavior, and Life Planner compensation do not develop linearly. Meanwhile, international business earnings remained strong at $855 million, up 12%, and the company estimated the consolidated economic solvency ratio for its Japan operations at between 170% and 190% as of June 30, 2026, compared with an operating target of 150%.
Automated analysis for informational purposes only — not investment advice.
The company plans to reduce its retirement and insurance presence across more than twelve countries by approximately half and focus on the United States, Japan, and selected European countries. It expects emerging-market sales to release well over $3 billion in capital for redeployment into PGIM, group insurance, and retirement through a strategic process extending approximately five years. It also targets annual benefits before tax of $750 million by the end of 2028 and an improvement of 150 basis points in the operating expense ratio over three years, with the full benefit appearing in 2029 results.
Individual annuity sales reached $3.6 billion in fiscal Q2 2026, up 14%, supported by FlexGuard 2.0 and fixed-rate annuity products. Group insurance generated record adjusted operating income before tax of $155 million, while its year-to-date sales increased 26% to $599 million. Individual life insurance recorded record second-quarter sales of $237 million, with record sales of Custom Premier II and adjusted operating income before tax of $176 million.
The analyst consensus rates the stock Neutral, with an average target of $105.22. The target range extends from $87 to $128, a wide dispersion that overlaps with the 52-week range of $91.89 to $127.72. The range reflects differing estimates of the ability of PGIM’s growth and the efficiency plan to offset the impact of Prudential Japan and the risks of asset sales and capital redeployment, while the data does not provide a price-to-earnings multiple that can be relied upon as an additional valuation anchor.
