XVARY Composite Score
74
/ 100
Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
Prudential sells insurance, retirement products, and asset management so your savings and your family both have a plan.
How it gets paid
Last year Pru made $60.8B in revenue. U.S. Retirement Solutions was the main engine at $27.0B, or 44% of sales.
Why growth slowed
Revenue fell 13.7% last year. EPS of $4.26 in the third quarter matters most because it was up 23% vs.
What just happened
The quarter was messy: EDGAR shows revenue of $45.1B and EPS of $7.44, while Yahoo's last reported EPS was $3.30 versus $3.52 expected.
At a Glance
A+ balance sheet — rock-solid finances — built to survive anything
75/100 earnings predictability — reasonably predictable
8.0x trailing p/e — the market's not buying it — or you found a deal
4.8% dividend yield — cash in your pocket every quarter
5.2% return on capital — nothing to write home about
XVARY composite: 74/100 — average
What They Do
Prudential sells insurance, retirement products, and asset management so your savings and your family both have a plan.
Scale is the moat. Prudential manages $1.375 trillion in assets and serves customers in more than 40 countries, which spreads risk across a very large base. Insurance float (premium cash held before claims) → money it can invest before paying out → that scale helps fund a 4.8% dividend while still earning a 15% return on equity.
How They Make Money
$60.8B
annual revenue · their business grew -13.7% last year
U.S. Retirement Solutions
$27.0B
Investment Management
$11.3B
International Insurance
$16.0B
Corporate and Other
$6.5B
The Products That Matter
Retirement income products
Individual Annuities
$28.2B · 46% of revenue
It is the largest business line by far, bringing in $28.2B even after an 8% decline. If this segment stabilizes, the earnings case looks better fast.
core driver
Employee benefits coverage
Group Insurance
$18.5B · 30% of revenue
This segment produced $18.5B but fell 15% last year. You want this business acting as ballast, not adding to the decline.
stability test
Asset management fees
PGIM Investment Solutions
$14.1B · 24% of revenue
PGIM generated $14.1B and dropped 22%. This is the most market-sensitive piece of the story, because fees shrink when assets and client confidence do.
market exposure
Key Numbers
8.0x
trailing p/e
P/E (price-to-earnings) → how much investors pay for each dollar of profit → so what: you are paying a bargain multiple for a company expected to earn $15.65 in fiscal 2026.
4.8%
dividend yield
Dividend yield → your annual cash payout as a share of stock price → so what: PRU pays you far more income than the S&P 500 average while you wait.
$1.375T
assets managed
Assets under management → client money PRU oversees → so what: this is the scale that supports fee income and helps smooth insurance cyclicality.
15%
return on equity
Return on equity → profit generated from shareholder capital → so what: PRU is still producing solid profitability for a stock priced like a problem.
Financial Health
A+
Strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $18.8B (31% of capital)
- return on equity 15% — $0.15 profit for every $1 investors have put in
A+ — among the top-rated companies for balance sheet quality.
Total Return vs. Market
You invested $10000 in PRU 3 years ago → it's now worth $13690.
The index would have given you $13920.
source: institutional data · total return
What Just Happened
missed estimates
The quarter was messy: EDGAR shows revenue of $45.1B and EPS of $7.44, while Yahoo's last reported EPS was $3.30 versus $3.52 expected.
institutional data says third-quarter EPS was $4.26, up 23%, and net profit margin rose to 8.5% from 6.5%. The quiet part: profits improved even as annual revenue fell 13.7%, which is classic insurer math.
$45.1B
revenue
$7.44
eps
8.5%
gross margin
the number that mattered
EPS of $4.26 in the third quarter matters most because it was up 23% vs. prior year and led institutional data to raise profit forecasts through 2026.
-
Prudential financial posted strong profit growth in the third quarter.despite the sharp vs. prior year drop in premium income, narrower benefit payouts combined with a continued climb in investment income.
-
Thus, the net profit margin of 8.5% rose by two percentage points.
-
Earnings per share of $4.26 grew by 23% and easily exceeded the consensus view.
-
With these trends likely to continue, we raised our profit forecasts through 2026.our new earnings estimate for the current quarter of $3.52 a share, which compares to $3.35 in september, and lifts our full-year call to $14.65.
-
In the year ahead, we now expect a more moderate 7% rise in per-share profits, with the new figure of $15.65 well above the $14.15 that we previously anticipated.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. Plain English, no spam.
Weekly updates
Earnings alerts
Plain English
No spam
What Could Go Wrong
The #1 risk is the pension risk transfer lawsuit tied to PICA and RGA.
High
Pension risk transfer lawsuit exposure
Jan 14, 2026 — a shareholder suit alleges Prudential concealed shortfalls tied to pension risk transfer obligations involving PICA and RGA.
The claimed exposure range of $9.1B–$15.2B is large enough to matter if the case gains traction.
Med
Interest-rate sensitivity in annuities
Individual Annuities are 46% of revenue, or $28.2B. When rate conditions work against the product set, the biggest segment feels it first.
An 8% decline in the largest business line is manageable once. Repetition is how a cheap stock stays cheap.
Med
PGIM fee pressure and outflows
Investment Management brought in $14.1B but fell 22%. This business is tied more directly to market levels and client flows than the insurance book.
Lower assets or weaker retention hit fees fast, and fee businesses tend to lose their shine quickly when markets get rough.
Med
Broad-based revenue contraction
Revenue fell 13.7% to $60.8B, and all three major segments declined last year: -8%, -15%, and -22%.
That means the problem is not isolated. It touches 100% of the revenue base shown on this page.
The lawsuit is the headline risk, but the operating issue is broader: PRU needs stabilization across a $60.8B business, not just one good quarter.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Legal
Pension risk transfer suit
The Jan 14, 2026 lawsuit is the cleanest single thing that could change the story fast. If disclosures worsen, the valuation debate changes with it.
Trend
Whether segment declines keep lining up
Last year was -8% in annuities, -15% in group insurance, and -22% in investment management. You want at least one of those lines to turn before calling this a recovery.
Metric
The $100M cost-savings target
Management outlined $100M in annual savings by 2026. That is useful, but on a $60.8B revenue base it is support, not a miracle.
Next report
Whether the $15.65 EPS view still holds
At roughly 7.5x forward earnings, this stock is leaning on earnings durability. If that estimate slips back toward the old $14.15 view, the bargain looks less obvious.
Analyst Rankings
earnings predictability
75 / 100
in human-speak, analysts think PRU's earnings are fairly dependable, even if growth is not.
risk rank
2
This score says the balance sheet looks safer than about 80% of stocks. The business is the debate. Survival is not.
Source: institutional data
Institutional Activity
institutions have been net buying for 2 consecutive quarters — 566 buyers vs. 559 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 2 quarters.
Source: institutional data
Price Targets
3-5 year target range
$96
$177
$118
Current price
$137
Target midpoint · +16% from current · 3-5yr high: $170 (+45% · 13% ann'l return)
Want the deeper analysis?
The full deep dive: DCF model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
See plans from $5/moThe Deep Dive