Prudential Financial Q2 Earnings Beat Estimates, Revenues Decline Y/Y

Core Insights - Prudential Financial, Inc. (PRU) reported second-quarter 2025 adjusted operating income of $3.58 per share, exceeding the Zacks Consensus Estimate by 11.5% and reflecting a year-over-year increase of 5.6% [1][9] - Total revenues for the quarter were $13.5 billion, slightly above the Zacks Consensus Estimate by 0.2%, but down 2.4% year over year due to lower premiums [2][9] - Total benefits and expenses were $11.8 billion, a decrease of 3.6% year over year and below the estimate of $12 billion [2][9] Quarterly Segment Update - Prudential Global Investment Management (PGIM) reported adjusted operating income of $229 million, an increase of 11.2% year over year, though it fell short of the Zacks Consensus Estimate of $240 million [3] - PGIM's assets under management rose to $1.441 trillion, an 8% increase year over year, driven by fixed income and equity market appreciation, net inflows, and strong investment performance [4] - The U.S. Businesses segment delivered adjusted operating income of $955 million, down 6.6% year over year, impacted by an unfavorable annual assumption update [4] - International Businesses' adjusted operating income improved 8.4% year over year to $761 million, benefiting from a favorable annual assumption update [5] - Corporate and Other reported an adjusted operating loss of $280 million, an improvement from a loss of $371 million a year ago, and better than the consensus estimate of a loss of $451 million [6] Capital Deployment - Prudential Financial returned $735 million to shareholders through share repurchases of $250 million and dividends of $485 million in the second quarter [7] Financial Update - As of the end of the second quarter, cash and cash equivalents stood at $16.1 billion, a decrease of 13.2% from the end of 2024 [8] - Total debt increased by 4% from the end of 2024, reaching $20.9 billion [8] - Adjusted book value per common share increased by 10.9% year over year to $85.98, with an operating return on average equity of 14.9%, up 140 basis points year over year [10]