1Q26 Earnings: Strong Quarter Overshadowed by Concerns for Japan

研报英文原文证据摘录

1Q26 Earnings: Strong Quarter Overshadowed by Concerns for Japan

C O M PA N Y N O T E

M a y 1 1 , 2 0 2 6

Prudential Financial Inc. (PRU) Neutral

CONCLUSION PRICE: US$100.81

Reported EPS: $3.61 | Consensus: $3.15 | PSC: $3.17 Prudential reported a strong beat TARGET: US$105.00

versus PSC and consensus driven by overall strong growth YoY. There was a large pension 7.5x '27E EPS

risk transfer, partially driving the beat of $1.4 billion in 1Q26, compared to $0 in 1Q25. While

Corporate and Other were considered a beat versus our estimate. Paul Newsome, CFA, CPCU

Managing Director, Piper Sandler & Co.

312 281-3445, paul.newsome@psc.com

• We remain Neutral on PRU: The severance charge in last quarter's earnings and Cam Bianchi

continued into the start of 2Q26 reiterates our view that the architecture of the Research Analyst, Piper Sandler & Co.

company needs to be meaningfully reworked to reflect the current environment. This 612 456-9841, cam.bianchi@psc.com

view is supported by the number of risk transfers previously completed along with Changes Previous Current

smaller market exits in international markets pursued. While pension risk transfers can Rating — Neutral

strengthen the looks of earnings they can be relatively inconsistent as seen in 1Q26 Price Tgt US$99.00 US$105.00

compared to 1Q25. On the topic of the Japan sales suspension, we believe costs FY26E EPS — US$13.45

associated with remediation actions could increase. This is ultimately brand damaging in FY27E EPS US$14.08 US$14.00

a market that has a low threshold for such behavior, and we believe could lead investors Market Cap. (mil) US$35,414.6

to begin to suggest PRU should exit the geography entirely. Book Value/Share US$91.03

Tang. Book/Share $88.50