Prudential Financial (NYSE:PRU) Posts Earnings Results, Misses Expectations By $0.07 EPS

Prudential Financial (NYSE:PRU) issued its quarterly earnings data on Tuesday. The financial services provider reported $3.30 earnings per share for the quarter, missing analysts’ consensus estimates of $3.37 by ($0.07), Zacks reports. Prudential Financial had a net margin of 4.65% and a return on equity of 16.60%. The company had revenue of $14.52 billion for the quarter, compared to the consensus estimate of $14.48 billion. During the same period in the previous year, the business earned $2.96 EPS.

Prudential Financial Price Performance

Shares of PRU opened at $107.04 on Wednesday. The company has a market capitalization of $37.46 billion, a P/E ratio of 14.70, a P/E/G ratio of 1.24 and a beta of 0.97. The business’s 50-day moving average is $112.84 and its two-hundred day moving average is $107.48. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.16 and a current ratio of 0.16. Prudential Financial has a fifty-two week low of $90.38 and a fifty-two week high of $119.76.

Prudential Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Tuesday, February 17th will be issued a $1.40 dividend. The ex-dividend date of this dividend is Tuesday, February 17th. This is a positive change from Prudential Financial’s previous quarterly dividend of $1.35. This represents a $5.60 annualized dividend and a yield of 5.2%. Prudential Financial’s dividend payout ratio is currently 74.18%.

Key Stories Impacting Prudential Financial

Here are the key news stories impacting Prudential Financial this week:

• Positive Sentiment: Board raised the quarterly dividend to $1.40 (3.7% increase versus prior quarter), implying a ~5.2% yield and ex‑dividend date Feb 17; this signals confidence in cash flow and supports income investors.
• Positive Sentiment: Full‑year 2025 results showed meaningful improvement: net income attributable to PRU of $3.576B ($9.99/share) and after‑tax adjusted operating income of $5.161B ($14.43/share), which management linked to capacity for a growing dividend and potential buybacks. Business Wire: Full Year and Q4 Results
• Positive Sentiment: Commentary and analysis pieces see the results as supporting shareholder returns (dividend growth and buybacks), which could underpin the stock over time. Seeking Alpha: Results Support Dividend & Buybacks
• Neutral Sentiment: Top‑line was roughly in line with expectations — revenue of $14.52B versus ~$14.48B est. — limiting the negative impact from the EPS miss. Press Release / Slides
• Neutral Sentiment: Analysts remain mixed: a modest price‑target bump from one shop while ratings (e.g., ‘Hold’) were largely maintained, suggesting limited immediate upside from new analyst actions. InsiderMonkey: PT Raised, Hold Maintained
• Negative Sentiment: Q4 EPS missed estimates: $3.30 reported vs. $3.37 consensus, which spooked short‑term traders despite year‑over‑year EPS improvement. Zacks: PRU Lags Q4 Estimates
• Negative Sentiment: Investor concern about Japan exposure and other overseas headwinds was called out ahead of and after the print, contributing to caution around near‑term growth projections. Investing.com: Japan Headwinds

Insider Buying and Selling

In other news, SVP Timothy L. Schmidt sold 8,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $107.69, for a total transaction of $861,520.00. Following the sale, the senior vice president owned 11,535 shares of the company’s stock, valued at $1,242,204.15. This trade represents a 40.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Chairman Charles F. Lowrey sold 48,164 shares of the business’s stock in a transaction on Monday, November 10th. The shares were sold at an average price of $107.39, for a total transaction of $5,172,331.96. Following the completion of the transaction, the chairman owned 165,564 shares of the company’s stock, valued at approximately $17,779,917.96. This represents a 22.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 62,719 shares of company stock valued at $6,796,067 in the last ninety days. Insiders own 0.25% of the company’s stock.

Institutional Investors Weigh In On Prudential Financial

A number of institutional investors have recently modified their holdings of PRU. Zacks Investment Management boosted its position in Prudential Financial by 0.6% during the third quarter. Zacks Investment Management now owns 864,706 shares of the financial services provider’s stock worth $89,705,000 after purchasing an additional 4,995 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Prudential Financial by 183.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 804,316 shares of the financial services provider’s stock worth $83,440,000 after buying an additional 520,425 shares during the period. California State Teachers Retirement System lifted its position in shares of Prudential Financial by 4.6% during the 3rd quarter. California State Teachers Retirement System now owns 655,340 shares of the financial services provider’s stock valued at $67,985,000 after buying an additional 29,103 shares in the last quarter. California Public Employees Retirement System increased its holdings in Prudential Financial by 3.6% in the 3rd quarter. California Public Employees Retirement System now owns 618,656 shares of the financial services provider’s stock worth $64,179,000 after acquiring an additional 21,323 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its position in Prudential Financial by 25.3% during the third quarter. Jacobs Levy Equity Management Inc. now owns 545,586 shares of the financial services provider’s stock worth $56,599,000 after acquiring an additional 110,113 shares during the period. 56.83% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have commented on PRU shares. Morgan Stanley increased their price target on shares of Prudential Financial from $117.00 to $118.00 and gave the company an “equal weight” rating in a research report on Tuesday, October 7th. Wall Street Zen cut shares of Prudential Financial from a “buy” rating to a “hold” rating in a research report on Saturday, January 10th. Mizuho started coverage on Prudential Financial in a research report on Tuesday, December 16th. They set a “neutral” rating and a $125.00 price target on the stock. Weiss Ratings raised Prudential Financial from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, January 12th. Finally, Evercore ISI boosted their target price on Prudential Financial from $120.00 to $122.00 and gave the stock an “in-line” rating in a research note on Thursday, October 30th. One analyst has rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $120.78.

Prudential Financial Company Profile

Prudential Financial, Inc, headquartered in Newark, New Jersey, is a diversified financial services company with roots dating to 1875. The firm provides a range of insurance, retirement and investment products aimed at helping individual and institutional clients manage risk, accumulate and protect wealth, and plan for retirement. Prudential’s long history in life insurance and related financial services has positioned it as a major participant in the U.S. insurance market and a provider of services to a broad client base.

Prudential’s core business activities include individual life insurance, annuities, retirement solutions and group insurance products for employers.