Prudential Financial (NYSE: PFH) flags Q2 2026 AOI assumption impacts

Rhea-AI Filing Summary

Prudential Financial provided preliminary figures for the quarter ended June 30, 2026. Assets under management in the PGIM segment were $1.49 trillion. PGIM’s other related revenues, net of related expenses on an adjusted operating income basis, were approximately $60 million for the quarter.

Alternative investment income in the General Account portfolio for the quarter is estimated to be $20–$40 million below the company’s near-term expectations. Following its annual assumption review, the company expects one-time adjusted operating income impacts in the second quarter, including about $(90) million in Retirement, and positive impacts of $80 million in International Businesses, $30 million in Group Insurance, $30 million in Individual Life, and $15 million in U.S. Legacy Products. The company does not expect material ongoing effects on adjusted operating income from these updates.

8-K Event Classification

2 items: 2.02, 7.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Key Figures

PGIM Assets Under Management: $1.49 trillion PGIM other related revenues (AOI basis): approximately $60 million GA alternative investment income variance: $20–$40 million +5 more

8 metrics

PGIM Assets Under Management $1.49 trillion As of June 30, 2026 for the PGIM segment

PGIM other related revenues (AOI basis) approximately $60 million Quarter ended June 30, 2026, net of related expenses

GA alternative investment income variance $20–$40 million Estimated below near-term expectations for Q2 2026

Retirement AOI one-time impact $(90) million Expected one-time impact from 2026 assumption updates, Q2 2026

International Businesses AOI one-time impact $80 million Expected one-time impact from 2026 assumption updates, Q2 2026

Group Insurance AOI one-time impact $30 million Expected one-time impact from 2026 assumption updates, Q2 2026

Individual Life AOI one-time impact $30 million Expected one-time impact from 2026 assumption updates, Q2 2026

U.S. Legacy Products AOI one-time impact $15 million Expected one-time impact from 2026 assumption updates, Q2 2026

Key Terms

adjusted operating income, Alternative investment income, Actuarial assumptions, General Account, +1 more

5 terms

adjusted operating income financial

"expected quarterly impact to adjusted operating income from the update"

Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.

Alternative investment income financial

"For the quarter ended June 30, 2026, the alternative investment income of the Company’s General Account"

Income generated from assets other than public stocks, bonds or cash—examples include rents from property, payouts from private equity or hedge funds, royalties, and gains from commodities or collectibles. It matters to investors because it can boost returns and reduce reliance on traditional markets, but such income is often less regular, harder to sell and can have different tax and risk characteristics — think of it like earning from renting a vacation home versus receiving a steady dividend.

Actuarial assumptions financial

"annual comprehensive review of assumptions. Following the conclusion of this process for 2026, the Company expects to update its actuarial assumptions"

Actuarial assumptions are the estimates experts use about future events—such as life expectancy, employee turnover, wage growth, interest rates, and claim frequency—to calculate the size and timing of a company’s long-term obligations like pensions and insurance claims. For investors, these assumptions drive reported liabilities and periodic costs, so small changes can noticeably alter a firm's balance sheet and earnings; think of them as the weather forecast that shapes long-term planning and valuation.

General Account financial

"alternative investment income of the Company’s General Account, excluding the Closed Block Division"

A general account is the main pool of assets an insurance company holds to pay claims and guarantee products that are backed by the insurer itself, not by the individual policyholder’s investments. Think of it as the company’s central checking account: investors care because obligations paid from this account depend on the insurer’s overall financial health and credit strength, so problems there can affect guarantees, dividends and the company’s ability to meet commitments.

market risk benefits financial

"change in value of market risk benefits, net of related hedging gains (losses)"

Market risk benefits are the extra returns or advantages investors expect or receive for taking on broad, system‑wide swings in the overall market — essentially the premium for bearing risk that cannot be eliminated by diversification. This matters because it helps investors weigh whether the potential higher gains justify larger price swings, guides how portfolios are balanced, and sets expectations for compensation when choosing riskier market exposures; think of it as the extra pay you demand for riding a roller‑coaster instead of a calm bus ride.

Earnings Snapshot

PGIM Assets Under Management: $1.49 trillion

quarter ended June 30, 2026

PGIM Assets Under Management $1.49 trillion

PGIM other related revenues (AOI basis) approximately $60 million

GA alternative investment income variance vs expectations $20–$40 million below expectations

Retirement AOI one-time impact $(90) million

International Businesses AOI one-time impact $80 million

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Available on EDGAR 07/15/2026 - 04:23 PM Accepted by SEC EDGAR 07/15/2026 - 04:23 PM Learn about SEC filing dates

FAQ

What PGIM assets under management did Prudential report for Q2 2026 (PFH)?

Prudential reported PGIM assets under management of $1.49 trillion as of June 30, 2026. This figure reflects the scale of the PGIM segment’s investment platform at the end of the second quarter of 2026.

How much were PGIM’s other related revenues on an AOI basis for PFH in Q2 2026?

For the quarter ended June 30, 2026, PGIM’s other related revenues, net of related expenses on an adjusted operating income basis, were approximately $60 million. These revenues include incentive fees, transaction fees, and income from seed, co-investments, and mortgage originations.

What is the expected AOI impact of actuarial assumption updates on Prudential’s Retirement segment (PFH)?

The annual update of actuarial assumptions is expected to produce a one-time $(90) million impact on adjusted operating income in the Retirement segment for Q2 2026. This impact is recorded in that quarter and is not expected to be ongoing.

Which Prudential segments see positive AOI impacts from 2026 assumption updates (PFH)?

Positive one-time adjusted operating income impacts for Q2 2026 are expected in International Businesses ($80M), Group Insurance ($30M), Individual Life ($30M), and U.S. Legacy Products ($15M), all arising from updated actuarial assumptions and other refinements.

How did alternative investment income in Prudential’s General Account compare to expectations in Q2 2026 (PFH)?

For Q2 2026, alternative investment income in Prudential’s General Account portfolio is estimated to be $20–$40 million below the company’s near-term expectations. This measure covers private equity, hedge fund, and real estate-related investments, excluding certain portfolios.

Does Prudential expect ongoing AOI impacts from its 2026 actuarial assumption updates (PFH)?

Prudential stated it does not expect material ongoing impacts to adjusted operating income from the 2026 actuarial assumption updates. The impacts described are expected to be one-time items recorded in the quarter ended June 30, 2026.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 8-K

___________________________

CURRENT REPORT

 Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 15, 2026

___________________________

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

___________________________

New Jersey			001-16707			22-3703799
(State or other jurisdiction			(Commission			(I.R.S. Employer
of incorporation)			File Number)			Identification Number)

751 Broad Street

Newark, NJ 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant’s telephone number, including area code)

___________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Stock, Par Value $.01

PRU

New York Stock Exchange

5.950% Junior Subordinated Notes

PRH

New York Stock Exchange

5.625% Junior Subordinated Notes

PRS

New York Stock Exchange

4.125% Junior Subordinated Notes

PFH

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Item 2.02    Results of Operations and Financial Condition.

The information contained in Item 7.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.02.

Item 7.01    Regulation FD Disclosure.

Prudential Financial, Inc. (the “Company”) is furnishing this Current Report to disclose (1) certain preliminary financial information regarding the quarter ended June 30, 2026, prior to the availability of the Company’s quarterly earnings release and quarterly financial supplement for the period, scheduled for release on August 4, 2026; and (2) the expected quarterly impact to adjusted operating income (“AOI”)(1) from the update of actuarial assumptions and other refinements.

Assets Under Management of the PGIM Segment

As of June 30, 2026, assets under management of the PGIM segment were $1.49 trillion.

Other Related Revenues, Net of Related Expenses, of the PGIM Segment

For the quarter ended June 30, 2026, PGIM’s other related revenues, net of related expenses, were approximately $60 million on an AOI basis. “Other related revenues” include incentive fees, transaction fees, and revenues from seed and co-investments and mortgage originations.

Alternative Investment Income of the General Account

For the quarter ended June 30, 2026, the alternative investment income of the Company’s General Account, excluding the Closed Block Division and Funds Withheld portfolios, (the “GA Portfolio”) is estimated to be approximately $20 - $40 million below the Company’s near-term expectations. “Alternative investment income” includes the AOI of the GA Portfolio’s interests in private equity, hedge fund and real estate-related investments, as well as real estate investments held through direct ownership, and excludes the results from those interests held by Divested Businesses and unaffiliated investors that have been consolidated on the Company’s balance sheet.

Annual Review and Update of Actuarial Assumptions and Other Refinements

During the second quarter of each year, the Company performs an annual comprehensive review of assumptions. Following the conclusion of this process for 2026, the Company expects to update its actuarial assumptions and make other refinements.

Below is a summary of the estimated material impacts to AOI by business segment that will be recorded in the quarter ended June 30, 2026. We do not expect any material ongoing impacts to AOI as a result of these updates.

Segment						Expected One-Time AOI Impact (in millions)
Retirement						$ (90)
International Businesses						$ 80
Group Insurance						$ 30
Individual Life						$ 30
U.S. Legacy Products						$ 15

(1) The Company analyzes the operating performance of each segment using pre-tax “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” or “Net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income is calculated by adjusting each segment’s “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” for the following items: realized investment gains (losses), net, and related charges and adjustments; change in value of market risk benefits, net of related hedging gains (losses); market experience updates; divested and run-off businesses; equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests and redeemable noncontrolling interests; and other adjustments. For more information about adjusted operating income, see the “Segment Information” Note to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025.

The preliminary financial information presented above for the quarter ended June 30, 2026, is estimated and unaudited and has been prepared in good faith on a basis consistent with prior periods based on information available to management as of the

date hereof and constitute forward-looking statements; however, we have not completed our financial closing procedures for the quarter ended June 30, 2026, and our actual results could be materially different from these preliminary financial results.

Certain of the statements included in this report, including those regarding our estimated financial results for the second quarter of 2026 discussed herein and the expected ongoing quarterly adjusted operating income impact of the update of actuarial assumptions and other refinements, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects”, “believes”, “anticipates”, “includes”, “plans”, “assumes”, “estimates”, “projects”, “intends”, “should”, “will”, “shall”, or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Factors that could cause estimated financial results for the second quarter of 2026 presented herein to differ from our actual results include the discovery of new or additional information that impacts accounting estimates, management’s judgment or valuation methodologies underlying these estimated results, and the completion of our financial and other closing procedures and the preparation of our unaudited condensed consolidated financial statements. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 15, 2026

PRUDENTIAL FINANCIAL, INC.
By:			/s/ Robert E. Boyle
			Name: Robert E. Boyle Title:   Senior Vice President and Principal Accounting Officer

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