01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Prudential Financial, Inc. reported third-quarter 2025 net income attributable to Prudential Financial, Inc. of $1,431 milliona, or $4.01 diluted earnings per share, compared with $448 million, or $1.24 per diluted share, in the third quarter of 2024.
For the first nine months of 2025, net income attributable to Prudential Financial, Inc. was $2,671 millionb, or $7.44 per diluted share, compared with $2,784 million, or $7.64 per diluted share, a year earlier. Total revenues fell to $45.08 billion for the nine months from $57.88 billion, primarily because of lower pension risk transfer premiums, which also reduced policyholders' benefits. Pre-tax adjusted operating income, by contrast, rose across most segments, and total segment adjusted operating income before income taxes was $5.13 billion for the nine months versus $4.56 billion a year earlier.
Balance sheet growth was notable: total assets rose to $776.30 billionc at September 30, 2025 from $735.59 billion at December 31, 2024, and total Prudential Financial, Inc. equity increased to $32.09 billion from $27.87 billion. Accumulated other comprehensive loss narrowed to $(3.18) billion from $(6.71) billion. The company repurchased 7.0 million shares for $750 million under its $1.0 billion authorization for 2025 and paid $1.45 billion in cash dividends on common stock during the nine months.
Management reports $1.612 trilliond in assets under management at September 30, 2025. The filing also notes a $150 million net out-of-period charge in the first quarter of 2025 and a $1.0 billion redemption of junior subordinated notes in May 2025.
Key risks highlighted in the filing include $32.3 billion of gross unrealized losses on available-for-sale fixed maturities, $1.1 billion of nonperforming commercial mortgage and other loans on non-accrual status, and substantial derivative and embedded derivative exposures that drive realized investment losses, which totaled $3.46 billion for the nine months. Management also discusses the influence of interest rates, foreign currency movements (particularly the yen), and equity market performance on earnings and capital.
02—Key points
Key Highlights
- Third-quarter 2025 net income attributable to Prudential Financial, Inc. was $1,431 million ($4.01 diluted EPS), up from $448 million ($1.24) in the third quarter of 2024.
- Nine-month 2025 net income attributable to Prudential Financial, Inc. was $2,671 million ($7.44 diluted EPS), down from $2,784 million ($7.64) a year earlier.
- Total revenues for the nine months declined to $45.08 billion from $57.88 billion, driven mainly by lower pension risk transfer premiums in Institutional Retirement Strategies.
- Total segment adjusted operating income before income taxes rose to $5.13 billion for the nine months from $4.56 billion.
- Total assets were $776.30 billion at September 30, 2025, and total Prudential Financial, Inc. equity increased to $32.09 billion from $27.87 billion at year-end 2024.
- The company repurchased 7.0 million shares for $750 million under its $1.0 billion 2025 authorization and paid $1.45 billion in common stock dividends in the first nine months.
- Gross unrealized losses on available-for-sale fixed maturities were $32.30 billion, and realized investment losses totaled $3.46 billion for the nine months, including $2.33 billion of derivative losses.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $17.89B$19.49B | −8.2% |
| Net Income | $1.43B$448.00M | +219.4% |
| EPS (Basic) | $4.03$1.24 | +225.0% |
| EPS (Diluted) | $4.01$1.24 | +223.4% |
| Shares Outstanding (Basic) | 351.10M356.90M | −1.6% |
| Shares Outstanding (Diluted) | 353.00M358.70M | −1.6% |
05—Questions
Frequently Asked Questions
Why did Prudential's revenues fall so sharply in 2025?
Total revenues decreased to $45.08 billion for the nine months ended September 30, 2025 from $57.88 billion a year earlier. The filing attributes the decline primarily to premiums, which were $13.21 billion lower, reflecting lower pension risk transfer premiums due to fewer sales in the current period. Realized investment losses also increased by $1.14 billion, partly offset by higher net investment income of $1.22 billion.
How did the company's earnings per share change?
Diluted earnings per share attributable to Prudential Financial, Inc. were $7.44 for the nine months ended September 30, 2025, compared with $7.64 in the same period of 2024. For the third quarter alone, diluted EPS was $4.01, up from $1.24 in the third quarter of 2024.
What drove the increase in adjusted operating income?
Total segment adjusted operating income before income taxes increased to $5.13 billion for the nine months ended September 30, 2025 from $4.56 billion. The filing points to higher net investment spread results, higher underwriting results, and lower corporate losses across several segments, including International Businesses, which rose to $2.49 billion from $2.36 billion.
What capital actions did Prudential take in 2025?
The company issued $750 million of 5.200% medium-term notes due 2035 in March 2025 and redeemed $1.0 billion of 5.375% junior subordinated notes due 2045 in May 2025. It repurchased 7.0 million shares for $750 million under its $1.0 billion authorization and declared dividends of $1.35 per share in each quarter of 2025.
What are the main risks flagged in the filing?
The filing highlights interest rate and credit spread exposure, with $32.30 billion of gross unrealized losses on available-for-sale fixed maturities as of September 30, 2025. It also notes derivative and embedded derivative results that drive realized investment losses, foreign currency hedging tied to the yen, and $1.05 billion of commercial mortgage and other loans on non-accrual status, plus litigation and regulatory matters with a reasonably possible loss range in excess of accruals of less than $250 million.
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