Equitable Holdings, Inc. increased its share‑repurchase authorization by an additional $1 billion, giving the board greater flexibility to buy back shares through open‑market transactions and private negotiations. The company also announced a quarterly cash dividend of $0.27 per share, payable on March 11, 2026 to shareholders of record as of March 4, 2026.
The expansion of the repurchase program follows a significant life‑reinsurance transaction with RGA in 2025 that freed up capital and reduced mortality exposure. With $1.1 trillion in assets under management and administration at year‑end 2025, Equitable’s balance sheet remains robust, supporting both capital return and continued investment in its three growth pillars—retirement, asset management, and wealth management.
Management highlighted the company’s confidence in its financial position. President and CEO Mark Pearson said the firm expects Non‑GAAP earnings per share growth to accelerate in 2026, targeting a 12‑15% EPS CAGR for 2023‑2027, and projected cash generation to rise from $1.6 billion in 2025 to about $1.8 billion in 2026, on track to reach $2 billion by 2027. CFO Robin Raju noted that the adverse mortality experience in December was driven by a high number of small claims with limited reinsurance coverage, underscoring the importance of the RGA transaction in stabilizing the company’s capital base.
The share‑repurchase authorization signals management’s belief that the stock is undervalued and that excess capital can be deployed to enhance shareholder value. By reducing the share count, the program can lift earnings per share and support the share price, while the dividend demonstrates a commitment to returning cash to investors. Together, the two measures reinforce Equitable’s strategy of balancing capital return with disciplined growth.
The announcement comes after a period of negative market reaction to the company’s Q4 2025 earnings, which missed revenue and EPS estimates due to elevated mortality claims and higher commission expenses. While the share‑repurchase and dividend declaration are not expected to trigger a significant market move, they provide a positive signal of confidence amid recent earnings challenges.
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