Equitable Holdings reported a net income of $215 million for the quarter ended December 31, 2025, a sharp turnaround from the $899 million net income recorded in Q4 2024. Non‑GAAP operating earnings were $523 million, up slightly from $522 million a year earlier, while revenue fell to $3.74 billion—$320 million below the $4.06 billion consensus estimate. Adjusted earnings per share were $1.76, a $0.01 beat over the $1.75 estimate, reflecting disciplined cost management that offset the revenue shortfall.
The quarter’s asset‑side growth was led by a $24 billion increase in retirement assets, which rose to $176.2 billion from $152.2 billion in Q4 2024. Asset‑management AUM reached a record $1.12 trillion, and wealth‑management AUA climbed to $122 billion, underscoring the company’s fee‑based model and its focus on high‑margin retirement, asset‑management, and wealth‑management businesses.
Equitable’s individual‑life reinsurance transaction with RGA freed $2 billion of capital and reduced mortality exposure by 75%, enabling a more capital‑light strategy. The proceeds were earmarked for investments in AllianceBernstein, shareholder returns, and debt repayment, reinforcing the company’s long‑term capital deployment plan.
Management guided for 2026 cash generation of approximately $1.8 billion and reiterated a target 12‑15% EPS growth for 2027. The guidance signals confidence that the RGA transaction and the company’s strategic focus will translate into stronger cash flows and earnings momentum in the coming years.
After the release, the market reacted with a modest 1.56% uptick in after‑hours trading, driven by the strategic progress with RGA, record asset levels, and optimistic future guidance, which outweighed the revenue miss and the ambiguity around the EPS beat.
Mark Pearson, President and CEO, said, “The RGA transaction creates compelling strategic and financial value for Equitable, is accretive to our 2027 targets, and positions us to accelerate growth in our core businesses.” He added, “We expect Non‑GAAP EPS growth to accelerate in 2026 and remain focused on achieving our 12‑15% EPS CAGR for 2023‑2027.”
The results highlight a mixed short‑term picture: revenue fell due to weaker legacy product demand, but the company’s core segments grew, and the capital freed by the RGA deal supports future expansion. The guidance and management’s confidence suggest that the company’s strategic pivot will drive long‑term value, while the revenue miss signals the need for continued focus on high‑margin growth areas.
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