Prudential Financial Inc. PRU is expected to register a decline in its bottom line but an improvement in its top line when it reports first-quarter 2026 results on May 5, after the closing bell.
The Zacks Consensus Estimate for PRU’s first-quarter revenues is pegged at $14.31 billion, indicating a 6.7% increase from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at $3.23 per share. The estimate suggests a year-over-year decrease of 1.8%. The Zacks Consensus Estimate for PRU’s first-quarter earnings has moved south by 2.7% in the past 30 days.
What the Zacks Model Unveils for PRU
Our proven model does not conclusively predict an earnings beat for Prudential Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.
Earnings ESP: PRU has an Earnings ESP of -3.41%. This is because the Most Accurate Estimate of $3.12 is pegged lower than the Zacks Consensus Estimate of $3.23. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Prudential Financial, Inc. Price and EPS Surprise
Prudential Financial, Inc. price-eps-surprise | Prudential Financial, Inc. Quote
Zacks Rank: PRU has a Zacks Rank #5 (Strong Sell) at present.
Factors Likely to Shape PRU’s Q1 Results
The U.S. business is expected to have benefited from higher net investment spread results, more favorable underwriting results and lower expenses. The upside is likely to have been offset by lower net fee income.
Prudential Financial’s international businesses are likely to have benefited from higher net investment spread results and more favorable underwriting results. Higher expenses are likely to have offset the upside.
The Individual Retirement Strategies business is likely to have benefited from higher net investment spread results. The upside is likely to have been partially offset by lower net fee income, driven by the run-off of the legacy traditional variable annuity block.
PGIM is likely to be affected by higher expenses and lower other related revenues, driven by lower seed and co-investment income. Higher asset management fees are likely to have partially offset the downside.
Assets under management are likely to have benefited from equity market and fixed income appreciation and strong investment performance.
Net investment income is likely to have gained from growth in indexed variable and fixed annuities, higher income from non-coupon investments, higher reinvestment rates and higher income from non-coupon investments.
Expenses are likely to have risen because of higher policyholders’ benefits and amortization of deferred policy acquisition costs.
Continued share buybacks are likely to have added to the bottom line.
Stocks to Consider
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Skyward Specialty Insurance Group, Inc. SKWD has an Earnings ESP of +0.48% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $1.05, indicating a 16.6% year-over-year increase. You can see the complete list of today’s Zacks #1 Rank stocks here.
SKWD’s earnings beat estimates in each of the last four reported quarters.
Cushman & Wakefield PLC CWK has an Earnings ESP of +9.80% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at 13 cents, indicating a 44.4% year-over-year increase.
CWK’s earnings beat estimates in each of the last four reported quarters.
MetLife, Inc. MET has an Earnings ESP of +0.02% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $2.22, indicating a 13.2% year-over-year increase.
MET’s earnings beat estimates in two of the last four reported quarters, while missing in the other two.
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MetLife, Inc. (MET): Free Stock Analysis Report
Prudential Financial, Inc. (PRU): Free Stock Analysis Report
Cushman & Wakefield PLC (CWK): Free Stock Analysis Report
Skyward Specialty Insurance Group, Inc. (SKWD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).