Research Reports

Summary

Equitable Holdings reported Q1 2026 net income of $621 million ($2.14 per share), up sharply from $63 million ($0.16) in Q1 2025, driven by improved operating earnings and favorable tax items; it also announced an all-stock merger with Corebridge Financial expected to close by year-end 2026 and be immediately accretive to EPS.

Key takeaways

Net income attributable to Holdings was $621 million for Q1 2026, up 886% year-over-year, reflecting strong performance across segments and lower tax expense.

Non-GAAP operating earnings were $472 million ($1.62 per share), up 12% YoY; adjusted for notable items, $491 million ($1.68 per share), up 13% YoY.

Retirement segment reported $1.3 billion in net inflows and $6.0 billion in first-year premiums (+10% YoY); Asset Management had $7.1 billion in net outflows, primarily in active equities.

Wealth Management reported $2.0 billion in advisory net inflows and $55 million in operating earnings (+22% YoY), aided by Stifel Independent Advisors acquisition adding $9 billion in client assets.

The Company announced an all-stock merger with Corebridge Financial on March 26, 2026, projected to be immediately accretive to EPS and cash generation, with ≥10% run-rate EPS accretion by end-2028.

Capital return totaled $223 million in Q1 2026 ($76M dividends, $147M repurchases), maintaining commitment to 60–70% payout ratio target for 2026.

Full analysis

Equitable Holdings’ Q1 2026 results reflect a sharp rebound in profitability, with net income surging to $621 million from $63 million a year earlier—driven by higher Non-GAAP operating earnings ($472M vs. $421M), improved tax positioning, and favorable notable items including a $13 million tax credit. Segment performance was mixed: Retirement delivered $1.3B in net inflows and $6.0B in first-year premiums (+10% YoY), while Asset Management experienced $7.1B in net outflows—primarily in Retail and Institutional active equities—despite AUM growth to $838.6B (+7% YoY). Wealth Management strengthened with $2.0B in advisory net inflows and $55M in operating earnings (+22% YoY), supported by the Stifel Independent Advisors acquisition. The announcement of the all-stock merger with Corebridge Financial represents a strategic inflection point: the combined entity will span retirement, life insurance, asset management, and wealth management, targeting immediate EPS accretion and ≥10% run-rate EPS accretion by end-2028. Management reaffirmed full-year 2026 guidance of $1.8B in cash generation and >15% EPS growth, underpinned by disciplined capital return ($223M deployed in Q1) and continued focus on organic growth and integration execution. The merger’s success hinges on regulatory approval, shareholder support, and seamless integration—risks explicitly flagged in forward-looking statements—but its scale and complementary distribution are positioned to accelerate growth and enhance competitive positioning across core markets.