Equitable (EQH) Q1 2026 earnings summary

Executive summary

• Announced an all-stock merger with Corebridge Financial, expected to create a diversified financial services leader with over 12 million customers and $1.5 trillion in AUMA, targeting $500 million+ in expense synergies and at least 10% EPS accretion by 2028, subject to regulatory and shareholder approvals.

• Non-GAAP operating earnings were $472 million ($1.62 per share), or $1.68 per share adjusted, up 25% year-over-year, driven by organic growth, improved mortality, and lower share count.

• Net income for Q1 2026 was $621 million ($2.14 per share), up significantly from $63 million in Q1 2025, reflecting lower policyholder benefits and operating expenses, and higher net investment income.

• Integration planning for the merger is underway, confirming synergy opportunities and complementarity between the two companies.

• Strong organic growth in Retirement (net inflows $1.3 billion, RILA sales up 14%) and Wealth Management (advisory net inflows $2.0 billion, productivity up 11%).

Financial highlights

• Assets under management/administration reached $1.1 trillion, up 9% year-over-year.

• Net income for Q1 was $621 million ($2.14 per share); non-GAAP operating earnings were $472 million ($1.62 per share).

• Adjusted book value per share ex-AOCI with AB at market value was $34.70; book value per common share excluding AOCI was $19.56.

• Adjusted debt-to-capital ratio was 24.5%, improved from 34.5% prior year.

• Returned $223 million to shareholders in Q1, including $147 million in share repurchases, maintaining a 60-70% payout ratio target for 2026.

Outlook and guidance

• EPS growth expected to exceed the high end of the 12%-15% target range in 2026, with over 15% EPS growth and $1.8 billion in cash generation targeted.

• Merger with Corebridge expected to close by year-end 2026, delivering at least $500 million in expense synergies and at least 10% EPS accretion on a run-rate basis by year-end 2028.

• Maintaining 60%-70% payout ratio target for 2026; confident in achieving above 12%-15% EPS growth for the year.

• Expect spreads in Retirement to stabilize in 2H'26; forecast FY'26 Asset Management performance fees of $95-115 million.

• Management expects continued volatility in equity markets and interest rates to impact results, but ongoing hedging and risk management programs are in place.