EQUITABLE HOLDINGS INC (NYSE:EQH) Reports Mixed Q4 2025 Results, Shares Edge Higher
Equitable Holdings Inc. has released its financial results for the fourth quarter and full year ended December 31, 2025. The financial services holding company, which operates through its Equitable, AllianceBernstein, and Equitable Advisors businesses, presented a quarter of solid underlying performance overshadowed by significant year-over-year comparisons and strategic repositioning. The market's initial reaction in after-hours trading showed a modest uptick of approximately 1.56%.
Earnings and Revenue Versus Estimates
The company's reported figures presented a mixed picture relative to analyst expectations. Management's preferred metric, Non-GAAP operating earnings, showed resilience, while top-line revenue fell short of forecasts.
- Non-GAAP EPS: The company reported Non-GAAP operating earnings per share (EPS) of $1.73 for Q4 2025. Adjusting for $10 million in notable items, the adjusted EPS was $1.76. This came in slightly below the analyst consensus estimate of $1.78.
- Revenue: Reported revenue for the quarter was $3.74 billion. This figure missed the analyst estimate of $4.06 billion by a notable margin.
For the full year 2025, Non-GAAP operating earnings were $1.74 billion ($5.64 per share), down from $2.00 billion ($5.92 per share) in 2024. The company noted that adjusting for notable items of $172 million, full-year 2025 operating earnings were $1.91 billion, or $6.21 per share.
Strategic Highlights and Business Segment Performance
The earnings release was framed by a major strategic shift executed in 2025. The cornerstone was the completion of an individual life reinsurance transaction with RGA, which the company stated freed over $2 billion of capital and reduced its exposure to mortality risk by 75%. Management emphasized using the proceeds to invest in growth areas—specifically AllianceBernstein (AB) and Equitable Advisors—accelerate shareholder returns, and repay debt.
Key operational highlights from the press release include:
- Record Assets: Total assets under management and administration (AUM/A) reached a record $1.12 trillion, a 10% year-over-year increase driven by market performance and net inflows.
- Segment Performance:
- Retirement: Reported strong operating earnings of $410 million for Q4, up from $385 million a year ago. Full-year net inflows were $5.9 billion.
- Asset Management (AllianceBernstein): Reported Q4 operating earnings of $160 million, essentially flat year-over-year. The segment experienced net outflows of $11.3 billion for the full year, which included $4 billion related to the RGA transaction.
- Wealth Management: Showed significant growth, with operating earnings jumping to $66 million in Q4 from $47 million a year prior. Advisory net inflows were $8.4 billion for the full year.
- Capital Return: The company returned $1.8 billion to shareholders in 2025, including $500 million in additional share repurchases following the life reinsurance deal. The payout ratio, excluding incremental buybacks, was 68%, at the high end of its 60-70% target range.
Outlook and Forward Guidance
Looking ahead, Equitable Holdings provided guidance for 2026 that suggests an acceleration in its financial trajectory. President and CEO Mark Pearson stated the company expects Non-GAAP EPS growth to accelerate and remains focused on achieving a targeted 12-15% EPS compound annual growth rate (CAGR) for the period 2023-2027.
Furthermore, the company projected cash generation to increase from $1.6 billion in 2025 to approximately $1.8 billion in 2026, with a goal of reaching $2 billion by 2027. This outlook appears generally aligned with, or perhaps slightly ahead of, the current analyst sentiment embedded in estimates. Analysts are currently modeling full-year 2026 revenue of $17.04 billion and EPS of $8.03.
Market Reaction and Conclusion
The modest after-hours gain suggests investors are balancing the revenue miss against the company's strong strategic progress and forward-looking guidance. The market may be viewing the quarter through the lens of Equitable's successful transition to a "more capital light company," as emphasized by CEO Mark Pearson. The significant capital unlocked from the RGA transaction and its deployment into higher-growth asset and wealth management segments, coupled with a robust shareholder return program, appear to be outweighing concerns about the quarterly revenue shortfall and net outflows at AllianceBernstein.
The focus now shifts to the company's ability to execute on its 2026 guidance and deliver on the promised EPS growth acceleration. For a detailed breakdown of future earnings estimates and historical performance, you can review more data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend the purchase or sale of any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
