Have expectations for the Corebridge merger's financial impact changed, and are there new opportunities identified?

The integration planning process is well underway, confirming the complementarity of the businesses and the expected synergy opportunities. Management is also excited about potential revenue synergies, which will be quantified in the first half of 2027. “the integration planning process is well under way now with the top or so leaders from each of the organizations. We really are confirming through that the complementarity of the 2 businesses. We are stronger together in terms of our product breadth, in terms of our distribution in terms of the scale. So that is confirming everything we've told you in terms of the synergy opportunities and look forward. We are also pretty excited on the revenue synergy side, but we're going to save telling you that until first half of 2027 when we've done the work and we can start to quantify it for you.”

How should investors think about the pace of share buybacks during the newly opened window, and is there coordination with Corebridge?

Equitable expects to be active in the market buying back shares after filing the proxy statement (expected this evening) until the final proxy mailing in June. The returns on buybacks are very attractive. Both companies will coordinate to ensure accretion for shareholders, and the same level of capital return is expected. “we're excited to say we're going to be back in the market with share buybacks -- we expect to file the proxy this evening, and that enables us to open up the window again until the final mailing that will happen in June. Within that time period, expect us to be active in the market. The returns on a share buyback are very attractive at this point in time.”

Is there a practical limit to how much assets AllianceBernstein (AB) can originate to back the combined company's $70 billion to $80 billion of annual liabilities?

There is no practical limit. The combined company will leverage four asset managers: AllianceBernstein, Blackstone, BlackRock, and Corebridge's internal capabilities. This provides ample assets to manage the general account with discipline and achieve optimal risk-adjusted returns. AB will also benefit from broader revenue synergies and the transfer of $100 billion in separate and general account assets. “No, we're fortunate. With $70 billion to $80 billion of liabilities, we're going to have 4 asset managers that we're going to leverage. So obviously, Alliance Bernstein, our in-house. Also, we get to benefit from some of the capabilities that Corebridge brings to the merger, so Blackstone BlackRock and their internal capabilities as well. $70 million to $80 billion provides lots of assets to put to work and allows us to be disciplined on the general account and getting the best risk-adjusted returns on those assets across the board.”

EQH

Equitable Holdings (EQH) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· May 5, 2026

Source: earnings call transcript

Executive summary

Equitable Holdings Q1 FY26 — Strong Earnings Growth and Corebridge Merger Progress

The first quarter saw Equitable Holdings achieve robust earnings growth, driven by organic momentum and improved mortality, while advancing its strategic merger with Corebridge. The integration process is underway, confirming expected synergies and positioning the combined entity for enhanced scale and diversified growth across retirement, asset management, and wealth management. Management reiterated its commitment to capital return and full-year EPS guidance.

Highlights

Non-GAAP operating EPS (adjusted for notable items) was $1.68, up 25% versus Q1 2025.
Assets under management (AUM) ended the quarter at $1.1 trillion, up 9% year-over-year.
Total sales increased 10% year-over-year, driven by strength in Rila products.
Wealth Management delivered $2 billion of advisory net inflows, achieving a 13% organic growth rate over the last 12 months.
Asset Management earnings grew 11% year-over-year, driven by higher AUM and increased ownership.

Concerns

AllianceBernstein (AB) had net outflows of $7.1 billion in Q1, primarily from active equities and taxable fixed income.
The alternative portfolio return is projected at 2% to 3% in Q2, with the full-year return expected to be below the prior 8% to 9% guidance.
Equitable was blacked out from buying back shares for the second half of Q1 due to the Corebridge merger, which depressed the payout ratio for the period.

Guidance & targets

Category	Target	Timeline	Confidence
EPS growth	exceed the high end of our 12% to 15% target range high materiality	FY26	High
AllianceBernstein AUM	meet or exceed its target of $90 billion to $100 billion medium materiality	by the end of 2027 · FY27	High
Corebridge merger accretion	10% plus accretion on a run rate basis high materiality	by the end of 2028 · FY28	High
Alternative portfolio return	below our prior 8% to 9% guidance medium materiality	full year 2026 · FY26	Medium
Corporate & Other loss	$350 million to $400 million low materiality	full year 2026 · FY26	High
Cash generation	$1.8 billion high materiality	2026 · FY26	High
Payout ratio	60% to 70% payout ratio target high materiality	2026 · FY26	High
AllianceBernstein performance fees	$95 million to $115 million medium materiality	full year · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Retirement Earnings exclude notable items. NIM increased sequentially, with spread improvement driven by general account asset growth and a modest recovery in MDA, offsetting lower alternative investment income. Lower fee-based revenues were due to market declines pressuring average separate account AUM. Net Interest Margin (NIM) sequential increase: 3%NIM spread improvement (ex-alts): 5 basis points sequentiallyNIM spread improvement (ex-alts/MVA): 1 basis point netNIM: 169 basis points	—	—	—	$394 million
Asset Management (AB) Earnings growth driven by higher base fees and increased ownership. Net outflows were primarily from active equities and taxable fixed income, though private wealth and private markets saw positive flows. AB remains on track for its 2027 AUM target. Base fees: benefited from 7% YoY increase in AUMFee rate: lower due to asset mix shiftNet outflows: $7.1 billionPrivate markets AUM: $85 billionPrivate markets AUM growth YoY: 13%Institutional pipeline: $28 billion	—	11%	—	$140 million
Wealth Management Experienced strong year-over-year growth in advisory fees and transaction revenues, driving a 22% increase in earnings. This was partially offset by seasonally higher expenses and costs related to the Stifel acquisition. Double-digit earnings growth is still expected for 2026.	—	22%	—	—
Corporate & Other Reported a loss consistent with 2026 guidance, after adjusting for notable items. Mortality was slightly favorable in the quarter and improved versus previous periods.	—	—	—	-$98 million

EQH operating KPIs by quarter

EQH operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Net new assets AllianceBernstein	-$7.1B AB had net outflows of $7.1 billion in the first quarter, driven primarily by active equities and taxable fixed income. Source: earnings call transcript	$800M Finally, organic growth at AllianceBernstein returned to positive territory with net inflows of $0.8 billion. Source: earnings call transcript	—
Assets under management (AUM) Private markets	$85B Total private markets AUM increased 13% year-over-year to $85 billion. Source: earnings call transcript	$91B Private markets remains a bright spot with AUM up 18% year-over-year to $91 billion at June 30, reaching the $90 billion to $100 billion target level over a year ahead of schedule. Source: earnings call transcript	+7.1%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Corebridge Planned merger to create a diversified financial services company with over 12 million customers and $1.5 trillion in AUM, leveraging complementary strengths across retirement, life insurance, asset management, and wealth management.

The merger aims to accelerate growth strategy, reduce unit costs, achieve a lower cost of capital, and enhance profitability. Integration planning is underway. The exchange ratio for the merger is fixed.

Stifel Independent Advisors Acquisition to scale the wealth management business.

The acquisition is a bolt-on M&A example to scale the wealth management business. Advisors from Stifel Independent Advisors will transition to Equitable's platform later this year.

Risks & headwinds

Alternative portfolio underperformance Q1 FY26, Q2 FY26, FY26

Q1 return of 3.5% (annualized), Q2 projected 2-3%, full-year expected below prior 8-9% guidance.

Mitigation:Diversified balance sheet and stress testing indicates resilience to market downturns.

AllianceBernstein net outflows Q1 FY26

$7.1 billion in Q1 FY26.

Mitigation:Private wealth and private markets had positive flows; record institutional pipeline of $28 billion expected to fund over next quarters.

Share buyback blackout period H2 Q1 FY26

Blacked out for H2 Q1 FY26, depressing payout ratio.

Mitigation:Plan to be active in market during open windows (between proxy filing and mailing, and after shareholder vote) to meet 60-70% payout ratio target. Any uncompleted buybacks will be executed via ASR post-merger close.

Volatile market backdrop Ongoing

Impacts earnings and AUM.

Mitigation:Combined company will have more diversified earnings and cash flow, enhancing resilience across market cycles.

Increased competition in retirement sales Ongoing

Not quantified, but noted as increased.

Mitigation:Maintaining pricing discipline in new business underwriting; merger will expand distribution reach and scale.

What to watch in Q2 FY26

Alt portfolio return

Next quarter (Q2 FY26 results)

Current 3.5% (Q1 annualized), 2-3% (Q2 projected)

Target Recovery towards prior 8-9% full-year guidance

Why it matters

Underperformance impacts earnings; recovery is key to meeting full-year guidance.

Given weaker market conditions in the first quarter, we currently project our portfolio to have a return of 2% to 3% in the second quarter. While it's premature to predict what will happen in the second half of 2026, based on the lower returns for the first half of the year, we now expect the full year return to be below our prior 8% to 9% guidance.

Find out whether EQH delivers this. Inve re-checks your case every morning.

Q&A highlights

Are spreads in the Retirement segment stabilizing as previously expected, and what are the competitive dynamics on the cost of funds?

Spreads stabilized in Q1, with Net Interest Margin (NIM) up $11 million quarter-over-quarter. Excluding alternatives and MVA, spreads improved by 1 basis point net, reaching approximately 169 basis points. This stabilization is attributed to the runoff of higher-margin in-force business and disciplined new business underwriting despite increased competition.

“We were happy to see spread stabilized here in the first quarter. If you look quarter-over-quarter, spread income, NIM was up $11 million quarter-over-quarter. If you exclude all to is up even more and excluding some of the MBA benefit, it was up about 1 basis point net. So -- if you look at it, it's about 1.69 or 169 basis points. And I think that's the level you can probably expect at this point, and you can expect spread income to grow as the general account, excluding embedded derivatives growth.”

asked by Wesley Carmichael · answered by Robin Raju

2 min read 7 chapters

Detailed narrative

Corebridge Merger Rationale

The planned merger with Corebridge is expected to create a world-class platform with complementary strengths, limited overlap, and significant scale advantages. It aims to reduce unit costs, achieve a lower cost of capital, and deliver immediate EPS accretion, with 10%+ run-rate accretion by end of 2028, excluding revenue synergies.

The integration planning process is well underway, confirming the complementarity of the businesses and the synergy opportunities.

Strategic Attributes for Success

Equitable emphasizes five critical attributes for long-term success: exceptional customer experience, strong distribution, competitive scale, diversified earnings/cash flow, and owning the full value chain (insurance, asset management, wealth management). The merger aligns with these by creating a diversified financial services company with over 12 million customers and $1.5 trillion in AUM, positioning it for consistent growth and profitability.

Retirement & Institutional Growth

The combined firm will have approximately $540 billion of AUM in Retirement and Institutional, expanding capabilities in pension risk transfer and adding a strong life business. It will double the third-party distribution network to approximately 900 firms and originate $70 billion to $80 billion of liabilities annually.

This enhanced scale and balanced business mix will provide liquidity benefits and flexibility to deploy capital for attractive returns.

Asset Management Expansion (AB)

AllianceBernstein (AB) is expected to add at least $100 billion of Corebridge general and separate account assets over the next couple of years, potentially reaching nearly $1 trillion total AUM. This will be driven by increased liability generation from the combined firm and commercialization of Corebridge's internal asset origination capabilities, particularly for real estate and commercial mortgage loans, leveraging AB's global distribution.

Wealth Management Scaling

The addition of Corebridge Advisors accelerates the scaling of Equitable's wealth management business, adding approximately $20 billion of AUA. This expansion will broaden proprietary product offerings to include fixed and indexed annuities and indexed universal life, which is expected to enhance the ability to recruit and develop new and experienced financial advisors.

Balance Sheet & Capital Management

The combined company will have a robust balance sheet with pro forma GAAP book value exceeding $30 billion and over $25 billion of statutory capital, resulting in a pro forma leverage ratio of approximately 26%. Equitable's standalone balance sheet remains strong with a combined NAIC RBC ratio of approximately 475% and $1.2 billion of holding company liquidity, comfortably above its 400% target even under severe stress scenarios.

Share Buyback Strategy

Equitable plans to be active in share repurchases during open windows between the proxy filing (expected today) and the final mailing (expected early June), and again after the shareholder vote. This strategy aims to meet the 60% to 70% payout ratio target for 2026, leveraging the attractive valuation of both Equitable and Corebridge shares.

Any uncompleted buybacks from the 2026 capital plan will be executed via an ASR shortly after the merger close.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.