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    EQH
    Earnings call· Mar 2026(Q1 FY26)

    Equitable Holdings Q1 FY26 earnings call EQH

    May 5, 2026 Source

    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

    5

    • 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

    3

    • 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

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

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    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

    Operational metrics

    33
    Non-GAAP operating earnings per share (adjusted)
    $1.68up 25% YoY
    Q1 FY26

    Adjusted for $32 million of below-plan alternatives and a $13 million benefit from tax credit purchase.

    Net income
    $621 million
    Q1 FY26

    Reported net income.

    Net income per share
    $2.14
    Q1 FY26

    Reported net income per share.

    Total AUM AUA
    $1.1 trillionup 9% YoY
    Q1 FY26 end

    Assets under management and administration.

    Alternative portfolio return
    3.5%
    Q1 FY26

    Return for the alternative portfolio, which is 2% of the general account, pressured by lower CLO equity returns.

    Alternative portfolio return projection
    2% to 3%
    Q2 FY26

    Projected return for the alternative portfolio due to weaker market conditions.

    Adjusted book value per share ex AOCI with ABM market value
    $34.70
    Q1 FY26 end

    Considered a more meaningful number than reported book value per share.

    Adjusted debt-to-capital ratio
    24.5%down 40 bps sequentially
    Q1 FY26 end

    Ratio reflecting financial flexibility.

    Combined NAIC RBC ratio
    475%
    Q1 FY26 end

    Balance sheet strength, comfortably above 400% target even under severe stress.

    Holding company liquidity
    $1.2 billion
    Q1 FY26 end

    Above the $500 million target.

    Capital returned to shareholders
    $223 million
    Q1 FY26

    Total capital returned, including share repurchases.

    Share repurchases
    $147 million
    Q1 FY26

    Executed during Q1, impacted by blackout period.

    Total sales
    up 10%YoY
    Q1 FY26

    Driven by strength in Rila products.

    Rila sales
    up 14%YoY
    Q1 FY26

    Strong growth in Rila products.

    Net inflows (Retirement)
    $1.3 billion
    Q1 FY26

    Net inflows in the Retirement segment.

    Advisory net inflows (Wealth Management)
    $2 billion
    Q1 FY26

    Strong growth quarter for Wealth Management.

    Organic growth rate (Wealth Management)
    13%
    LTM

    Organic growth rate over the last 12 months.

    Combined company customers
    12 million+
    pro forma

    Expected customer base after Corebridge merger.

    Combined company AUM
    $1.5 trillion
    pro forma

    Expected AUM after Corebridge merger.

    Combined company annual cash flow
    $4 billion+
    annual

    Expected annual cash flow to the holding company after Corebridge merger.

    Combined company annual earnings power
    $5 billion+
    annual

    Expected annual earnings power after Corebridge merger.

    Combined company pro forma GAAP book value
    $30 billion+
    year-end 2025

    Pro forma GAAP book value after Corebridge merger.

    Combined company statutory capital
    $25 billion+
    year-end 2025

    Pro forma statutory capital after Corebridge merger.

    Combined company pro forma leverage ratio
    26%
    pro forma

    Pro forma leverage ratio after Corebridge merger, providing financial flexibility.

    Combined company originated liabilities
    $70 billion to $80 billion
    annually

    Expected annual liability origination after Corebridge merger.

    Combined company third-party distribution network
    900doubles existing network
    pro forma

    Expanded distribution network after Corebridge merger.

    Equitable sales from Equitable advisers (Retirement)
    35%
    current

    Portion of retirement sales coming through proprietary advisors.

    Mortality benefit ratio
    83.1%
    Q1 FY26

    Reported benefit ratio, lowest in any quarter over the last year, driven by lower claims and less high-face amount claims.

    Corebridge merger expense synergies
    $500 millionat least
    annual

    Expected expense synergies from the Corebridge merger.

    Corebridge merger investment for synergies
    1.5x
    initial

    Expected investment required to achieve synergies, with a good payback.

    AllianceBernstein ownership
    68-69%
    current

    Equitable's ownership stake in AllianceBernstein.

    AllianceBernstein incremental assets from Corebridge
    $100 billion+
    next couple of years

    Expected incremental general and separate account assets for AB from the Corebridge merger.

    Corebridge Advisors AUA added
    $20 billion
    pro forma

    Assets under administration added to Wealth Management from Corebridge Advisors.

    Industry KPIs

    1
    MetricValueDetails
    Capital returns$223 millionUSD

    Deals & partnerships

    2
    CorebridgePlanned 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 AdvisorsAcquisition 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

    5
    Alternative portfolio underperformanceQ1 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 outflowsQ1 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 periodH2 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 backdropOngoing

    Impacts earnings and AUM.

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

    Increased competition in retirement salesOngoing

    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

    5

    Alt portfolio return

    Next quarter (Q2 FY26 results)
    Current3.5% (Q1 annualized), 2-3% (Q2 projected)
    TargetRecovery 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.

    Q&A highlights

    6

    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 read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.