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    EQH
    Earnings call· Jun 2026(Q2 FY26)

    Equitable Holdings Q2 FY26 earnings call EQH

    Aug 5, 2026 Source

    Executive summary

    Equitable Holdings Q2 FY26 — Merger Progress and Strong Earnings Growth

    Equitable Holdings advanced its transformational merger with Corebridge, receiving shareholder approvals and establishing initial management structures, while simultaneously delivering strong Q2 FY26 earnings growth and positive net flows across all segments. The company remains focused on achieving its 2026 financial targets and expects the combined entity to drive significant shareholder value through scale, distribution, and synergies.

    Highlights

    5

    • Non-GAAP operating EPS of $1.75 (excluding notable items), up 24% year-over-year.

    • Record Assets Under Management and Administration (AUM/A) of $1.2 trillion, up 10% year-over-year.

    • Retirement business net inflows of $1.7 billion, with 10% growth in RILA sales.

    • Wealth Management advisory inflows of $2 billion, with 11% trailing 12-month organic growth rate.

    • AllianceBernstein returned to positive net inflows of $0.8 billion, with private markets AUM up 18% year-over-year to $91 billion.

    Concerns

    4

    • Alternative investment returns were below plan, producing an annualized return of slightly over 1% in the quarter.

    • Consolidated tax rate of 15% benefited from opportunistic tax planning, expected to return to ~20% in Q3.

    • Corporate and Other segment reported a loss of $106 million (adjusted), higher than the full-year guidance range.

    • Cumulative EPS growth rate of 10% for H1 FY26 is slightly below the 12% to 15% target range.

    Guidance & targets

    15
    CategoryTargetConfidence
    Merger accretion to EPS and cash flow per share
    at least 10% accretion
    high materiality
    High
    Merger Return on Equity (ROE)
    15% plus ROE
    high materiality
    High
    Corebridge merger close
    by year-end
    high materiality
    High
    EPS growth
    greater than 15%
    high materiality
    High
    Payout ratio
    60% to 70%
    medium materiality
    High
    Institutional flows
    over $500 million
    medium materiality
    Medium
    Private markets AUM target
    exceed the original target of $90 billion to $100 billion
    medium materiality
    High
    Cash flow to holding company
    approximately $1.8 billion
    high materiality
    High
    Cash flow to holding company
    $2 billion
    high materiality
    High
    Insurance subsidiary dividends
    up to $0.9 billion
    medium materiality
    High
    Cumulative EPS growth rate
    at the low end of the range
    medium materiality
    Medium
    Consolidated tax rate
    approximately 20%
    low materiality
    High
    Performance fees (AllianceBernstein)
    $115 million to $135 million
    medium materiality
    High
    Wealth Management earnings growth
    double-digit annual growth
    medium materiality
    High
    Corporate and Other segment loss
    $350 million to $400 million loss
    low materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Retirement
    Strong net inflows driven by RILA sales and increased institutional volumes. Core spreads stabilized due to disciplined pricing and runoff of older blocks.
    Net inflows: $1.7 billionRILA sales growth: 10% YoYOrganic growth rate (annualized, H1 FY26): 4%Organic growth rate (incl. spread lending): 6%Net interest margin (NIM) growth: 11% YoYCore spreads (ex-alternatives): 174 bpsCore spreads change: +1 bps sequentially
    		———$408 million
    Asset Management (AllianceBernstein)
    Record AUM and strong earnings growth. Private markets AUM exceeded target ahead of schedule. Benefited from a $9 billion sub-advisory mandate win from Equitable and $12 billion CML onboarding in July.
    Earnings growth: 21% YoYAssets under management: $906 billionNet inflows: $0.8 billionAverage base fee rate: 37.7 bpsPrivate markets AUM: $91 billionPrivate markets AUM growth: 18% YoYThird-party insurance AUM: $61 billionThird-party insurance AUM growth: 16% YoYActive ETF AUM: $20 billionActive ETF strategies: 31Active ETF annual fee income: ~$100 million
    		———$158 million
    Wealth Management
    Delivered strong organic growth and increased adviser productivity. Advisory fees calculated on a 1-quarter lag.
    Earnings growth: 26% YoYAdvisory inflows: $2 billionTrailing 12-month organic growth rate: 11%Adviser productivity increase: 13%Total AUA: $141 billionTotal AUA growth: 27% YoY
    		————
    Corporate and Other
    Loss was higher than implied full-year guidance due to larger long-term compensation accrual and elevated mortality.
    		———loss of $106 million

    Operational metrics

    36
    Non-GAAP Operating EPS (ex-notable items)
    $1.75up 24% YoY
    Q2 FY26

    Adjusting for $49 million below plan alternative investment returns and $35 million benefit from favorable tax items.

    Non-GAAP Operating EPS
    $1.70
    Q2 FY26

    Consolidated non-GAAP operating earnings per share.

    Assets Under Management and Administration
    $1.2 trillionup 10% YoY
    Q2 FY26

    Driven by positive net flows and uplift from favorable equity markets.

    Capital returned to shareholders
    $449 million
    Q2 FY26

    Includes $366 million of share repurchases.

    Share repurchases
    $366 million
    Q2 FY26

    Accelerated buybacks after being in blackout for a portion of Q1.

    Payout ratio
    92%
    Q2 FY26

    Due to accelerated buybacks.

    Payout ratio
    70%
    H1 FY26

    Consistent with 60% to 70% target.

    Cumulative payout since Investor Day
    68%
    Since Investor Day

    Highlighting commitment to returning capital to shareholders.

    Spread lending net issuance
    $2.6 billion
    Q2 FY26

    Producing very attractive IRRs in the current spread environment.

    Sub-advisory mandate win
    $9 billion
    Q2 FY26

    Another example of the flywheel benefits between Equitable and AB.

    Commercial mortgage loans onboarded
    $12 billion
    July

    Additional unfunded pipeline of $14 billion.

    Private markets AUM target
    $90 billion to $100 billionreached over a year ahead of schedule
    by end of 2027

    Current AUM is $91 billion.

    Capital invested in AB private market strategies
    nearly $25 billionabove initial $20 billion commitment
    to date

    Equitable's investment in AllianceBernstein's private market strategies.

    Third-party insurance AUM
    $61 billionup 16% YoY
    Q2 FY26

    Strong source of flows, mostly general account wins.

    Active ETF AUM
    $20 billion
    Q2 FY26

    Generates approximately $100 million of annual fee income.

    Cash flow to holding company
    $1.8 billion
    FY26

    On track to achieve target.

    Cash flow to holding company
    $2 billion
    FY27

    Target for 2027.

    Insurance subsidiary dividends
    $0.9 billion
    H2 FY26

    Giving clear line of sight to achieving targets.

    EPS growth (ex-notable items)
    25%
    H1 FY26

    On track to achieve guidance of greater than 15% for full year.

    Cumulative EPS growth rate
    10%slightly below 12% to 15% target range
    H1 FY26

    Expected to be at the low end of the range by end of 2026.

    Net loss
    $453 million
    Q2 FY26

    Driven by noneconomic impacts from hedge portfolio due to strong equity markets.

    Alternative investment returns
    slightly over 1%
    Q2 FY26

    Pressured by lagged impact of Q1 market declines on private equity holdings.

    Consolidated tax rate
    15%
    Q2 FY26

    Benefited from opportunistic tax planning.

    Adjusted book value per share ex AOCI
    $30.92
    Q2 FY26

    GAAP shareholders' equity will reflect fair value of assets and liabilities at merger close.

    Employee Benefits business premiums
    $500 million
    to date

    Grown to over 800,000 customers, but not yet profitable due to lack of scale.

    Assets under management
    $906 billion
    Q2 FY26

    Record level, bodes well for fee earnings moving forward.

    Average base fee rate
    37.7 bpsdeclined modestly
    Q2 FY26

    Still produces attractive incremental margin on new revenues.

    Performance fees
    $115 million to $135 millionraised from $95 million to $115 million
    FY26

    Raised forecast for full-year 2026.

    Total AUA
    $141 billionup 27% YoY
    Q2 FY26

    Total Assets Under Administration.

    Corporate and Other loss (ex-notable items)
    $106 million
    Q2 FY26

    Higher than implied full year guidance due to long-term compensation accrual and elevated mortality.

    Corporate and Other loss (ex-notable items)
    $204 million
    H1 FY26

    Close to expectations.

    Cash and liquid assets at holding company
    $800 million
    Q2 FY26

    At the holding company level.

    Estimated combined NAIC RBC ratio
    well above 400%
    midyear

    Well above target operating level.

    Private credit as % of general account
    19%
    Q2 FY26

    Highly investment grade, with a significant portion in private placements.

    Direct lending as % of private credit portfolio
    3%
    Q2 FY26

    Represents less than 1% of general accounts, considered immaterial.

    AUM to be moved from Corebridge to AB
    $100 billion
    over the next few years

    Targeted AUM transfer post-merger.

    Deals & partnerships

    3
    Corebridge Financial, Inc.Transformational merger to create the new Equitable, leveraging scale, distribution, and product solutions across U.S. retirement, life insurance, institutional, and asset/wealth management markets.

    Shareholders of both companies approved the merger on July 30 with over 97% support. Federal antitrust review complete, regulatory approvals in process. Organizational structure for new company established, including first 3 levels of management.

    The HartfordSale of the Employee Benefits business, a greenfield build since 2015, to a more natural owner.

    Business had grown to over 800,000 customers and approximately $500 million of premiums but was not yet profitable due to lack of scale. Aligns with focus on Corebridge merger and allocating capital to at-scale businesses.

    Stifel Independent AdvisorsAcquisition to scale Wealth Management platform.

    Closed in Q1 FY26.

    Risks & headwinds

    5
    Below plan alternative investment returnsQ2 FY26

    annualized return of slightly over 1% in Q2

    Mitigation: Expect returns to be higher in H2 FY26, but will provide better guidance later in Q3.

    Consolidated tax rate returning to normal levelsQ3 FY26

    15% in Q2 FY26, forecast returning to approximately 20% in Q3

    Cumulative EPS growth rate slightly below target rangeFY26

    10% in H1 FY26 vs. 12% to 15% target range

    Mitigation: Expect to be at the low end of the range by the end of 2026 based on business momentum and outlook.

    Higher than expected loss in Corporate and Other segmentQ2 FY26

    $106 million loss (adjusted) in Q2 FY26 vs. full year guidance of $350 million to $400 million loss

    Mitigation: Attributed to larger long-term compensation accrual due to stock price increase and modestly elevated mortality; H1 loss of $204 million is close to expectations.

    Regulatory scrutiny on offshore moves and regulatory arbitrageOngoing

    discussed qualitatively

    Mitigation: Equitable advocates for a healthier industry, moved to Bermuda for economic management, and supports NAIC efforts to strengthen the industry and ensure it's healthy over time.

    What to watch in Q3 FY26

    5

    Alternative investment returns

    H2 FY26
    Currentslightly over 1% annualized in Q2 FY26
    Targethigher than the first half

    Why it matters

    Alternative investment performance directly impacts earnings, and management expects a rebound after a weak Q2.

    Looking to the second half of the year, we expect returns to be higher than the first half, but we will be in a position to better provide guidance later in the quarter.

    Q&A highlights

    7

    Seeking an update on integration planning, distributor feedback, and any surprises regarding the Corebridge merger.

    Management is pleased with merger progress and Q2 results. Integration is advancing, with the top 500 management positions identified. Distributor feedback has been positive, with partners leaning in. Confident in expense synergies and future revenue synergies.

    “the reach out to distribution partners today has been positive and really our partners leaning in to say how can we make this work and how can we move forward with you there.”

    asked by Ryan Krueger · answered by Mark Pearson

    2 min read6 chapters

    Detailed Narrative

    01

    Corebridge Merger Progress

    Shareholders of Equitable and Corebridge approved the merger on July 30, with over 97% support. Federal antitrust review is complete, and regulatory approvals are in process, with closing expected by year-end 2026. The new organizational structure, including the top three management levels, has been established, enabling integration planning for expense, revenue, and capital synergies.

    02

    Strong Financial Performance

    Equitable reported non-GAAP operating EPS of $1.75 (excluding notable items) in Q2 FY26, a 24% year-over-year increase, consistent with the full-year guidance of over 15% growth. Assets Under Management and Administration reached a record $1.2 trillion, up 10% year-over-year, driven by positive net flows and favorable equity markets.

    03

    Capital Return and Payout

    The company returned $449 million of capital to shareholders in Q2, including $366 million in share repurchases, resulting in a 92% payout ratio for the quarter. The first half 2026 payout ratio was 70%, aligning with the 60% to 70% target. Regulatory approval for up to $0.9 billion in insurance subsidiary dividends for H2 2026 has been secured, providing clear line of sight to cash generation targets.

    04

    Business Segment Momentum

    All business segments delivered positive net flows. Retirement saw $1.7 billion in net inflows, with RILA sales up 10%. Wealth Management recorded $2 billion in advisory inflows and an 11% trailing 12-month organic growth rate. AllianceBernstein achieved $0.8 billion in net inflows, with private markets AUM reaching $91 billion, exceeding its 2027 target ahead of schedule.

    05

    Strategic Growth Initiatives

    Equitable continues to invest in growth areas, including institutional markets like in-plan annuities and HSAs, expecting over $500 million in institutional flows for 2026. The Corebridge merger is anticipated to expand institutional capabilities (pension risk transfer, structured settlements) and provide additional balance sheet capacity. AB's private markets, insurance, and active ETF platforms are also driving significant inflows and fee income.

    06

    Sale of Employee Benefits Business

    Equitable announced the sale of its Employee Benefits business to The Hartford. This business, a greenfield build since 2015, had grown to over 800,000 customers and $500 million in premiums but lacked scale for profitability. The transaction is expected to be neutral to slightly positive for near-term earnings, with proceeds reinvested into at-scale businesses.

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