Inquiring about the long-term margin potential for the Wealth Management business, given current mid-teen margins.

Very encouraged by momentum, with strong advisory assets growth and 11% organic growth. Expect margins to continue improving with scale and adviser productivity, as seen in past improvements. “we would expect that the growth in margins to translate with the growth of assets as we continue to build scale within the business.”

Asking if Corebridge products can be distributed through Equitable Advisers immediately post-close or if there's a waiting period.

Planning for revenue synergies, including distributing Corebridge products (fixed annuities, Term Life, IUL) through Equitable Advisers, is underway. While companies must operate independently until close, they expect to 'hit the ground running' in Q1 next year. “We've laid out several initiatives on them, one of them being -- having the opportunity to distribute Corebridge products to Equitable Advisers... we'd expect to hit the ground running come the first quarter of next year.”

Questioning if there's a practical limit to the size of private credit as a percentage of total assets (currently 19-20%).

Disciplined asset allocation based on risk-adjusted returns and product liquidity. Private credit can increase a bit, but it depends on the liability profile. The current portfolio is highly investment grade, with almost 50% in private placements. “That can certainly increase a bit from here, but it really depends on the liability of the portfolio that we source.”

EQH

Equitable Holdings (EQH) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 5, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Merger accretion to EPS and cash flow per share	at least 10% accretion high materiality	by end of 2028 · FY28	High
Merger Return on Equity (ROE)	15% plus ROE high materiality	long-term	High
Corebridge merger close	by year-end high materiality	Q4 FY26	High
EPS growth	greater than 15% high materiality	FY26	High
Payout ratio	60% to 70% medium materiality	FY26	High
Institutional flows	over $500 million medium materiality	FY26	Medium
Private markets AUM target	exceed the original target of $90 billion to $100 billion medium materiality	by end of 2027 · FY27	High
Cash flow to holding company	approximately $1.8 billion high materiality	FY26	High
Cash flow to holding company	$2 billion high materiality	FY27	High
Insurance subsidiary dividends	up to $0.9 billion medium materiality	H2 FY26	High
Cumulative EPS growth rate	at the low end of the range medium materiality	by end of 2026 · FY26	Medium
Consolidated tax rate	approximately 20% low materiality	Q3 FY26	High
Performance fees (AllianceBernstein)	$115 million to $135 million medium materiality	FY26	High
Wealth Management earnings growth	double-digit annual growth medium materiality	annual	High
Corporate and Other segment loss	$350 million to $400 million loss low materiality	FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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

EQH operating KPIs by quarter

EQH operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call 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 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 Hartford Sale 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 Advisors Acquisition to scale Wealth Management platform.

Closed in Q1 FY26.

Risks & headwinds

Below plan alternative investment returns Q2 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 levels Q3 FY26

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

Cumulative EPS growth rate slightly below target range FY26

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 segment Q2 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 arbitrage Ongoing

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

Alternative investment returns

H2 FY26

Current slightly over 1% annualized in Q2 FY26

Target higher 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.

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

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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