EQH-PA — Equitable Holdings, Inc.

Summary of Equitable Holdings Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Non-GAAP Operating Earnings: $1.62 per share, adjusted to $1.68 per share after notable items, reflecting a 25% increase year-over-year.
• Net Income: $621 million or $2.14 per share.
• Assets Under Management (AUM): $1.1 trillion, up 9% year-over-year.
• Return on Equity (ROE): Projected to exceed 15% post-merger.
• Cash Flow: Ended Q1 with $1.2 billion in cash at the holding company, above the $500 million target.
• Share Buybacks: $147 million executed in Q1; committed to a 60%-70% payout ratio for 2026.

2. Strategic Updates and Business Highlights

• Merger Announcement: Planned merger with Corebridge, expected to create a diversified financial services company with $1.5 trillion in AUM and over 12 million customers.
• Organic Growth: Retirement sales increased by 10% year-over-year; Wealth Management reported $2 billion in advisory net inflows.
• Acquisition: Closed on the acquisition of Stifel Independent Advisors to enhance Wealth Management capabilities.
• Expense Synergies: Anticipated at least $500 million from the merger, with potential for revenue synergies to be quantified in 2027.

3. Forward Guidance and Outlook

• Earnings Growth: Expecting EPS growth to exceed the high end of the 12%-15% target range for 2026.
• Cash Generation: Targeting $1.8 billion in cash generation for 2026, with an increase to $2 billion in 2027.
• Market Positioning: The merger is expected to enhance competitive positioning and profitability through scale and diversified offerings.

4. Bad News, Challenges, or Points of Concern

• Market Volatility: Equity markets declined modestly in Q1, impacting overall performance; however, they have since recovered.
• Alternative Investment Returns: Projected returns for the alternative portfolio are now expected to be below prior guidance of 8%-9% for the full year.
• AllianceBernstein Outflows: Experienced net outflows of $7.1 billion in Q1, primarily due to active equities and taxable fixed income.
• Competitive Pressures: Increased competition in the retirement sector, although Equitable maintains strong sales momentum.

5. Notable Q&A Insights

• Retirement Segment: Spreads are stabilizing, with expectations for continued improvement in net interest margins (NIM).
• Merger Integration: Integration planning is underway, confirming the complementary strengths of both companies.
• Buyback Strategy: Plans to resume share buybacks with attractive valuations; coordination with Corebridge will ensure shareholder accretion.
• Mortality Experience: Favorable mortality results in Q1 with a benefit ratio of 83.1%, the lowest in a year; guidance remains stable for the full year.
• Capital Deployment: Focus on balancing share buybacks and growth investments post-merger, with a strong emphasis on maintaining a resilient balance sheet.

This summary encapsulates the key points from the earnings call, providing a balanced view of Equitable Holdings' performance, strategic direction, and outlook.