EQH-PC — Equitable Holdings, Inc.

Summary of EQH-PC Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

• Non-GAAP Operating Earnings: $488 million, or $1.70 per share; adjusted to $1.75 per share excluding notable items, representing a 24% year-over-year increase.
• Net Loss: $453 million, attributed to non-economic impacts from hedge portfolio.
• Assets Under Management (AUM): Reached a record $1.2 trillion, up 10% year-over-year.
• Capital Returned to Shareholders: $449 million, including $366 million in share repurchases, resulting in a 92% payout ratio for the quarter.
• Payout Ratio: Expected to be 60% to 70% for 2026; 70% for the first half of 2026.
• Growth in EPS: 25% in the first half of 2026, on track for greater than 15% growth for the full year.

2. Strategic Updates and Business Highlights:

• Merger with Corebridge: Shareholders approved the merger, expected to close by year-end 2026. The integration planning is underway, focusing on achieving expense, revenue, and capital synergies.
• Retirement Segment: Reported $1.7 billion in net inflows, driven by 10% growth in RILA sales and increased institutional volumes.
• Wealth Management: $2 billion in advisory inflows with a trailing 12-month organic growth rate of 11%. The business continues to scale with increased adviser productivity.
• AllianceBernstein (AB): Positive momentum with net inflows of $0.8 billion and a strong pipeline, including $12 billion of commercial mortgage loans onboarded in July.

3. Forward Guidance and Outlook:

• Earnings Growth: Confidence in achieving at least 10% accretion to earnings and cash flow per share by the end of 2028.
• Cash Flow Generation: Targeting approximately $1.8 billion in cash flow to the holding company for 2026, with a clear line of sight to $900 million in insurance subsidiary dividends in the second half of the year.
• Market Positioning: The combined company is expected to have enhanced capabilities and distribution breadth, positioning it for long-term growth across various markets.

4. Bad News, Challenges, or Points of Concern:

• Net Loss Impact: The reported net loss of $453 million raises concerns about the volatility of the hedge portfolio and its influence on overall financial performance.
• Alternative Investments Performance: The alternative investments portfolio produced a low annualized return of slightly over 1% due to market conditions, with expectations for improvement in the second half of the year.
• Corporate Losses: Corporate and Other segment reported a loss of $106 million, slightly higher than guidance, attributed to increased long-term compensation expenses and elevated mortality claims.

5. Notable Q&A Insights:

• Integration Planning: The integration of Corebridge is progressing well, with a focus on both expense and revenue synergies. External distributor feedback has been positive.
• Wealth Management Margins: Expectations for margin growth in Wealth Management are tied to scaling the business and improving adviser productivity.
• Investment Portfolio Management: The allocation to private credit is disciplined, with a focus on risk-adjusted returns and liquidity needs.
• Competitive Landscape: The RILA market remains competitive, but Equitable is well-positioned to capture growth due to its established distribution and product offerings.
• Regulatory Environment: Equitable is actively advocating for favorable regulatory changes, which could benefit its competitive position in the industry.

This earnings call reflects Equitable Holdings' strong financial performance and strategic positioning as it moves towards the merger with Corebridge, while also highlighting some challenges that need to be managed.