EQH — Equitable Holdings, Inc.

EQH Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Non-GAAP Operating Earnings: $488 million or $1.70 per share; $1.75 per share excluding notable items, a 24% year-over-year increase.
• Net Loss: $453 million due to non-economic impacts from the hedge portfolio.
• Assets Under Management and Administration: 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: 70% for the first half of 2026, with expectations to maintain a 60% to 70% ratio for the full year.
• Earnings Per Share Growth: 25% year-over-year for the first half, on track to exceed the 15% growth target for 2026.

2. Strategic Updates and Business Highlights:

• Merger with Corebridge: Shareholder approval received, with plans to close by year-end 2026. The merger is expected to deliver at least 10% accretion to earnings and cash flow per share by 2028.
• Retirement Segment: Reported $1.7 billion in net inflows, driven by a 10% increase in RILA sales and strong institutional volumes.
• Wealth Management: Achieved $2 billion in advisory inflows with a trailing 12-month organic growth rate of 11%.
• AllianceBernstein (AB): Positive momentum with net inflows of $0.8 billion; private markets AUM increased by 18% year-over-year.
• Employee Benefits Business Sale: Announced sale to The Hartford, expected to have a neutral to slightly positive impact on near-term earnings.

3. Forward Guidance and Outlook:

• 2026 Financial Targets: On track to generate approximately $1.8 billion in cash flow to the holding company, with $900 million in insurance subsidiary dividends expected in the second half.
• Expectations for EPS Growth: Anticipated to be at the low end of the 12% to 15% target range by the end of 2026.
• Investment Strategy: Continued focus on profitable growth in Retirement and asset management, with plans to leverage the merger for enhanced scale and distribution.

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

• Net Loss: The significant net loss of $453 million highlights volatility in the hedge portfolio due to market conditions.
• Alternative Investments Performance: Underperformed with a 1% annualized return, impacted by prior market declines affecting private equity holdings.
• Corporate Losses: Reported a loss of $106 million in the Corporate and Other segment, slightly exceeding full-year guidance expectations.
• Regulatory Environment: Ongoing changes in the regulatory landscape could pose challenges, particularly in the annuity market.

5. Notable Q&A Insights:

• Integration Planning: The merger integration is progressing well, with a focus on establishing management structures and revenue synergies.
• Wealth Management Margins: While margins have improved, there is an expectation for continued growth as the business scales.
• Institutional Business Growth: The merger is expected to enhance institutional capabilities, particularly in pension risk transfer and structured settlements.
• Competitive Landscape: The company remains optimistic about its position in the RILA market, despite potential increased competition as peers shift focus.
• Private Credit Allocation: The firm maintains a disciplined approach to asset allocation, with a focus on risk-adjusted returns and liquidity needs.

Overall, EQH demonstrated strong operational performance in Q2 2026, with significant progress on the merger with Corebridge and positive growth trends across its business segments, despite facing challenges in net losses and alternative investment performance.