EQH-PA — Equitable Holdings, Inc.

Summary of Equitable Holdings, Inc. Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Non-GAAP Operating Earnings: $488 million or $1.70 per share; $1.75 per share excluding notable items, reflecting a 24% year-over-year increase.
• Net Loss: $453 million, primarily due to non-economic impacts from 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: Targeted at 60% to 70% for 2026; actual was 70% for the first half of the year.
• Cash Flow Generation: Expected to achieve approximately $1.8 billion in 2026.

2. Strategic Updates and Business Highlights

• Merger with Corebridge: Shareholders approved the merger, expected to close by year-end 2026. The merger is projected 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 10% growth in RILA sales.
• Wealth Management: Achieved $2 billion in advisory inflows with a trailing 12-month organic growth rate of 11%.
• AllianceBernstein (AB): Returned to positive net inflows of $0.8 billion; private markets AUM increased 18% year-over-year to $91 billion.
• 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

• Earnings Growth: On track for EPS growth of over 15% in 2026, with cumulative growth at 10% year-to-date.
• Cash Flow Expectations: Anticipating $2 billion in cash flow to the holding company in 2027.
• Investment in Growth: Focus on expanding institutional markets and enhancing Wealth Management capabilities post-merger.

4. Challenges and Points of Concern

• Net Loss: The significant net loss of $453 million raises concerns about the impact of market fluctuations on the hedge portfolio.
• Alternative Investments Performance: The alternative investments portfolio generated a low annualized return of slightly over 1%, with expectations for improvement in the second half of the year but still subject to market conditions.
• Corporate Losses: Reported a loss of $106 million in the Corporate and Other segment, slightly exceeding guidance expectations.

5. Notable Q&A Insights

• Integration Planning: Management is actively working on integration planning for the merger, with positive feedback from distribution partners.
• Wealth Management Margins: Margins are expected to improve as the business scales, despite not seeing immediate growth in the first half of the year.
• Institutional Spread Sales: There is an increased appetite for growth in the Retirement segment, with disciplined capital allocation strategies in place.
• Regulatory Environment: Management is optimistic about regulatory changes that could benefit the industry and Equitable's positioning within it.
• Competitive Landscape: The RILA market remains competitive, but Equitable believes it has a durable edge due to strong distribution channels and product offerings.

Overall, Equitable Holdings demonstrated strong operational performance in Q2 2026, with significant strategic initiatives underway, particularly the merger with Corebridge, while also navigating challenges related to market volatility and investment performance.