Equitable Holdings Q2FY26 Results: Non-GAAP EPS up 24% YoY to $1.70
- Non-GAAP operating EPS rose 24% YoY to $1.70; adjusted EPS was $1.75
- Record assets under management reached $1.2 trillion, up 10% YoY
- Capital returned to shareholders totaled $449 million, including $366 million in buybacks
- Merger with Corebridge approved by shareholders, expected to close by end of 2026
- AllianceBernstein AUM hit record $906 billion with positive net inflows of $0.8 billion
*this image is generated using AI for illustrative purposes only.
Equitable Holdings Inc reported a 24% year-over-year increase in non-GAAP operating earnings per share to $1.70 for the second quarter of fiscal year 2026. Excluding notable items, adjusted EPS reached $1.75, aligning with the company's guidance of greater than 15% growth for the full year.
The financial services firm achieved record assets under management and administration of $1.2 trillion, up 10% year over year. This growth was driven by positive net flows across retirement, wealth management, and AllianceBernstein segments, alongside favorable equity market performance. The company returned $449 million in capital to shareholders during the quarter, including $366 million in share repurchases.
Segment Performance and Flows
Organic growth remained robust across key business units. Retirement reported $1.7 billion in net inflows, supported by 10% growth in RILA sales. Wealth management recorded $2 billion in advisory inflows, achieving an 11% trailing twelve-month organic growth rate. AllianceBernstein saw net inflows return to positive territory with $0.8 billion, aided by a $9 billion sub-advisory mandate win from Equitable separate accounts.
| Metric | Q2FY26 Value | Change/Context |
|---|---|---|
| Non-GAAP Operating EPS | $1.70 | +24% YoY |
| Adjusted EPS (ex-notables) | $1.75 | +24% YoY |
| Total AUM/AUA | $1.2 trillion | +10% YoY |
| Capital Returned | $449 million | 92% payout ratio |
| AB AUM | $906 billion | Record high |
Merger Progress and Strategic Outlook
Shareholders of both Equitable and Corebridge approved the pending merger with over 97% voting in support. The transaction is expected to close by the end of 2026. Management projects the merger will drive at least 10% accretion to earnings and cash flow per share by 2028, targeting a 15% plus ROE on a capital base exceeding $30 billion. Integration planning is underway, with organizational structures established for the first three levels of management.
What the Numbers Show
A divergence exists between reported GAAP results and operational performance. While non-GAAP operating earnings grew significantly, the company reported a net loss of $453 million due to non-economic impacts from its hedge portfolio resulting from strong equity markets. Additionally, the consolidated tax rate of 15% benefited from opportunistic tax planning, whereas management forecasts a return to a more normal rate of approximately 20% in the third quarter. This suggests that headline GAAP losses do not reflect the underlying operational strength visible in the segment-level earnings growth.
Balance Sheet and Capital Allocation
The company ended the quarter with $800 million in cash and liquid assets at the holding company level. The estimated combined NAIC Risk-Based Capital ratio remains well above the target operating level of 400%. Despite a 92% payout ratio in the second quarter due to accelerated buybacks following the end of a blackout period, the first-half payout ratio stood at 70%, consistent with the full-year target of 60% to 70%. The sale of the Employee Benefits business to The Hartford is expected to have a neutral to slightly positive impact on near-term earnings, with proceeds allocated to growing at-scale businesses.
How will the anticipated normalization of the tax rate to 20% in Q3 impact Equitable's reported GAAP earnings trajectory for the remainder of fiscal year 2026?
What specific integration milestones must Equitable and Corebridge achieve to ensure the merger closes by the end of 2026 and delivers the projected 10% earnings accretion by 2028?
Given the recent surge in RILA sales, how sustainable is the current net inflow momentum in the Retirement segment if equity market volatility increases?
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
