Equitable Holdings, Inc.

Consolidated non-GAAP operating earnings were $488 million, or $1.70 per share; excluding notable items, EPS was $1.75, up 24% year over year. The company reported a net loss of $453 million due to noneconomic hedge impacts from strong equity markets. Record assets under management and administration were $1.2 trillion, up 10% year over year. Retirement earnings excluding notable items were $408 million, AB earnings were $158 million, up 21% year over year, Wealth Management earnings were up 26% year over year, and Corporate and Other was a $106 million loss ex notable items. Management reiterated 2026 guidance for EPS growth of greater than 15%, about $1.8 billion of cash flow to the holding company, and a full-year payout ratio of 60% to 70%; it also said it expects 2027 cash flow to be $2 billion. Robin Raju said core spreads in Retirement rose 1 basis point sequentially to 174 basis points and should remain near current levels, while AB raised its full-year 2026 performance fee forecast to $115 million to $135 million.

Mark Pearson framed the quarter as evidence that Equitable can execute on the merger and still deliver on 2026 targets, emphasizing that the company is not treating 2026 as a gap year. He highlighted the strategic logic of the combined company: broader distribution, scale, and a flywheel between Equitable and AB that can produce expense, revenue, and capital synergies. His tone was confident and upbeat, repeatedly saying the company is entering the merger from a position of strength and expects the new Equitable to create long-term shareholder value.

Robin Raju focused on earnings quality, cash generation, and capital returns. He cited $488 million of operating earnings, $800 million of holding company cash and liquid assets, a combined NAIC RBC ratio above the 400% target operating level, and $449 million returned to shareholders in the quarter. He also said the company is on track for about $1.8 billion of 2026 cash generation, expects a more normal tax rate of about 20% in Q3 after a 15% rate in Q2, and reiterated a full-year payout ratio target of 60% to 70%.

Analysts pressed management on integration timing, revenue synergies, and how quickly Corebridge products could be distributed through Equitable Advisors. Management said the companies must operate independently until close, but planning is already underway and they expect to hit the ground running in the first quarter of next year. Questions also focused on Wealth Management margins, private credit allocation, commercial mortgage loan onboarding to AB, and spread trends; management said margin should expand with scale, private credit is disciplined and tied to liabilities sourced, and the $12 billion CML onboarding came over at a high single-digit fee rate that starts contributing fees in 4Q.