Prudential Financial (PRU) Stock Forecast & Price Target

Prudential Financial demonstrates a solid financial foundation, with its diverse business segments contributing to resilient earnings, particularly in the US and Japan where it maintains significant market positions. The company reported approximately $50 million in other related revenues, reflecting a substantial improvement from prior periods, alongside a notable recovery in variable investment income, which was reported at $55-$75 million, showing progress from a lower performance in the previous quarter. Furthermore, Prudential's investment management arm, PGIM, contributed around 10% to adjusted earnings with $1.4 trillion in assets under management, underscoring the firm's capabilities in managing significant investment portfolios and enhancing overall financial performance.

Prudential Financial's pre-announcement of several 2Q25 metrics indicates a decline in earnings power, which raises concerns about the company's financial outlook. The firm’s investment management segment, PGIM, showed a slight improvement in assets under management, reaching $1.44 trillion; however, this increase does not alleviate the broader issues affecting Prudential’s earning capacity. With approximately 50% of adjusted earnings derived from its US business and the company facing challenges in maintaining profitability, the overall sentiment towards Prudential's financial stability remains negative.