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Operating cash flow turned positive at $2.3B in Q2 2026, yielding an OCF/NI ratio of 2.58, and comfortably covering $740M in dividends and buybacks by over 3x.
Prudential Financial, Inc. (PRU) cash flow statement — 25-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 10.97B | 6.27B | 8.5B | 6.51B | 5.16B | 9.81B | 8.37B | 19.63B | 21.66B | 13.45B | 14.78B | 13.89B | 19.4B | 8.45B | 20.91B | 12.38B | 6.54B | 5.84B | 10.84B | 5.97B | 4.38B | 4.04B | 7.12B | -596M | 9.98B | 76M |
| Operating CF Growth % | 573.83% | -26.24% | 30.6% | 26.21% | -47.43% | 17.26% | -57.36% | -9.41% | 61.13% | -9.02% | 6.35% | -28.36% | 129.67% | -59.61% | 68.93% | 89.19% | 12.02% | -46.12% | 81.66% | 36.37% | 8.24% | -43.22% | 1294.46% | -105.97% | 13032.89% | - |
| Operating CF / Revenue % | 16.92% | 10.29% | 12.03% | 12% | 9.05% | 13.79% | 14.67% | 30.29% | 34.39% | 22.52% | 25.14% | 24.33% | 35.85% | 20.37% | 24.64% | 25.22% | 17.12% | 17.93% | 37.09% | 17.34% | 13.56% | 12.89% | 25.6% | -2.18% | 38.28% | 0.29% |
| Net Income | 3.84B | 3.58B | 2.85B | 2.51B | -1.46B | 7.79B | -146M | 4.24B | 4.09B | 7.97B | 4.42B | 5.71B | 1.44B | -560M | 547M | 3.74B | 3.21B | 3.09B | -1.07B | 3.7B | 3.43B | 3.54B | 2.26B | 1.26B | 194M | -154M |
| Depreciation & Amortization | 161M | 128M | 383M | -70M | 124M | 204M | 457M | 460M | 161M | 222M | 318M | 113M | 631M | 411M | 302M | 290M | -104M | 175M | 656M | 272M | 350M | 501M | 589M | 733M | 559M | 446M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 220M | 284M | 242M | 231M | 155M | 263M | 202M | 164M | 166M | 217M | 155M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -257M | -220M | -284M | -242M | -231M | 0 | 0 | 0 | 0 | 0 | 1.27B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 6.14B | 7.16B | 5.68B | 5.29B | 5.18B | -1.49B | 5.03B | 1.75B | -166M | 578M | -323M | -1.91B | 132M | -1.65B | 3.65B | 271M | 1.68B | 2.38B | 5.37B | 1.69B | 1.42B | 466M | 676M | 1.66B | 2.41B | 1.32B |
| Working Capital Changes | 599M | -4.59B | -412M | -958M | 1.31B | 3.3B | 3.03B | 13.18B | 17.58B | 4.67B | 10.36B | 9.97B | 17.2B | 1.68B | 16.41B | 8.08B | 1.76B | 195M | 5.88B | 296M | -820M | -465M | 3.6B | -4.25B | 6.82B | -1.54B |
| Cash from Investing | -32.05B | -25.89B | -28.59B | -12.12B | -7.64B | -5.34B | -16.21B | -17.03B | -21.63B | -11.93B | -21.55B | -7.75B | -17.09B | -16.33B | -15.42B | -13.29B | -8.52B | 2.43B | -10.78B | -5B | -10.15B | -11.27B | -7.42B | -4.42B | -14.05B | 12.46B |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 736M | -88M | -3.8B | 0 | -2.31B | -1.81B | 0 | -5.04B | -3.42B | 0 | -1.79B | 0 | -2.66B | -2.53B | 0 | 0 | 0 | 1.16B | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 422M | 132M | 1.45B | -1.75B | 0 | -64M | -532M | 0 | -23M | -488M | 0 | -2.32B | 0 | 3.77B | -147M | -103M | -724M | 27M | -1.16B | -991M | 0 | 0 |
| Purchase of Investments | -152.92B | -129.77B | -130.21B | -95.59B | -118.59B | -133.06B | -144.49B | -122.72B | -144.89B | -143.09B | -151.76B | -148.9B | -155.23B | -158.72B | -102.41B | -107.71B | -101.36B | -46.72B | -161.01B | -135.02B | -128.65B | -1.24B | -108.64B | -56.81B | -717M | -1.42B |
| Sale/Maturity of Investments | 121.54B | 104.08B | 104.97B | 86.26B | 110.05B | 127.44B | 127.19B | 111.68B | 126.97B | 134.24B | 132.78B | 144.56B | 142.97B | 146.82B | 88.35B | 98.35B | 92.63B | 45.03B | 153.19B | 130.22B | 117.98B | 110.98B | 102.37B | 53.61B | 67.18B | 108.47B |
| Other Investing | -673M | -207M | -3.35B | -2.79B | 475M | -596M | -278M | -437M | -3.7B | -712M | -227M | -3.4B | 231M | -532M | -1.37B | 182M | 208M | 3B | -279M | -104M | 1.25B | -121.04B | -1.16B | -229M | -80.52B | -94.59B |
| Cash from Financing | 19.76B | 20.77B | 19.39B | 7.74B | 4.93B | -3.01B | 4.88B | -1.63B | 781M | -1.26B | 3.2B | -3.52B | 1.63B | 2.24B | -1.3B | 2.1B | 1.61B | -10.42B | 3.81B | 1.54B | 6.52B | 7.14B | 506M | 3.07B | -4.57B | -1.68B |
| Dividends Paid | -1.95B | -1.93B | -1.89B | -1.85B | -1.82B | -1.81B | -1.77B | -1.64B | -1.52B | -1.3B | -1.3B | -1.12B | -1.03B | -847M | -768M | -704M | -575M | -347M | -317M | -533M | -440M | -394M | -341M | -275M | -192M | 0 |
| Share Repurchases | -1B | -1B | -1B | -1.01B | -1.49B | -2.5B | -500M | -2.5B | -1.5B | -1.25B | -2.12B | -1.66B | -1B | -738M | -650M | -999M | 0 | 0 | -2.16B | -3B | -2.51B | -2.1B | -1.49B | -1.01B | -782M | 0 |
| Stock Issued | 108M | 109M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 970M | 1.39B | 0 | 221M | 166M | 169M | 797M | 53M | 0 | 4.17B |
| Debt Issuance (Net) | 2M | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K |
| Other Financing | 20.2B | 20.49B | 21.44B | 10.98B | 6.79B | 2.45B | 6.92B | 791M | 2.48B | 1.89B | 6.34B | -1.07B | 3.11B | 3.01B | -1.16B | 3.17B | -289M | -2.41B | 11.14B | 961M | 2.18B | -375M | -139M | 191M | -5.81B | -2.24B |
| Net Change in Cash | -1.48B | 1.23B | -943M | 2.16B | 4.37B | -921M | -2.62B | 979M | 959M | 363M | -3.48B | 2.69B | 3.48B | -6.66B | 3.85B | 1.34B | -249M | -1.86B | 3.97B | 2.47B | 790M | -273M | 123M | -1.95B | -8.64B | 10.86B |
| Exchange Rate Effect | -169M | 77M | -254M | 37M | 1.91B | -2.38B | 340M | 16M | 142M | 110M | 50M | 69M | -458M | -1.01B | -335M | 155M | 118M | 288M | 97M | -30M | 40M | -180M | -79M | 0 | 0 | 0 |
| Cash at Beginning | 15.99B | 18.52B | 19.46B | 17.3B | 12.93B | 13.86B | 16.47B | 15.49B | 14.54B | 14.13B | 17.61B | 14.92B | 11.44B | 18.1B | 14.25B | 12.91B | 13.16B | 15.03B | 11.06B | 8.59B | 7.8B | 8.07B | 7.95B | 9.9B | 18.54B | 7.68B |
| Cash at End | 15.22B | 19.75B | 18.52B | 19.46B | 17.3B | 12.93B | 13.86B | 16.47B | 15.49B | 14.49B | 14.13B | 17.61B | 14.92B | 11.44B | 18.1B | 14.25B | 12.91B | 13.16B | 15.03B | 11.06B | 8.59B | 7.8B | 8.07B | 7.95B | 9.9B | 18.54B |
| Free Cash Flow | 10.97B | 6.27B | 8.5B | 6.51B | 5.16B | 10.55B | 8.28B | 15.82B | 21.66B | 11.14B | 12.97B | 13.89B | 14.36B | 5.03B | 20.91B | 10.58B | 6.54B | 3.18B | 8.31B | 5.97B | 4.38B | 4.04B | 8.28B | -596M | 9.98B | 76M |
| FCF Growth % | 426.6% | -26.24% | 30.6% | 26.21% | -51.1% | 27.39% | -47.66% | -26.97% | 94.51% | -14.11% | -6.68% | -3.2% | 185.39% | -75.94% | 97.59% | 61.75% | 105.72% | -61.73% | 39.27% | 36.37% | 8.24% | -51.17% | 1488.76% | -105.97% | 13032.89% | - |
| FCF Margin % | 16.92% | 10.29% | 12.03% | 12% | 9.05% | 14.83% | 14.52% | 24.42% | 34.39% | 18.66% | 22.06% | 24.33% | 26.53% | 12.13% | 24.64% | 21.56% | 17.12% | 9.76% | 28.44% | 17.34% | 13.56% | 12.89% | 29.76% | -2.18% | 38.28% | 0.29% |
| FCF per Share | 33.79 | 17.92 | 23.66 | 17.86 | 13.85 | 27.04 | 20.92 | 38.5 | 50.83 | 25.55 | 30.19 | 29.97 | 31.42 | 10.74 | 46.35 | 21.65 | 13.76 | 7.1 | 19.34 | 12.74 | 8.86 | 7.76 | 15.58 | -1.09 | 17.27 | 0.13 |
Quick answers to the most common questions about buying PRU stock.
Prudential Financial, Inc. (PRU) generated $6.27B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Prudential Financial, Inc. (PRU) generated $6.27B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Prudential Financial, Inc. (PRU) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Prudential Financial, Inc. (PRU) returned $1.93B to shareholders via cash dividends and spent $1.00B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Yen weakness and CRE exposure
Metrics are mathematically derived from official filings.
Underwriting Cash Generation Volatile
Operating cash flow swung from -$2.5B in Q1 2025 to $2.3B in Q2 2026, per reported figures, indicating underwriting cash generation remains uneven despite improved net income.
The OCF/NI ratio of 2.58 in Q2 2026 suggests strong cash conversion relative to net income, but the negative OCF in Q1 2025 and Q2 2024 highlights the lumpy nature of insurance cash flows. This volatility may reflect timing differences in premium collections and claims payments, as well as the impact of market conditions on investment income. Investors should monitor whether the recent positive trend is sustainable or if it reverts to the negative quarters seen in the past.
Claims Payments Show Recent Moderation
Claims and loss payments declined to $10.6B in Q2 2026 from $18.2B in Q1 2024, as per financial statements, suggesting a normalization in claims experience after elevated levels.
The reduction in claims payments aligns with the improved combined ratio reported in the income statement analysis, indicating better underwriting discipline. However, the spike in Q1 2024 and Q3 2024 (to $15.4B) suggests that claims can be volatile, possibly due to catastrophe losses or adverse mortality. The recent moderation may indicate a favorable trend, but the inherent unpredictability of claims warrants continued monitoring.
Investment Portfolio Cash Flows Reflect Active Management
Investment purchases outpaced sales by $6.7B in Q2 2026, based on reported figures, indicating continued deployment into higher-yielding assets despite market volatility.
The consistent pattern of purchases exceeding sales across all quarters suggests Prudential is actively reinvesting its portfolio, likely to capture higher yields in a rising rate environment. The net investment outflow of $6.7B in Q2 2026 is significant, but it is offset by the $19.7B cash position, providing ample liquidity. This activity may indicate a strategic shift toward private credit and real estate, which aligns with the company's moat and could enhance future investment income.
Capital Returns Covered by Operating Cash
Dividends and buybacks totaled $740M in Q2 2026, while operating cash flow was $2.3B, per SEC filings, indicating a comfortable coverage ratio of over 3x.
The consistent dividend payments and modest buyback activity appear well-supported by operating cash flow, even in quarters with negative OCF. This suggests a disciplined capital return policy that is not overly reliant on portfolio liquidation. However, the sustainability of this coverage depends on the stability of underwriting cash generation, which has shown volatility. Investors should monitor whether the recent earnings beat translates into sustained cash flow strength.
Earnings Quality Supported by Cash Conversion
Q2 2026 OCF/NI ratio of 2.58, as reported, indicates that net income is backed by strong cash generation, though prior quarters showed negative ratios.
The high OCF/NI ratio in Q2 2026 suggests that earnings are not solely reliant on non-cash accruals, but the negative ratios in Q1 2025 and Q2 2024 raise questions about earnings quality. The income statement analysis noted potential reserve releases boosting earnings, which may not translate into cash. The variability in OCF/NI warrants scrutiny of the sustainability of earnings, especially given the one-time items flagged in the prior analysis.
Cash Flow Statement Obscures Risks
Despite strong OCF in Q2 2026, the cash flow statement does not reveal the credit risk in reinsurance recoverables or the impact of yen weakness on future cash flows.
The cash flow data shows robust operating cash generation, but it does not capture the potential for credit losses on reinsurance recoverables or the translation impact of a weak yen on international earnings. The sustained yen weakness, as noted in recent context, could reduce USD-reported cash flows from Japan, even if local currency performance is stable. Additionally, the large investment purchases may mask underlying credit risk in the portfolio, particularly in commercial real estate. Investors should look beyond the headline cash flow figures to assess these off-balance-sheet risks.