Income trends suggest a recovering underwriting profile, with the combined ratio falling from 101.2% to 85.1% and Q3 2026 net income of $1.4B on $14.4B revenue, though revenue volatility and a 19.5% year-over-year decline warrant monitoring.
Prudential Financial, Inc. (PRU) annual income statement — 25-year revenue, gross profit & net income history
| 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 |
|---|
| Revenue | 61.33B | 60.97B | 70.67B | 54.27B | 56.99B | 71.15B | 57.03B | 64.8B | 62.99B | 59.69B | 58.79B | 57.12B | 54.1B | 41.46B | 84.85B | 49.09B | 38.22B | 32.57B | 29.22B | 34.4B | 32.27B | 31.35B | 27.81B | 27.3B | 26.07B | 26.41B |
| Revenue Growth % | 5.86% | -13.74% | 30.24% | -4.77% | -19.91% | 24.76% | -11.99% | 2.87% | 5.53% | 1.53% | 2.93% | 5.57% | 30.5% | -51.13% | 72.86% | 28.44% | 17.35% | 11.45% | -15.06% | 6.61% | 2.94% | 12.71% | 1.89% | 4.71% | -1.3% | - |
| Medical Costs & Claims | 41.92B | 42.03B | 53.16B | 36.71B | 45.1B | 42.87B | 41.82B | 44.03B | 44.87B | 39.2B | 39.27B | 36.23B | 37.82B | 30.08B | 70.87B | 30.79B | 23.58B | 20.83B | 18.87B | 17.97B | 2.92B | 2.7B | 17.71B | 31.28B | 15.89B | 15B |
| Medical Cost Ratio % | 68.35% | 68.94% | 75.21% | 67.65% | 79.14% | 60.25% | 73.33% | 67.95% | 71.24% | 65.66% | 66.79% | 63.42% | 69.91% | 72.56% | 83.53% | 62.73% | 61.7% | 63.96% | 64.57% | 52.24% | 9.04% | 8.61% | 63.69% | 114.59% | 60.95% | 56.79% |
| Gross Profit | 19.41B | 18.94B | 17.52B | 17.55B | 11.89B | 28.28B | 15.21B | 20.77B | 18.12B | 20.5B | 19.52B | 20.89B | 16.28B | 11.38B | 13.98B | 18.29B | 14.64B | 11.74B | 10.35B | 16.43B | 29.35B | 28.65B | 10.1B | -3.98B | 10.18B | 11.41B |
| Gross Margin % | 31.65% | 31.06% | 24.79% | 32.35% | 20.86% | 39.75% | 26.67% | 32.05% | 28.76% | 34.34% | 33.21% | 36.58% | 30.09% | 27.44% | 16.47% | 37.27% | 38.3% | 36.04% | 35.43% | 47.76% | 90.96% | 91.39% | 36.31% | -14.59% | 39.05% | 43.21% |
| Gross Profit Growth % | - | 8.09% | -0.21% | 47.65% | -57.96% | 85.91% | -26.75% | 14.62% | -11.6% | 4.99% | -6.56% | 28.32% | 43.11% | -18.61% | -23.58% | 24.96% | 24.73% | 13.36% | -36.99% | -44.02% | 2.45% | 183.7% | 353.59% | -139.12% | -10.8% | - |
| Operating Expenses | 14.06B | 14.28B | 14.31B | 14.48B | 13.78B | 17.45B | 15.54B | 15.68B | 13.29B | 14.01B | 13.82B | 13.12B | 14.52B | 13.06B | 13.27B | 13.33B | 10.5B | 10.18B | 11.49B | 11.74B | 24.96B | 24.37B | 6.83B | -5.86B | 10.1B | 9.12B |
| OpEx / Revenue % | 22.92% | 23.42% | 20.25% | 26.69% | 24.18% | 24.52% | 27.24% | 24.2% | 21.09% | 23.47% | 23.5% | 22.98% | 26.84% | 31.5% | 15.64% | 27.15% | 27.47% | 31.27% | 39.33% | 34.14% | 77.34% | 77.76% | 24.56% | -21.46% | 38.73% | 34.53% |
| Depreciation & Amortization | 127M | 128M | 383M | -70M | 117M | 206M | 457M | 460M | 161M | 222M | 318M | 113M | 631M | 411M | 302M | 290M | -104M | 175M | 717M | 272M | 350M | 501M | 537M | 714M | 559M | 446M |
| Combined Ratio % | 91.28% | 92.36% | 95.46% | 94.34% | 103.32% | 84.77% | 100.57% | 92.15% | 92.33% | 89.13% | 90.3% | 86.4% | 96.75% | 104.06% | 99.17% | 89.89% | 89.17% | 95.23% | 103.9% | 86.38% | 86.38% | 86.37% | 88.26% | 93.12% | 99.69% | 91.32% |
| Operating Income | 5.35B | 4.66B | 3.21B | 3.07B | -1.89B | 10.84B | -323M | 5.08B | 4.83B | 6.49B | 5.71B | 7.77B | 1.76B | -1.68B | 708M | 4.96B | 4.14B | 1.55B | -1.14B | 4.69B | 4.39B | 4.27B | 3.27B | 1.88B | 82M | 2.29B |
| Operating Margin % | 8.72% | 7.64% | 4.54% | 5.66% | -3.32% | 15.23% | -0.57% | 7.85% | 7.67% | 10.87% | 9.7% | 13.6% | 3.25% | -4.06% | 0.83% | 10.11% | 10.83% | 4.77% | -3.9% | 13.62% | 13.62% | 13.63% | 11.74% | 6.88% | 0.31% | 8.68% |
| Operating Income Growth % | - | 45.12% | 4.46% | 262.37% | -117.46% | 3454.49% | -106.35% | 5.19% | -25.48% | 13.71% | -26.57% | 341.67% | 204.45% | -337.85% | -85.74% | 19.9% | 166.75% | 236.26% | -124.31% | 6.65% | 2.81% | 30.86% | 74% | 2189.02% | -96.42% | - |
| EBITDA | 5.47B | 4.79B | 3.59B | 3B | -1.77B | 11.04B | 134M | 5.54B | 5B | 6.71B | 6.02B | 7.88B | 2.39B | -1.27B | 1.01B | 5.25B | 4.04B | 1.73B | -422M | 4.96B | 4.74B | 4.78B | 3.8B | 2.59B | 641M | 2.74B |
| EBITDA Margin % | 8.93% | 7.85% | 5.08% | 5.53% | -3.11% | 15.52% | 0.23% | 8.56% | 7.93% | 11.24% | 10.24% | 13.8% | 4.42% | -3.07% | 1.19% | 10.7% | 10.56% | 5.3% | -1.44% | 14.41% | 14.7% | 15.23% | 13.67% | 9.49% | 2.46% | 10.37% |
| Interest Expense | 1.8B | 2.11B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.32B | 1.33B | 1.93B | 1.42B | 0 | 1.16B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.83B | 1.85B | 0 |
| Non-Operating Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.91B | -1.83B | 0 |
| Pretax Income | 4.76B | 4.66B | 3.35B | 3.12B | -1.95B | 10.93B | -227M | 5.08B | 4.83B | 6.49B | 5.71B | 7.77B | 1.76B | -1.68B | 708M | 4.96B | 4.14B | 1.55B | -1.14B | 4.69B | 4.39B | 4.27B | 3.27B | 1.88B | 82M | -227M |
| Pretax Margin % | 7.77% | 7.64% | 4.74% | 5.75% | -3.43% | 15.37% | -0.4% | 7.85% | 7.67% | 10.87% | 9.7% | 13.6% | 3.25% | -4.06% | 0.83% | 10.11% | 10.83% | 4.77% | -3.9% | 13.62% | 13.62% | 13.63% | 11.74% | 6.88% | 0.31% | -0.86% |
| Income Tax | 873M | 924M | 507M | 613M | -279M | 2B | -81M | 947M | 822M | -1.44B | 1.33B | 2.07B | 349M | -1.06B | 213M | 1.51B | 1.24B | -54M | -487M | 1.25B | 1.25B | 803M | 931M | 621M | -188M | -57M |
| Effective Tax Rate % | 18.32% | 19.85% | 15.12% | 19.64% | 14.28% | 18.25% | 35.68% | 18.62% | 17% | -22.17% | 23.4% | 26.67% | 19.84% | 62.83% | 30.08% | 30.52% | 30.02% | -3.48% | 42.76% | 26.57% | 28.33% | 18.79% | 28.51% | 33.08% | -229.27% | 25.11% |
| Net Income | 3.78B | 3.58B | 2.73B | 2.49B | -1.65B | 8.87B | -374M | 4.19B | 4.07B | 7.86B | 4.37B | 5.64B | 1.38B | -667M | 520M | 3.63B | 3B | 3.12B | -1.12B | 3.7B | 3.43B | 3.54B | 2.26B | 1.26B | 194M | -154M |
| Net Margin % | 6.17% | 5.87% | 3.86% | 4.58% | -2.89% | 12.46% | -0.66% | 6.46% | 6.47% | 13.17% | 7.43% | 9.88% | 2.55% | -1.61% | 0.61% | 7.4% | 7.85% | 9.59% | -3.82% | 10.77% | 10.62% | 11.29% | 8.11% | 4.63% | 0.74% | -0.58% |
| Net Income Growth % | 44.68% | 31.13% | 9.61% | 251.06% | -118.57% | 2471.12% | -108.93% | 2.75% | -48.19% | 80.01% | -22.58% | 308.54% | 307.05% | -228.27% | -85.68% | 21.03% | -3.94% | 379.68% | -130.16% | 8.05% | -3.16% | 56.91% | 78.48% | 551.55% | 225.97% | - |
| EPS (Diluted) | 10.92 | 10.22 | 7.50 | 6.74 | -4.49 | 19.51 | -1.00 | 10.11 | 9.50 | 17.86 | 9.71 | 12.17 | 2.89 | -1.47 | 1.06 | 7.04 | 5.75 | 7.63 | -2.50 | 7.61 | 6.50 | 6.34 | 3.31 | 1.98 | 0.34 | -0.27 |
| EPS Growth % | 52.4% | 36.27% | 11.28% | 250.11% | -123.01% | 2051% | -109.89% | 6.42% | -46.81% | 83.93% | -20.21% | 321.11% | 296.6% | -238.68% | -84.94% | 22.43% | -24.64% | 405.2% | -132.85% | 17.08% | 2.52% | 91.54% | 67.17% | 482.35% | 225.93% | - |
| EPS (Basic) | - | 10.22 | 7.54 | 6.76 | -4.49 | 22.56 | -1.00 | 10.23 | 9.64 | 18.19 | 9.85 | 12.37 | 2.94 | -1.47 | 1.07 | 7.04 | 5.82 | 7.68 | -2.50 | 7.75 | 6.63 | 6.45 | 3.38 | 1.99 | 0.34 | -0.27 |
| Diluted Shares Outstanding | 346.4M | 349.92M | 359.3M | 364.6M | 372.3M | 390.1M | 395.8M | 410.9M | 426.2M | 436M | 429.57M | 463.6M | 456.83M | 468.39M | 451.06M | 488.7M | 475.4M | 448.2M | 429.7M | 468.3M | 494M | 520.9M | 531.2M | 548.4M | 577.98M | 580.83M |
Quick answers to the most common questions about buying PRU stock.
For fiscal year 2025, Prudential Financial, Inc. (PRU) reported total revenue of $60.97B. This represents a 130.8% increase compared to $26.41B in 2001.
Prudential Financial, Inc. (PRU) is profitable, generating $3.58B in net income for the fiscal year ending 2025 with a net profit margin of 5.9%.
Prudential Financial, Inc. (PRU) reported an operating income of $4.66B, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Prudential Financial, Inc. (PRU) generated $18.94B in gross profit for the year, representing a gross profit margin of 31.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Japanese Yen translation and CRE exposure
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Premium Stability
Based on reported quarterly figures, PRU's revenue swung between $12.6B and $19.5B across ten quarters, with the most recent quarter showing a 19.5% year-over-year decline that appears driven by volatile market-linked items rather than a clear shift in premium volume.
The wide quarterly swings suggest that headline revenue is heavily influenced by investment and market-driven components rather than steady premium accumulation. The sharp 131% spike in Q3 2024 followed by a decline in later periods points to lumpy realized results that warrant further investigation. Investors should monitor whether the recent contraction reflects intentional portfolio rebalancing or a softening in underlying premium growth.
Combined Ratio Improves Toward Underwriting Breakeven
As reported in financial statements, PRU's combined ratio moved from 101.2% in Q4 2024 to 85.1% in Q3 2026, suggesting that underwriting discipline has improved materially over roughly two years.
A combined ratio below 100% indicates underwriting profit, and the recent readings in the mid-80s to low-90s range suggest the core book is now generating margin without depending solely on investment income. The loss ratio improvement from 79.0% to 65.4% over the same period points to better claims experience or repricing. Investors should still verify whether favorable mortality or prior-period items are contributing to the most recent quarter.
Reserve Quality Requires Closer Scrutiny
Based on PRU's reported figures, the swing from a loss-making Q4 2024 to strong earnings in subsequent quarters raises questions about whether reserve assumptions and market experience updates are influencing reported profit timing.
The reported data does not isolate prior-year reserve development, so the source of earnings volatility cannot be fully attributed. Under LDTI accounting, periodic remeasurement of liability assumptions can shift earnings between periods, which may partly explain the pattern. Investors should examine reserve roll-forwards before treating the recent margin recovery as fully durable.
Investment Income Contribution Remains Opaque
Investment income and yield data are unavailable in the supplied quarterly series for PRU, so the contribution of investment earnings to total pre-tax results cannot be directly measured from this dataset.
Without reported investment income, it is not possible to isolate how much of operating income depends on the spread between portfolio yields and policyholder crediting rates. Given PRU's large general account and the sensitivity of spread income to rate levels, this gap is material. Analysts should consult the detailed segment disclosures to assess how dependent earnings are on reinvestment yields.
Recent Beat May Not Be Repeatable
Based on reported figures, the Q2 2026 EPS of $4.08 against a $3.42 estimate represents a notable beat, but the absence of formal guidance and recent revenue contraction suggest the outperformance may not be a reliable baseline.
A single strong quarter following a period of declining top-line revenue could reflect favorable timing, realized gains, or one-time items rather than sustained operational momentum. The contrast between EPS growth and the -19.5% revenue decline in the latest period is a signal that earnings quality should be questioned. Investors should avoid extrapolating the beat without evidence that premium growth and margins are holding.