Equitable (NYSE:EQH) reported first-quarter 2026 results that executives said were supported by organic growth, improved mortality experience and a lower share count, while also focusing heavily on its planned merger with Corebridge.
Quarterly results and outlook
President and CEO Mark Pearson said the company delivered “non-GAAP operating earnings of $1.62 per share, or $1.68 per share after adjusting for notable items,” up 25% from the first quarter of 2025. Pearson attributed the increase to “healthy organic growth momentum, improved mortality experience, and a lower share count.”
Management reiterated its expectation that 2026 earnings per share growth will exceed the high end of its previously stated 12% to 15% target range. Pearson also pointed to assets under management of $1.1 trillion at quarter-end, up 9% year-over-year, and said that although equity markets declined modestly in the first quarter, they have since recovered, which should support earnings given higher average AUM levels versus 2025.
Segment performance: retirement, asset management, and wealth
In retirement, Raju said first-quarter earnings excluding notable items were $394 million. Net interest margin increased 3% sequentially, with lower alternative investment income offset by growth in general account assets. Excluding alternatives, Equitable’s NIM spread improved by 5 basis points sequentially, helped in part by a modest recovery in market value adjustments. Raju said this “reverses the downward trend in spreads we experienced over the past year” and supports the company’s view that spreads are starting to stabilize.
Addressing analyst questions about spread dynamics, Raju said spreads were about 1.69% (169 basis points) and that “that’s a level you can probably expect at this point.” He cited product pricing discipline and runoff dynamics as factors supporting stabilization, adding that RILA sales were up 14% year-over-year and that “the pricing discipline has been maintained, and the margins have been good.”
Raju also said market value adjustment gains contributed roughly $10 million in the quarter and that the company does not assume those gains in forecasts. “We don’t expect benefits on a go-forward basis,” he said.
In asset management, Pearson said AllianceBernstein (AB) posted first-quarter net outflows of $7.1 billion, “driven primarily by active equities and taxable fixed income,” while private wealth and private markets had positive flows. Raju said AB earnings were $140 million, up 11% year-over-year, driven by higher base fees and Equitable’s increased ownership percentage, partially offset by a lower fee rate due to asset mix shifts. Performance fees were modest in the quarter, but Raju said the company raised its full-year performance fee forecast to $95 million to $115 million from $80 million to $100 million.
In wealth management, Raju said earnings rose 22% year-over-year, supported by growth in advisory fees and transaction revenues, though the quarter included seasonally higher expenses and “a couple of million” in costs related to the Stifel Independent Advisors acquisition. Management reiterated an expectation for double-digit earnings growth in wealth management during 2026.
Balance sheet, alternatives, and capital return
Pearson highlighted a combined NAIC RBC ratio of approximately 475% and $1.2 billion of holding company liquidity. Raju said Equitable updated its portfolio stress test using year-end 2025 holdings, assuming a severe credit stress scenario and a 40% equity market decline. Under that scenario, Raju said the company estimates “slightly less than a 50-point decline in RBC ratio,” which would leave the company “comfortably above our 400% target.” He added that management does not currently see signs of weakness in the portfolio.
On alternatives, Raju said the company’s alternatives portfolio (about 2% of the general account) produced an annualized return of 3.5% in the first quarter, pressured by lower CLO equity returns. Given market conditions, Raju said the company projects a 2% to 3% return for the second quarter and now expects full-year alternative returns to be below its prior 8% to 9% guidance.
Equitable returned $223 million to shareholders in the quarter, including $147 million of share repurchases, Raju said. He noted the company was “blacked out from buying back shares for the second half of the quarter due to the merger with Corebridge,” which weighed on the quarterly payout ratio. Still, Raju reiterated the company’s 60% to 70% payout ratio target for 2026 and said buybacks “look extremely compelling at the current valuation.”
Raju said the company expects to file the initial merger proxy statement “today after market close,” opening a window to repurchase shares until the final proxy is mailed, which management does not expect until at least early June. A second buyback window would open after the shareholder vote, he said, and any remaining repurchases could be executed via an accelerated share repurchase (ASR) after the merger closes if needed. Raju emphasized that the exchange ratio for the merger is fixed and “will not be affected by any share repurchases executed by either company.”
Corebridge merger: strategy, synergies, and integration planning
Pearson described the planned Corebridge transaction as “an extraordinary moment” in Equitable’s history and said the combined company is expected to have more than 12 million customers and $1.5 trillion in AUMA, with leading positions across retirement, life insurance, asset management, and wealth management.
Management said integration planning is underway. Pearson told analysts that “the integration planning process is well underway now with the top 50 or so leaders from each of the organizations,” adding that the work is confirming business complementarity and synergy opportunities. He said the company is “pretty excited on the revenue synergy side,” but plans to quantify that later, “until first half of 2027.”
Executives reiterated an expectation for at least $500 million of expense synergies. Pearson said management has “high confidence in achieving at least $500 million of expense synergies,” and said the merger is expected to be immediately accretive to EPS with “10%+ accretion on a run rate basis by the end of 2028,” with potential upside from revenue synergies.
Raju outlined pro forma financial metrics as of year-end 2025, including pro forma GAAP book value exceeding $30 billion, more than $25 billion of statutory capital, and a pro forma leverage ratio of about 26%. He said management projects at least 10% run-rate accretion to EPS and cash generation by year-end 2028, driven by “expense, capital, and tax synergies,” and expects a “15%+ return on equity.” Raju added that these projections do not include anticipated revenue synergies.
On AllianceBernstein, Pearson said AB is expected to be a “meaningful beneficiary” of the merger, with Equitable expecting AB to receive at least $100 billion of incremental assets over the next few years. AB President Onur Erzan told analysts the firm is “very excited about the $100+ billion” opportunity and said it spans multiple channels and asset classes, building on what he described as a record institutional pipeline.
Management also discussed product and distribution implications. Pearson said the combined firm would have approximately $540 billion of retirement and institutional AUM and would become a top-three provider of fixed and indexed annuities while expanding institutional capabilities, including in pension risk transfer. He said the merger would double third-party distribution to about 900 firms and add Corebridge Advisors, which he said would add roughly $20 billion of AUA to wealth management. Equitable also expects to expand its proprietary product offering to include fixed and indexed annuities and indexed universal life, Pearson said.
Raju said it is “too early” to provide detailed guidance on purchase accounting GAAP impacts, citing moving parts such as VOBA, DAC, and fair value adjustments. He also said that while the merger will allow recognition of AB’s market value through purchase accounting, the company currently has “no change” planned to its AB ownership stake, which he described as approximately 68% to 69%.
Pearson closed by saying Equitable remains confident in its 2026 EPS growth and cash generation guidance and that the company is focused on building a “powerhouse franchise” through the Corebridge merger.
About Equitable (NYSE:EQH)
Equitable Holdings, Inc (NYSE: EQH) is a leading provider of life insurance, annuities and retirement plan services in the United States. Through its insurance subsidiary, AXA Equitable Life Insurance Company, the firm offers a broad range of permanent and term life insurance products designed to help individuals and families manage risk and build wealth. In addition, Equitable provides fixed, variable and indexed annuity solutions to support income planning in retirement, as well as a suite of group retirement and pension plan services for employers and plan sponsors.
The company also maintains an asset management arm that delivers investment strategies across equities, fixed income and alternative asset classes for both retail and institutional clients.
