Financial services giant Prudential Financial (NYSE: PRU) met Wall Streets revenue expectations in Q4 CY2025, with sales up 11.6% year on year to $14.52 billion. Its non-GAAP profit of $3.30 per share was 1.9% below analysts’ consensus estimates.

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Company Overview

Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.

Revenue Growth

In general, insurance companies earn revenue from three primary sources. The first is the core insurance business itself, often called underwriting and represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, Prudential’s 1.3% annualized revenue growth over the last five years was weak. This was below our standards and is a tough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Prudential’s annualized revenue growth of 6.9% over the last two years is above its five-year trend, but we were still disappointed by the results. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Prudential’s year-on-year revenue growth was 11.6%, and its $14.52 billion of revenue was in line with Wall Street’s estimates.

Net premiums earned made up 65.9% of the company’s total revenue during the last five years, meaning insurance operations are Prudential’s largest source of revenue.

Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Prudential’s BVPS declined at a 11.6% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 9% annually over the last two years from $77.45 to $92.05 per share.

Over the next 12 months, Consensus estimates call for Prudential’s BVPS to grow by 18.3% to $101.08, elite growth rate.

Key Takeaways from Prudential’s Q4 Results

We were impressed by how significantly Prudential blew past analysts’ net premiums earned expectations this quarter. We were also happy its revenue was in line with Wall Street’s estimates. On the other hand, its book value per share missed and its EPS fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock remained flat at $106.18 immediately after reporting.

Prudential may have had a tough quarter, but does that actually create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).