EQH Q3 Deep Dive: Strategic Capital Deployment and Wealth Management Expansion Shape Outlook

Financial services company Equitable Holdings (NYSE:EQH) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 61.6% year on year to $1.45 billion. Its non-GAAP profit of $1.48 per share was 8.1% below analysts’ consensus estimates.

Is now the time to buy EQH? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Equitable Holdings faced a challenging third quarter as it missed Wall Street’s revenue and adjusted earnings expectations, resulting in a significant negative market reaction. Management attributed the underperformance primarily to notable items including onetime impacts from its life reinsurance transaction and elevated mortality costs. CEO Mark Pearson acknowledged, “Earnings rebounded from the first half of the year, helped by growth in each of our core businesses and the completion of the life reinsurance transaction,” but also recognized impacts from assumption changes and transaction timing. The company’s focus on growing its asset and wealth management businesses partially offset headwinds in legacy life insurance, while annual assumption reviews validated a conservative approach to risk.

Looking forward, Equitable Holdings’ guidance is anchored by expectations of continued organic growth in retirement, asset management, and wealth management, as well as further benefits from recent capital redeployment. Management signaled confidence in double-digit earnings growth for wealth management and ongoing expansion in private markets assets, citing strong advisor recruiting, bolt-on acquisitions like Stifel Independent Advisors, and operational synergies. CFO Robin Raju pointed to expense efficiency initiatives and the anticipated stabilization of mortality impacts, stating, “We see good momentum heading into the fourth quarter and remain focused on controlling what we can control to drive higher earnings in the future.”

Key Insights from Management’s Remarks

Management pointed to strategic redeployment of capital, continuing organic growth in core businesses, and operational efficiency as the main levers shaping third quarter performance and setting up future momentum.

• Life reinsurance transaction impact: The completion of the individual life reinsurance deal with RGA drove notable onetime impacts, including a $1.3 billion GAAP loss and adjustments in reported mortality. Management expects this to reduce volatility and support a shift toward faster-growing businesses.
• Wealth management expansion: The acquisition of Stifel Independent Advisors and increased investments in advisor recruiting bolstered advisory net inflows and productivity, with earnings on track to reach $200 million earlier than planned. Management highlighted operational synergies and a strong cultural fit with Stifel’s advisors.
• Private markets growth: AllianceBernstein’s private markets assets rose 17% year over year, now at $80 billion, benefiting from capital deployed via Equitable’s balance sheet and strategic sidecar investments. The company remains on track for its $90–100 billion private markets target by 2027.
• Expense and productivity initiatives: Ongoing cost efficiency measures and higher asset levels contributed to improved operating leverage, particularly in asset and wealth management. Adviser productivity increased 8% year-on-year, supporting margin expansion.
• Capital management actions: Equitable deployed $1.5 billion, including share repurchases, debt reduction, and investments in strategic transactions. Over 50% of organic cash generation now comes from asset and wealth management businesses, reflecting a diversified model and supporting future capital flexibility.

Drivers of Future Performance

Management expects future growth to be supported by continued expansion in wealth management, disciplined capital deployment, and execution in private markets and retirement solutions.

• Wealth management momentum: Management forecasts double-digit earnings growth driven by ongoing advisor recruiting, bolt-on acquisitions, and further improvements in adviser productivity. The integration of Stifel Independent Advisors is expected to add $10 million to segment earnings in 2027, and margins are projected to expand as the business scales.
• Private markets and sidecar strategy: AllianceBernstein’s private markets business is on track to reach $90–100 billion in assets by 2027, supported by continued investments in sidecars and strategic partnerships. Management highlighted that these investments deliver risk-adjusted returns while expanding access to new insurance markets, especially in Asia.
• Expense efficiency and mortality stabilization: The company is targeting incremental benefits from expense initiatives and expects mortality effects to normalize following the life reinsurance transaction, reducing volatility in legacy businesses and supporting more predictable earnings growth.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) the pace of integration and productivity gains following the Stifel Independent Advisors acquisition, (2) further growth in private markets and the impact of new sidecar investments, and (3) ongoing expense efficiency and stabilization of mortality-related volatility after the life reinsurance transaction. Execution against these milestones will be key to validating management’s confidence in long-term targets.

Equitable Holdings currently trades at $45.22, down from $48.87 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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