EQH's Corebridge merger advances as Q2 shows record assets and mixed earnings
Corebridge merger clears shareholder vote EQH and Corebridge shareholders approved their all-stock combination on July 30, clearing the biggest hurdle. The deal is expected to close by year-end 2026 and add at least 10% to earnings per share by 2028, with $500 million in annual cost savings. This supports the stock by promising a larger, more efficient retirement franchise.
The merger approval is the single biggest new event this period and directly drives EQH's long-term value.
Record assets and strong inflows in Q2 EQH reported record assets under management and administration of $1.2 trillion, up 10% from a year ago, with net inflows of $1.7 billion in Retirement, $2.0 billion in Wealth Management and $0.8 billion in Asset Management. Non-GAAP operating earnings rose 24% to $1.75 per share. Growing fee-based assets make earnings steadier and support the stock.
This shows the core business is growing and generating cash, a key positive driver for the shares.
Q2 earnings beat but revenue and GAAP profit weak EQH beat non-GAAP EPS estimates at $1.70, but revenue fell 29.7% year-over-year to $1.66 billion and missed badly. The company also posted a GAAP net loss of $453 million due to hedge accounting swings, and book value per share was negative $6.79. The headline beat is offset by these accounting and revenue concerns.
This is the main counterweight: while operating earnings beat, revenue and GAAP results were weak, giving a fair picture.
Some investors sell on merger integration risk Tributary Capital sold its EQH stake, citing integration risk from the Corebridge merger and delayed return of excess capital. EQH was also removed from the FTSE All-World Index, which can force index funds to sell. These are real negatives that can pressure the stock even as the deal promises long-term benefits.
This provides the bear case and shows not all investors are positive on the merger, balancing the picture.