Axa Equitable Holdings (EQH) stock plummeted 5.75% in Wednesday's trading session following the release of its disappointing second-quarter earnings report. The financial services company's results fell short of analyst expectations, with significant declines in both revenue and earnings compared to the same period last year.

For Q2 2025, Equitable Holdings reported adjusted earnings per share (EPS) of $1.10, missing the consensus estimate of $1.29. This represents a substantial 23.1% decrease from the $1.43 per share reported in Q2 2024. The company's revenue also took a major hit, falling 32.8% year-over-year to $2.36 billion, well below the analyst expectations of $3.22 billion.

The earnings miss was primarily attributed to challenges in the company's Protection Solutions segment, which swung from a $72 million operating profit in Q2 2024 to a $58 million operating loss. This decline was mainly due to elevated mortality claims, including late-reported claims tied to a third-party administrator. Additionally, the Asset Management segment faced significant outflows totaling $6.7 billion, including $4.8 billion in retail outflows, which management linked to April's market volatility.

On a more positive note, Equitable Holdings announced the completion of a major life reinsurance deal with RGA on July 31, 2025. This strategic transaction reduced the company's mortality risk exposure by 75% and unlocked over $2 billion of value. The deal is expected to provide Equitable with increased capital flexibility for share buybacks, debt reduction, and reinvestment in core businesses.

Looking ahead, Equitable's management reaffirmed their confidence in multi-year targets, including $2 billion in annual cash generation and 12-15% compound annual earnings growth through fiscal 2027. However, investors will be closely monitoring the company's ability to reverse the trend of outflows in Asset Management and stabilize its Protection Solutions segment in the coming quarters.