Axa Equitable Holdings (EQH) stock experienced a sharp 5.75% pre-market plunge on Wednesday following the release of its disappointing second-quarter earnings report. The financial services company's results fell significantly short of analyst expectations, with notable 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 and representing 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 Protection Solutions segment, which swung from a $72 million operating profit in Q2 2024 to a $58 million operating loss, mainly due to elevated mortality claims.

Despite the negative results, Equitable Holdings highlighted some positive developments, including 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, potentially providing increased capital flexibility for future growth initiatives. However, investors seem to be focusing on the immediate challenges faced by the company, particularly in its Asset Management segment, which experienced significant outflows totaling $6.7 billion, including $4.8 billion in retail outflows attributed to April's market volatility.