Empower Reports Record Second-Quarter 2026 Base Earnings as Retirement, Wealth Management, and Workplace Solutions Drive Strong Growth
Empower delivered another quarter of strong financial performance in the second quarter of 2026, reporting record after-tax base earnings of $332 million, a 34% increase year over year, as the company continued to expand its leadership across workplace retirement services, wealth management, and integrated financial wellness solutions.
The results highlight continued momentum in Empower’s long-term growth strategy, supported by strong retirement plan sales, increasing client engagement, expanding wealth management relationships, and disciplined operational execution. The company also announced a significant strategic acquisition during the quarter that is expected to broaden its workplace financial services platform and strengthen its position as one of the largest retirement services providers in the United States.
Empower released its quarterly performance alongside parent company Great-West Lifeco Inc., demonstrating continued progress toward building a comprehensive financial ecosystem that serves employers, employees, retirees, and individual investors throughout every stage of their financial journey.
Record Earnings Reflect Broad-Based Business Momentum
Empower generated after-tax base earnings of $332 million during the second quarter, representing an increase of 34% compared with the same quarter in 2025. The results also marked a 6% improvement from the first quarter of 2026, reflecting continued organic business growth and favorable market conditions.
Management attributed the earnings growth to several key factors, including:
- Strong retirement plan sales
- Continued organic client expansion
- Growth in wealth management relationships
- Higher equity market values
- Consistent operational execution
- Ongoing investments in technology and workplace financial services
The quarter demonstrates Empower’s ability to grow both revenue and profitability while continuing to invest in future capabilities designed to enhance customer experiences and expand long-term market opportunities.
Workplace Retirement Business Continues to Expand
One of the strongest contributors to second-quarter performance was Empower’s Workplace Solutions business.
During the quarter, the division generated approximately $13 billion in retirement plan sales, reflecting continued demand from employers seeking retirement savings solutions for their workforce.
These new business wins translated into net retirement plan inflows of $5 billion, underscoring the company’s ability to attract new clients while retaining existing relationships.
Retirement plan sponsors continue to seek providers capable of offering modern digital experiences, participant education, investment options, and integrated workplace financial services. Empower’s broad product portfolio has positioned the company to benefit from this growing demand.
The steady flow of retirement assets also contributes to recurring fee revenue and strengthens the company’s long-term earnings profile.
Personal Wealth Business Delivers Continued Growth
Empower’s Personal Wealth business also recorded another quarter of healthy expansion.
Net client flows reached $1.8 billion during the quarter, reflecting increased adoption of wealth management services by existing retirement participants as well as new clients seeking investment guidance.
Perhaps even more notable was the continued growth in customer relationships.
Wealth accounts increased 40% compared with the prior year, demonstrating strong client engagement and successful cross-selling across Empower’s existing retirement participant base.
The company’s strategy focuses on helping retirement savers transition into broader wealth management relationships as their financial needs evolve over time.
Rather than serving clients only during their retirement savings years, Empower aims to support customers throughout every major financial milestone, including investing, financial planning, healthcare savings, retirement income, and estate planning.
Assets Under Administration Reach Historic Milestone
Empower continued expanding the scale of its platform during the quarter.
Assets under administration now exceed $2.1 trillion, reinforcing the company’s position among the largest retirement and workplace financial services providers in North America.
Growing assets under administration benefit the company in several important ways.
Higher asset balances typically generate increased fee revenue while providing greater economies of scale across operations, technology investments, compliance, and customer service.
As market appreciation and new client inflows continue, the company expects its asset base to remain a key driver of long-term earnings growth.
More Than 20 Million Customers Now Served
Empower’s customer base also reached another significant milestone during the second quarter.
The company now serves more than 20 million participants and investors across multiple financial service categories.
These relationships span a broad range of offerings, including:
- Workplace retirement plans
- Personal wealth management
- Stock plan administration
- Health benefits solutions
- Executive financial services
- Defined benefit administration
Serving millions of participants across multiple financial needs allows Empower to deepen customer relationships while expanding opportunities for additional financial products and advisory services.
Leadership Focused on Comprehensive Financial Services
President and Chief Executive Officer Edmund F. Murphy III emphasized that the company’s strategy extends well beyond traditional retirement plan administration.
According to management, Empower is building an integrated workplace financial services platform designed to support individuals throughout every stage of their financial lives.
That includes helping employees:
- Save for retirement
- Build long-term investments
- Manage healthcare expenses
- Grow personal wealth
- Generate retirement income
- Navigate complex financial decisions
The company’s long-term vision centers on providing employers with a single platform capable of delivering comprehensive financial benefits that improve employee financial wellness.
Management believes this integrated approach creates stronger client relationships while expanding opportunities for sustainable long-term growth.
Continued Investment Supports Future Expansion
While delivering record earnings, Empower continued investing in technology, innovation, and operational capabilities designed to strengthen future competitiveness.
The company remains focused on modernizing workplace financial services by improving digital experiences, enhancing advisor capabilities, and expanding integrated financial planning tools.
These investments are intended to help employers simplify benefits administration while giving employees easier access to personalized financial guidance.
Management believes continued investment today will support stronger organic growth over the coming years.
Workplace Financial Services Platform Continues to Grow
Empower has steadily broadened its workplace solutions beyond retirement savings alone.
Its integrated platform now includes:
- Defined contribution retirement plans
- Consumer-directed healthcare benefits
- Stock plan administration
- Executive compensation programs
- Non-qualified retirement plans
- Defined benefit pension administration
- Wealth management services
By combining multiple financial services under one platform, Empower seeks to simplify benefits administration for employers while improving financial outcomes for employees.
The company believes this broader service offering differentiates it from providers focused solely on retirement plans.
Strategic Acquisition Strengthens Long-Term Growth
One of the quarter’s most important developments was Empower’s announcement of a definitive agreement to acquire Milliman’s retirement administration business.
The acquisition represents one of the largest strategic transactions in Empower’s history and aligns with the company’s objective of building the nation’s most comprehensive workplace financial services platform.
Subject to customary regulatory approvals and closing conditions, the transaction is expected to close during the second half of 2026.
Management believes the acquisition will significantly expand Empower’s capabilities across retirement administration and employee benefits.
Acquisition Broadens Service Capabilities
Following completion of the transaction, Empower expects to strengthen several key business lines.
The acquisition is expected to:
- Expand defined benefit administration services
- Add health and welfare benefits administration
- Grow defined contribution retirement capabilities
- Increase operational scale
- Enhance workplace financial solutions
These additions complement Empower’s existing retirement platform while creating opportunities to serve employers with broader benefit administration needs.
Experienced Workforce to Join Empower
As part of the acquisition, approximately 800 specialized employees are expected to join Empower.
These professionals bring expertise across:
- Retirement administration
- Pension services
- Employee benefits
- Healthcare administration
- Client operations
Adding experienced talent is expected to strengthen service capabilities while supporting future growth across multiple business segments.
Significant Expansion of Client Base
The acquisition is also expected to substantially increase Empower’s customer footprint.
Upon closing, the company expects to add approximately:
- 400 defined benefit administration clients
- 790,000 defined benefit participants
- $80 billion in defined benefit assets under administration
In addition, the transaction is expected to contribute:
- More than 1,100 defined contribution retirement plans
- Approximately 750,000 retirement participants
- More than $50 billion in retirement assets
These additions significantly expand Empower’s retirement services business while increasing recurring revenue opportunities.
Healthcare Benefits Business Also Expands
Beyond retirement services, the acquisition also strengthens Empower’s healthcare administration capabilities.
The transaction is expected to add approximately:
- 100 health and welfare administration clients
- Roughly 100,000 healthcare benefit participants
Expanding healthcare benefits administration supports Empower’s strategy of becoming a comprehensive workplace financial services provider capable of managing multiple employer-sponsored benefit programs through a single platform.
Building an Integrated Financial Ecosystem
Management views the acquisition as another important step toward creating an integrated financial ecosystem that connects retirement savings, healthcare, wealth management, and employee benefits.
Rather than offering standalone financial products, Empower aims to create a connected experience that supports employees from the beginning of their careers through retirement.
This model allows employers to consolidate multiple financial services under one provider while offering employees seamless access to financial education, investment guidance, retirement planning, healthcare savings, and wealth management.
Empower enters the second half of 2026 with strong operating momentum, record earnings, expanding assets under administration, growing client relationships, and a transformative acquisition expected to further strengthen its market position.
The company continues to benefit from healthy retirement plan demand, increasing adoption of wealth management services, strong net inflows, and favorable equity market performance. At the same time, ongoing investments in technology and integrated workplace financial solutions position Empower to capitalize on evolving employer and employee needs.
With more than $2.1 trillion in assets under administration, over 20 million participants and investors, and a rapidly expanding workplace solutions platform, Empower is continuing to build one of the most comprehensive financial services ecosystems in the industry. As the company integrates new capabilities through strategic acquisitions and organic innovation, management remains focused on delivering sustainable earnings growth while helping employers and individuals achieve stronger long-term financial outcomes.
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