10-Q · May 6, 2026
Aflac Incorporated reported strong revenue growth in Q1 2026, with total revenues of $4.3 billion, representing a 26.5% increase from the prior year's $3.4 billion. Net earnings significantly improved to $1.0 billion or…
Earnings analysis · 10-Q
AFL earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Aflac's underlying U.S. insurance performance improved, but consolidated results deteriorated materially because of $1.072 billion of investment losses and weaker Aflac Japan results. GAAP revenue declined 31.0% to…
Read full summary
Aflac's underlying U.S. insurance performance improved, but consolidated results deteriorated materially because of $1.072 billion of investment losses and weaker Aflac Japan results. GAAP revenue declined 31.0% to $3.271 billion and diluted EPS fell 80.2% to $0.61 year over year, although adjusted EPS was relatively stable at $2.43 versus $2.49. Balance-sheet and credit risks increased, including $7.580 billion of unrealized AFS losses, a $636 million credit-loss allowance, and $1.114 billion of nonaccrual loans. Operating cash flow remained strong at $2.277 billion, but shareholder distributions of $3.7 billion exceeded operating cash flow for the first nine months.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.61
What stood out
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Adjusted earnings remained resilient
GAAP revenue was $3.271 billion, down from $4.740 billion in the prior-year quarter, primarily reflecting $1.072 billion of net investment losses versus $275 million of net investment gains. Adjusted EPS was $2.43 versus $2.49, while GAAP diluted EPS fell to $0.61 from $3.08.
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U.S. profitability strengthened
Aflac U.S. pretax adjusted earnings increased 31.5% to $493 million from $375 million, supported by 3.1% growth in adjusted revenue to $1.781 billion and lower total benefits and claims of $629 million versus $681 million.
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Strong operating cash generation
Operating cash flow increased to $2.277 billion from $2.240 billion for the first nine months. The company returned $3.7 billion to shareholders through $2.787 billion of share repurchases and $898 million of cash dividends.
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Favorable U.S. operating momentum
Management cited favorable 2026 assumption changes, including favorable mortality assumptions for Japan cancer products and favorable U.S. morbidity assumptions. Aflac U.S. annualized premiums in force rose 4.4% to $6.8 billion, while U.S. new annualized premium sales increased 3.5% to $403 million.
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Liquidity and financing access maintained
The company issued $500 million of 5.150% senior notes and ¥65.9 billion of senior notes in May 2026, while remaining in compliance with all debt and credit-line covenants at September 30, 2026.
What to watch
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Investment losses and valuation pressure
The investment portfolio produced $1.072 billion of net investment losses in the quarter, including $842 million of net losses from sales and redemptions and $102 million of credit losses. Gross unrealized losses on available-for-sale fixed maturity securities increased to $7.580 billion from $5.924 billion at December 31, 2025.
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Commercial real estate credit deterioration
Commercial mortgage and other loan credit risk increased: the allowance for credit losses rose to $636 million from $446 million at December 31, 2025, while loans on nonaccrual status increased to $1.114 billion from $643 million. The company also identified $141 million of transitional real estate loans anticipating potential foreclosure or deed-in-lieu transactions and recorded a $96 million allowance on those loans.
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New Japan cyber incident and weaker Japan results
Aflac Japan disclosed a June 25, 2026 unauthorized third-party access incident affecting certain Japan systems; the potential loss cannot reasonably be estimated. Management also cited higher operating costs related to the incident, while Japan pretax adjusted earnings declined 21.0% to $961 million and net earned premiums fell 9.3% to $1.508 billion.
Management's outlook
No consolidated numeric revenue or EPS guidance was provided. Management did provide full-year 2026 segment outlook: Aflac Japan expects a benefit ratio slightly below 60%-63%, and Aflac U.S. expects a benefit ratio below 48%-52%.
Earlier filings 4
10-Q · May 1, 2023
Aflac reported Q1 total revenues of $4,800 million, down from $5,173 million a year earlier, while pretax earnings (earnings before income taxes) improved to $1,342 million and diluted EPS rose to $1.94 from $1.60. The…
10-Q · November 2, 2022
Aflac reported Q3 total revenues of $4,820 million (three months ended Sept 30, 2022), down from $5,237 million a year earlier, while net earnings increased to $1,596 million from $888 million and diluted EPS rose to…
10-Q · August 2, 2022
Aflac reported Q2 2022 revenue of $5,400 million, down $164 million versus Q2 2021, while net earnings rose to $1,388 million (up $283 million) and diluted EPS increased to $2.16 from $1.62. Results were driven by a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.