10-Q · August 3, 2026
Jackson reported a substantial year-over-year GAAP earnings recovery, with Q2 revenue of $168 million versus negative $471 million and diluted EPS of $9.16 versus $2.34. Underlying operating results were stronger, led…
Earnings analysis · 10-Q
JXN earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Jackson delivered a very strong reported quarter, with diluted EPS of $12.37 versus $0.92 in Q3 2025 and common-shareholder net income of $847 million versus $65 million. Underlying operating performance was mixed:…
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Jackson delivered a very strong reported quarter, with diluted EPS of $12.37 versus $0.92 in Q3 2025 and common-shareholder net income of $847 million versus $65 million. Underlying operating performance was mixed: Retail Annuities grew materially on stronger RILA and fixed-index annuity activity, while Institutional Products and Closed Life and Annuity Blocks weakened. Cash generation and capital returns improved, but substantial derivative volatility, larger unrealized investment losses, higher debt, and continued variable-annuity outflows support a neutral overall assessment.
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
- $12.37
- Operating margin
- 64.9%
What stood out
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EPS surged on favorable market movements
Diluted EPS was $12.37 versus $0.92 in Q3 2025, while net income attributable to common shareholders increased to $847 million from $65 million. The improvement was driven in part by an $845 million favorable movement in market risk benefits.
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Revenue rose despite derivative losses
Total revenue increased to $1,542 million from $1,416 million in Q3 2025, up 8.9%. Net investment income increased to $886 million from $856 million, although total derivative and investment gains remained a loss of $(1,421) million.
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Retail Annuities drove operating growth
Retail Annuities pretax adjusted operating earnings increased 29% to $638 million from $494 million. Operating revenue increased to $1,626 million from $1,411 million, supported by a $199 million increase in investment income and a $14 million increase in fee income.
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RILA and FIA sales accelerated
Retail annuity sales increased to $6,527 million from $5,362 million, led by RILA sales of $2,967 million versus $2,066 million and fixed-index annuity sales of $627 million versus $73 million. Total retail annuity net flows improved to $(1,849) million from $(2,538) million.
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Cash generation improved
Operating cash flow increased to $4,311 million from $4,137 million for the nine months ended September 30, 2026. Parent-company free cash flow increased to $850 million from $719 million, including $885 million of capital distributions from subsidiaries.
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Capital returns remained substantial
The company returned $838 million to common shareholders through September 30, 2026, consisting of $189 million of dividends and $649 million of repurchases. The board subsequently increased repurchase authorization by $1 billion on October 30, 2026.
What to watch
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Hedging and market volatility remain material
Management states that there were no material changes to the risk factors in the 2025 Annual Report. Nonetheless, market sensitivity remains significant: Q3 freestanding derivative losses were $(1,632) million and total derivative and investment losses were $(1,421) million.
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Liquidity and leverage require monitoring
Cash fell to $4,101 million from $5,704 million at December 31, 2025, while debt increased to $2,769 million from $2,030 million. Investing cash outflow was $(10,981) million, primarily reflecting $16,911 million of debt-security purchases.
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Unrealized investment losses expanded
Accumulated other comprehensive loss widened to $(4,664) million from $(2,470) million, driven primarily by a $(2,466) million nine-month change in unrealized securities gains and losses. Net unrealized losses on available-for-sale debt securities increased to $5,775 million from $3,159 million.
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Closed-block profitability deteriorated
Closed Life and Annuity Blocks pretax adjusted operating earnings declined to a $(3) million loss from $15 million of earnings in Q3 2025 and to $(42) million from $65 million for the nine-month period. Management attributed the decline primarily to lower limited-partnership investment income and continued runoff.
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Variable-annuity outflows remain elevated
Variable annuity net flows were $(5,315) million in Q3 and $(15,212) million for the nine months. Management cited mature policies exiting surrender-charge periods and guaranteed benefits becoming less in the money during strong equity-market performance.
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Deferred-tax realizability risk increased
The company recorded a $538 million increase in its valuation allowance during the nine months, bringing the total valuation allowance related to unrealized tax losses and charitable-contribution carryovers to $1,024 million at September 30, 2026.
Management's outlook
Management reiterated 2026 free capital generation of at least $1.2 billion and a common-shareholder capital-return target of $900 million-$1.1 billion, assuming a 5% equity-market total return and interest rates following the December 31, 2025 forward curve. No numeric revenue or EPS guidance was provided.
Earlier filings 4
10-Q · May 5, 2026
In its Q1 2026 10-Q, Jackson Financial (JXN) reported revenues of $2.60 billion, beating estimates of $1.94 billion, and an EPS of $5.15, trailing the consensus of $5.90. Segment performance was mixed, with Retail…
10-K · February 24, 2026
Jackson Financial reports record sales and growing AUM in 2025 with Total Sales of $23,211 million (up from $19,849 million in 2024) and AUM of $351,059 million (up from $324,718 million). Adjusted operating earnings…
10-Q · November 4, 2025
Jackson Financial reported Q3 2025 revenues of $1,416 million, down from $2,121 million in Q3 2024, while delivering net income attributable to common shareholders of $65 million and diluted EPS of $0.92 (vs. a $(6.37)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.