Aflac (NYSE:AFL) Announces Quarterly Earnings Results, Misses Estimates By $0.12 EPS

Aflac (NYSE:AFL) issued its quarterly earnings results on Wednesday. The financial services provider reported $1.57 EPS for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.12), Zacks reports. Aflac had a net margin of 21.24% and a return on equity of 14.62%. The firm had revenue of $4.87 billion for the quarter, compared to the consensus estimate of $4.45 billion. During the same period last year, the company posted $1.57 EPS. The business’s revenue was down 9.6% compared to the same quarter last year.

Here are the key takeaways from Aflac’s conference call:

• Adjusted EPS rose 0.6% year-over-year (ex-FX) to $1.57, adjusted book value per share increased 0.5%, and adjusted ROE was 11.7% (14.5% ex-FX), which management characterized as a solid quarterly performance.
• Aflac Japan showed underlying earned premiums down ~1.2% in Q4 and management expects a further 1–2% decline in 2026, with higher expense ratios from sales promotion and product-related lapse activity.
• U.S. net earned premiums grew 4% and persistency remained strong at 79.2%, but benefit ratios widened to 48.6% and the company is intentionally increasing expenses to scale growth businesses, guiding to a 17–20% pre-tax margin for 2026.
• Strong capital and liquidity actions — creation of $2 billion in off-balance-sheet PCAP capacity, holding-company unencumbered liquidity of $4.1 billion, adjusted leverage at 21.4% within target, plus $800 million in share repurchases and $303 million in dividends in Q4.

Aflac Stock Performance

Shares of AFL stock opened at $117.46 on Friday. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.30. The firm has a fifty day simple moving average of $109.98 and a two-hundred day simple moving average of $108.54. Aflac has a 12 month low of $96.95 and a 12 month high of $119.32. The firm has a market capitalization of $61.56 billion, a PE ratio of 17.07, a price-to-earnings-growth ratio of 3.36 and a beta of 0.67.

Aflac Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Wednesday, February 18th will be given a $0.61 dividend. This represents a $2.44 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, February 18th. This is an increase from Aflac’s previous quarterly dividend of $0.58. Aflac’s payout ratio is 33.72%.

Analyst Ratings Changes

Several equities research analysts recently commented on AFL shares. Wells Fargo & Company upped their target price on Aflac from $107.00 to $109.00 and gave the company an “equal weight” rating in a research report on Friday, November 7th. Keefe, Bruyette & Woods boosted their price target on Aflac from $108.00 to $110.00 and gave the company a “market perform” rating in a research note on Thursday, October 9th. TD Cowen restated a “hold” rating on shares of Aflac in a report on Monday, December 22nd. JPMorgan Chase & Co. raised their price objective on shares of Aflac from $101.00 to $105.00 and gave the stock a “neutral” rating in a research report on Monday, January 5th. Finally, Raymond James Financial reiterated an “outperform” rating and issued a $119.00 price objective (up previously from $110.00) on shares of Aflac in a research note on Tuesday, December 30th. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Aflac presently has a consensus rating of “Hold” and a consensus price target of $110.64.

Insider Buying and Selling at Aflac

In other news, EVP Audrey B. Tillman sold 15,862 shares of Aflac stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $112.00, for a total transaction of $1,776,544.00. Following the completion of the transaction, the executive vice president directly owned 230,688 shares in the company, valued at $25,837,056. This trade represents a 6.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph L. Moskowitz sold 786 shares of the company’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $113.75, for a total transaction of $89,407.50. Following the completion of the sale, the director owned 24,829 shares in the company, valued at $2,824,298.75. This represents a 3.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 29,044 shares of company stock valued at $3,241,981. Corporate insiders own 0.90% of the company’s stock.

Institutional Investors Weigh In On Aflac

Several institutional investors have recently bought and sold shares of AFL. AQR Capital Management LLC raised its position in Aflac by 1,184.5% in the 3rd quarter. AQR Capital Management LLC now owns 1,264,090 shares of the financial services provider’s stock valued at $141,199,000 after buying an additional 1,165,676 shares during the last quarter. Franklin Resources Inc. grew its stake in shares of Aflac by 132.4% in the 3rd quarter. Franklin Resources Inc. now owns 1,227,200 shares of the financial services provider’s stock worth $137,078,000 after acquiring an additional 699,080 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its stake in shares of Aflac by 180.5% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 252,457 shares of the financial services provider’s stock worth $27,320,000 after acquiring an additional 565,884 shares in the last quarter. Two Sigma Investments LP raised its holdings in shares of Aflac by 402.9% in the third quarter. Two Sigma Investments LP now owns 653,853 shares of the financial services provider’s stock valued at $73,035,000 after purchasing an additional 523,845 shares during the last quarter. Finally, Amundi lifted its position in shares of Aflac by 11.0% during the third quarter. Amundi now owns 2,631,876 shares of the financial services provider’s stock valued at $297,583,000 after purchasing an additional 261,547 shares in the last quarter. Institutional investors own 67.44% of the company’s stock.

About Aflac

Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac’s product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.

Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.