Aflac (NYSE:AFL) Announces Quarterly Earnings Results

Key Points

• Aflac reported quarterly EPS of $1.75, slightly below the $1.76 consensus and down from $1.78 a year earlier. Revenue reached $4.12 billion, narrowly exceeding estimates but declining 1% year over year.
• The company remained profitable, with a 25.60% net margin and 13.88% return on equity, while shares traded near $126.46 and institutional investors owned 67.44% of the stock.
• Analysts maintained a generally cautious outlook, with an average “Hold” rating and $116.17 price target; recent insider activity was dominated by stock sales, including a 63,000-share sale by a major shareholder.

Aflac (NYSE:AFL - Get Free Report) issued its earnings results on Thursday. The financial services provider reported $1.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.76 by ($0.01), FiscalAI reports. The firm had revenue of $4.12 billion during the quarter, compared to analysts' expectations of $4.11 billion. Aflac had a return on equity of 13.88% and a net margin of 25.60%.The firm's quarterly revenue was down 1.0% on a year-over-year basis. During the same period last year, the firm posted $1.78 earnings per share.

Aflac Stock Performance

Shares of AFL stock traded up $0.90 during trading hours on Thursday, reaching $126.46. The company had a trading volume of 2,233,745 shares, compared to its average volume of 1,968,278. The business has a fifty day moving average price of $120.48 and a 200-day moving average price of $115.31. Aflac has a one year low of $101.49 and a one year high of $130.22. The firm has a market cap of $64.37 billion, a PE ratio of 14.35, a price-to-earnings-growth ratio of 1.94 and a beta of 0.60. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.11 and a current ratio of 0.11.

Insider Buying and Selling at Aflac

In related news, major shareholder Post Holdings Co. Ltd. Japan sold 63,000 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $118.12, for a total transaction of $7,441,560.00. Following the transaction, the insider owned 51,169,435 shares in the company, valued at $6,044,133,662.20. This represents a 0.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 744,673 shares of company stock worth $87,090,808 over the last three months. 0.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Aflac

A number of hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC increased its stake in shares of Aflac by 1,184.5% in the third quarter. AQR Capital Management LLC now owns 1,264,090 shares of the financial services provider's stock worth $141,199,000 after purchasing an additional 1,165,676 shares in the last quarter. Marshall Wace LLP lifted its stake in shares of Aflac by 390.7% during the 4th quarter. Marshall Wace LLP now owns 1,111,711 shares of the financial services provider's stock valued at $122,588,000 after buying an additional 885,141 shares in the last quarter. Franklin Resources Inc. lifted its stake in shares of Aflac by 132.4% during the 3rd quarter. Franklin Resources Inc. now owns 1,227,200 shares of the financial services provider's stock valued at $137,078,000 after buying an additional 699,080 shares in the last quarter. Deutsche Bank AG lifted its stake in shares of Aflac by 36.8% during the 4th quarter. Deutsche Bank AG now owns 2,125,145 shares of the financial services provider's stock valued at $234,340,000 after buying an additional 571,793 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in 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 buying an additional 565,884 shares during the period. 67.44% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Aflac

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac reported quarterly revenue of approximately $4.12 billion, narrowly exceeding analysts’ expectations of $4.11 billion. The company also declared its third-quarter dividend, supporting the stock’s income appeal. Aflac Incorporated Announces Second Quarter 2026 Results, Declares Third Quarter Dividend
• Neutral Sentiment: Aflac generated a 25.60% net margin and 13.88% return on equity during the quarter, indicating continued profitability, although revenue declined about 1% from the prior-year period. Aflac Quarterly Results
• Negative Sentiment: Second-quarter earnings were $1.75 per share, below analyst estimates ranging from $1.76 to $1.79 and down from $1.78 a year earlier. The results were characterized as a double miss in some reports because revenue growth also remained weak. Aflac Q2 Earnings Lag Estimates
• Negative Sentiment: A stronger U.S. dollar pressured reported results, particularly given Aflac’s international operations. Currency headwinds may continue to create volatility in earnings and reduce the benefit of otherwise stable underlying business trends. Insurer Aflac Misses Quarterly Profit Estimates on Stronger Dollar
• Negative Sentiment: Recent ownership data shows substantially more institutional reductions than additions, while reported insider activity has consisted entirely of sales over the past six months. These signals may add pressure to investor sentiment, although they are less immediate than the earnings miss.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on AFL. Morgan Stanley raised their price target on shares of Aflac from $120.00 to $125.00 and gave the company an "equal weight" rating in a research report on Thursday, May 21st. Mizuho set a $112.00 price objective on Aflac in a research report on Thursday, July 9th. Wells Fargo & Company increased their target price on Aflac from $111.00 to $120.00 and gave the company an "equal weight" rating in a research note on Thursday, July 9th. Weiss Ratings upgraded Aflac from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Thursday, July 23rd. Finally, Keefe, Bruyette & Woods lifted their target price on Aflac from $115.00 to $120.00 and gave the stock a "market perform" rating in a report on Monday, July 13th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $116.17.

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.

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