Research Analysts Offer Predictions for ACGL FY2026 Earnings

Key Points

• Zacks Research raised Arch Capital’s FY2026 EPS forecast to $10.11 from $9.35, close to the $10.18 analyst consensus; it also expects $2.55 EPS in Q1 2027.
• Arch Capital’s latest quarterly results beat estimates, with EPS of $2.67 versus $2.31 expected and revenue of $4.66 billion versus $4.06 billion forecast.
• Analyst sentiment is mixed: seven analysts rate the stock Buy, eight Hold and one Sell. The average price target is $111.65.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Zacks Research boosted their FY2026 earnings per share estimates for Arch Capital Group in a report issued on Tuesday, November 10th. Zacks Research analyst Team now expects that the insurance provider will post earnings of $10.11 per share for the year, up from their prior forecast of $9.35. The consensus estimate for Arch Capital Group's current full-year earnings is $10.18 per share. Zacks Research also issued estimates for Arch Capital Group's Q1 2027 earnings at $2.55 EPS.

A number of other research firms also recently issued reports on ACGL. Royal Bank Of Canada reiterated an "outperform" rating and issued a $120.00 price objective (up from $115.00) on shares of Arch Capital Group in a report on Thursday, July 30th. BMO Capital Markets increased their target price on shares of Arch Capital Group from $95.00 to $102.00 in a report on Wednesday, August 5th. Citigroup raised their target price on shares of Arch Capital Group from $122.50 to $125.00 and gave the company a "buy" rating in a research report on Thursday, October 29th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and issued a $106.00 target price (up from $95.00) on shares of Arch Capital Group in a research report on Tuesday, November 3rd. Finally, UBS Group lifted their price target on shares of Arch Capital Group from $120.00 to $125.00 and gave the company a "buy" rating in a research note on Monday, November 2nd. Seven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $111.65.

Arch Capital Group Trading Up 0.0%

NASDAQ ACGL opened at $109.17 on Thursday. The stock has a market capitalization of $37.25 billion, a price-to-earnings ratio of 8.93, a PEG ratio of 3.58 and a beta of 0.22. The stock's 50 day moving average price is $99.46 and its two-hundred day moving average price is $97.46. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.56 and a current ratio of 0.56. Arch Capital Group has a 52 week low of $87.05 and a 52 week high of $113.63.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The insurance provider reported $2.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.31 by $0.36. Arch Capital Group had a return on equity of 16.62% and a net margin of 23.31%. The business had revenue of $4.66 billion during the quarter, compared to the consensus estimate of $4.06 billion. During the same period last year, the company earned $2.77 earnings per share.

Hedge Funds Weigh In On Arch Capital Group

A number of institutional investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC lifted its stake in Arch Capital Group by 8.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 4,494,644 shares of the insurance provider's stock valued at $423,665,000 after acquiring an additional 354,742 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Arch Capital Group by 2.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,173,885 shares of the insurance provider's stock valued at $400,643,000 after purchasing an additional 117,929 shares during the period. Madison Asset Management LLC bought a new stake in shares of Arch Capital Group in the 2nd quarter valued at about $368,808,000. First Trust Advisors LP raised its holdings in shares of Arch Capital Group by 319.5% in the 1st quarter. First Trust Advisors LP now owns 2,626,148 shares of the insurance provider's stock valued at $252,084,000 after purchasing an additional 2,000,162 shares during the period. Finally, Robeco Institutional Asset Management B.V. lifted its stake in Arch Capital Group by 10.3% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 2,259,582 shares of the insurance provider's stock valued at $208,695,000 after purchasing an additional 210,609 shares during the last quarter. 89.07% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Arch Capital Group

In other news, CFO Francois Morin sold 11,010 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $99.32, for a total value of $1,093,513.20. Following the completion of the sale, the chief financial officer owned 184,826 shares of the company's stock, valued at approximately $18,356,918.32. This represents a 5.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 3.30% of the company's stock.

Key Arch Capital Group News

These are some of the ACGL news items that stood out recently:

• Positive Sentiment: Zacks raised its FY2026 EPS estimate to $10.11 from $9.35 and its Q1 2027 estimate to $2.55 from $2.52. The FY2026 estimate is close to the $10.18 consensus, signaling improved expectations for the nearer term. MarketBeat report
• Negative Sentiment: Zacks trimmed several forecasts, including FY2027 EPS to $9.73 from $9.76, Q4 2026 to $2.38 from $2.43, and Q1 and Q2 2028 estimates. These adjustments point to softer expectations in some future periods. MarketBeat report
• Neutral Sentiment: A recent Zacks commentary cited disciplined underwriting, rising investment income, acquisitions and cash flow as supports for potential earnings and book-value growth; it also noted ACGL’s 19.5% gain over the past year. Zacks commentary

About Arch Capital Group

Arch Capital Group Ltd. is a global insurance and reinsurance company headquartered in Bermuda. Through its insurance, reinsurance and mortgage insurance operations, it provides coverage and risk-management solutions to businesses, financial institutions and other customers. The company's offerings include property and casualty insurance, specialty coverage and reinsurance for risks such as property, casualty and professional liability. Its mortgage insurance business serves lenders and borrowers, primarily in the United States.

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