Aflac (NYSE:AFL) Posts Earnings Results, Misses Expectations By $0.12 EPS

Aflac (NYSE:AFL) announced its quarterly earnings results on Wednesday. The financial services provider reported $1.57 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.12), Zacks reports. Aflac had a return on equity of 14.97% and a net margin of 23.55%.The firm had revenue of $4.87 billion during the quarter, compared to the consensus estimate of $4.45 billion. During the same period last year, the business earned $1.57 EPS. Aflac’s revenue was down 9.6% on a year-over-year basis.

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 Trading Up 3.7%

AFL traded up $4.21 on Thursday, reaching $117.83. 984,496 shares of the company traded hands, compared to its average volume of 2,218,793. The firm has a fifty day simple moving average of $109.84 and a two-hundred day simple moving average of $108.48. The company has a quick ratio of 0.11, a current ratio of 0.11 and a debt-to-equity ratio of 0.30. Aflac has a one year low of $96.95 and a one year high of $119.32. The company has a market cap of $61.76 billion, a P/E ratio of 15.39, a price-to-earnings-growth ratio of 3.32 and a beta of 0.67.

Aflac Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Wednesday, February 18th will be paid a $0.61 dividend. The ex-dividend date of this dividend is Wednesday, February 18th. This represents a $2.44 annualized dividend and a yield of 2.1%. This is a boost from Aflac’s previous quarterly dividend of $0.58. Aflac’s payout ratio is 30.29%.

Insider Transactions at Aflac

In other news, EVP Steven Kent Beaver sold 5,492 shares of the stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $109.53, for a total transaction of $601,538.76. Following the transaction, the executive vice president directly owned 38,368 shares in the company, valued at approximately $4,202,447.04. This trade represents a 12.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Audrey B. Tillman sold 15,862 shares of the stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $112.00, for a total value of $1,776,544.00. Following the sale, 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 position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 30,044 shares of company stock valued at $3,355,981. 0.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Darwin Wealth Management LLC purchased a new stake in shares of Aflac in the second quarter valued at approximately $33,000. Headlands Technologies LLC acquired a new position in Aflac during the second quarter worth approximately $67,000. Triumph Capital Management acquired a new position in shares of Aflac in the 3rd quarter valued at about $84,000. MUFG Securities EMEA plc purchased a new stake in shares of Aflac in the second quarter worth about $152,000. Finally, WFA of San Diego LLC purchased a new position in Aflac in the 2nd quarter valued at about $158,000. 67.44% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

AFL has been the subject of a number of research analyst reports. Weiss Ratings reissued a “buy (b+)” rating on shares of Aflac in a report on Monday, December 22nd. Mizuho assumed coverage on shares of Aflac in a report on Tuesday, December 16th. They set an “underperform” rating and a $104.00 price objective for the company. Keefe, Bruyette & Woods raised their price target on Aflac from $108.00 to $110.00 and gave the stock a “market perform” rating in a research note on Thursday, October 9th. Morgan Stanley set a $120.00 price objective on shares of Aflac in a research note on Monday, December 15th. Finally, Raymond James Financial reissued an “outperform” rating and set a $119.00 price target (up previously from $110.00) on shares of Aflac in a report on Tuesday, December 30th. Three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $110.64.

Aflac News Summary

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Quarterly revenue topped Street estimates — Aflac reported roughly $4.87B in Q4 revenue, above consensus, driven by stronger top-line results that offset a year-over-year decline. Quiver Quant: Q4 release
• Positive Sentiment: Board reiterated a dividend increase for Q1 (5.2%), supporting income-focused investors and signaling confidence in cash flow. PR Newswire: Dividend and results
• Neutral Sentiment: Management is presenting at the UBS Financial Services Conference this week — investors can use the presentation/call to assess forward guidance and segment outlooks. PR Newswire: UBS presentation
• Neutral Sentiment: Corporate social programs (Check for Cancer campaign) continue to be highlighted — positive for brand and group-sales engagement but unlikely to move near-term fundamentals. BenefitNews: Campaign
• Negative Sentiment: EPS missed estimates — Aflac reported $1.57 GAAP EPS vs. Street estimates (~$1.69–$1.71), which weighed on sentiment despite the revenue beat. Zacks: EPS miss
• Negative Sentiment: Japan business under scrutiny — articles note slipping net earned premiums in Japan and questions about whether recent margin improvements are sustainable, a key driver of Aflac’s earnings. Investing.com: Japan margins
• Negative Sentiment: Analyst/market reaction and insider activity are mixed — some outlets report shares edging lower on the bottom-line miss, and recent filings show insider selling and a spread of analyst price targets and ratings. Investing UK: market reaction Quiver Quant: insider & analyst data

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.