It has been about a month since the last earnings report for Sun Life (SLF Quick QuoteSLF - Free Report) . Shares have added about 5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Sun Life due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Sun Life Q1 Earnings Top Estimates, Revenues Fall Y/Y, Dividend Raised

Sun Life Financial Inc. delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income was $765 million (C$1 billion), which increased 5.2% year over year, driven by strong performance in Asia, reflecting business growth in Hong Kong and Canada from higher fee income driven by higher AUM. The increase was offset by lower results in Sun Life Asset Management, reflecting lower catch-up fees and net seed investment income at SLC Management, higher financing costs in Corporate, and the unfavorable impacts from foreign exchange translation.

Revenues of $6.4 billion decreased 18.9% year over year. 

The quarterly results reflected higher premiums, favorable net investment results, higher sales and in-force business growth across the segments.

Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year. New business contractual service margin (CSM) was $313 million (C$429 million), up 11% year over year.

Segment Results of SLF

SLF Canada’s underlying net income was $270 million (C$370 million). Canada witnessed business growth that reflected higher premiums in Sun Life Health, higher fee income from higher AUM and favorable net investment results. It was partially offset by less favorable insurance experience. 

Asset management gross flows & Wealth sales of $4.3 billion ($6 billion) decreased 4.4% year over year. The decrease was due to lower large case sales compared to a strong prior year in Group Wealth defined contributions. It was offset by higher mutual fund sales in Individual Wealth and increased rollover volumes in Group Wealth.

SLF U.S.’ underlying net income was $160 million, which increased 6% year over year, driven by higher results in In-force Management, reflecting favorable net investment results. It was offset by lower earnings in Dental, driven by lower revenues and the impact of a retroactive premium payment in the prior year. U.S. group sales of $160 million grew 30% year over year. The increase was due to higher medical stop-loss sales in Group Benefits reflecting disciplined pricing, strong close rates and favorable market conditions and higher commercial and Medicare Advantage sales in Dental.

SLF Asset Management reported underlying net income of $265 million, which decreased 3% year over year. This was due to poor results in SLC Management, which was down $27 million, reflecting lower net seed investment income and fee-related earnings, which decreased 25%, driven by higher catch-up fees in the prior year. It was partially offset by lower expenses. Asset Management exited the reported quarter with $867.8 billion of AUM, comprising $622.2 billion in MFS, $188.9 billion in SLC Management, and $56.7 billion in Solutions & Other.

SLF Asia reported underlying net income of $157 million (C$216 million). Asia witnessed strong sales momentum and in-force business growth in Hong Kong, and lower expenses and favorable net investment results. It was partially offset by lower fee income from the transition of the administration business to the centralized eMPF platform in Hong Kong.

Individual insurance sales grew year over year, reflecting higher sales in Hong Kong across all channels, with positive momentum in Joint Venture and High Net Worth businesses. Asset management gross flows and wealth sales are reflecting higher Mandatory Provident Fund (MPF) sales in Hong Kong and higher group fund sales in India. New business CSM of $233 million (C$320 million) increased 23% year over year, primarily driven by higher sales, partially offset by an increasing competitive environment, primarily in Hong Kong.

Financial Update  

As of March 31, 2026, Global assets under management increased 4.6% year over year to $1.12 trillion (C$1.57 trillion). Sun Life’s Life Insurance Capital Adequacy Test (LICAT) ratio was 134% as of March 31, 2026, down 700 basis points (bps) year over year.

The LICAT ratio for Sun Life (including cash and other liquid assets) was 143%, which contracted 600 basis points year over year. Sun Life’s return on equity was 8.2% in the first quarter of 2026, which contracted 750 bps year over year. The underlying return on equity of 18.6% expanded 90 bps year over year. The leverage ratio of 23.2% expanded 310 basis points year over year.

Dividend Update of Sun Life

The company’s board of directors approved a 4.3% hike in its quarterly dividend to 96 cents per share. The amount will be paid out on June 30, 2026, to shareholders of record at the close of business on May 27.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Sun Life has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Sun Life has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Sun Life belongs to the Zacks Insurance - Life Insurance industry. Another stock from the same industry, Voya Financial (VOYA Quick QuoteVOYA - Free Report) , has gained 5.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Voya reported revenues of $318 million in the last reported quarter, representing a year-over-year change of +8.2%. EPS of $2.26 for the same period compares with $2.15 a year ago.

For the current quarter, Voya is expected to post earnings of $2.38 per share, indicating a change of -0.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.4% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Voya. Also, the stock has a VGM Score of D.