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Can Progressive Surpass Estimates This Earnings Season?
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Key Takeaways
Progressive is expected to post Q2 earnings of $4.58 per share, down 6.2% year over year.
Net premiums earned are projected to rise 7% to $21.7 billion on policy growth and retention.
Investment income is expected to rise 12% to $935.6 million. Higher underwriting costs add pressure.
The Progressive Corporation (PGR - Free Report) is expected to witness an improvement in its top line but a decline in its bottom line when it reports second-quarter 2026 results on July 15, before the opening bell.
The Zacks Consensus Estimate for PGR’s second-quarter revenues is pegged at $23.1 billion, indicating 7% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $4.58 per share. The Zacks Consensus Estimate for PGR’s second-quarter earnings has moved 2 cents north in the past seven days. The estimate indicates a year-over-year decline of 6.2%.
Decent Earnings Surprise History
Progressive’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average negative surprise being 0.62%.
What the Zacks Model Unveils for PGR
Our proven model predicts an earnings beat for Progressive this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: PGR has an Earnings ESP of +5.60%. This is because the Most Accurate Estimate of $4.83 is pegged higher than the Zacks Consensus Estimate of $4.58.
The Progressive Corporation Price and EPS Surprise
Progressive’s second-quarter results are likely to benefit from higher premiums, increased net investment income and stronger fee and service income. Continued improvement in its personal auto and commercial lines businesses is likely to have added to the upside.
A strong product portfolio, leading market position and solid performance across its Vehicle and Property segments, supported by healthy policy retention and growth in policies in force, are likely to have driven an improvement in net premiums earned. The Zacks Consensus Estimate for net premiums earned stands at $21.7 billion, indicating a 7% increase from the prior-year quarter.
The Personal Auto segment is likely to have benefited from higher volumes of new and renewal applications, fueled by increased advertising spending, competitive pricing and agency incentive programs. Growth in policies in force was expected across both the agency and direct channels. The consensus estimate for personal auto policies in force is 40.1 million.
Net investment income is likely to have been aided by a larger invested asset base, with the Zacks Consensus Estimate at $935.6 million, implying 12% year-over-year growth. The company is also expected to have recorded pretax net realized gains on securities, with the consensus estimate at $403.9 million.
On the expense side, higher loss and loss-adjustment expenses, policy acquisition costs and other underwriting expenses are likely to have put upward pressure on overall costs. The consensus estimate for the expense ratio is pegged at 20.
Prudent underwriting practices, combined with relatively limited catastrophe losses, are expected to have supported underwriting profitability. The consensus estimate for combined ratio is 88.43, indicating continued operating strength.
Other Stocks to Consider
Some other P&C insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +3.40% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $2.45 per share, indicating a 5.04% year-over-year decrease.
ACGL’s earnings beat estimates in the last four reported quarters.
The Travelers Companies (TRV - Free Report) has an Earnings ESP of +0.02% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $4.92 per share, indicating a year-over-year decrease of 17.2%.
TRV’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +4.97% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $6.60 per share, indicating a year-over-year increase of 7.49%.
CB’s earnings beat estimates in each of the last four reported quarters.
View the Zacks #1 Rank List
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Can Progressive Surpass Estimates This Earnings Season?
Key Takeaways
The Progressive Corporation (PGR - Free Report) is expected to witness an improvement in its top line but a decline in its bottom line when it reports second-quarter 2026 results on July 15, before the opening bell.
The Zacks Consensus Estimate for PGR’s second-quarter revenues is pegged at $23.1 billion, indicating 7% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $4.58 per share. The Zacks Consensus Estimate for PGR’s second-quarter earnings has moved 2 cents north in the past seven days. The estimate indicates a year-over-year decline of 6.2%.
Decent Earnings Surprise History
Progressive’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average negative surprise being 0.62%.
What the Zacks Model Unveils for PGR
Our proven model predicts an earnings beat for Progressive this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: PGR has an Earnings ESP of +5.60%. This is because the Most Accurate Estimate of $4.83 is pegged higher than the Zacks Consensus Estimate of $4.58.
The Progressive Corporation Price and EPS Surprise
The Progressive Corporation price-eps-surprise | The Progressive Corporation Quote
Zacks Rank: PGR carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape Q2 Results
Progressive’s second-quarter results are likely to benefit from higher premiums, increased net investment income and stronger fee and service income. Continued improvement in its personal auto and commercial lines businesses is likely to have added to the upside.
A strong product portfolio, leading market position and solid performance across its Vehicle and Property segments, supported by healthy policy retention and growth in policies in force, are likely to have driven an improvement in net premiums earned. The Zacks Consensus Estimate for net premiums earned stands at $21.7 billion, indicating a 7% increase from the prior-year quarter.
The Personal Auto segment is likely to have benefited from higher volumes of new and renewal applications, fueled by increased advertising spending, competitive pricing and agency incentive programs. Growth in policies in force was expected across both the agency and direct channels. The consensus estimate for personal auto policies in force is 40.1 million.
Net investment income is likely to have been aided by a larger invested asset base, with the Zacks Consensus Estimate at $935.6 million, implying 12% year-over-year growth. The company is also expected to have recorded pretax net realized gains on securities, with the consensus estimate at $403.9 million.
On the expense side, higher loss and loss-adjustment expenses, policy acquisition costs and other underwriting expenses are likely to have put upward pressure on overall costs. The consensus estimate for the expense ratio is pegged at 20.
Prudent underwriting practices, combined with relatively limited catastrophe losses, are expected to have supported underwriting profitability. The consensus estimate for combined ratio is 88.43, indicating continued operating strength.
Other Stocks to Consider
Some other P&C insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +3.40% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $2.45 per share, indicating a 5.04% year-over-year decrease.
ACGL’s earnings beat estimates in the last four reported quarters.
The Travelers Companies (TRV - Free Report) has an Earnings ESP of +0.02% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $4.92 per share, indicating a year-over-year decrease of 17.2%.
TRV’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +4.97% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $6.60 per share, indicating a year-over-year increase of 7.49%.
CB’s earnings beat estimates in each of the last four reported quarters.