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Can Better Japan Profitability Support Aflac's Q2 Earnings Beat?
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Key Takeaways
AFL is expected to post Q2 EPS of $1.77 on $4.2 billion in revenues when it reports on Aug. 6.
AFL's Japan benefit-to-premium ratio is expected to improve to 61.7 from 66.5 a year earlier.
AFL's Q2 estimates call for lower premiums, weaker investment income and a slight EPS decline year over year.
Insurance provider Aflac Incorporated (AFL - Free Report) is set to report its second-quarter 2026 results on Aug. 6, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.77 per share on revenues of $4.2 billion.
The second-quarter earnings estimate witnessed one upward revision and two movements in the opposite direction over the past 60 days. The bottom-line projection indicates a year-over-year decline of 0.6%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decrease of 7.7%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Aflac’s revenues is pegged at $16.8 billion, implying a fall of 9.1% year over year. The consensus mark for 2026 EPS is pegged at $7.06, implying a 5.7% year-over-year decline.
Aflac beat earnings estimates in two of the past four quarters and missed twice, with the average surprise being 7.9%. This is depicted in the figure below.
Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
AFL has an Earnings ESP of +0.90% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping Aflac’s Q2 Results?
The Zacks Consensus Estimate for second-quarter total net earned premiums indicates a 6.4% year-over-year decrease. While the consensus mark signals a 2.2% increase in net earned premiums in the Aflac U.S. unit, the same for the Aflac Japan unit suggests an 11.4% decline from the year-ago quarter.
Also, the consensus mark for net investment income predicts a 15.1% decline from the year-ago period.
The total benefit-to-premium ratio in Aflac U.S. is pegged at 49.2, up from 47.3 a year ago. The Zacks Consensus Estimate for pre-tax adjusted earnings from Aflac U.S. indicates a 7.8% year-over-year decline.
Nevertheless, the total benefit-to-premium ratio for Aflac Japan stands at 61.7, down from 66.5 in the year-ago period. Aflac Japan is likely to have witnessed a 2.9% decline in pre-tax adjusted earnings.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s earnings for the to-be-reported quarter is pegged at $1.15 per share, indicating 29.2% year-over-year growth. The consensus estimate for revenues is pegged at $459.6 million. SKWD beat earnings estimates in each of the past four quarters, with the average surprise being 17%.
MetLife, Inc. (MET - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank #3.
The Zacks Consensus Estimate for MetLife’s bottom line for the to-be-reported quarter is pegged at $2.30 per share, indicating 13.9% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 2.4%. The consensus estimate for MET’s revenues is pegged at $19.3 billion.
Brookfield Asset Management Ltd. (BAM - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank #3.
The Zacks Consensus Estimate for Brookfield Asset Management’s bottom line for the to-be-reported quarter is pegged at 44 cents per share, indicating 15.8% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 2.9%. The consensus estimate for BAM’s revenues is pegged at $1.5 billion.
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Can Better Japan Profitability Support Aflac's Q2 Earnings Beat?
Key Takeaways
Insurance provider Aflac Incorporated (AFL - Free Report) is set to report its second-quarter 2026 results on Aug. 6, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.77 per share on revenues of $4.2 billion.
The second-quarter earnings estimate witnessed one upward revision and two movements in the opposite direction over the past 60 days. The bottom-line projection indicates a year-over-year decline of 0.6%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decrease of 7.7%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Aflac’s revenues is pegged at $16.8 billion, implying a fall of 9.1% year over year. The consensus mark for 2026 EPS is pegged at $7.06, implying a 5.7% year-over-year decline.
Aflac beat earnings estimates in two of the past four quarters and missed twice, with the average surprise being 7.9%. This is depicted in the figure below.
Aflac Incorporated Price and EPS Surprise
Aflac Incorporated price-eps-surprise | Aflac Incorporated Quote
Q2 Earnings Whispers for Aflac
Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
AFL has an Earnings ESP of +0.90% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping Aflac’s Q2 Results?
The Zacks Consensus Estimate for second-quarter total net earned premiums indicates a 6.4% year-over-year decrease. While the consensus mark signals a 2.2% increase in net earned premiums in the Aflac U.S. unit, the same for the Aflac Japan unit suggests an 11.4% decline from the year-ago quarter.
Also, the consensus mark for net investment income predicts a 15.1% decline from the year-ago period.
The total benefit-to-premium ratio in Aflac U.S. is pegged at 49.2, up from 47.3 a year ago. The Zacks Consensus Estimate for pre-tax adjusted earnings from Aflac U.S. indicates a 7.8% year-over-year decline.
Nevertheless, the total benefit-to-premium ratio for Aflac Japan stands at 61.7, down from 66.5 in the year-ago period. Aflac Japan is likely to have witnessed a 2.9% decline in pre-tax adjusted earnings.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) has an Earnings ESP of +1.39% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s earnings for the to-be-reported quarter is pegged at $1.15 per share, indicating 29.2% year-over-year growth. The consensus estimate for revenues is pegged at $459.6 million. SKWD beat earnings estimates in each of the past four quarters, with the average surprise being 17%.
MetLife, Inc. (MET - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank #3.
The Zacks Consensus Estimate for MetLife’s bottom line for the to-be-reported quarter is pegged at $2.30 per share, indicating 13.9% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 2.4%. The consensus estimate for MET’s revenues is pegged at $19.3 billion.
Brookfield Asset Management Ltd. (BAM - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank #3.
The Zacks Consensus Estimate for Brookfield Asset Management’s bottom line for the to-be-reported quarter is pegged at 44 cents per share, indicating 15.8% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 2.9%. The consensus estimate for BAM’s revenues is pegged at $1.5 billion.