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Why Is Voya (VOYA) Up 2.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Voya Financial (VOYA - Free Report) . Shares have added about 2.3% 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 Voya 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 most recent earnings report in order to get a better handle on the important catalysts.
VOYA Q2 Earnings Miss on Weak Alternative Investment Results
Voya Financial, Inc. reported second-quarter 2026 adjusted operating earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.88 by 19.7%. The bottom line declined 38.6% year over year. Revenues of $269 million missed the consensus mark by 4.6%. Lower alternative investment income and severance expenses put pressure on results despite higher fee income and continued commercial momentum. Retirement fee-based revenues rose 10%, while Investment Management delivered positive net flows and earnings growth.
VOYA's Core Results Weaken
After-tax adjusted operating earnings fell to $140 million from $240 million in the year-ago quarter. Results included about $40 million of pre-tax severance expenses and a $15 million pre-tax loss tied to alternative investment performance. Consolidated revenues declined 4.3% year over year to $1.90 billion. Fee income increased 7.5% to $620 million, but net investment income fell 8% to $537 million. Premiums remained nearly flat at $716 million. Total benefits and expenses rose 3.8% to $1.86 billion, including a 4.8% increase in operating expenses.
Voya's Retirement Scale Expands
Retirement pre-tax adjusted operating earnings decreased 19.1% year over year to $190 million. Strong underlying business momentum and higher fee-based revenues were more than offset by weaker alternative investment income and planned strategic investments. Total client assets increased 14% to $863 billion as of June 30, 2026. Voya also surpassed 10 million participant accounts and completed the integration of OneAmerica. Defined contribution net flows totaled $8.1 billion, demonstrating sustained commercial momentum.
Trailing-12-month retirement net revenues rose 10% to $2.42 billion. Adjusted operating earnings increased 6% over the same period to $915 million, although the adjusted operating margin contracted to 37.9% from 39.3%.
VOYA's Investment Management Gains
Investment Management pre-tax adjusted operating earnings, excluding noncontrolling interest, increased 11.8% year over year to $57 million. Higher fee-based revenues, positive capital markets and disciplined expense management supported the improvement. Assets under management reached $377 billion, up 4.7% from the prior-year quarter. The business generated $1.2 billion of net inflows during the quarter, excluding divested businesses. Assets under advisory rose to $63 billion from $54 billion, with quarterly net inflows of $1 billion.
Trailing-12-month net revenues increased 6%, while the adjusted operating margin expanded 100 basis points to 29%. Net inflows over the past 12 months totaled $6.3 billion, strengthening the segment’s earnings base.
Voya's Benefits Margins Improve
Employee Benefits pre-tax adjusted operating earnings dropped to $22 million from $69 million. The prior-year period had benefited from more favorable Stop Loss claims development, while Voluntary loss ratios increased from unusually low levels. Still, underlying profitability improved over the trailing 12 months. Net revenues advanced 13% to $1.11 billion, and the aggregate loss ratio improved 500 basis points to 74%. The adjusted operating margin expanded to 11% from 3.7%. Management attributed the progress to underwriting discipline, pricing actions and expense management. Stop Loss and Group Life performance contributed more than $110 million of net underwriting improvement during the past 12 months.
VOYA's Capital Returns Stay Robust
Voya generated approximately $150 million of excess capital during the quarter, exceeding 100% of after-tax adjusted operating earnings. The company returned about $200 million to shareholders through dividends and share repurchases. VOYA completed a $150 million accelerated share repurchase program at an average price of $78.97 and paid $42 million in common dividends. Remaining repurchase authorization totaled $263 million at quarter-end. The company ended June with approximately $200 million of excess capital. Its risk-based capital ratio was about 390%, above the 375% target, while financial leverage of 27.6% remained within the targeted 25-30% range.
Voya's Second-Half Outlook Strengthens
Management expects the operating-efficiency measures taken during the quarter to generate recurring savings that fully offset the severance expense within two quarters. These actions are expected to support improved margins and stronger earnings in the second half of 2026. Retirement administrative expenses are projected between $530 million and $545 million for the second half. Employee Benefits administrative expenses are expected between $265 million and $275 million. Management also expects 2026 cash generation to exceed the 2025 level, supported by commercial growth and disciplined expense execution.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 6.37% due to these changes.
VGM Scores
Currently, Voya has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Voya has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is Voya (VOYA) Up 2.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Voya Financial (VOYA - Free Report) . Shares have added about 2.3% 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 Voya 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 most recent earnings report in order to get a better handle on the important catalysts.
VOYA Q2 Earnings Miss on Weak Alternative Investment Results
Voya Financial, Inc. reported second-quarter 2026 adjusted operating earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.88 by 19.7%. The bottom line declined 38.6% year over year. Revenues of $269 million missed the consensus mark by 4.6%. Lower alternative investment income and severance expenses put pressure on results despite higher fee income and continued commercial momentum. Retirement fee-based revenues rose 10%, while Investment Management delivered positive net flows and earnings growth.
VOYA's Core Results Weaken
After-tax adjusted operating earnings fell to $140 million from $240 million in the year-ago quarter. Results included about $40 million of pre-tax severance expenses and a $15 million pre-tax loss tied to alternative investment performance. Consolidated revenues declined 4.3% year over year to $1.90 billion. Fee income increased 7.5% to $620 million, but net investment income fell 8% to $537 million. Premiums remained nearly flat at $716 million. Total benefits and expenses rose 3.8% to $1.86 billion, including a 4.8% increase in operating expenses.
Voya's Retirement Scale Expands
Retirement pre-tax adjusted operating earnings decreased 19.1% year over year to $190 million. Strong underlying business momentum and higher fee-based revenues were more than offset by weaker alternative investment income and planned strategic investments. Total client assets increased 14% to $863 billion as of June 30, 2026. Voya also surpassed 10 million participant accounts and completed the integration of OneAmerica. Defined contribution net flows totaled $8.1 billion, demonstrating sustained commercial momentum.
Trailing-12-month retirement net revenues rose 10% to $2.42 billion. Adjusted operating earnings increased 6% over the same period to $915 million, although the adjusted operating margin contracted to 37.9% from 39.3%.
VOYA's Investment Management Gains
Investment Management pre-tax adjusted operating earnings, excluding noncontrolling interest, increased 11.8% year over year to $57 million. Higher fee-based revenues, positive capital markets and disciplined expense management supported the improvement. Assets under management reached $377 billion, up 4.7% from the prior-year quarter. The business generated $1.2 billion of net inflows during the quarter, excluding divested businesses. Assets under advisory rose to $63 billion from $54 billion, with quarterly net inflows of $1 billion.
Trailing-12-month net revenues increased 6%, while the adjusted operating margin expanded 100 basis points to 29%. Net inflows over the past 12 months totaled $6.3 billion, strengthening the segment’s earnings base.
Voya's Benefits Margins Improve
Employee Benefits pre-tax adjusted operating earnings dropped to $22 million from $69 million. The prior-year period had benefited from more favorable Stop Loss claims development, while Voluntary loss ratios increased from unusually low levels. Still, underlying profitability improved over the trailing 12 months. Net revenues advanced 13% to $1.11 billion, and the aggregate loss ratio improved 500 basis points to 74%. The adjusted operating margin expanded to 11% from 3.7%. Management attributed the progress to underwriting discipline, pricing actions and expense management. Stop Loss and Group Life performance contributed more than $110 million of net underwriting improvement during the past 12 months.
VOYA's Capital Returns Stay Robust
Voya generated approximately $150 million of excess capital during the quarter, exceeding 100% of after-tax adjusted operating earnings. The company returned about $200 million to shareholders through dividends and share repurchases. VOYA completed a $150 million accelerated share repurchase program at an average price of $78.97 and paid $42 million in common dividends. Remaining repurchase authorization totaled $263 million at quarter-end. The company ended June with approximately $200 million of excess capital. Its risk-based capital ratio was about 390%, above the 375% target, while financial leverage of 27.6% remained within the targeted 25-30% range.
Voya's Second-Half Outlook Strengthens
Management expects the operating-efficiency measures taken during the quarter to generate recurring savings that fully offset the severance expense within two quarters. These actions are expected to support improved margins and stronger earnings in the second half of 2026. Retirement administrative expenses are projected between $530 million and $545 million for the second half. Employee Benefits administrative expenses are expected between $265 million and $275 million. Management also expects 2026 cash generation to exceed the 2025 level, supported by commercial growth and disciplined expense execution.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 6.37% due to these changes.
VGM Scores
Currently, Voya has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Voya has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.