It has been about a month since the last earnings report for Manulife Financial (MFC Quick QuoteMFC - Free Report) . Shares have added about 0% in that time frame, underperforming the S&P 500.

Will the recent trend continue leading up to its next earnings release, or is Manulife due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

MFC Q2 Earnings Beat on Asia Growth and Strong Insurance Sales

Manulife Financial Corporation reported second-quarter 2026 core earnings of 79 cents per share, which beat the Zacks Consensus Estimate by 1.3%. The bottom line increased 16% year over year. Revenues of $7.83 billion surpassed the consensus estimate of $7.42 billion by 5.4%.

Results benefited from business growth in Asia and Global Wealth and Asset Management, along with a lower expected credit loss charge. Annualized premium equivalent sales increased 21%, while new business contractual service margin and new business value rose 16% and 10%, respectively.

MFC's Core Earnings Rise on Business Growth

Core earnings were C$1.92 billion ($1.38 billion), up 12% year over year. The improvement reflected continued growth in Asia, higher Global WAM earnings and the net positive impact of updates to actuarial methods and assumptions made in 2025.

The increase was partly offset by unfavorable insurance experience in Canada and Asia, lower U.S. investment spreads and the effect of the eMPF transition in Hong Kong. Net income attributed to shareholders increased C$321 million to C$2.11 billion, aided by favorable market experience.

Core return on equity expanded 130 basis points year over year to 16.3%. The expense efficiency ratio improved 100 basis points year over year to 44.5%, indicating positive operating leverage during the quarter.

Manulife's New Business Metrics Record Growth

APE sales advanced 21% year over year to C$2.70 billion ($1.95 billion). Asia remained the largest contributor, with sales rising to C$2.07 billion from C$1.71 billion. Canada APE sales increased 23% year over year to C$426 million ($307.69 million).

New business CSM increased 16% year over year to C$1.02 billion ($0.7 billion). This measure represents the expected future profit from new insurance contracts. New business value climbed 10% year over year to C$929 million ($671 million), highlighting broad-based momentum across the insurance portfolio.

The CSM balance, net of non-controlling interests, reached C$27.26 billion as of June 30, 2026. Annualized organic CSM growth was 10%, supported by new business contributions, interest accretion and insurance experience.

MFC's Asia and U.S. Units Deliver Strong Gains

Asia core earnings increased 21% year over year to $616 million. APE sales advanced 21%, new business CSM rose 17%, and new business value improved 13%, led by growth in Hong Kong, Singapore and Japan. Changes in business mix moderated growth in profitability metrics relative to sales.

U.S. core earnings jumped 55% year over year to $218 million. Improved claims experience in life insurance and long-term care, along with a lower expected credit loss charge, more than offset weaker investment spreads. APE sales rose 12%, though new business CSM declined 1% because of product mix.

Canada core earnings fell 10% year over year to C$379 million ($273.74 million). Unfavorable claims experience and higher Group Insurance expenses weighed on results, partly offset by actuarial assumption benefits, higher investment spreads and an expected credit loss provision release.

Manulife's Global WAM Margin Expands

Global WAM core earnings increased 9% year over year to C$505 million ($364.75 million). Higher average assets under management and administration and contributions from the Comvest acquisition supported the increase. These benefits were partly offset by the eMPF transition and expenses associated with business growth.

Average AUMA rose 15% year over year to C$1.16 trillion. The core EBITDA margin expanded 110 basis points to 31.2%, reflecting improved operating economics.

Global WAM generated net inflows of C$0.4 billion. Institutional inflows of C$6.7 billion, including contributions from CQS and Comvest, offset retirement outflows of C$4.9 billion and retail outflows of C$1.4 billion.

MFC Maintains a Strong Capital Position

Manulife ended the quarter with a Life Insurance Capital Adequacy Test ratio of 136%, unchanged from the year-ago period. Its financial leverage ratio declined 140 basis points to 22.2%, remaining below the company’s medium-term target of 25%.

Book value per common share increased 10% to C$27.48. Adjusted book value per share rose 15% to C$41.12, including a CSM balance per share of C$13.64.

The company returned C$1.4 billion to shareholders during the quarter through C$0.8 billion of common share dividends and C$0.6 billion of share repurchases. It also announced a long-term care reinsurance transaction that is expected to reduce its cumulative long-term care risk by 24% upon closing.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

VGM Scores

At this time, Manulife has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% 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

Manulife has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Manulife belongs to the Zacks Insurance - Life Insurance industry. Another stock from the same industry, Voya Financial (VOYA Quick QuoteVOYA - Free Report) , has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Voya reported revenues of $269 million in the last reported quarter, representing a year-over-year change of -24.4%. EPS of $1.51 for the same period compares with $2.40 a year ago.

For the current quarter, Voya is expected to post earnings of $2.65 per share, indicating a change of +8.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.6% over the last 30 days.

Voya has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.