Aflac (NYSE:AFL) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Aflac (NYSE:AFL) released its earnings results on Thursday. The financial services provider reported $1.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.76 by ($0.01), FiscalAI reports. The business had revenue of $4.12 billion for the quarter, compared to analysts’ expectations of $4.11 billion. Aflac had a return on equity of 13.88% and a net margin of 25.60%.The business’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.78 EPS.

Aflac Price Performance

Aflac stock traded up $0.90 during midday trading on Thursday, reaching $126.46. 2,233,745 shares of the stock traded hands, compared to its average volume of 1,968,278. The stock has a market cap of $64.37 billion, a P/E ratio of 14.35, a PEG ratio of 1.94 and a beta of 0.60. The stock’s fifty day moving average is $120.48 and its 200-day moving average is $115.31. The company has a quick ratio of 0.11, a current ratio of 0.11 and a debt-to-equity ratio of 0.26. Aflac has a 12 month low of $101.49 and a 12 month high of $130.22.

Insider Buying and Selling

In other news, Director Joseph L. Moskowitz sold 12,370 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $116.54, for a total transaction of $1,441,599.80. Following the sale, the director directly owned 33,310 shares of the company’s stock, valued at $3,881,947.40. This represents a 27.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Post Holdings Co. Ltd. Japan sold 27,845 shares of the stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $116.71, for a total value of $3,249,789.95. Following the transaction, the insider owned 50,898,490 shares of the company’s stock, valued at $5,940,362,767.90. This represents a 0.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 744,673 shares of company stock worth $87,090,808. Corporate insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Aflac

Institutional investors and hedge funds have recently made changes to their positions in the business. Dimensional Fund Advisors LP lifted its holdings in shares of Aflac by 1.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 4,483,205 shares of the financial services provider’s stock valued at $494,385,000 after acquiring an additional 69,025 shares during the last quarter. Amundi increased its stake in Aflac by 1.3% during the fourth quarter. Amundi now owns 2,664,783 shares of the financial services provider’s stock worth $293,846,000 after acquiring an additional 32,907 shares during the last quarter. Deutsche Bank AG increased its stake in Aflac by 36.8% during the fourth quarter. Deutsche Bank AG now owns 2,125,145 shares of the financial services provider’s stock worth $234,340,000 after acquiring an additional 571,793 shares during the last quarter. Raymond James Financial Inc. raised its position in Aflac by 7.6% during the second quarter. Raymond James Financial Inc. now owns 1,568,841 shares of the financial services provider’s stock valued at $165,450,000 after purchasing an additional 110,978 shares during the period. Finally, AQR Capital Management LLC raised its position in Aflac by 11.5% during the fourth quarter. AQR Capital Management LLC now owns 1,409,114 shares of the financial services provider’s stock valued at $155,383,000 after purchasing an additional 145,024 shares during the period. 67.44% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Aflac

Here are the key news stories impacting Aflac this week:

• Positive Sentiment: Aflac reported quarterly revenue of approximately $4.12 billion, narrowly exceeding analysts’ expectations of $4.11 billion. The company also declared its third-quarter dividend, supporting the stock’s income appeal. Aflac Incorporated Announces Second Quarter 2026 Results, Declares Third Quarter Dividend
• Neutral Sentiment: Aflac generated a 25.60% net margin and 13.88% return on equity during the quarter, indicating continued profitability, although revenue declined about 1% from the prior-year period. Aflac Quarterly Results
• Negative Sentiment: Second-quarter earnings were $1.75 per share, below analyst estimates ranging from $1.76 to $1.79 and down from $1.78 a year earlier. The results were characterized as a double miss in some reports because revenue growth also remained weak. Aflac Q2 Earnings Lag Estimates
• Negative Sentiment: A stronger U.S. dollar pressured reported results, particularly given Aflac’s international operations. Currency headwinds may continue to create volatility in earnings and reduce the benefit of otherwise stable underlying business trends. Insurer Aflac Misses Quarterly Profit Estimates on Stronger Dollar
• Negative Sentiment: Recent ownership data shows substantially more institutional reductions than additions, while reported insider activity has consisted entirely of sales over the past six months. These signals may add pressure to investor sentiment, although they are less immediate than the earnings miss.

Analyst Upgrades and Downgrades

AFL has been the subject of several recent analyst reports. Wells Fargo & Company upped their price target on Aflac from $111.00 to $120.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. Wall Street Zen upgraded shares of Aflac from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Jefferies Financial Group reiterated a “hold” rating and set a $108.00 price objective (up from $100.00) on shares of Aflac in a research report on Friday, July 10th. Mizuho set a $112.00 target price on shares of Aflac in a report on Thursday, July 9th. Finally, Morgan Stanley upped their target price on shares of Aflac from $120.00 to $125.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Aflac currently has an average rating of “Hold” and an average price target of $116.17.

Aflac Company Profile

Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac’s product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.

Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.