Aflac (AFL) Q2 2026 earnings summary

Executive summary

• Net earnings for Q2 2026 were $825 million ($1.63 per diluted share), up 37.7% year-over-year, while adjusted earnings declined 7.7% to $883 million ($1.75 per diluted share); adjusted EPS excluding FX impact increased 1.1% to $1.80.

• Total revenues for Q2 2026 were $4.1 billion, down 1% year-over-year, with shareholders' equity rising to $30.3 billion.

• $1.3 billion was returned to shareholders in Q2 via $983 million in share repurchases and $309 million in dividends, totaling $2.6 billion for the first half.

• Japan sales declined 5.6% year-over-year but first-half sales rose 7%, driven by strong product performance; U.S. sales increased 2.6% year-over-year, led by group voluntary and dental/vision products.

• Board declared a third quarter dividend of $0.61 per share, continuing a 43-year streak of dividend increases.

Financial highlights

• Adjusted earnings per diluted share rose 1.1% year-over-year to $1.80, excluding foreign currency effects; adjusted EPS fell 1.7% to $1.75 including FX.

• Adjusted book value per share (ex-FX) decreased 4.1% to $41.22; adjusted book value per share was $55.01, up from $51.78 a year ago.

• Net investment losses for Q2 2026 were $153 million, significantly lower than $421 million a year ago.

• Annualized return on average shareholders' equity was 10.9%; adjusted ROE excluding FX remeasurement was 16.6%.

• Adjusted leverage ratio improved to 21.8%, within the 20–25% target range.

Outlook and guidance

• Japan benefit ratio for 2026 expected at the high end of 60%-63% guidance, excluding Q3 actuarial review.

• U.S. net earned premium growth for 2026 expected just below 3%-6% guidance, but 2025-2027 CAGR remains within range.

• Management emphasized a balanced approach to capital deployment, focusing on profitable growth and long-term value.

• The company aims to extend its record of consecutive dividend increases into 2026.

• No material changes to market risk exposures or critical accounting estimates were reported.