AI Takeaway
Aflac (AFL) reported a significant decline in FY2025 revenue to $17.2B (-9.3% YoY) and net income to $3.6B (-33.0% YoY), though the company maintained strong capital returns with $3.5B in share buybacks and $1.2B in dividends paid.
Revenue
$17.16B
-9.31% YoY
EPS (Basic)
$6.84
-29.34% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell to $17.2B in FY2025 from $18.9B in the prior year, a 9.3% decrease, likely reflecting lower net investment income or realized gains compared to the prior period, which is common in insurance businesses sensitive to interest rate and market conditions.
Source: Source: 10-K Income Statement
Net income dropped sharply by 33.0% to $3.6B from $5.4B in the prior year, resulting in diluted EPS declining from $9.63 to $6.82, suggesting elevated claims, lower investment returns, or one-time charges impacted profitability significantly in FY2025.
Source: Source: 10-K Income Statement
SG&A expenses rose 7.9% to $3.3B even as revenues fell, indicating cost pressures that compressed operating margins and reflect ongoing investments in distribution, technology, or administrative infrastructure.
Source: Source: 10-K Income Statement
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Upgrade to unlockAflac's net income declined 33% YoY, partly attributable to fluctuations in investment income and realized gains/losses. As a major insurance holding company, a significant portion of earnings is tied to its investment portfolio, making results sensitive to interest rate movements and credit market conditions.
Source: Source: 10-K Income Statement & Balance Sheet
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Upgrade to unlockReported EPS of $1.57 versus the $1.71 analyst consensus — a -8.3% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $17.16B | $18.93B | -9.31% |
Net Income | $3.65B | $5.44B | -33.01% |
EPS (Basic) | $6.84 | $9.68 | -29.34% |
EPS (Diluted) | $6.82 | $9.63 | -29.18% |
SG&A Expense | $3.25B | $3.01B | +7.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $116.47B | $117.57B | -0.93% |
Total Liabilities | $86.98B | $91.47B | -4.91% |
Stockholders' Equity | $29.49B | $26.1B | +13.00% |
Cash & Equivalents | $6.25B | $6.23B | +0.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.56B | $2.71B | -5.62% |
Investing Cash Flow | $1.56B | $2.78B | -43.87% |
Financing Cash Flow | $-4.07B | $-3.49B | -16.72% |
Dividends Paid | $1.2B | $1.09B | +10.21% |
Share Buybacks | $3.53B | $2.8B | +26.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 21.2% | — | — |
ROE | 12.4% | — | — |
ROA | 3.1% | — | — |
Debt to Equity | $2.949 | — | — |
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Aflac reported FY2025 revenue of $17.2B (-9.3% YoY) and net income of $3.6B (-33.0% YoY), with diluted EPS of $6.82 compared to $9.63 in the prior year. The significant earnings decline was accompanied by rising SG&A expenses of $3.3B (+7.9%), creating a challenging profitability environment.
No, Aflac actually increased its dividend payments in FY2025, paying $1.2B in dividends, up 10.2% from $1.1B in the prior year. This demonstrates management's continued commitment to returning capital to shareholders despite the earnings decline.
Aflac's net income fell 33.0% to $3.6B in FY2025, driven by a 9.3% decline in revenue to $17.2B alongside a 7.9% increase in SG&A expenses to $3.3B. The combination of lower top-line performance and rising costs significantly compressed profitability compared to the prior year.
Aflac repurchased $3.5B worth of shares in FY2025, a 26.1% increase from $2.8B in the prior year, making buybacks the largest component of its $4.7B total capital return program. This aggressive buyback activity helped partially offset the EPS impact of lower net income.
Aflac's balance sheet remains solid with $6.2B in cash, $29.5B in stockholders' equity (up 13.0% YoY), and total liabilities declining 4.9% to $87.0B. While earnings were under pressure, the company's strong equity base and consistent operating cash flow of $2.6B support its ongoing capital return commitments.