Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Aflac's second quarter of fiscal 2026 delivered a surge in net earnings driven by sharply lower net investment losses, while adjusted earnings, which strip out those items, declined amid foreign exchange headwinds and slightly lower premium revenues. The company continued its aggressive capital return, repurchasing $2.0 billion of stock during the first half of the year, and management indicated that the recent cyber incidents in the U.S. and Japan are not expected to materially affect financial condition. Despite the net income jump, underlying operating performance softened as the weaker yen reduced adjusted EPS by $0.05. The quarter highlighted a divergence between headline profitability and core insurance earnings.
Revenue
$4.12B
-1.03% YoY
EPS (Diluted)
$1.63
+46.85% YoY
Source: SEC XBRL
Aflac (AFL) reported Q2 FY2026 revenue of $4.12B, down 1.0% year over year. AFL's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.75 | 1.79 | Miss -2.0% |
| Mar 2026 | 1.75 | 1.83 | Miss -4.4% |
| Dec 2025 | 1.57 | 1.71 | Miss -8.3% |
| Sep 2025 | 2.49 | 1.79 | Beat +38.8% |
Adjusted (non-GAAP) EPS of $1.75 versus the $1.79 analyst consensus — a -2.0% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.63.
Compiled by AI from 10-Q Item 2 of this filing
Adjusted earnings fell 7.5% to $883 million ($1.75 per diluted share) compared to $957 million ($1.78 per diluted share) a year ago, as a weaker yen and lower revenues offset the benefit of lower investment losses. Excluding current period foreign currency impact, adjusted earnings per diluted share would have been $1.80.
Source: 10-Q Item 2 MD&A
The Company repurchased $2.0 billion of its common shares (17.5 million shares) during the first six months of 2026, with 96.8 million shares remaining under the authorization at June 30, 2026.
Source: 10-Q Item 2 MD&A
Aflac Japan detected unauthorized access to its systems on June 25, 2026 (June 2026 Japan Cyber Incident), and the Company had previously reported a U.S. incident in June 2025. Management does not believe either incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations, but the potential loss from the Japan incident cannot be reasonably estimated.
Source: 10-Q Item 2 MD&A
The average yen/dollar exchange rate weakened 9.3% year-over-year to 159.45 in the second quarter, negatively impacting adjusted earnings per diluted share by $0.05. For the first half, the yen weakened 6.2% and reduced adjusted EPS by $0.07.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
A significant portion of Aflac's business is conducted in Japanese yen, and fluctuations in the yen/dollar exchange rate can materially affect reported results. The recent weakening of the yen has suppressed current period earnings, and continued volatility could further impact financial performance.
Source: 10-Q Item 2 MD&A
The Company has experienced unauthorized access to its systems in both the U.S. (June 2025) and Japan (June 2026). While currently assessed as not material, these incidents could result in regulatory actions, litigation, remediation costs, reputational harm, and increased cybersecurity expenses.
Source: 10-Q Item 2 MD&A
The Company recorded significant net investment losses in recent quarters, including credit losses and impairments. Deterioration in global capital markets, credit downgrades, or defaults could lead to further realized losses and pressure earnings.
Source: 10-Q Item 2 MD&A
Fluctuations in interest rates can impact the value of the Company's fixed-income portfolio and the cost of hedging activities. Changes in interest rates may also affect the discount rate assumptions used for insurance reserves, leading to volatility in shareholders’ equity.
Source: 10-Q Item 2 MD&A
The Company operates in heavily regulated insurance markets in Japan and the U.S. Changes in laws, regulations, or tax rates could increase compliance costs, alter product profitability, and affect the effective tax rate, which was 17.0% this quarter.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.12 $B | 4.16 $B | -1.03% |
Net Income $M | 825.00 $M | 599.00 $M | +37.73% |
EPS (Basic) $ | 1.64 $ | 1.12 $ | +46.43% |
EPS (Diluted) $ | 1.63 $ | 1.11 $ | +46.85% |
SG&A Expense $M | 749.00 $M | 804.00 $M | -6.84% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Aflac delivered a dramatic earnings turnaround in Q1 2026, with net income surging to $1.02B (up 3,414% YoY) and revenue rising 27.9% to $4.35B, driven by strong operating cash flow and disciplined capital returns.
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.
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