AI Takeaway
Allstate (ALL) delivered a standout Q1 FY2026 with net income surging 312.9% YoY to $2.46B on revenue of $16.94B, driven by dramatically improved underwriting profitability and operating cash flow nearly doubling to $3.56B.
Revenue
$16.94B
++2.97% YoY
EPS (Basic)
$9.36
++339.44% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 3.0% YoY to $16.94B in Q1 FY2026 from $16.45B in the prior-year period, reflecting continued premium growth across Allstate's insurance segments as rate increases earned through.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Net income jumped 312.9% YoY to $2.46B from $595M, indicating a significant improvement in underwriting results, likely reflecting the benefit of prior-period rate increases, lower catastrophe losses, or favorable reserve development compared to Q1 FY2025.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating cash flow surged 81.4% YoY to $3.56B from $1.96B, demonstrating that the profitability improvement translated into strong cash generation, providing Allstate with significant financial flexibility.
Source: Source: 10-Q Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockAs a major property-casualty insurer, Allstate faces significant exposure to catastrophe events such as hurricanes, wildfires, and severe convective storms. A single severe catastrophe season could materially reverse the profitability gains seen in Q1 FY2026. The company's high debt-to-equity ratio of 2.92 limits its buffer against large unexpected loss events.
Source: Source: 10-Q Balance Sheet & Income Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $10.65 versus the $7.36 analyst consensus — a +44.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $16.94B | $16.45B | +2.97% |
Net Income | $2.46B | $595M | +312.94% |
EPS (Basic) | $9.36 | $2.13 | +339.44% |
EPS (Diluted) | $9.25 | $2.11 | +338.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $123.97B | $115.16B | +7.65% |
Total Liabilities | $92.39B | $93.11B | -0.78% |
Stockholders' Equity | $31.61B | $22.05B | +43.31% |
Long-Term Debt | $7.49B | $8.09B | -7.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.56B | $1.96B | +81.36% |
Investing Cash Flow | $-2.63B | $-1.29B | -103.17% |
Financing Cash Flow | $-916M | $-334M | -174.25% |
Share Buybacks | $614M | $99M | +520.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 14.5% | — | — |
ROE | 7.8% | — | — |
ROA | 2.0% | — | — |
Debt to Equity | $2.923 | — | — |
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Allstate reported net income of $2.46B in Q1 FY2026, up a remarkable 312.9% from $595M in Q1 FY2025. Basic EPS came in at $9.36, compared to $2.13 in the prior-year quarter, reflecting both the earnings surge and the impact of accelerated share buybacks.
While full MD&A text was not available, the financial data strongly suggests a major improvement in underwriting profitability, as net income jumped over 4x YoY on only 3% revenue growth. This pattern is consistent with the benefit of prior-period rate increases earning through and/or lower catastrophe losses compared to Q1 FY2025.
Yes, multiple indicators point to a strengthening balance sheet: stockholders' equity grew 43.3% YoY to $31.6B, total liabilities declined slightly to $92.4B, and operating cash flow nearly doubled to $3.56B. Long-term debt also fell 7.4% YoY to $7.49B, further improving the company's financial position.
Yes, Allstate significantly accelerated its share repurchase program, buying back $614M of stock in Q1 FY2026 — a 520.2% increase from just $99M in Q1 FY2025. This signals management's confidence in the company's financial strength and its commitment to returning capital to shareholders.
The key risks include catastrophe loss exposure that could reverse underwriting gains, uncertainty around reserve adequacy given the dramatic earnings swing, and the sustainability of current rate levels if competitive or regulatory pressures intensify. Allstate also carries a debt-to-equity ratio of 2.92, reflecting the leveraged nature of its insurance balance sheet.