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
Allstate's second quarter of fiscal 2026 was defined by a sharp improvement in underwriting profitability, driven by lower catastrophe losses and favorable prior-year reserve development. The Transformative Growth initiative continued to expand policies in force, particularly in auto and homeowners, though competitive pricing actions and rising expenses pressured margins. While catastrophe losses abated from the prior year's California wildfires, the company paid significantly higher reinsurance costs and faces ongoing inflation in claims severity. The expense ratio rose, partly due to increased advertising and legal costs, tempering the underwriting gain.
Revenue
$18.6B
+11.80% YoY
EPS (Diluted)
$12.51
+61.21% YoY
Source: SEC XBRL
Allstate (ALL) reported Q2 FY2026 revenue of $18.6B, up 11.8% year over year. ALL's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 8.99 | 6.18 | Beat +45.4% |
| Mar 2026 | 10.65 | 7.36 | Beat +44.7% |
| Dec 2025 | 14.31 | 9.96 | Beat +43.7% |
| Sep 2025 | 11.17 | 7.62 | Beat +46.6% |
Adjusted (non-GAAP) EPS of $8.99 versus the $6.18 analyst consensus — a +45.4% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $12.51.
Compiled by AI from 10-Q Item 2 of this filing
Underwriting income reached $4.66 billion in the first six months, driven by a $1.23 billion reduction in catastrophe losses compared to the same period in 2025, which included $1.11 billion from California wildfires.
Source: 10-Q Item 2 MD&A
Prior-year reserve releases totaled $1.65 billion in the first half of 2026, with the largest contribution from auto injury coverages, reflecting improved claim outcomes and lower severity trends.
Source: 10-Q Item 2 MD&A
Auto policies in force rose 2.8% to 25.95 million and homeowners policies in force grew 2.9% to 7.82 million, supported by double-digit increases in new issued applications across all distribution channels.
Source: 10-Q Item 2 MD&A
The expense ratio increased by 0.4 points to 21.5% in the first half of 2026, primarily as advertising expense rose to $1.07 billion and other operational costs increased.
Source: 10-Q Item 2 MD&A
Total catastrophe reinsurance premiums, excluding reinstatement premiums, rose to $686 million in the first half of 2026 from $562 million a year earlier, reflecting updated program coverage and pricing.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
Allstate's results are highly sensitive to severe weather events and other natural catastrophes. Although Q2 2026 benefited from lower catastrophe losses, future periods may see elevated claims, and the company's aggregate exposure remains significant, with a modeled 1-in-100 annual aggregate probable maximum loss of approximately $3.2 billion.
Source: 10-Q Item 2 MD&A
Significant reserve releases can reverse if claim cost trends deteriorate. While recent releases have been favorable, especially in auto injury lines, future adverse development could materially impact earnings.
Source: 10-Q Item 2 MD&A
Inability to obtain adequate rate increases or write new business in states like Florida and California could limit growth and profitability. The company stopped writing new homeowners policies in Florida and has limited capacity in California.
Source: 10-Q Item 2 MD&A
Rising medical costs, repair costs, and attorney involvement continue to increase claims severity in auto and homeowners lines. Sustained inflation could erode underwriting margins if rate increases lag cost trends.
Source: 10-Q Item 2 MD&A
The need to maintain competitive pricing and invest in advertising to attract and retain customers is driving higher expenses. Increased competition may limit premium growth and pressure margins further.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 18.60 $B | 16.63 $B | +11.80% |
Net Income $B | 3.27 $B | 2.11 $B | +55.10% |
EPS (Basic) $ | 12.66 $ | 7.86 $ | +61.07% |
EPS (Diluted) $ | 12.51 $ | 7.76 $ | +61.21% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
Allstate (ALL) delivered a standout FY2025, with net income surging 126% to $10.28B and revenue growing 5.6% to $67.69B, driven by strong underwriting performance and a dramatic improvement in profitability.
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