AFLAC Reports Q4 Earnings with Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy AFL?
Source: seekingalpha
- Earnings Performance: AFLAC's Q4 non-GAAP EPS of $1.57 missed expectations by $0.12, while revenue of $4.9 billion, down 9.3% year-over-year, exceeded forecasts by $510 million, indicating some effectiveness in revenue management despite the decline.
- Growth in Japan: Aflac Japan reported a 15.7% increase in quarterly sales and a 16.0% annual increase, largely driven by sales of the cancer insurance product Miraito, suggesting improved market penetration among new customer segments.
- Stability in the U.S.: The U.S. market added $1.6 billion in new sales with a strong persistency rate of 79.2%, while net earned premiums rose by 4.0% in Q4, reflecting effective strategies in profitable growth and agent productivity enhancement.
- Shareholder Returns and Capital Management: AFLAC announced a 5.2% increase in the Q1 2026 dividend and repurchased $800 million in shares during Q4, totaling $3.5 billion for the year, demonstrating a commitment to generating long-term value for shareholders while maintaining financial strength.
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Analyst Views on AFL
Wall Street analysts forecast AFL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFL is 111.91 USD with a low forecast of 101.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
3 Buy
6 Hold
2 Sell
Hold
Current: 117.470
Low
101.00
Averages
111.91
High
125.00
Current: 117.470
Low
101.00
Averages
111.91
High
125.00
About AFL
Aflac Incorporated provides financial protection to policyholders and customers through its subsidiaries in the United States and Japan. The Company’s principal business is supplemental health and life insurance products. The Company’s segments include Aflac Japan, which includes Aflac Life Insurance Japan (ALIJ), and Aflac U.S., which includes American Family Life Assurance Company of Columbus (Aflac), American Family Life Assurance Company of New York (Aflac New York), Continental American Insurance Company (CAIC), Tier One Insurance Company (TOIC) and Aflac Benefits Solutions, Inc. (ABS). The Aflac Japan segment is the insurer in Japan in terms of cancer and medical (third sector insurance products) policies in force. The Company designs its United States insurance products to provide supplemental coverage for people who already have major medical or primary insurance coverage, as Aflac U.S. insurance policies pay benefits regardless of other insurance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Aflac Reports Strong Q4 2025 Earnings with Strategic Insights
- Strong Performance: Aflac reported net earnings per diluted share of $2.64 and adjusted earnings of $1.57 for Q4 2025, reflecting robust sales growth of 15.7% in Japan and 16% overall, indicating strong market positioning.
- Increased Shareholder Returns: The company announced a 5.2% increase in the first quarter 2026 dividend and repurchased 33 million shares for a record $3.5 billion in 2025, demonstrating effective capital management and commitment to shareholder value.
- Cautious Future Outlook: Despite strong overall performance, management expects a decline of 1% to 2% in underlying earned premiums in Japan for 2026, along with adjustments to expense and benefit ratios, reflecting a cautious approach to market volatility.
- Enhanced Technology Investments: Aflac is actively investing in AI and technology to improve operational efficiency and claims automation, and despite challenges in the Japanese market, management remains confident in the company's strategic direction and product innovation.
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AFLAC to Host Q4 2025 Earnings Call on February 5, 2026
- Earnings Call Scheduled: AFLAC Inc (AFL) will host a conference call on February 5, 2026, at 8:00 AM ET to discuss its Q4 2025 earnings results, aiming to provide investors with the latest performance insights to enhance transparency.
- Live Webcast Access: Investors can access the live webcast of the earnings call by visiting AFLAC's official website, ensuring that all stakeholders can stay updated on the company's financial status in real-time.
- Investor Relations Focus: This earnings call reflects AFLAC's commitment to investor relations, as regular financial updates enhance communication with investors and build trust in the company's market presence.
- Market Reaction Anticipation: While specific financial data for the upcoming call has not yet been disclosed, the market is generally anticipating AFLAC's performance in Q4 2025 to assess its future growth potential and strategic direction.
See More
Aflac Reports Q4 2025 Earnings Results
- Revenue Decline: Aflac's total revenues for Q4 2025 were $4.9 billion, down 9.9% from $5.4 billion in Q4 2024, indicating pressure in market competition that may affect future investor confidence.
- Net Earnings Drop: Net earnings were $1.4 billion, or $2.64 per diluted share, reflecting a 27.5% decrease from $1.9 billion and $3.42 per share a year ago, highlighting a significant decline in profitability that could lead shareholders to reassess the company's strategy.
- Shareholder Equity Growth: As of December 31, 2025, shareholder equity reached $29.5 billion, or $56.85 per share, a 13.0% increase from $26.1 billion and $47.45 per share in 2024, indicating robust capital management that may enhance market confidence in its long-term value.
- Japanese Market Performance: Aflac Japan's net earned premiums were ¥252.6 billion, down 1.9% year-over-year, primarily due to limited pay products, although new annualized premium sales increased by 15.7% to ¥19.9 billion, showcasing the company's potential in product innovation that could lay the groundwork for future market share growth.
See More
AFLAC Reports Q4 Earnings with Mixed Results
- Earnings Performance: AFLAC's Q4 non-GAAP EPS of $1.57 missed expectations by $0.12, while revenue of $4.9 billion, down 9.3% year-over-year, exceeded forecasts by $510 million, indicating some effectiveness in revenue management despite the decline.
- Growth in Japan: Aflac Japan reported a 15.7% increase in quarterly sales and a 16.0% annual increase, largely driven by sales of the cancer insurance product Miraito, suggesting improved market penetration among new customer segments.
- Stability in the U.S.: The U.S. market added $1.6 billion in new sales with a strong persistency rate of 79.2%, while net earned premiums rose by 4.0% in Q4, reflecting effective strategies in profitable growth and agent productivity enhancement.
- Shareholder Returns and Capital Management: AFLAC announced a 5.2% increase in the Q1 2026 dividend and repurchased $800 million in shares during Q4, totaling $3.5 billion for the year, demonstrating a commitment to generating long-term value for shareholders while maintaining financial strength.
See More
Analysis and Outlook: A New Decline in Software Performance
Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
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Aflac Executive to Participate in UBS Conference
- Executive Participation: Aflac President Virgil R. Miller will engage in a fireside chat at the UBS Financial Services Conference on February 11, 2026, at 9:40 AM ET, showcasing the company's leadership in the industry.
- Webcast Arrangement: The event will be webcast live, requiring investors to register at least 15 minutes in advance, highlighting the company's commitment to transparency and investor communication.
- Industry Leadership: Aflac is the number one provider of supplemental health insurance products in the U.S. and leads in cancer and medical insurance in Japan, demonstrating its strong influence in global markets.
- Sustainability Commitment: Aflac has been recognized as one of the World's Most Ethical Companies for 19 consecutive years and included in the Dow Jones Sustainability North America Index for 11 years, reflecting its strong commitment to corporate social responsibility and sustainability.
See More
Aflac Reports Strong Q4 2025 Earnings with Strategic Insights
- Strong Performance: Aflac reported net earnings per diluted share of $2.64 and adjusted earnings of $1.57 for Q4 2025, reflecting robust sales growth of 15.7% in Japan and 16% overall, indicating strong market positioning.
- Increased Shareholder Returns: The company announced a 5.2% increase in the first quarter 2026 dividend and repurchased 33 million shares for a record $3.5 billion in 2025, demonstrating effective capital management and commitment to shareholder value.
- Cautious Future Outlook: Despite strong overall performance, management expects a decline of 1% to 2% in underlying earned premiums in Japan for 2026, along with adjustments to expense and benefit ratios, reflecting a cautious approach to market volatility.
- Enhanced Technology Investments: Aflac is actively investing in AI and technology to improve operational efficiency and claims automation, and despite challenges in the Japanese market, management remains confident in the company's strategic direction and product innovation.
See More
AFLAC to Host Q4 2025 Earnings Call on February 5, 2026
- Earnings Call Scheduled: AFLAC Inc (AFL) will host a conference call on February 5, 2026, at 8:00 AM ET to discuss its Q4 2025 earnings results, aiming to provide investors with the latest performance insights to enhance transparency.
- Live Webcast Access: Investors can access the live webcast of the earnings call by visiting AFLAC's official website, ensuring that all stakeholders can stay updated on the company's financial status in real-time.
- Investor Relations Focus: This earnings call reflects AFLAC's commitment to investor relations, as regular financial updates enhance communication with investors and build trust in the company's market presence.
- Market Reaction Anticipation: While specific financial data for the upcoming call has not yet been disclosed, the market is generally anticipating AFLAC's performance in Q4 2025 to assess its future growth potential and strategic direction.
See More
Aflac Reports Q4 2025 Earnings Results
- Revenue Decline: Aflac's total revenues for Q4 2025 were $4.9 billion, down 9.9% from $5.4 billion in Q4 2024, indicating pressure in market competition that may affect future investor confidence.
- Net Earnings Drop: Net earnings were $1.4 billion, or $2.64 per diluted share, reflecting a 27.5% decrease from $1.9 billion and $3.42 per share a year ago, highlighting a significant decline in profitability that could lead shareholders to reassess the company's strategy.
- Shareholder Equity Growth: As of December 31, 2025, shareholder equity reached $29.5 billion, or $56.85 per share, a 13.0% increase from $26.1 billion and $47.45 per share in 2024, indicating robust capital management that may enhance market confidence in its long-term value.
- Japanese Market Performance: Aflac Japan's net earned premiums were ¥252.6 billion, down 1.9% year-over-year, primarily due to limited pay products, although new annualized premium sales increased by 15.7% to ¥19.9 billion, showcasing the company's potential in product innovation that could lay the groundwork for future market share growth.
See More
AFLAC Reports Q4 Earnings with Mixed Results
- Earnings Performance: AFLAC's Q4 non-GAAP EPS of $1.57 missed expectations by $0.12, while revenue of $4.9 billion, down 9.3% year-over-year, exceeded forecasts by $510 million, indicating some effectiveness in revenue management despite the decline.
- Growth in Japan: Aflac Japan reported a 15.7% increase in quarterly sales and a 16.0% annual increase, largely driven by sales of the cancer insurance product Miraito, suggesting improved market penetration among new customer segments.
- Stability in the U.S.: The U.S. market added $1.6 billion in new sales with a strong persistency rate of 79.2%, while net earned premiums rose by 4.0% in Q4, reflecting effective strategies in profitable growth and agent productivity enhancement.
- Shareholder Returns and Capital Management: AFLAC announced a 5.2% increase in the Q1 2026 dividend and repurchased $800 million in shares during Q4, totaling $3.5 billion for the year, demonstrating a commitment to generating long-term value for shareholders while maintaining financial strength.
See More
Analysis and Outlook: A New Decline in Software Performance
Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
See More
Aflac Executive to Participate in UBS Conference
- Executive Participation: Aflac President Virgil R. Miller will engage in a fireside chat at the UBS Financial Services Conference on February 11, 2026, at 9:40 AM ET, showcasing the company's leadership in the industry.
- Webcast Arrangement: The event will be webcast live, requiring investors to register at least 15 minutes in advance, highlighting the company's commitment to transparency and investor communication.
- Industry Leadership: Aflac is the number one provider of supplemental health insurance products in the U.S. and leads in cancer and medical insurance in Japan, demonstrating its strong influence in global markets.
- Sustainability Commitment: Aflac has been recognized as one of the World's Most Ethical Companies for 19 consecutive years and included in the Dow Jones Sustainability North America Index for 11 years, reflecting its strong commitment to corporate social responsibility and sustainability.
See More
