Aflac Inc (NYSE:AFL) reported mixed second-quarter results, with earnings per share (EPS) surpassing analyst expectations while revenue fell short. The supplemental insurance provider posted Q2 2025 revenue of $4.54 billion, slightly above the consensus estimate of $4.37 billion. However, net earnings declined significantly year-over-year, reflecting challenging investment conditions.
Key Financial Highlights
- Revenue Performance: Reported revenue of $4.54 billion exceeded estimates by 3.8%, though it declined from $5.1 billion in Q2 2024 due to net investment losses of $421 million.
- Earnings Beat: EPS came in at $1.78, beating the $1.72 estimate, but was down sharply from $3.10 in the prior-year quarter.
- Investment Impact: The company recorded investment losses this quarter compared to gains of $696 million a year ago, contributing to the earnings decline.
Market Reaction
Following the earnings release, AFL shares dipped 2.1% in after-hours trading, suggesting investor concern over the year-over-year earnings contraction despite the EPS beat. Over the past month, the stock has declined 4.2%, reflecting broader market uncertainty around insurance sector performance.
Outlook vs. Analyst Estimates
While the press release did not provide explicit forward guidance, analysts currently expect Q3 2025 revenue of $4.37 billion and EPS of $1.74. For the full year, revenue is projected at $17.86 billion, with EPS estimated at $6.78. The lack of an official outlook from management leaves investors to rely on these consensus figures.
Press Release Summary
- Net earnings for Q2 2025 were $599 million ($1.11 per diluted share), down from $1.8 billion ($3.10 per share) in Q2 2024.
- The company declared a third-quarter dividend, maintaining its shareholder return policy.
- The decline in earnings was primarily driven by investment losses, offsetting stable insurance operations.
For a deeper dive into AFL’s earnings trends and future estimates, see the detailed earnings analysis here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
