The market expected roughly $1.76–$1.77 of adjusted EPS, and Aflac delivered $1.75. That is a small shortfall versus published consensus, while adjusted EPS excluding foreign-exchange effects reached $1.80. The underlying result was therefore better than the headline adjusted number suggests, but still only modestly above last year rather than a clear acceleration.
| Metric | 2Q26 | 2Q25 | Change / context |
|---|---|---|---|
| Net EPS, diluted | $1.63 | $1.11 | +46.8% (EPS reconciliation) |
| Adjusted EPS, diluted | $1.75 | $1.78 | -1.7% (EPS reconciliation) |
| Adjusted EPS excluding current-period FX | $1.80 | $1.78 | +1.1% (EPS reconciliation) |
| Adjusted earnings | $883 million | $957 million | -7.7% (Net earnings reconciliation) |
| Adjusted earnings excluding current-period FX | $910 million | $957 million | -4.9% (Net earnings reconciliation) |
| Adjusted ROE excluding FX remeasurement | 16.6% | 16.6% | Flat (ROE reconciliation) |
The large net-EPS increase is not the operating story. Net EPS rose 46.8%, but that mainly reflects the much smaller drag from adjusted net investment gains and losses: the adjustment fell to $106 million from $377 million last year. On the company’s preferred operating measure, adjusted earnings declined 7.7%, and even after removing current-period FX effects they fell 4.9%. (Net earnings reconciliation) That makes the headline beat-looking comparison less meaningful than the slight adjusted-EPS miss.
Segment execution was broadly within the standing 2026 framework, not a new upside signal. Aflac Japan’s benefit ratio was 64.0%, above its 60%–63% outlook range, but its expense ratio of 20.2% and pretax profit margin of 34.3% were inside their respective ranges. Aflac U.S. was within range across all three measures: a 49.5% benefit ratio, 36.1% expense ratio, and 20.9% pretax profit margin. (Aflac Japan; Aflac U.S. outlook tables) The filing does not show a fresh change to the broader 2026 outlook, so the quarter does not materially reset expectations.
Capital strength and shareholder returns remain supportive but largely expected. Adjusted leverage improved to 21.8% from 22.5% a year earlier and remained inside the company’s 20%–25% target range, while estimated Japan ESR was 226% and U.S. combined RBC exceeded 600%. (Adjusted Leverage Ratios; Strong Capital Ratios) Aflac also returned $1.292 billion through dividends and repurchases, including $983 million of buybacks. (Capital Deployment) Those are solid capital metrics, but they do not offset the core message: operating earnings were slightly below consensus and weaker year over year, with reported EPS inflated by investment-related effects.
Read the original 8-K on SEC EDGAR ↗