Aflac Q3 adjusted profit falls 2.4% per share, tops estimates

Aflac Incorporated (AFL) said on Nov. 4 that its third-quarter adjusted earnings per diluted share fell 2.4% to $2.43, a beat against the $1.81 consensus estimate.

Shares fell 1.3% in after-hours trading as of 5:24 p.m. ET, from a regular-session close of $125.33.

The company, a provider of supplemental health insurance in the U.S. and Japan, reported total revenues of $3.27 billion for the quarter, below the $4.16 billion estimate. Revenue fell 31.0% from $4.74 billion a year earlier.

Net earnings were $303 million, or 61 cents per diluted share, compared with $1.6 billion, or $3.08 per diluted share a year ago. The company said the drop was primarily due to realized losses tied to the strategic repositioning of its portfolio during the quarter.

Here's how the company did:

• Adjusted EPS: $2.43 vs. $1.81 consensus estimate
• Revenue: $3.27 billion vs. $4.16 billion estimate
• Net earnings: $303 million vs. $1.64 billion a year earlier

Adjusted earnings were $1.2 billion, down 8.5% from a year earlier. The company said adjusted earnings benefited from reserve remeasurement gains of $453 million.

Net earnings in the quarter included net investment losses of $1.1 billion, or $2.15 per diluted share. The company also recorded a $51 million tax capital loss valuation allowance.

Aflac Japan and U.S. results

Aflac Japan pretax adjusted earnings fell 21.0% to $961 million, primarily reflecting lower reserve remeasurement gains. Aflac U.S. pretax adjusted earnings rose 31.5% to $493 million.

Aflac Japan ceded approximately ¥500 billion of reserves on an FSA basis associated with cancer insurance policies to Aflac Re Bermuda.

Shareholder returns

The company returned $1.1 billion to shareholders in the quarter, including $804 million in share repurchases and $305 million in dividends.

The board declared a fourth-quarter dividend of $0.61 per share, payable on Dec. 1 to shareholders of record on Nov. 18. The company said it reached 44 consecutive years of dividend increases.

Commentary

Chairman and CEO Daniel P. Amos said: "Aflac delivered solid adjusted earnings for the quarter and for the first nine months. These results demonstrate our drive to execute our strategy and create long-term value for our shareholders."

The company said net earnings in the first nine months were $2.1 billion, or $4.24 per diluted share.

According to its SEC filings, net income has fallen in each of the last three quarters, from $1.64 billion in the third quarter of 2025 to $825.0 million in the second quarter of 2026.