AFL Earnings Predictions — 2026-08-06

Ticker Report or Guide KPI Prediction Answer Confidence
AFL Report Adjusted EPS (Q2'26) BEAT pred ~$1.80 vs. cons $1.77 MEDIUM
AFL Report Total adjusted revenue (Q2'26) IN-LINE pred ~$4.20B vs. cons $4.19B MEDIUM
AFL Report Japan pretax profit margin / benefit ratio BEAT pred benefit ratio ~61.5% vs. cons/guide ~62.5% (favorable, better margin ~34-35% vs ~33%) MEDIUM
AFL Guide FY2026 adjusted EPS trajectory (implicit) LOWER guide/implied ~$7.00 vs. cons $7.07 (FY2026) MEDIUM
AFL Guide Japan underlying earned premium (FY2026) UNCHANGED guide ~-1% to -2% vs. cons ~-1.5% (FY2026) HIGH
AFL Guide Japan benefit ratio (FY2026 range) UNCHANGED guide 60-63% vs. cons ~62% (FY2026) HIGH
AFL Guide U.S. benefit ratio (FY2026 range) UNCHANGED guide 48-52% vs. cons ~49% (FY2026); Q2 likely ~48-49% normalizing up from 47.2% MEDIUM
AFL Guide Capital return / Q2 buyback pace UNCHANGED pred ~$1.0B returned (~$0.8-1.0B buyback + $0.36 div) vs. cons ~$1.0B (Q2'26) MEDIUM
AFL Guide Japan sales growth (yen) vs tough comp LOWER pred ~+5-8% vs. cons ~+10% (Q2'26, lapping +23.2%) LOW
AFL Guide Q3'26 assumption unlock / external reinsurance sizing UNKNOWN guide n/a vs. cons n/a (Q3'26 net premium ratio reset); directional read only LOW
AFL Return Day-1 residual (stock − beta × S&P 500) -1.5% LOW
AFL Return 5-day cumulative residual -3.0% (FADE) Even with a modest EPS beat driven by favorable (and management-flagged transient) benefit-ratio tailwinds, the out-period math is negative: Japan underlying earned premium still shrinking (-1% to -2%), FY26 consensus (~$7.07) already implies a ~5.6% decline and drifts lower as benefit ratios normalize toward guide, an FX/yen translation headwind persists, and the Q3 assumption-unlock overhang plus CRE/cyber wildcards cap upside. Stock is near all-time highs (~$126, +14% YTD) and priced for clean execution, so a low-quality beat fades as estimates get trimmed. LOW