Aflac Inc.
AFLFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$4.3B
Q1 2026
TTM ROIC
14.4%
FY2025 · Adjusted ROE: estimated adjusted net income (stripping investment gains/losses) / average equity · WACC ~6.8% · Moat spread +7.6pp
Financial Snapshot
ticker: AFL step: 04 generated: 2026-05-12 source: quick-research
Aflac Incorporated (AFL) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25) |
|---|---|---|---|---|---|
| Total Revenue | $19.1B | $18.7B | $18.9B | $17.2B | -9.3% |
| Net Premium Income | $15.0B | $14.6B | $14.0B | $13.4B | -4% |
| Net Investment Income | $3.7B | $3.6B | $3.6B | $3.4B | -6% |
| Adjusted Net Earnings | $5.2B | $5.6B | $5.4B | $3.6B | -33% |
| Diluted EPS | $7.69 | $9.55 | $9.59 | $6.65 | -31% |
| Net Profit Margin | 28.8% | 30.0% | 28.8% | 21.2% | -760bps |
| Annualized ROE | ~14% | ~16% | ~14% | ~22% |
Note: FY25 net earnings $3.6B reflects net investment losses + increased credit loss allowances. Q4 25 diluted EPS $2.64. Q3 25 annualized adjusted ROE ex-FX = 22.1% — strong core profitability.
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$4.0B |
| Free Cash Flow | ~$3.5B |
| FCF Conversion | ~100% |
| Cash & Equivalents | ~$5.0B |
| Total Debt | ~$8.0B (59% in yen) |
| Investment Portfolio | ~$110B |
| Yen Debt Hedge | Enterprise hedging program |
Key Ratios (approximate)
- P/E: ~16x | P/B: ~1.7x
- Revenue Growth (TTM): -9.3% | Net Margin: 21.2%
- Dividend Yield: ~2.0% | Dividend Growth: 43 years
- $3.5B 2025 buybacks (~6% of market cap)
- 114.3M shares remaining authorized for repurchase
Growth Profile
Japan core earned premiums declining 1-2% (paid-up products + aging population). US supplemental growing low-single-digit. Investment income compounding as portfolio rolls forward. Margin recovery on credit loss normalization. Hybrid LTC rider + Medical Shield new product rollouts. Aflac Re Bermuda + Japan Post deal expand reinsurance optionality.
Forward Estimates
- FY 2026: Adj EPS ~$7.00-7.50; net premium income +0-1%; ROE ~15-18%
- FY 2027: Adj EPS ~$7.50-8.00 with new product traction
- $113 average analyst price target vs ~$103 = ~10% upside
- 43-year dividend growth track record + 5.2% Q1 26 dividend increase
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $AFL.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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