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Aflac Incorporated (AFL) is a leading supplemental insurance provider based in Georgia that offers policies designed to cover expenses not typically paid by primary health insurance. The company has a market cap of $56.8 billion, and it operates mainly in the United States and Japan, with Japan being its largest and most profitable market.
AFL is expected to release its Q1 2026 earnings on Wednesday, Apr. 29, after the market closes. Ahead of this event, analysts anticipate the company to generate earnings of $1.82 per share, representing an increase of 9.6% from $1.66 per share reported in the same quarter last year. The company has surpassed the Street’s bottom-line estimates in two of the past four quarters, while missing on two other occasions.
For fiscal 2026, analysts expect the company to report an EPS of $7.34, indicating a 2% decrease from $7.49 reported in fiscal 2025. However, its EPS is expected to rebound and grow 5.9% year over year to $7.77 in fiscal 2027.
Shares of Aflac have surged 10.5% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 30.7% rise and the State Street Financial Select Sector SPDR ETF’s (XLF) 13.1% return during the same time frame.
Aflac has underperformed the broader market over the past year, mainly due to a mix of macro headwinds and sector-specific pressures. A key drag has been its heavy exposure to Japan, where yen weakness versus the U.S. dollar has weighed on reported earnings and investor sentiment. At the same time, interest rate volatility has created uncertainty around insurers’ investment income and portfolio valuations.
Analysts’ consensus view on AFL is neutral, with a “Hold” rating overall. Among 16 analysts covering the stock, two suggest a “Strong Buy,” one suggests a “Moderate Buy,” ten recommend a “Hold,” and three analysts give a “Strong Sell.” Its mean price target of $113 represents a premium of 2.2% from the current market prices.
