Aflac (AFL) EPS Beats Sales Drop 19%

(NYSE:AFL), a leading provider of supplemental health and life insurance in the U.S. and Japan, reported its Q2 2025 earnings on August 5, 2025. The company reported adjusted earnings per share (EPS) of $1.78, beating analyst estimates of $1.70 (non-GAAP), but revenue (GAAP) came in below expectations at $4.16 billion compared to the estimated $4.33 billion. While core insurance operations in both core geographies showed resilience—especially in Japan following a major new cancer product launch—the headline revenue and net earnings were sharply affected by investment-related losses and currency swings. Despite missing on GAAP revenue, the quarter was notable for solid underlying insurance results and continued robust capital returns to shareholders.

Source: Analyst estimates for the quarter provided by FactSet.

Aflac’s core business centers on supplemental health and life insurance. It is best known for its policies that pay cash benefits directly to policyholders, especially cancer, medical, and accident insurance in Japan, and accident, critical illness, dental, and disability products in the U.S. Aflac’s stronghold in Japan is critical—it is the largest provider of cancer and medical (third sector) insurance products in the country, primarily through “third sector” offerings, a term used locally for health-related coverage outside of government programs.

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Source Fool.com