Aflac Incorporated's third-quarter 2026 net income dropped 81.5% as portfolio repositioning drove investment losses, even as adjusted diluted earnings per share (EPS) topped Zacks' consensus estimate.
Net income was $303 million, compared with $1.639 billion in the same quarter a year earlier. Aflac linked the drop in net earnings chiefly to losses incurred as it repositioned its portfolio. Investment results swung from a $275 million gain a year earlier to a $1.1 billion loss. Net losses from investment sales and redemptions reached $842 million.
Adjusted diluted EPS was $2.43, beating Zacks' $1.80 consensus estimate by 63 cents. However, it was 2.4% below the $2.49 reported a year earlier. Adjusted earnings totaled $1.214 billion, down 8.5% year over year. The comparison with Zacks' estimate measures results against a forecast for the quarter; the year-over-year figures compare results with the same period last year.
Total reported revenue was $3.271 billion, down 31% from $4.740 billion a year earlier. Aflac also reported an annualized return on average shareholders' equity of 4.1%. Its adjusted annualized return on average shareholders' equity, which excludes foreign currency remeasurement, was 23.7%.
Aflac declared a fourth-quarter dividend of $0.61 per share. The payment is scheduled for Dec. 1, 2026, for shareholders of record at the close of business Nov. 18, 2026. The declaration marks 44 consecutive years of annual dividend increases.
