Aflac Incorporated (AFL) AI Stock Analysis

Aflac Incorporated specializes in supplemental health and life insurance products across two main segments: Aflac Japan and Aflac U.S. In Japan, the company offers medical, cancer, nursing care, and life insurance policies, along with savings-oriented plans like WAYS and child endowment policies. In the United States, Aflac provides cancer, accident, short-term disability, critical illness, dental, vision, and life insurance policies. Products in the U.S. are distributed through sales associates, brokers, corporate agencies, and independent agencies to serve individuals and families.

Aflac's annual revenue contracted from $22.11B in FY2021 to $17.44B in FY2025, reflecting a 5-year revenue CAGR of -4.7%. Despite revenue falling 8.8% in FY2025, diluted EPS reached $7.50 compared to $5.99 in FY2021, supported by a gross margin of 38.9% and an operating margin of 26.6%. Annual net income totaled $3.65B in FY2025, down from $5.44B in FY2024. For the trailing twelve months, revenue reached $18.07B with an operating margin of 25.7% and a profit margin of 26.9%. In the latest quarter ended June 30, 2026, quarterly revenue fell 1.0% year-over-year, while quarterly earnings grew 46.8%.

As of June 30, 2026, Aflac held $93.65B in cash and short-term investments against total debt of $8.73B, resulting in net cash of $84.92B. The company reported total assets of $115.96B, shareholders' equity of $30.31B, a current ratio of 11.31, and a debt-to-equity ratio of 0.29. In FY2025, operating cash flow and free cash flow were both $2.56B. Aflac directed capital toward shareholders, deploying $3.53B into share buybacks and paying $1.20B in dividends, contributing to a 23.7% share count reduction over 5 years.

Aflac trades at a trailing P/E of 12.9x, which is below the 14.2x median of its S&P 500 Financial Services peers. However, its forward P/E of 15.2x sits above the peer median of 12.2x, and its price-to-sales of 3.3x compares to the peer median of 3.1x. The company holds an enterprise value of $67.72B and a PEG ratio of 1.18. Over the past year, AFL delivered a return of 14.8%, trailing the S&P 500 return of 16.8%, but its 5-year return of 141.8% outperformed the index return of 83.0%.

Aflac offers a forward annual dividend of $2.44 per share, translating to a dividend yield of 2.03% with a payout ratio of 31.9%. Paid on a quarterly basis, the company has maintained 43 consecutive years of dividend payments. Over the past 5 years, dividend growth annualized reached 15.7%, with its last ex-dividend date on August 19, 2026.

Wall Street analyst sentiment includes 1 Strong Buy, 2 Buys, 8 Holds, 1 Sell, and 3 Strong Sells. The mean price target of $117.33 represents a decline of 2.2% from the last close of $119.97. For the fiscal year ending December 31, 2026, analysts estimate EPS of $7.02 and revenue of $16.94B. In the prior 4 quarters, Aflac exceeded EPS estimates once. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Aflac Incorporated (AFL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AFL income statement, AFL balance sheet, AFL key metrics, AFL analyst forecast, AFL chart. See the AFL stock overview for the latest quote and news.