SLB (SLB - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this world's largest oilfield services company have returned +1%, compared to the Zacks S&P 500 composite's +5.4% change. During this period, the Zacks Technology Services industry, which SLB falls in, has gained 11.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
SLB is expected to post earnings of $0.53 per share for the current quarter, representing a year-over-year change of -28.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
For the current fiscal year, the consensus earnings estimate of $2.62 points to a change of -10.6% from the prior year. Over the last 30 days, this estimate has changed +0.7%.
For the next fiscal year, the consensus earnings estimate of $3.41 indicates a change of +30.1% from what SLB is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for SLB.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For SLB, the consensus sales estimate for the current quarter of $8.71 billion indicates a year-over-year change of +2%. For the current and next fiscal years, $36.55 billion and $39.38 billion estimates indicate +2.4% and +7.7% changes, respectively.
Last Reported Results and Surprise HistorySLB reported revenues of $8.72 billion in the last reported quarter, representing a year-over-year change of +2.7%. EPS of $0.52 for the same period compares with $0.72 a year ago.
Compared to the Zacks Consensus Estimate of $8.63 billion, the reported revenues represent a surprise of +1.09%. The EPS surprise was +1.96%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
SLB is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SLB. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, SLB (SLB - Free Report) was up +2.04% at $58.01. This move outpaced the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 1.73%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
The world's largest oilfield services company's stock has climbed by 3.06% in the past month, exceeding the Business Services sector's loss of 1.52% and lagging the S&P 500's gain of 4.59%.
The investment community will be closely monitoring the performance of SLB in its forthcoming earnings report. The company is scheduled to release its earnings on July 24, 2026. The company's upcoming EPS is projected at $0.53, signifying a 28.38% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.71 billion, indicating a 1.95% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.62 per share and a revenue of $36.55 billion, demonstrating changes of -10.58% and +2.36%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SLB. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.38% increase. SLB presently features a Zacks Rank of #3 (Hold).
Digging into valuation, SLB currently has a Forward P/E ratio of 21.73. This denotes a premium relative to the industry average Forward P/E of 16.09.
It's also important to note that SLB currently trades at a PEG ratio of 2.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.36.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Standardized system solution supports efficiency gains and shorter delivery timelines
HOUSTON--(BUSINESS WIRE)--Global energy technology company SLB (NYSE: SLB) today announced that its OneSubsea™ joint venture has been awarded a contract by bp to provide a subsea boosting system for the Thunder Horse project, a development in the deepwater portion of Gulf of America.
This engineering, procurement and construction (EPC) contract for Thunder Horse follows recent subsea boosting contract awards for bp’s Kaskida and Tiber developments. All three projects leverage the same supplier-led, standardized subsea boosting system solution, which helps improve execution efficiency and shorten delivery times.
As part of the EPC contract, SLB OneSubsea will deliver a subsea boosting system, alongside associated project management, engineering, manufacturing, and testing required for execution.
“Subsea boosting is an important enabler for extending production from existing assets,” said Mads Hjelmeland, CEO of SLB OneSubsea. “Our standardized subsea solutions support faster deployment and improved efficiency, helping operators enhance production and recovery while optimizing overall field performance.”
Key points
SLB OneSubsea has been awarded a contract by bp to deliver a subsea boosting system for the Thunder Horse development in the Gulf of America The award builds on recent subsea boosting contracts for bp’s Kaskida and Tiber developments, leveraging the same standardized high-pressure system solution SLB OneSubsea’s processing technology increases production and improves recovery, while the standardized approach enables faster deployment and greater operational efficiency About SLB
SLB (NYSE: SLB) is a global technology company that has driven energy innovation for 100 years. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
About SLB OneSubsea
SLB OneSubsea is driving a new subsea era leveraging digital and technology innovation to optimize our customers’ oil and gas production, reduce emissions in subsea operations, and unlock the large potential of subsea solutions to shape a sustainable energy future. SLB OneSubsea is a joint venture backed by SLB, Aker Solutions, and Subsea7 headquartered in Oslo and Houston, with 10,000 employees across the world. Find out more at onesubsea.slb.com.
This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “can,” “estimate,” “intend,” “anticipate,” “will,” “potential,” “projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Key Takeaways SLB's OneSubsea won an EPC contract to provide a subsea boosting system for the Thunder Horse project.The award follows recent contracts supporting BP's Kaskida and Tiber developments.The subsea boosting system can improve execution efficiency, shorten delivery time and enhance reliability. SLB N.V. (SLB - Free Report) announced that its OneSubsea joint venture has been awarded a contract by BP p.l.c. (BP - Free Report) to provide a subsea boosting system for the Thunder Horse project in the deepwater Gulf of America. The engineering, procurement and construction (EPC) award follows recent contracts for BP’s Kaskida and Tiber developments, demonstrating continued demand for OneSubsea’s standardized subsea boosting technology across multiple offshore projects.
The EPC contract includes engineering, procurement, construction, manufacturing, testing and project management services. By deploying a common supplier-led solution across several developments, SLB can improve execution efficiency, reduce delivery time and enhance operational reliability. These benefits are expected to generate higher project margins.
The growing adoption of subsea boosting systems can enhance SLB’s future cash flows as operators increasingly seek solutions that extend field life, improve recovery rates and maximize production from existing offshore assets. The latest contract award strengthens SLB’s subsea backlog, reinforces its business model and bolsters its competitive position in offshore production technologies.
Eni and BP currently carry a Zacks Rank #3 (Hold).
The business models of SLB and other players that provide equipment and services to companies are dependent on the capital spending by the upstream players. The upstream players such as Chevron Corporation (CVX - Free Report) and YPF Sociedad Anónima (YPF - Free Report) and BP are currently enjoying a favorable pricing environment as the West Texas Intermediate (“WTI”) crude oil prices are trading around the $90-per-barrel mark, according to oilprice.com.
CVX currently carries a Zacks Rank #2 (Buy), while YPF sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A major integrated energy giant, Chevron maintains a strong presence within the Permian Basin. Supported by excellent upstream performance and ongoing development across its resource base, CVX recorded an international net oil-equivalent output of 1.8 million barrels per day for the first quarter of 2026, up from the prior-year period.
Integrated energy company YPF is using its strong foothold in the Vaca Muerta formation to accelerate production growth. A projected increase in operational activity by YPF in the coming quarters is anticipated to yield higher oil and gas production by the second half of 2026.
Collaboration combines edge computing and energy workflows to support real-time operational decision-making
HOUSTON--(BUSINESS WIRE)--Global energy technology company SLB (NYSE: SLB) today announced a memorandum of understanding with Qualcomm Technologies, Inc. to enable edge AI solutions for the energy industry, supporting real-time operational decision-making across wells, facilities and production systems.
The collaboration combines Qualcomm Technologies’ low-power edge computing and AI processing capabilities, with SLB’s Agora™ edge AI and IoT solutions developed for remote and operationally complex environments.
“Together, SLB and Qualcomm Technologies aim to help operators apply AI more effectively across energy infrastructure,” said Rakesh Jaggi, president, Digital, SLB. “Many energy operations rely on real-time decision-making in remote environments where connectivity and responsiveness directly affect performance. AI systems designed around the realities of energy operations can help support more consistent and autonomous workflows across those environments.”
Energy operators are increasingly adopting automation and autonomous workflows across production environments, driving demand for agentic AI systems that can run closer to operations rather than relying solely on centralized systems. In remote energy infrastructure where connectivity, latency and operational continuity are critical, bringing AI closer to equipment and operational workflows can help support more responsive and resilient operations. This collaboration is expected to help operators modernize legacy operational environments while strengthening cybersecurity across operational technology layers.
“Many industrial environments require AI systems that can operate with limited power, constrained connectivity, separation between operational technology and information technology environments, and real-time operational demands,” said Nakul Duggal, EVP and Group GM, Automotive, Industrial and Embedded IoT, and Robotics, Qualcomm Technologies, Inc. “This collaboration brings Qualcomm Technologies’ low-power AI processing closer to energy operations, alongside operating assets, helping enable edge intelligence for new use cases and supporting progress toward more autonomous workflows."
The companies will focus on enabling AI applications across production operations using SLB’s digital production solutions and energy domain expertise together with Qualcomm Technologies’ low-power edge computing capabilities. The collaboration reflects growing industry interest in bringing AI closer to operations to support more autonomous and resilient energy systems.
Key Points:
SLB and Qualcomm Technologies are collaborating to support Edge AI deployment across energy operations, enabling real-time operational decision-making across wells, facilities and production systems. The collaboration combines Qualcomm Technologies’ low-power edge computing and AI processing capabilities with SLB’s Agora™ edge AI and IoT solutions portfolio developed for remote and operationally complex environments. Energy operators are increasingly adopting automation and autonomous workflows across production environments, driving demand for agentic AI systems that can run closer to operations rather than relying solely on centralized systems. The collaboration reflects growing industry interest in bringing AI closer to operations to support more autonomous and resilient energy systems. About SLB
SLB (NYSE: SLB) is a global technology company that has driven energy innovation for 100 years. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “can,” “estimate,” “intend,” “anticipate,” “will,” “potential,” “projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
HOUSTON--(BUSINESS WIRE)--SLB (NYSE: SLB) will host an Investor Day on Wednesday, June 17, 2026, in New York, where leadership will outline their vision for SLB’s Digital business as digital technologies and AI continue to reshape the energy industry. The presentation will highlight SLB’s integrated digital strategy and portfolio, scalable growth opportunities powered by AI, and financial profile and outlook.
Olivier Le Peuch, chief executive officer, SLB, will present at 9:00 a.m. U.S. Eastern Time (ET), and will discuss SLB’s digital strategy and business outlook. Stephane Biguet, chief financial officer, SLB, will present at approximately 11:00 a.m. ET, and will discuss the financial profile of SLB’s Digital business, the market opportunity and SLB’s 2030 digital ambitions.
Mr. Le Peuch and Mr. Biguet will be joined by divisional leadership, who will provide further insight into Digital’s competitive differentiation supported by its mission-critical platform, driving transformation for customers.
A live webcast of Mr. Biguet’s address, followed by a Q&A session, will begin at approximately 11:00 a.m. ET. The live webcast can be accessed at investorcenter.slb.com/news-events/slb-digital-investor-day. A replay, as well as the presentations and transcripts from the full event, will be available at the same website later that day.
About SLB
SLB (NYSE: SLB) is a global technology company that has driven energy innovation for 100 years. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
U.S. oilfield services firm SLB has signed a long-term agreement with Venezuela's state oil company PDVSA to help modernize and revive the OPEC nation's oil and gas sector, the company said in a statement on Wednesday.
This recognition is part of Aflac's broader Check for Cancer initiative to expand awareness of the importance of screening as the path for early detection
, /PRNewswire/ -- Aflac Incorporated, the leading provider of supplemental health insurance in the U.S.,1 is expanding its Check for Cancer initiative during Cancer Prevention and Early Detection Month by launching the Check for Cancer Champions program. In this inaugural edition, the program will feature six individuals who have demonstrated unwavering commitment to expanding awareness of the importance of cancer screening and the need to act, as preventive care and early detection can save lives.
Aflac Check for Cancer Champion, Ernie Johnson Jr.
Aflac Check for Cancer Champion, Adamari López
Aflac Check for Cancer Champion, David Pollack
Aflac Check for Cancer Champion, Dr. Heather Bittner Fagan
Aflac Check for Cancer Champion, Dr. Ryan Schoenfeld
Aflac Check for Cancer Champion, Brian Ryll The program comes at a critical time — according to American Cancer Society (ACS) statistics, 1 in 3 people will develop cancer in their lifetime,2 yet the 2025 Aflac Wellness Matters Survey® indicates that more than 90% of people have put off getting a checkup or a recommended health screening.3 ACS statistics further note that early detection can push survival rates above 90% for many types of cancer.4
The inaugural 2026 Check for Cancer Champions are united by a shared commitment to improving early detection and saving lives through action and advocacy. The honorees are:
Ernie Johnson Jr., Sports Broadcasting Hall of Fame member, two-time cancer survivor and advocate for men's health screenings Adamari López, Univision host, actor and breast cancer survivor who has used her platform to encourage women, particularly in the Hispanic community, to prioritize their health David Pollack, former NFL player and college football analyst who became an advocate for early detection after his wife Lindsey was diagnosed with cancer in 2025 Dr. Heather Bittner Fagan, practicing physician and recipient of ACS's Cancer Control Career Development Award, recognized for her leadership in cancer prevention and screening Dr. Ryan Schoenfeld, CEO of the Mark Foundation for Cancer Research, a global philanthropy that supports research that will transform the prevention, diagnosis and treatment of cancer Brian Ryll, President of the Professional Fire Fighters of New Hampshire and cancer prevention advocate "If there's one thing I've learned through two experiences with cancer, it's that I've been provided the opportunity and the responsibility to help the next person get through it," Ernie Johnson Jr. said. "I am humbled to be selected as one of Aflac's 2026 Check for Cancer Champions. It means the world to me."
The Check for Cancer Champions program is part of Aflac's Check for Cancer initiative, a bold, national movement to increase cancer screenings by 10% over 10 years. Aflac uses the familiar checkered pattern seen in everyday life as a powerful reminder to prioritize early detection through a simple call to action: See a check, get checked.
"Aflac is extremely pleased to honor Ernie, Adamari, David, Dr. Fagan, Dr. Schoenfeld and Brian as inaugural Check for Cancer Champions for the example they set in raising awareness of the importance of cancer screening and early detection," Aflac Incorporated and Aflac U.S. President Virgil Miller said. "Aflac is fully committed to the Check for Cancer initiative, and we realize that to move from initiative to movement, we need to bring more, powerful voices to the program. Each of these honorees has used their voice, expertise or experience to encourage others to prioritize preventive care, and we are grateful for the impact they are making in their communities and fields. That is the very definition of being a champion."
As part of the program, Aflac will make a $5,000 donation to a cancer nonprofit selected by each honoree. They will also be presented with a custom Check for Cancer jacket in recognition of their commitment and advocacy for individuals to have better health outcomes by prioritizing early detection.
On social media, when you tag @Aflac and include #CheckForCancer, Aflac will donate $5 to the Aflac Cancer and Blood Disorders Center of Children's Healthcare of Atlanta, up to $1 million.
Go to Aflac.com/CheckForCancer for more information.
About the Check for Cancer Champions:
Ernie Johnson Jr. is a two-time cancer survivor who has overcome non-Hodgkin's lymphoma and prostate cancer. He credits early detection as a key part of his recovery and has used his platform to advocate for regular cancer screenings, especially for prostate cancer. Johnson serves as a global ambassador for ZERO Prostate Cancer and has also supported childhood cancer initiatives, including the Aflac Cancer and Blood Disorders Center at Children's Healthcare of Atlanta. He has named the Love You Too Foundation as his charity of choice for Aflac's $5,000 donation.
Adamari López is a writer, actor, television host, mom and breast cancer survivor who has become a prominent advocate for early detection and proactive health care. Diagnosed at age 33, she has used her platform to encourage women, especially within the Hispanic community, to prioritize self-exams, routine screenings and regular checkups. López has named Susan G. Komen Puerto Rico as her charity of choice for Aflac's $5,000 donation.
David Pollack is a former NFL player, University of Georgia standout and college football analyst who became a vocal advocate for cancer awareness after his wife Lindsey was diagnosed with brain cancer in 2025. Throughout her treatment and recovery, Pollack used his platform to share updates, support others and raise awareness about the importance of early detection. He has named the V Foundation as his charity of choice for Aflac's $5,000 donation.
Dr. Heather Bittner Fagan is a practicing family physician in Claymont, Delaware, who has helped underserved communities for more than 20 years. She has made regional and national contributions to research on cancer screening in primary care and underserved populations. Dr. Fagan also serves as a consultant to ACS on lung cancer screening guidelines and has published extensively on cancer prevention. She has named Friends of the Helen F. Graham Cancer Center & Research Institute in Delaware as her charity of choice for Aflac's $5,000 donation.
Dr. Ryan Schoenfeld is CEO of The Mark Foundation for Cancer Research, a philanthropic organization focused on transforming the prevention, diagnosis and treatment of cancer. Under his leadership, the foundation recently spearheaded a landmark coalition of leading cancer research funders working together to accelerate the development of new screening tools for the world's most lethal and hard-to-detect cancers. Dr. Schoenfeld will accept the $5,000 award on behalf of The Mark Foundation for Cancer Research, which will apply the funds toward its Early Detection Award program.
Brian Ryll is president of the Professional Fire Fighters of New Hampshire. Under his leadership, the state of New Hampshire enacted Senate Bill 352 to provide nearly 4,000 professional firefighters with access to comprehensive early detection screenings. Backed by $5 million in state funding, screenings include multi-cancer early detection blood tests, diagnostic ultrasounds and low-dose lung CT scans, significantly improving the chances of identifying cancer at its earliest stages. He has named the Dana-Farber Cancer Institute as his charity of choice for Aflac's $5,000 donation.
FAQs about the Check for Cancer Champions program
What is Aflac's Check for Cancer Champions program?
Part of Aflac's broader Check for Cancer movement, the Check for Cancer Champions program recognizes individuals who help raise awareness of the importance of cancer screening, preventive care and early detection. The honor-based initiative celebrates leaders and advocates whose sustained commitment helps encourage more people to prioritize getting checked. Why is Aflac launching the Check for Cancer Champions program now?
Aflac launched the program at a critical time, as cancer remains a significant health concern, and many Americans continue to delay routine checkups and recommended screenings. With early detection shown to significantly improve survival rates for many cancers, the Check for Cancer Champions program reinforces the need for preventive care nationwide. How does the Check for Cancer Champions program support cancer advocacy?
Aflac is making a $5,000 donation to nonprofits — chosen by each Check for Cancer Champion — that support cancer-related initiatives. In addition, each honoree receives a custom Check for Cancer jacket in recognition of their advocacy and commitment to early detection. ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."
Media contact: Jon Sullivan, 706-763-4813 or [email protected]
Analyst and investor contact: David A. Young, 706-596-3264, 800-235-2667 or [email protected]
D.A. Davidson & CO. increased its holdings in shares of Aflac Incorporated (NYSE:AFL – Free Report) by 77.3% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 63,646 shares of the financial services provider’s stock after acquiring an additional 27,751 shares during the quarter. D.A. Davidson & CO.’s holdings in Aflac were worth $7,018,000 as of its most recent filing with the SEC.
A number of other hedge funds have also bought and sold shares of AFL. True Wealth Design LLC increased its position in Aflac by 188.5% during the third quarter. True Wealth Design LLC now owns 225 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 147 shares during the period. Darwin Wealth Management LLC bought a new position in Aflac during the second quarter worth about $33,000. Westside Investment Management Inc. increased its position in Aflac by 100.0% during the third quarter. Westside Investment Management Inc. now owns 324 shares of the financial services provider’s stock worth $36,000 after acquiring an additional 162 shares during the period. Board of the Pension Protection Fund bought a new position in Aflac during the fourth quarter worth about $44,000. Finally, JCIC Asset Management Inc. bought a new position in Aflac during the third quarter worth about $45,000. 67.44% of the stock is owned by institutional investors.
Insider Buying and Selling at Aflac In related news, major shareholder Post Holdings Co. Ltd. Japan sold 86,155 shares of the company’s stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $113.24, for a total transaction of $9,756,192.20. Following the completion of the sale, the insider directly owned 51,636,945 shares in the company, valued at $5,847,367,651.80. This represents a 0.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 572,632 shares of company stock worth $63,514,634. 0.80% of the stock is owned by corporate insiders.
Aflac Price Performance Shares of AFL stock opened at $116.20 on Wednesday. The company has a quick ratio of 0.11, a current ratio of 0.11 and a debt-to-equity ratio of 0.29. Aflac Incorporated has a twelve month low of $96.95 and a twelve month high of $119.32. The company has a market cap of $59.86 billion, a P/E ratio of 16.89, a P/E/G ratio of 3.14 and a beta of 0.66. The business has a fifty day simple moving average of $111.31 and a 200 day simple moving average of $110.78.
Aflac (NYSE:AFL – Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The financial services provider reported $1.57 earnings per share for the quarter, missing the consensus estimate of $1.69 by ($0.12). Aflac had a return on equity of 14.35% and a net margin of 21.24%.The business had revenue of $4.28 billion for the quarter, compared to the consensus estimate of $4.45 billion. During the same quarter in the prior year, the company earned $1.57 earnings per share. Aflac’s quarterly revenue was down 9.6% compared to the same quarter last year. On average, sell-side analysts forecast that Aflac Incorporated will post 7.28 EPS for the current fiscal year.
Analyst Ratings Changes AFL has been the topic of a number of recent research reports. Keefe, Bruyette & Woods raised their price target on shares of Aflac from $113.00 to $115.00 and gave the stock a “market perform” rating in a research report on Friday, April 10th. Wells Fargo & Company cut their target price on Aflac from $118.00 to $116.00 and set an “equal weight” rating for the company in a research report on Friday, April 10th. Mizuho set a $102.00 target price on Aflac and gave the company an “underperform” rating in a research report on Monday, April 13th. JPMorgan Chase & Co. upped their target price on Aflac from $101.00 to $105.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Finally, Barclays set a $101.00 target price on Aflac and gave the company an “underweight” rating in a research report on Thursday, January 8th. Two analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $111.82.
Read Our Latest Report on AFL
Aflac Profile (Free Report)
Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac’s product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.
Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.
Read More Five stocks we like better than Aflac Want to see what other hedge funds are holding AFL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Aflac Incorporated (NYSE:AFL – Free Report).
Receive News & Ratings for Aflac Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aflac and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEiShares ESG Aware MSCI USA ETF $ESGU Shares Purchased by Concurrent Investment Advisors LLC
NEXT HEADLINE »Gilead Sciences, Inc. $GILD Stock Holdings Lifted by D.A. Davidson & CO.
, /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) today reported its first quarter results.
For the Quarter
Total revenues were $4.3 billion , which was a 27.9% increase year over year. Net earnings were $1.0 billion, or $1.98 per diluted share, compared with $29 million, or $0.05 per diluted share a year ago. Adjusted earnings* were $901 million, compared with $906 million a year ago, reflecting a decrease of 0.6%. Adjusted earnings per diluted share* increased 5.4% to $1.75. The annualized return on average shareholders' equity was 13.7%. The annualized adjusted return on equity excluding foreign currency remeasurement* was 16.4%. The company returned $1.3 billion to shareholders, consisting of $1.0 billion in share repurchase and $315 million in dividends. Commenting on the company's results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "Aflac delivered solid earnings for the quarter. These results reflect our focused execution of our strategy and thus creating long-term value for shareholders. We have attracted new business through successful product initiatives, including Anshin Palette (medical insurance), Miraito (cancer insurance), and Tsumitasu (life insurance) in Japan and group voluntary benefits, network dental and vision, as well as group life and disability in the U.S.
"We remain focused on more profitable growth and the tactical, opportunistic deployment of capital. We treasure our 2025 milestone of 43 consecutive years of dividend increases, and the Board has set us on a path to extend this record when it increased the first quarter dividend 5.2% and declared the same dividend of $0.61 for the second quarter. We intend to continue our balanced approach of investing in growth and driving long-term value."
AFLAC INCORPORATED CONSOLIDATED RESULTS
AFLAC INCORPORATED SELECTED OPERATING RESULTS FOR THE QUARTER
(IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
1Q26
1Q25
% Change
Total revenues
$ 4,346
$ 3,398
27.9 %
Net earnings
1,019
29
3,413.8 %
Adjusted earnings*
901
906
(0.6) %
Net earnings per share (diluted)
1.98
0.05
3,860.0 %
Adjusted earnings per share (diluted)*
1.75
1.66
5.4 %
Total shareholders' equity
29,961
26,338
13.8 %
Total liabilities & shareholders' equity
116,280
120,258
(3.3) %
Total revenues were $4.3 billion in the first quarter of 2026, compared with $3.4 billion in the first quarter of 2025. Net earnings were $1.0 billion, or $1.98 per diluted share, compared with $29 million, or $0.05 per diluted share a year ago. Net earnings in the first quarter of 2026 included net investment gains of $49 million, or $0.10 per diluted share, compared with net investment losses of $963 million, or $1.76 per diluted share a year ago. These net investment gains were driven by net gains of $164 million on certain derivatives and foreign currency activities offset by $61 million of current expected credit losses (CECL), impairments of $24 million; net losses from sales and redemptions of $16 million; and a $14 million loss from a decrease in the fair value of equity securities.
Adjusted earnings* in the first quarter were $901 million, compared with $906 million in the first quarter of 2025, reflecting a decrease of 0.6%. Adjusted earnings per diluted share* increased 5.4% to $1.75 in the quarter. Variable investment income ran $14 million below the company's long-term return expectations. The average yen/dollar exchange rate in the first quarter of 2026 was 156.87, or 2.8% weaker than the average rate of 152.40 in the first quarter of 2025. The weaker yen/dollar exchange rate had a negative $0.02 impact on adjusted earnings per share.
Shareholders' equity was $30.0 billion, or $58.69 per share, at March 31, 2026, compared with $26.3 billion, or $48.55 per share, at March 31, 2025. Shareholders' equity at the end of the first quarter included a cumulative increase of $9.5 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $3.9 billion at March 31, 2025 and a net unrealized loss on investment securities and derivatives of $2.7 billion, compared with a net unrealized loss of $1.3 billion at March 31, 2025. Shareholders' equity at the end of the first quarter also included an unrealized foreign currency translation loss of $5.0 billion, compared with an unrealized foreign currency translation loss of $4.5 billion at March 31, 2025.
Shareholders' equity excluding AOCI (or adjusted book value*) was $28.1 billion, or $54.96 per share at March 31, 2026, compared with $28.2 billion, or $51.98 per share, at March 31, 2025. Adjusted book value excluding foreign currency remeasurement* was $21.8 billion, or $42.71 per share at March 31, 2026, compared with $23.1 billion, or $42.61 per share, at March 31, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement* in the first quarter was 16.4%.
AFLAC JAPAN
AFLAC JAPAN SELECTED OPERATING RESULTS FOR THE QUARTER
(IN BILLIONS OF YEN AND MILLIONS OF DOLLARS)
1Q26
1Q25
% Change
1Q26
1Q25
% Change
Total net earned premiums
¥ 247
¥ 256
(3.8) %
$ 1,573
$ 1,681
(6.4) %
Yen-denominated investment income
31
34
(9.2) %
197
224
(12.1) %
U.S. dollar-denominated investment
income
64
56
13.9 %
409
369
10.8 %
Adjusted net investment income
93
89
4.0 %
591
586
0.9 %
Total adjusted revenues
341
346
(1.7) %
2,172
2,272
(4.4) %
Total benefits and claims, net
155
169
(7.9) %
990
1,105
(10.4) %
Total adjusted expenses
66
68
(2.2) %
423
445
(4.9) %
Pretax adjusted earnings
¥ 119
¥ 110
8.3 %
759
722
5.1 %
Change in
bps
Premium persistency (12-mo. rolling)
92.8 %
93.8 %
(100)
Total benefits and claims (net) / Net
earned premiums
62.9 %
65.8 %
(290)
Total adjusted expenses / Total
adjusted revenues
19.5 %
19.6 %
(10)
Pretax adjusted earnings / Total
adjusted revenues
35.0 %
31.8 %
320
In yen terms, Aflac Japan's net earned premiums were ¥246.7 billion for the quarter, or 3.8% lower than a year ago, mainly due to the impact of a new external reinsurance transaction for WAYS and Tsumitasu as well as limited pay products reaching paid-up status. Adjusted net investment income increased 4.0% to ¥92.8 billion, primarily due to higher dollar-denominated fixed-rate income resulting from higher volume and higher variable net investment income. This was partially offset by lower dollar-denominated floating rate income due to lower volume and rates as well as reduced call income. Total adjusted revenues in yen declined 1.7% to ¥340.7 billion. Pretax adjusted earnings in yen for the quarter increased 8.3% on a reported basis to ¥119.1 billion, primarily driven by favorable benefits. Pretax adjusted earnings also increased 6.6% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment was 35.0%, compared with 31.8% a year ago.
In dollar terms, net earned premiums decreased 6.4% to $1.6 billion in the first quarter. Adjusted net investment income increased 0.9% to $591 million. Total adjusted revenues declined by 4.4% to $2.2 billion. Pretax adjusted earnings increased 5.1% to $759 million.
For the quarter, total new annualized premium sales (sales) increased 25.5% to ¥17.7 billion, or $113 million, primarily reflecting strong sales of Anshin Palette, the new medical insurance product launched in December, as well as Miraito, the newest cancer insurance product, and Tsumitasu.
AFLAC U.S.
AFLAC U.S. SELECTED OPERATING RESULTS FOR THE QUARTER
(IN MILLIONS OF DOLLARS)
1Q26
1Q25
% Change
Total net earned premiums
$ 1,555
$ 1,502
3.5 %
Adjusted net investment income
201
202
(0.5) %
Total adjusted revenues
1,779
1,721
3.4 %
Total benefits and claims, net
734
716
2.5 %
Total adjusted expenses
682
647
5.4 %
Pretax adjusted earnings
363
358
1.4 %
Change
in bps
Persistency rate (12-mo. rolling)
79.3 %
79.3 %
—
Total benefits and claims, net / Net earned premiums
47.2 %
47.7 %
(50)
Total adjusted expenses / Total adjusted revenues
38.3 %
37.6 %
70
Pretax adjusted earnings / Total adjusted revenues
20.4 %
20.8 %
(40)
Aflac U.S. net earned premiums increased 3.5% to $1.6 billion in the first quarter compared to the prior year, reflecting improved sales and continued strong persistency. Adjusted net investment income decreased 0.5% to $201 million. Total adjusted revenues were up 3.4% to $1.8 billion. Pretax adjusted earnings were $363 million, 1.4% higher than a year ago. The pretax adjusted profit margin for the U.S. segment was 20.4%, compared with 20.8% a year ago.
Aflac U.S. sales increased 2.9% in the quarter to $318 million, primarily benefiting from sales of group products.
CORPORATE AND OTHER
CORPORATE AND OTHER SELECTED OPERATING RESULTS
(IN MILLIONS OF DOLLARS)
1Q26
1Q25
% Change
Total net earned premiums
$ 182
$ 198
(8.1) %
Adjusted net investment income
109
126
(13.5) %
Total adjusted revenues
292
326
(10.4) %
Total benefits and claims, net
109
124
(12.1) %
Interest expense
58
45
28.9 %
Other adjusted expenses
125
114
9.6 %
Total benefits and adjusted expenses
292
283
3.2 %
Pretax adjusted earnings
—
43
(100.0) %
For the quarter, corporate and other reported breakeven pretax adjusted earnings, down from a $43 million gain last year, driven by lower net investment income from reduced hedge benefits, higher interest expense and operating costs, and runoff impacts from closed blocks of business.
*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force.2 The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."
1 LIMRA 2024 U.S. Supplemental Health Insurance Total Market Report
2 As of March 31, 2025, Aflac estimates based on company data
A copy of Aflac's financial supplement for the quarter can be found on the "Investors" page at aflac.com.
Aflac Incorporated will webcast its quarterly conference call via the "Investors" page of aflac.com at 8:00 a.m. (ET) on April 30, 2026.
Note: Tables within this document may not foot due to rounding.
AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
THREE MONTHS ENDED MARCH 31,
2026
2025
% Change
Total revenues
$ 4,346
$ 3,398
27.9 %
Benefits and claims, net
1,832
1,945
(5.8)
Total acquisition and operating expenses
1,289
1,308
(1.5)
Earnings before income taxes
1,225
145
744.8
Income taxes
206
116
Net earnings
$ 1,019
$ 29
3,413.8 %
Net earnings per share – basic
$ 1.99
$ 0.05
3,880.0 %
Net earnings per share – diluted
1.98
0.05
3,860.0
Shares used to compute earnings per share (000):
Basic
513,071
544,707
(5.8) %
Diluted
514,785
546,878
(5.9)
Dividends paid per share
$ 0.61
$ 0.58
5.2 %
AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
MARCH 31,
2026
2025
% Change
Assets:
Total investments and cash
$ 103,192
$ 107,446
(4.0) %
Deferred policy acquisition costs
8,976
9,083
(1.2)
Other assets
4,112
3,729
10.3
Total assets
$ 116,280
$ 120,258
(3.3) %
Liabilities and shareholders' equity:
Policy liabilities
$ 66,782
$ 78,828
(15.3) %
Notes payable and lease obligations
7,908
7,751
2.0
Other liabilities
11,629
7,341
58.4
Shareholders' equity
29,961
26,338
13.8
Total liabilities and shareholders' equity
$ 116,280
$ 120,258
(3.3) %
Shares outstanding at end of period (000)
510,530
542,493
(5.9) %
NON-U.S. GAAP FINANCIAL MEASURES
This document includes references to the Company's financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.
Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the Japanese yen weakens, translating Japanese yen into U.S. dollars results in fewer U.S. dollars being reported. When the Japanese yen strengthens, translating Japanese yen into U.S. dollars results in more U.S. dollars being reported. Consequently, Japanese yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while Japanese yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company's business is conducted in Japanese yen and never converted into U.S. dollars but translated into U.S. dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).
The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:
Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management's control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company's insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively. Adjusted earnings excluding current period foreign currency impact are computed using the average foreign exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management's control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively. Adjusted return on equity is annualized adjusted earnings divided by average shareholders' equity, excluding accumulated other comprehensive income. Management uses adjusted return on equity to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The Company considers adjusted return on equity important as it excludes components of accumulated other comprehensive income, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on equity as determined using annualized net earnings and average total shareholders' equity. Adjusted return on equity excluding foreign currency remeasurement is annualized adjusted earnings divided by average shareholders' equity, excluding both accumulated other comprehensive income and the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The Company considers adjusted return on equity excluding foreign currency remeasurement important because it excludes both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency remeasurement is return on equity as determined using annualized net earnings and average total shareholders' equity. Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign currency exchange risks in the Company's Japan segment or in Corporate and other. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income. Adjusted book value is the U.S. GAAP book value (representing total shareholders' equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude accumulated other comprehensive income, which fluctuates due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively. Adjusted book value excluding foreign currency remeasurement is the U.S. GAAP book value (representing total shareholders' equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet and excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. Adjusted book value excluding foreign currency remeasurement per common share is adjusted book value excluding foreign currency remeasurement at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share important as they exclude both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share are total book value and total book value per common share, respectively. Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company's investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income. Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management's control, while excluding the components that are within management's control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses. RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
THREE MONTHS ENDED MARCH 31,
2026
2025
% Change
Net earnings
$ 1,019
$ 29
3,413.8 %
Items impacting net earnings:
Adjusted net investment (gains) losses
(103)
924
Other and non-recurring (income) loss
—
53
Income tax (benefit) expense on items excluded
from adjusted earnings
(15)
(100)
Adjusted earnings
901
906
(0.6) %
Current period foreign currency impact1
8
N/A
Adjusted earnings excluding current period foreign
currency impact2
$ 909
$ 906
0.3 %
Net earnings per diluted share
$ 1.98
$ 0.05
3,860.0 %
Items impacting net earnings:
Adjusted net investment (gains) losses
(0.20)
1.69
Other and non-recurring (income) loss
—
0.10
Income tax (benefit) expense on items excluded
from adjusted earnings
(0.03)
(0.18)
Adjusted earnings per diluted share
1.75
1.66
5.4 %
Current period foreign currency impact1
0.02
N/A
Adjusted earnings per diluted share excluding
current period foreign currency impact2
$ 1.77
$ 1.66
6.6 %
1
Prior period foreign currency impact reflected as "N/A" to isolate change for current period only.
2
Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.
RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED MARCH 31,
2026
2025
% Change
Net investment (gains) losses
$ (49)
$ 963
(105.1) %
Items impacting net investment (gains) losses:
Amortized hedge costs
(15)
(7)
Amortized hedge income
18
30
Net interest income (expense) from derivatives associated
with certain investment strategies
(57)
(65)
Impact of interest from derivatives associated with
notes payable1
—
4
Adjusted net investment (gains) losses
$ (103)
$ 924
(111.1) %
1
Amounts are included with interest expenses that are a component of adjusted expenses.
RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED MARCH 31,
2026
2025
% Change
Net investment income
$ 956
$ 955
0.1 %
Items impacting net investment income:
Amortized hedge costs
(15)
(7)
Amortized hedge income
18
30
Net interest income (expense) from derivatives associated
with certain investment strategies
(57)
(65)
Adjusted net investment income
$ 902
$ 913
(1.2) %
RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
(EXCLUDING FOREIGN CURRENCY REMEASUREMENT)
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2
See separate reconciliation of net income to adjusted earnings.
3
Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency remeasurement.
EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
THREE MONTHS ENDED MARCH 31,
Including
Currency
Changes
Excluding
Currency
Changes2
Net earned premiums3
(2.1) %
(0.6) %
Adjusted net investment income4
(1.2)
(0.7)
Total benefits and expenses
(2.3)
(0.9)
Adjusted earnings
(0.6)
0.3
Adjusted earnings per diluted share
5.4
6.6
1
Refer to previously defined adjusted earnings and adjusted earnings per diluted share.
2
Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.
3
Net of reinsurance
4
Refer to previously defined adjusted net investment income.
GLOSSARY OF OPERATIONAL MEASURES
The Company defines the operational measures included in this document as follows:
Operating ratios are used to evaluate the Company's financial condition and profitability. Examples include: (1) Ratios to total adjusted revenues, which present expenses as percentage of total revenues and (2) Ratios to total premium, including benefit ratio. Operating ratios include: Benefit Ratio and Expense Ratio. New annualized premium sales are sometimes referred to as new sales or sales. An operating measure that is not reflected on the Company's financial statements. New annualized premium sales generally represent annual premiums on policies and riders the Company sold and incremental increases from policy conversions that would be collected over a 12-month period assuming the policies remain in force for that entire period. For Aflac Japan, new annualized premium sales are determined by applications submitted during the reporting period. For Aflac U.S., new annualized premium sales are determined by applications that are issued during the reporting period. Policy conversions are defined as the positive difference in the annualized premium when a policy upgrades in the current reporting period. The Company believes that this metric is a key indicator of the Company's future source of earnings. Premium persistency is the percentage of premiums remaining in force at the end of a period, usually one year, and presented on a trailing 12-month average basis. For example, 95% persistency would mean that 95% of the premiums in force at the beginning of a period are still in force at the end of the period. The Company believes that this metric is a key driver of in force levels, which is a key measure of the size of the Company's business and future sources of earnings. FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Aflac Incorporated (the Parent Company) and its subsidiaries (collectively with the Parent Company, the Company) desire to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by Company officials in communications with the financial community and contained in documents filed with or furnished to the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as "expect," "anticipate," "believe," "goal," "objective," "strategy," "may," "should," "estimate," "intend," "project," "future," "will," "assume," "potential," "target," "outlook," "continue" or similar words as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements, except as may be required by law.
The Company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:
difficult conditions in global capital markets and the economy, including inflation defaults and credit downgrades of investments global fluctuations in interest rates and exposure to significant interest rate risk concentration of business in Japan limited availability of acceptable Japanese yen-denominated investments foreign currency fluctuations in the yen/dollar exchange rate differing interpretations applied to investment valuations significant valuation judgments in determination of expected credit losses recorded on the Company's investments decreases in the Company's financial strength or debt ratings decline in creditworthiness of other financial institutions the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners deviations in actual experience from pricing and reserving assumptions ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems, and uncertainty regarding the impact of the incident involving unauthorized access to the Company's network in June 2025 subsidiaries' ability to pay dividends to the Parent Company inherent limitations to risk management policies and procedures operational risks of third-party vendors tax rates applicable to the Company may change failure to comply with restrictions on policyholder privacy and information security extensive regulation and changes in law or regulation by governmental authorities competitive environment and ability to anticipate and respond to market trends catastrophic events, including, but not limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events ability to protect the Aflac brand and the Company's reputation ability to effectively manage key executive succession changes in accounting standards level and outcome of litigation or regulatory inquiries allegations or determinations of worker misclassification in the United States Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or [email protected]
Media contact - Ines Gutzmer, 762.207.7601 or [email protected]
Aflac (AFL - Free Report) came out with quarterly earnings of $1.75 per share, missing the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.66 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.89%. A quarter ago, it was expected that this insurer would post earnings of $1.71 per share when it actually produced earnings of $1.57, delivering a surprise of -8.19%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Aflac, which belongs to the Zacks Insurance - Accident and Health industry, posted revenues of $4.24 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.05%. This compares to year-ago revenues of $4.32 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Aflac shares have added about 5.5% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Aflac?While Aflac has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Aflac was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.84 on $4.32 billion in revenues for the coming quarter and $7.27 on $17.29 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Accident and Health is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Trupanion (TRUP - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This provider of medical insurance covering cats and dogs is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +333.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Trupanion's revenues are expected to be $379.7 million, up 11% from the year-ago quarter.
Aflac (AFL - Free Report) reported $4.24 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 1.8%. EPS of $1.75 for the same period compares to $1.66 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.33 billion, representing a surprise of -2.05%. The company delivered an EPS surprise of -2.89%, with the consensus EPS estimate being $1.80.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Aflac performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Benefit /Premium - Aflac Japan: 62.9% versus the three-analyst average estimate of 62.4%.Total Adjusted Expenses/Total Adjusted Revenue - Aflac U.S.: 38.3% versus 36.8% estimated by three analysts on average.Total Benefit /Premium - Aflac U.S.: 47.2% compared to the 49.4% average estimate based on three analysts.Total Adjusted Expenses/Total Adjusted Revenue - Aflac Japan: 19.5% versus the three-analyst average estimate of 20%.Total adjusted revenues- Aflac U.S.: $1.78 billion compared to the $1.77 billion average estimate based on three analysts. The reported number represents a change of +3.4% year over year.Total adjusted revenues- Aflac Japan: $2.17 billion compared to the $2.27 billion average estimate based on three analysts. The reported number represents a change of -4.4% year over year.Total adjusted revenues- Aflac U.S.- Total net earned premiums: $1.56 billion versus $1.55 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.Total adjusted revenues- Aflac Japan- Other income: $8 million versus the three-analyst average estimate of $7.63 million. The reported number represents a year-over-year change of +60%.Revenues- Other income (loss): $31 million versus $27.72 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +24% change.Revenues- Net investment income: $956 million compared to the $911.96 million average estimate based on four analysts. The reported number represents a change of +0.1% year over year.Revenues- Total net earned premiums: $3.31 billion versus $3.26 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.1% change.Total adjusted revenues- Corporate and other: $292 million compared to the $332 million average estimate based on two analysts. The reported number represents a change of -10.4% year over year.View all Key Company Metrics for Aflac here>>>
Shares of Aflac have returned +6% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Aflac CEO Dan Amos reflects on the company's rise from humble Southern roots to a $60 billion powerhouse — and the bold bet that defined his career: a “damn duck.”
Company brings services closer to home for more than 500,000 workers
, /PRNewswire/ -- Working with the Maine Department of Labor and the state's Paid Family Medical Leave (PFML) Bureau, Aflac, the leading provider of supplemental health insurance in the U.S.1 and contracted administrator for the Maine PMFL program, announced the opening of a new office in South Portland, Maine. This fully staffed facility provides high-quality claims administration services for over 500,000 eligible workers in the state of Maine and the public and private sector employers participating in the program. The Maine PFML program will begin issuing benefits for the program as of May 1.
"We are honored to have been selected as the administrator of this important program and are excited to open this local office, demonstrating our commitment to the people of Maine now and for the foreseeable future," said Scott Beeman, senior vice president, Aflac Group Life, Disability and Absence Solutions.
"The launch of Maine's Paid Family and Medical Leave program marks a transformative moment for workers and families across our state. We have all been working hard, and we are deeply appreciative of the partnership with Aflac to ensure a successful launch and implementation. Their commitment to standing up a local office and delivering high-quality service reflects the level of care that Maine workers deserve," said Luke Monahan, director, Maine Paid Family and Medical Leave program.
Eligible workers in Maine can receive up to 12 weeks of paid time off within a benefit year to care for a family member with a serious health condition; to bond with a child after birth, fostering or adoption; to care for their own medical needs; to deal with the transition of a family member impending military deployment; or for safe leave. The leave does not need to be taken all at once.
Updates about the Maine Paid Family and Medical Leave program are posted at www.maine.gov/paidleave.
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force.2 The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."
Group life, disability and absence services are provided by Continental American Insurance Company (CAIC); in New York, products and services are provided by American Family Life Assurance Company of New York; in California, coverage is offered by Continental American Life Insurance Company. Products may not be available in all states and may vary depending on state law.
1 LIMRA 2024 U.S. Supplemental Health Insurance Total Market Report
2 As of March 31, 2025, Aflac estimates based on company data.
Media contact: Jon Sullivan, 706-763-4813 or [email protected]
Analyst and investor contact: David A. Young, 706-596-3264, 800-235-2667 or [email protected]
Aflac WWHQ | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, New York 12211
Continental American Insurance Company | Columbia, SC
Key Takeaways Aflac Q1 EPS missed estimates as revenues fell 1.9% on lower investment income and FX headwinds.Aflac Japan revenues declined, but new premium sales jumped 25.5% on strong product demand.Aflac U.S. posted revenues and premium growth, supported by higher group product sales. Aflac Incorporated (AFL - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $1.75, which missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 5.4% year over year.
Adjusted revenues totaled $4.2 billion, which declined 1.9% year over year. The top line missed the consensus mark by 2.1%.
AFL’s quarterly performance was affected by lower net investment income and exchange rate. Nevertheless, the downside was partly offset by higher sales in the U.S. unit.
AFL’s Q1 PerformanceAdjusted net investment income declined 1.2% year over year to $902 million in the quarter under review.
Net benefits and claims totaled $1.8 billion, which declined 5.8% year over year. Total acquisition and operating expenses decreased 1.5% year over year to $1.3 billion.
Pre-tax earnings increased to $1.2 billion from $145 million in the prior-year quarter.
Inside Aflac’s SegmentsAflac Japan: The segment’s adjusted revenues dipped 4.4% year over year to $2.2 billion in the first quarter and missed the Zacks Consensus Estimate of $2.3 billion. Net earned premiums of $1.6 billion slipped 6.4% year over year and missed the consensus mark by 3.1%.
Adjusted net investment income increased 0.9% year over year to $591 million. The unit’s pretax adjusted earnings rose 5.1% to $759 million but missed the consensus mark of $800.9 million.
New annualized premium sales advanced 25.5% year over year to $113 million on the back of solid sales of Anshin Palette, Miraito and Tsumitasu.
Aflac U.S.: Adjusted revenues of $1.8 billion grew 3.4% year over year and beat the Zacks Consensus Estimate by 0.3%. Net earned premiums advanced 3.5% year over year to $1.6 billion, attributable to higher sales. The metric beat the consensus mark of $1.5 billion.
Adjusted net investment income totaled $201 million, which inched down 0.5% year over year in the quarter under review. Pretax adjusted earnings of the segment increased 1.4% year over year to $363 million. The metric beat the consensus mark of $359.1 million.
The unit’s sales totaled $318 million, up 2.9% year over year, on the back of higher sales of group products.
Financial Position (As of March 31, 2026)Aflac exited the first quarter with total investments and cash of $103.2 billion, down from the 2025-end level of $103.8 billion. Total assets of $116.3 billion decreased 0.2% from the year-end figure.
Adjusted debt amounted to $7.6 billion, down 1.2% from the figure as of Dec. 31, 2025. Adjusted debt to adjusted capitalization, excluding accumulated other comprehensive income, was 21.2%, which improved 20 basis points (bps) from the 2025-end level.
Total shareholders' equity of $30 billion advanced 1.6% from the 2025-end figure.
Adjusted book value per share increased 5.7% year over year to $54.96. Adjusted return on equity, excluding foreign currency impacts, was 16.4%, which improved 80 bps year over year.
AFL’s Capital DeploymentAflac bought back shares worth $1 billion in the first quarter of 2026. Management paid a dividend of $315 million in the same quarter.
AFL’s 2026 OutlookAflac still expects a benefit ratio of 60-63% for the Aflac Japan unit in 2026. The metric for the Aflac U.S. unit is still projected to be in the 48-52% range.
The expense ratio for Aflac Japan is still estimated to be 20-23%. The same for Aflac U.S. is reiterated to be in the band of 36-39%.
Underlying earned premiums were likely to witness a year-over-year decline of 1-2% for the Japan unit in 2026. Net earned premiums for the U.S. unit were likely to be at the lower end of the 3-6% range.
The pretax profit margin for Aflac Japan is still estimated to be between 33% and 36%, and the same for Aflac U.S. is projected to be in the range of 17-20% for 2026.
AFL’s Zacks RankAFL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?Several companies in the insurance space, including RenaissanceRe Holdings Ltd. (RNR - Free Report) , AMERISAFE, Inc. (AMSF - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:
RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%. The bottom line improved from the year-ago quarter’s operating loss of $1.49. Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%. RNR’s quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments.
AMERISAFE reported first-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. The bottom line declined 16.7% year over year. Operating revenues increased 7.9% year over year to $81.75 million but missed the consensus estimate by 0.9%. AMSF’s quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower fee income and weaker investment income. Stronger premium growth partially offsets the downside.
Hartford posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%. Operating revenues totaled $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%. HIG’s weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.
Aflac remains a Buy despite a Q1 earnings miss, supported by organic policy growth, proven dividend increases, and robust balance sheet strength. Growth catalysts include new policy sales, expanding Asian market presence, and niche segments like pet insurance, though revenue trends remain uneven. Margins and expense ratios are favorable, with A-level credit ratings and conservative leverage, but forward P/E multiples signal some overvaluation and more muted near-term upside.
Key Takeaways Aflac is positioned for growth as sales rise in both Japan and the U.S. markets.Japan sales surged 25.5% in Q1 2026, while pretax profit margin climbed to 35%.Aflac faces risks from operating cash flow pressure and a premium forward P/E of 15.71X. Aflac Incorporated (AFL - Free Report) is well-poised to grow on the back of growing sales in both Japan and the U.S. markets and rising margin in Japan. Its shares climbed 4.7% in the year-to-date period compared with 5% growth of the industry.
Aflac — with a market cap of $59.1 billion — operates as a supplemental health and life insurance products provider. Based in Columbus, GA, it has strong footprints in the United States and Japan. Courtesy of solid prospects, this presently Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Aflac’s U.S. segment continues to recover strongly, with sales rising 3% year over year to $1.6 billion in 2025 and 2.9% in to $318 million in the first quarter of 2026. Multiple acquisitions, product innovation, virtual channel growth and agent recruitment are expected to sustain momentum and reinforce its competitive positioning.
Meanwhile, sales in Japan jumped 16% to $498 million in 2025 and 25.5% to $113 million in the first quarter of 2026. Solid sales of Anshin Palette, Miraito and Tsumitasu are driving the numbers. The segment’s pretax profit margin is on the rise with 30.5% in 2023, 36% in 2024 and 36.7% in 2025. In the first quarter of 2026, pretax profit margin was at 35%, up from 31.8% in the year-ago period.
Furthermore, AFL’s benefit ratio from Japan business declined to 62.9% in the first quarter from 65% in the previous quarter. The company expects the metric to be within 60-63% in 2026. Aflac U.S. benefit ratio was 47.2% in the first quarter, while the full-year guidance is pegged at 48-52%.
Estimates for AflacThe Zacks Consensus Estimate for AFL’s current-year earnings is pegged at $7.12 per share, which witnessed one upward estimate revision in the past week against none in the opposite direction. The consensus mark for current-year revenues is pinned at $17.1 billion. Aflac’s earnings beat on estimates in two of the last four quarters and missed twice, the average being 7.9%.
Key RisksThere are a few factors that investors should keep an eye on.
Operating cash flow has remained under pressure, declining 23.2% in 2022, 17.8% in 2023, 15.1% in 2024 and 5.6% in 2025. While the metric rebounded sharply in first-quarter 2026, rising 64.3% year over year, the company will need to sustain this momentum for a meaningful turnaround.
Aflac’s shares trade at a forward P/E of 15.71X, above both its five-year median of 12.93X and the industry average of 12.91X, indicating the stock is priced at a premium and leaving less room for outsized upside from current levels.
Better-Ranked PlayersSome better-ranked stocks in the broader insurance space are Hamilton Insurance Group, Ltd. (HG - Free Report) , Slide Insurance Holdings, Inc. (SLDE - Free Report) and Radian Group Inc. (RDN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Hamilton Insurance’s current-year earnings of $3.95 per share increased 49 cents over the past week. HG’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 84.8%. The consensus estimate for current-year revenues is pegged at $2.87 billion.
The consensus estimate for Slide Insurance’s current-year earnings is pegged at $3.51, which signals 4.5% year-over-year growth. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 41.8%. The consensus mark for Slide Insurance’s current-year revenues of $1.45 billion implies a 25.9% year-over-year jump.
The consensus estimate for Radian Group’s current-year earnings is pegged at $5.23 per share, which indicates 17.5% year-over-year growth. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 10.7%. The consensus estimate for RDN’s current-year revenues is pegged at $1.22 billion.
Key Takeaways AFL raised 65.9B Yen through a four-part bond offering, including a 10-year tranche at 3.482%.Aflac joined foreign issuers tapping Japan's debt market as investor demand for higher yields stays firm.AFL Japan posted 25.5% growth in new annualized premium sales, led by key insurance products. Aflac Incorporated (AFL - Free Report) returned to Japan’s bond market on Thursday, raising ¥65.9 billion, or roughly $415 million, through a four-part yen bond offering, according to Bloomberg. The insurer has tapped the Japanese debt market several times before, though this year’s deal came in smaller than the ¥74.9 billion it issued in 2025.
Bloomberg also reported that the 10-year tranche carried a coupon of 3.482%, showing that Aflac was still able to secure funding on favorable terms despite rising borrowing costs globally. The deal also points to continued demand from Japanese investors, who remain eager to buy debt from established foreign companies offering higher yields.
Aflac’s latest issuance comes as more overseas borrowers turn to Japan’s credit market for funding. Berkshire Hathaway Inc. (BRK.B - Free Report) and Alphabet Inc. (GOOG - Free Report) , the parent company of Google, have both expanded their activity in the country recently. Alphabet made headlines last week after selling ¥576.5 billion worth of bonds in its first-ever yen offering, marking the largest yen bond sale by a non-Japanese company. The company is raising capital as spending tied to artificial intelligence and data center expansion continues to climb.
Aflac remains heavily tied to Japan through its insurance operations. The company generates a significant share of earnings from the region through supplemental health and life insurance products. In the first quarter, adjusted net investment income at Aflac Japan rose 0.9% year over year to $591 million. Net earned premiums slipped 6.4% to $1.6 billion, though new annualized premium sales jumped 25.5%, supported by strong demand for products, including Anshin Palette, Miraito and Tsumitasu.
Price PerformanceShares of Aflac have gained 6.3% in the year-to-date period compared with the 6.1% growth of the industry.
Image Source: Zacks Investment Research
Zacks Rank & A Key PickAflac currently has a Zacks Rank #3 (Hold). A better-ranked stock in the broader Finance space is CNO Financial Group, Inc. (CNO - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CNO Financial’s current-year earnings is pegged at $4.47 per share, which indicates 9.6% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction during the past month. CNO beat earnings estimates in each of the past four quarters, with an average surprise of 16.9%.
On May 28, 2026, we delve into the discounted cash flow (DCF) analysis for Aflac Inc AFL , a company that has shown a price performance of +5.2% year-to-date and +13.4% over the past year. Despite its recent fluctuations, the stock has garnered attention in the financial community.
DCF Earnings-based intrinsic value of $110.09 compared to the current price of $114.85 (margin of safety: -4.3%) DCF FCF-based intrinsic value stands at $64.36, indicating a second opinion on valuation GF Score™ of 75/100 suggests a reliable assessment of the DCF inputs What Is AFL Worth? DCF Earnings-Based Model The DCF earnings-based model for Aflac Inc assumes a current earnings per share (EPS) of $6.92, with a projected growth rate of 9.9% over the next ten years. This growth is then discounted at a rate of 11%, which combines the risk-free rate and equity risk premium. Following this growth phase, the model assumes a terminal growth rate of 4% for the subsequent ten years, also discounted at 11%. The following table summarizes the key assumptions used in this model:
Parameter Value Current EPS (TTM, excl. non-recurring) $6.92 10-Year Growth Rate 9.9% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The two-stage DCF model provides a comprehensive valuation of Aflac Inc. The first stage, covering years 1-10, estimates the growth of EPS at 9.9% per year, resulting in a growth stage value of $65.54 per share. The second stage, covering years 11-20, assumes a terminal growth rate of 4%, leading to a terminal stage value of $44.55 per share. The summary of these calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 9.9%, discounted at 11% $65.54 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $44.55 Intrinsic Value Growth + Terminal $110.09 With the current price of $114.85, the intrinsic value of $110.09 indicates that Aflac Inc is fairly valued, with a margin of safety of -4.3%. It is important to note that GuruFocus utilizes EPS figures excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the AFL DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Aflac Inc is calculated at $64.36. When compared with the earnings-based intrinsic value of $110.09, there is a significant divergence between the two models. The FCF-based valuation suggests that the stock is modestly overvalued, with a margin of safety of -78.5%. This discrepancy highlights the importance of considering multiple valuation methods when assessing a company's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Aflac Inc is calculated at $110.16, providing a third perspective on the company's valuation. GF Value™ is a proprietary measure from GuruFocus, derived from historical trading multiples, past business growth, and future performance estimates. When comparing the three models, the earnings-based DCF and GF Value™ align closely, both suggesting that the stock is fairly valued, while the FCF model indicates overvaluation. For more insights, visit the GF Value™ page.
What Does AFL's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtesting from 2006 to 2021. The following table summarizes Aflac Inc's GF Score™ metrics:
Metric Rating GF Score™ 75/100 Financial Strength 6/10 Profitability 6/10 Growth 4/10 Valuation 7/10 Momentum 8/10 The predictability rank for Aflac Inc is 1 out of 5 stars, indicating that the DCF model may be less reliable for this stock. For more information, visit the AFL stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks that receive low predictability ratings tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus suggests that Aflac Inc is fairly valued based on the earnings-based DCF and GF Value™, while the FCF model indicates overvaluation. Overall, investors should consider these insights carefully. For the full DCF analysis, visit the AFL DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is AFL's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
It has been about a month since the last earnings report for Aflac (AFL - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aflac due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Aflac Incorporated before we dive into how investors and analysts have reacted as of late.
Aflac Q1 Earnings Miss Estimates on Lower Investment Income
Aflac reported first-quarter 2026 adjusted earnings per share (EPS) of $1.75, which missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 5.4% year over year.
Adjusted revenues totaled $4.2 billion, which declined 1.9% year over year. The top line missed the consensus mark by 2.1%.
AFL’s quarterly performance was affected by lower net investment income and exchange rate. Nevertheless, the downside was partly offset by higher sales in the U.S. unit.
AFL’s Q1 PerformanceAdjusted net investment income declined 1.2% year over year to $902 million in the quarter under review.
Net benefits and claims totaled $1.8 billion, which declined 5.8% year over year. Total acquisition and operating expenses decreased 1.5% year over year to $1.3 billion.
Pre-tax earnings increased to $1.2 billion from $145 million in the prior-year quarter.
Inside Aflac’s SegmentsAflac Japan: The segment’s adjusted revenues dipped 4.4% year over year to $2.2 billion in the first quarter and missed the Zacks Consensus Estimate of $2.3 billion. Net earned premiums of $1.6 billion slipped 6.4% year over year and missed the consensus mark by 3.1%.
Adjusted net investment income increased 0.9% year over year to $591 million. The unit’s pretax adjusted earnings rose 5.1% to $759 million but missed the consensus mark of $800.9 million.
New annualized premium sales advanced 25.5% year over year to $113 million on the back of solid sales of Anshin Palette, Miraito and Tsumitasu.
Aflac U.S.: Adjusted revenues of $1.8 billion grew 3.4% year over year and beat the Zacks Consensus Estimate by 0.3%. Net earned premiums advanced 3.5% year over year to $1.6 billion, attributable to higher sales. The metric beat the consensus mark of $1.5 billion.
Adjusted net investment income totaled $201 million, which inched down 0.5% year over year in the quarter under review. Pretax adjusted earnings of the segment increased 1.4% year over year to $363 million. The metric beat the consensus mark of $359.1 million.
The unit’s sales totaled $318 million, up 2.9% year over year, on the back of higher sales of group products.
Financial Position (As of March 31, 2026)Aflac exited the first quarter with total investments and cash of $103.2 billion, down from the 2025-end level of $103.8 billion. Total assets of $116.3 billion decreased 0.2% from the year-end figure.
Adjusted debt amounted to $7.6 billion, down 1.2% from the figure as of Dec. 31, 2025. Adjusted debt to adjusted capitalization, excluding accumulated other comprehensive income, was 21.2%, which improved 20 basis points (bps) from the 2025-end level.
Total shareholders' equity of $30 billion advanced 1.6% from the 2025-end figure.
Adjusted book value per share increased 5.7% year over year to $54.96. Adjusted return on equity, excluding foreign currency impacts, was 16.4%, which improved 80 bps year over year.
AFL’s Capital DeploymentAflac bought back shares worth $1 billion in the first quarter of 2026. Management paid a dividend of $315 million in the same quarter.
AFL’s 2026 OutlookAflac still expects a benefit ratio of 60-63% for the Aflac Japan unit in 2026. The metric for the Aflac U.S. unit is still projected to be in the 48-52% range.
The expense ratio for Aflac Japan is still estimated to be 20-23%. The same for Aflac U.S. is reiterated to be in the band of 36-39%.
Underlying earned premiums were likely to witness a year-over-year decline of 1-2% for the Japan unit in 2026. Net earned premiums for the U.S. unit were likely to be at the lower end of the 3-6% range.
The pretax profit margin for Aflac Japan is still estimated to be between 33% and 36%, and the same for Aflac U.S. is projected to be in the range of 17-20% for 2026.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
VGM ScoresAt this time, Aflac has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Aflac has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAflac is part of the Zacks Insurance - Accident and Health industry. Over the past month, Amerisafe (AMSF - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended March 2026 more than a month ago.
Amerisafe reported revenues of $81.75 million in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $0.50 for the same period compares with $0.60 a year ago.
Amerisafe is expected to post earnings of $0.53 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Amerisafe has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
, /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) announced today that President of Aflac Incorporated and Aflac U.S. Virgil R. Miller, along with Senior Executive Vice President and Aflac Incorporated Chief Financial Officer Max Brodén, will participate in a fireside chat at the Morgan Stanley U.S. Financials Conference on June 9, 2026 at 10:30 a.m. ET.
The presentation will be webcast live. Please click on the following link at least 15 minutes prior to the presentation to allow time to register or sign in.
A replay of the presentation will be available within 24 hours after the conclusion of the live event using the same web address.
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force.2 The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."
1 LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report
2 As of March 31, 2025, Aflac estimates based on company data
FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Aflac Incorporated (the Parent Company) and its subsidiaries (collectively with the Parent Company, the Company) desire to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by Company officials in communications with the financial community and contained in documents filed with or furnished to the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as "expect," "anticipate," "believe," "goal," "objective," "strategy," "may," "should," "estimate," "intend," "project," "future," "will," "assume," "potential," "target," "outlook," "continue" or similar words as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements, except as may be required by law.
The Company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:
difficult conditions in global capital markets and the economy, including inflation defaults and credit downgrades of investments global fluctuations in interest rates and exposure to significant interest rate risk concentration of business in Japan limited availability of acceptable Japanese yen-denominated investments foreign currency fluctuations in the yen/dollar exchange rate differing interpretations applied to investment valuations significant valuation judgments in determination of expected credit losses recorded on the Company's investments decreases in the Company's financial strength or debt ratings decline in creditworthiness of other financial institutions the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners deviations in actual experience from pricing and reserving assumptions ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems, and uncertainty regarding the impact of the incident involving unauthorized access to the Company's network in June 2025 subsidiaries' ability to pay dividends to the Parent Company inherent limitations to risk management policies and procedures operational risks of third-party vendors tax rates applicable to the Company may change failure to comply with restrictions on policyholder privacy and information security extensive regulation and changes in law or regulation by governmental authorities competitive environment and ability to anticipate and respond to market trends catastrophic events, including, but not limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events ability to protect the Aflac brand and the Company's reputation ability to effectively manage key executive succession changes in accounting standards level and outcome of litigation or regulatory inquiries allegations or determinations of worker misclassification in the United States Analyst and investor contact – David A. Young, 706.596.3264 or 800.235.2667 or [email protected]
Media contact – Ines Gutzmer, 762.207.7601 or [email protected]
On June 03, 2026, we present a detailed DCF analysis for Aflac Inc AFL , a company that has shown a price performance of +11.8% over the past year. The current price of AFL is $113.63, with a market capitalization of $57,836 million. Here are some key points to consider:
DCF Earnings-based intrinsic value of $110.09 vs current price of $113.63 (margin of safety: -3.2%) DCF FCF-based intrinsic value of $64.36 vs current price (second opinion suggests modestly overvalued) GF Score™ of 75/100 indicates a reliable assessment of the DCF inputs What Is AFL Worth? DCF Earnings-Based Model The DCF earnings-based model for Aflac Inc utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage considers a growth period of 10 years, where the earnings per share (EPS) is expected to grow at a rate of 9.9% annually. The second stage accounts for a terminal growth rate of 4% for the following 10 years. The discount rate applied in this model is 11%, which combines the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $6.92 10-Year Growth Rate 9.9% 10-Year Treasury Rate 4.48% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 9.9%, discounted at 11% $65.54 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $44.55 Intrinsic Value Growth + Terminal $110.09 With the current price at $113.63, the intrinsic value of $110.09 indicates that Aflac Inc is fairly valued, with a margin of safety of -3.2%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For more detailed calculations, visit the AFL DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Aflac Inc is calculated at $64.36. When comparing this with the earnings-based intrinsic value of $110.09, there is a significant discrepancy, indicating that the two models do not agree. The FCF-based valuation suggests that Aflac Inc is modestly overvalued, with a margin of safety of -76.5%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Aflac Inc is calculated at $109.88, providing a third perspective on the valuation of the stock. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When comparing all three models, the DCF earnings-based model and GF Value™ suggest that Aflac Inc is fairly valued, while the FCF model indicates it is modestly overvalued. For further insights, visit the GF Value™ page.
What Does AFL's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006 to 2021. Here is a summary of Aflac Inc's GF Score™:
Metric Rating GF Score™ 75/100 Financial Strength 6/10 Profitability 6/10 Growth 4/10 Valuation 7/10 Momentum 8/10 With a predictability rank of 1/5 stars, it indicates that the DCF model may be less reliable for this stock. For more information, visit the AFL stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Aflac Inc's 1/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the overall verdict for Aflac Inc is that it is fairly valued according to the earnings-based DCF model, while the FCF model indicates it is modestly overvalued. The GF Value™ aligns closely with the earnings-based DCF, suggesting a balanced view on valuation. For the full DCF analysis, visit the AFL DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is AFL's intrinsic value based on DCF?
Answer: earnings-based $110.09, FCF-based $64.36
Is AFL overvalued or undervalued?
Answer: The earnings-based DCF suggests fair value, while the FCF model indicates modest overvaluation.
How reliable is the DCF model for AFL?
Answer: The predictability rank of 1/5 suggests lower reliability for the DCF model.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Insurance stocks can be a volatile play—with earnings hit by floods, wildfires, interest rates, and claims inflation. And then there’s Aflac NYSE: AFL.
Aflac Today
$117.56 +1.11 (+0.95%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$96.95▼
$119.81Dividend Yield2.08%
P/E Ratio13.34
Price Target$112.27
This conservative insurer that’s letting investors sleep at night is spinning off steady cash, hiking its dividend, buying back stock, and enjoying long-term appreciation. In fact, Aflac has raised its dividend for 44 consecutive years, and after a strong first quarter in 2026, the company shows no signs of stopping.
The question is whether the stock’s well-earned reputation is already baked into the price, or whether there is still enough upside for new buyers. For retail investors who prefer reliability over excitement, Aflac might be the duck that quacks income.
Get Aflac alerts:
How Aflac Makes Its MoneyMany investors know the Columbus, Georgia-based insurer best from its TV commercials featuring a quacking duck. Few might understand how the company makes money.
The company does sell life insurance and disability insurance, but it is better known as a supplemental insurance provider, meaning it sells policies that pay cash directly to policyholders when they experience a covered illness or injury.
The business model is simple. When a cancer diagnosis or accident forces someone out of work, Aflac’s cash benefits help cover everyday expenses, such as mortgage payments, groceries, or utility bills, that a standard health insurance policy doesn’t touch.
That niche has made Aflac a dominant force in two different markets. In the United States, the company sells its supplemental plans primarily through employers, building long-term relationships with businesses.
In Japan, where Aflac has operated since 1974, the company holds a commanding position in cancer insurance and medical indemnity products. Indeed, half of Aflac’s business comes from Japan, where its brand recognition rivals that of the largest domestic insurers.
Earnings Remain Steady Beneath the HeadlinesWhile Aflac’s first-quarter earnings appear dramatic, underneath the numbers is a steadier picture.
On an unadjusted basis, net earnings jumped to $1 billion, or $1.98 per diluted share. That compared with just $29 million, or 5 cents per diluted share, in the same period a year ago, when the company suffered net investment losses of $963 million, or $1.76 per diluted share. In contrast, this year’s first three months delivered investment gains of $49 million, or 10 cents a share.
Adjusted earnings, without the returns on investment, tell a more modest yet solid story. Adjusted earnings came in at $901 million for the quarter, essentially flat with the $906 million from a year earlier. Adjusted earnings per diluted share rose 5.4% to $1.75, thanks largely to a shrinking pool of shares as the company continued buying back its stock.
Japan and the U.S. Continue Driving GrowthIts two dominant markets also tell a more nuanced story. In Japan, pretax adjusted earnings rose 5.1% in dollar terms to $759 million, on net earned premiums of $1.57 billion. In domestic yen terms, net earned premiums were down 4% YOY. At the same time, new annualized premium sales for the quarter climbed 25.5%, driven by recent health-related products designed for younger Japanese consumers.
In the United States, net earned premiums grew 3.5% to $1.56 billion, while pretax adjusted earnings edged up 1.4% to $363 million. Again, these are not exciting numbers, but more of the steady growth investors have come to expect.
For all of 2025, for example, Aflac reported adjusted earnings of $4 billion, or $7.49 per diluted share, a modest decline from $4.1 billion in 2024 in absolute terms. But with stock buybacks, it was still a per-share improvement.
Shareholder Returns Remain a PriorityOverall MarketRank™79th Percentile
Analyst RatingHold
Upside/Downside4.8% Downside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment0.82 Insider TradingSelling Shares
Proj. Earnings Growth8.62%
See Full Analysis
Buybacks and dividends are fundamental to Aflac with no signs of slowing. The company set its quarterly dividend at 61 cents per share in the first quarter after a 5.2% increase. It also said it returned $1.3 billion to shareholders during the quarter alone, including $1 billion in share repurchases and $315 million in dividends.
This type of consistency has kept the stock well priced. Shares are up more than 10% over the past 12 months, and up about 5% this year. Over five years, the stock has doubled. With a P/E ratio of about 13 and a dividend yield slightly above 2%, the company’s steady performance and payouts are evident.
As such, Wall Street analysts are largely split on the stock, with an overall recommendation landing at a Hold rating, signaling the current price may already reflect much of the company’s quality. In fact, with 12 analysts following the stock, the 12-month price target of $112.27 is basically flat from current levels. Six analysts recommend Hold, four suggest Buy, and two recommend Sell.
Aflac Remains a Reliable Income StockAflac is clearly not a stock for investors chasing rapid growth. It is a stock for investors who want to own a piece of a durable, well-managed business that reliably generates cash, increases its dividend, and steadily reduces its share count.
The approach is simple. Aflac is one of the more dependable income-generating stocks in the insurance arm of the financial sector, competing against rivals such as MetLife NYSE: MET and the Colonial Life unit of Unum Group NYSE: UNM.
There will be some earnings volatility with currency fluctuations and investment outcomes, and the stock will respond. But for investors who want steadiness over surprise, the duck is still worth considering. The main risk isn’t that the company stumbles. It’s that investors pay a full price for a business that the market already understands very well.
Should You Invest $1,000 in Aflac Right Now?Before you consider Aflac, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Aflac wasn't on the list.
While Aflac currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.
ST. PAUL, Minn.--(BUSINESS WIRE)--Ecolab Inc. (NYSE: ECL):
FIRST QUARTER HIGHLIGHTS
Ecolab delivered another quarter of double-digit EPS growth, driven by continued strong value pricing, accelerated volume growth and solid operating income margin expansion. Reported sales $4.1 billion, +10%. Organic sales accelerated to +4%, led by accelerated growth in Life Sciences, Global High-Tech, Institutional and Specialty. Pest Elimination and Food & Beverage continued to deliver strong growth. Reported operating income margin 15.3%. Adjusted operating income margin increased 70 bps to 16.7%. Reported diluted EPS $1.52, +8%. Adjusted diluted EPS $1.70, +13%. MAINTAINS 2026 OUTLOOK
2026: Continue to expect adjusted diluted EPS in the $8.43 to $8.63 range, +12% to 15%, excluding the impact of the pending CoolIT Systems acquisition. Ecolab expects to quickly offset rising commodity costs through accelerating pricing, record new business wins and improved productivity. 2Q 2026: Expect adjusted diluted EPS in the $2.02 to $2.12 range, +7% to 12%. This range reflects a short transition period as benefits from the energy surcharge progressively build to offset higher commodity costs. First Quarter Ended March 31
Reported
Adjusted
(unaudited)
Public Currency Rates
%
Public Currency Rates
%
(millions, except per share)
2026
2025
Change
2026
2025
Change
Net sales
$4,066.1
$3,695.0
10
%
$4,066.1
$3,695.0
10
%
Operating income
622.0
555.3
12
%
679.7
589.6
15
%
Net income attributable to Ecolab
432.6
402.5
7
%
482.5
427.1
13
%
Diluted earnings per share attributable to Ecolab
$1.52
$1.41
8
%
$1.70
$1.50
13
%
Organic
%
2026
2025
Change
Net sales
$3,957.3
$3,823.1
4
%
Operating income
664.9
616.2
8
%
CEO Comment
Christophe Beck, Ecolab’s chairman, president and chief executive officer, said, “We delivered another strong quarter, with accelerated sales growth and double-digit earnings growth reflecting the strength of our growth engines and the improving performance of our core businesses. That performance was driven by strong value pricing, accelerated volume growth and improved productivity, demonstrating the power of our technology- and service-led model and the way our teams execute every day to deliver for customers in a complex operating environment.
“Accelerated organic sales growth this quarter was led by our growth engines, which collectively strengthened over the prior quarter. Life Sciences accelerated to 11% growth, driven by bioprocessing, which more than doubled its sales during the quarter. Pest Elimination grew 7%, with strong gains from our One Ecolab growth initiative and our new pest intelligence offering. Ecolab Digital and Global High-Tech both grew more than 20%, reflecting strong customer demand for connected, outcome-based solutions. Our core businesses also delivered strong performance as Institutional and Specialty both improved, and Food & Beverage continued to significantly outperform market trends.
“During the quarter, we responded quickly to sharply rising global energy costs driven by geopolitical developments. We took decisive actions across our supply chain, procurement and operations to absorb cost pressures wherever possible. We also announced a global energy surcharge to mitigate the dramatic rise in energy prices. As a result, commodity costs are expected to increase high‑single digits starting in the second quarter, and we expect those costs to remain high through the end of the year. Our priority is, and always will be, being there for our customers and supporting their operations no matter what the environment looks like.
“As we move into the second quarter, we expect a short transition period as we absorb rising commodity costs, while the benefits from the energy surcharge progressively build. Exiting the second quarter, we expect accelerating pricing to cover the dollar impact from higher commodity costs, with gross margin stabilizing in the second half of the year. With this, along with strong new business wins and improved productivity, we expect Ecolab’s performance to strengthen in the second half of the year and are reiterating our expectation to deliver 12-15% adjusted EPS growth in 2026, excluding the impact of the recently announced acquisition of CoolIT Systems.
“The pending acquisition of CoolIT is an important strategic step for Ecolab, further strengthening our Global High-Tech growth engine and extending our leadership in high-performance cooling for data centers. Our combined end-to-end cooling technologies enable leading hyperscale and colocation data centers to put more power towards computing, with less water and energy consumption. Overall, we are confident in our team’s ability to execute and deliver for customers and shareholders, supported by the strong momentum of our growth engines and solid performance in our core businesses.”
First Quarter 2026 Consolidated Results
Ecolab’s first quarter reported sales increased 10%. Organic sales growth accelerated to 4% when compared to the prior year. Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.
First quarter 2026 reported operating income increased 12% including the impact of special gains and charges. Adjusted operating income increased 15%, as accelerated sales growth and improved productivity more than offset higher commodity costs and growth-oriented investments in the business.
Reported other income in the first quarter of 2026 decreased $4 million. Reported net interest expense increased $14 million reflecting the impact of lower cash balances and new debt used to fund the Ovivo Electronics acquisition. Together, these items reduced adjusted earnings per share by $0.05 in the first quarter of 2026, while currency translation increased earnings per share by $0.08.
The reported income tax rate for the first quarter of 2026 was 21.8% compared with the reported rate of 20.3% in the first quarter of 2025. Excluding special gains and charges and discrete tax items, the adjusted tax rate for the first quarter of 2026 was 21.0% compared with the adjusted tax rate of 20.8% in the first quarter of 2025.
Reported net income increased 7% versus the prior year. Excluding the impact of special gains and charges and discrete tax items, adjusted net income increased 13% versus the prior year.
Reported diluted earnings per share increased 8% versus the prior year. Adjusted diluted earnings per share increased 13% when compared against the first quarter of 2025.
Ecolab repurchased approximately 1.3 million shares of its common stock during the first quarter of 2026.
First Quarter 2026 Segment Review
Global Water
(unaudited)
First Quarter Ended March 31
Organic
(millions)
2026
2025
% Change
% Change
Fixed currency
Sales
$2,035.2
$1,899.5
7
%
2
%
Operating income
297.8
278.7
7
%
0
%
Operating income margin
14.6
%
14.7
%
Organic operating income margin
14.3
%
14.7
%
Public currency
Sales
$2,043.0
$1,826.4
12
%
Operating income
299.3
264.1
13
%
The Global Water segment includes Heavy Water, Light Water, High-Tech, Food & Beverage, and Paper
Fixed currency sales increased 7%, driven by a 5% benefit from the Ovivo Electronics acquisition and organic sales growth of 2%. Performance was led by more than 20% organic growth in Global High-Tech, reflecting robust growth across both microelectronics and data centers. Food & Beverage continued to grow mid-single digits, driven by attractive new business wins from our One Ecolab growth strategy. Light Water delivered steady performance, driven by solid gains in transportation. Collectively, the headwind from softer sales in Heavy Water and Paper stabilized, driven by good new business wins. Organic operating income was stable as sales growth offset higher commodity costs and growth-oriented investments in the business. Global Water’s underlying performance remained strong when excluding Heavy Water and Paper, which together reduced organic sales growth by low-single digits and organic operating income growth by upper-single digits.
Global Institutional & Specialty
(unaudited)
First Quarter Ended March 31
Organic
(millions)
2026
2025
% Change
% Change
Fixed currency
Sales
$1,507.7
$1,454.8
4
%
4
%
Operating income
347.5
308.4
13
%
13
%
Operating income margin
23.0
%
21.2
%
Organic operating income margin
23.0
%
21.2
%
Public currency
Sales
$1,511.4
$1,418.0
7
%
Operating income
348.2
301.2
16
%
Fixed currency and organic sales growth both improved to 4%. Institutional’s improved performance was driven by good growth with hospitality customers. Specialty’s sales grew high-single digits, with accelerated growth driven by robust new business wins and continued value pricing. Organic operating income increased 13%, as strong sales growth more than offset higher commodity costs.
Global Pest Elimination
(unaudited)
First Quarter Ended March 31
Organic
(millions)
2026
2025
% Change
% Change
Fixed currency
Sales
$310.1
$287.4
8
%
7
%
Operating income
51.7
47.7
8
%
10
%
Operating income margin
16.7
%
16.6
%
Organic operating income margin
17.0
%
16.6
%
Public currency
Sales
$310.8
$280.6
11
%
Operating income
51.9
46.5
12
%
Fixed currency sales increased 8%, reflecting 7% organic growth and a 1% benefit from attractive, targeted acquisitions in North America. Strong organic sales growth was led by robust gains in restaurants, food retail, food & beverage and healthcare, which continue to benefit from our One Ecolab growth strategy. Organic operating income increased 10% as strong sales growth and improved productivity more than offset growth-oriented investments, including pest intelligence.
Global Life Sciences
(unaudited)
First Quarter Ended March 31
Organic
(millions)
2026
2025
% Change
% Change
Fixed currency
Sales
$200.9
$181.4
11
%
11
%
Operating income
37.5
31.0
21
%
21
%
Operating income margin
18.7
%
17.1
%
Organic operating income margin
18.7
%
17.1
%
Public currency
Sales
$200.9
$170.0
18
%
Operating income
37.7
26.6
42
%
Fixed currency and organic sales growth both accelerated to 11%. This strong growth was driven by bioprocessing, which more than doubled its sales during the quarter. This, along with robust growth in pharmaceutical & personal care, overcame temporary capacity constraints within Life Sciences’ industrial water purification business. Organic operating income increased 21%, as strong sales growth and lower supply chain costs more than offset unfavorable mix and growth-oriented investments in the business. Life Sciences’ current upper-teens organic operating income margin reflects strong underlying profitability and continued investments in breakthrough innovation, global capabilities, and capacity to unlock this very attractive, long-term growth opportunity.
Corporate
(unaudited)
First Quarter Ended March 31
(millions)
2026
2025
Public currency
Corporate operating expense
Transformational acquisition amortization
$57.4
$48.8
Special (gains) and charges
57.7
34.3
Total Corporate operating expense (income)
$115.1
$83.1
First quarter of 2026 corporate segment includes:
amortization expense of $28 million related to the Nalco merger intangible assets, $22 million related to Purolite acquisition intangible assets and $8 million related to the Ovivo Electronics acquisition intangible assets special gains and charges were a net charge of $58 million, primarily related to One Ecolab and acquisition and integration costs for the Ovivo Electronics and pending CoolIT Systems acquisitions Special gains and charges for the first quarter of 2025 impacting operating expense were a net charge of $34 million primarily related to One Ecolab.
Business Outlook
2026
Long-term growth trends in water, hygiene, infection prevention, and digital technologies continue to fuel resilient demand for Ecolab’s innovative technologies and services. Strong momentum in Ecolab’s growth engines, which include Global High-Tech, Life Sciences, Pest Elimination and Ecolab Digital, is expected to continue to strengthen Ecolab’s overall performance. Ecolab’s investments in these areas position the company well to capitalize on these attractive long-term high-growth, high-margin opportunities.
In the near-term, the global operating environment remains unpredictable, including constantly evolving geopolitics and international trade policy, which are resulting in rising commodity costs and emerging challenges in the Middle East. Importantly, the company is very well positioned to quickly mitigate the impact of these challenges. Over the past few years, Ecolab’s team has demonstrated it can adjust quickly to deliver high performance in almost any environment, which is why even with these dynamic macroeconomic conditions, Ecolab’s confidence in its performance trajectory remains strong. Pricing is expected to progressively accelerate over the next few quarters as the energy surcharge gets implemented. At the same time, Ecolab remains focused on delivering incremental total value to customers that over time will exceed the total price increases. As the company exits the second quarter, it expects accelerating pricing to cover the dollar impact from higher commodity costs, with gross margin stabilizing in the second half of the year.
With progressively accelerating pricing and the acquisition of Ovivo Electronics, Ecolab expects 2026 reported sales to increase 9% to 11%. Organic sales growth is expected to accelerate to the 6% to 7% range in the second half of the year as pricing strengthens and volumes continue to grow. The company anticipates adjusted operating income margin to expand to approximately 19% in 2026, resulting in adjusted operating income growth of 14% to 16%.
In total, Ecolab continues to expect full year 2026 adjusted diluted earnings per share in the $8.43 to $8.63 range, rising 12% to 15% compared with adjusted diluted earnings per share of $7.53 in 2025. This outlook excludes the impact of the recently announced acquisition of CoolIT Systems, which is expected to close during the third quarter.
The company currently anticipates quantifiable special charges in 2026 to be approximately $0.60 to $0.65 per share, principally related to restructuring charges. Other than the special gains and charges noted above, other such amounts are not currently quantifiable.
2026 – Second Quarter
Ecolab expects second quarter 2026 adjusted diluted earnings per share in the $2.02 to $2.12 range, rising 7% to 12% compared with adjusted diluted earnings per share of $1.89 a year ago. This range reflects a short transition period as benefits from the energy surcharge progressively build to offset higher commodity costs.
The company currently expects quantifiable special charges in the second quarter of 2026 to be approximately $0.22 per share, principally related to restructuring charges. Other than the special gains and charges noted above, other such amounts are not currently quantifiable.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL) is a global leader in water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. For more than a century, Ecolab has advanced innovation by integrating science-based solutions, data-driven insights, AI technology and world-class service. This unique combination enables Ecolab to partner with customers to define what best-in-class looks like and scale it across their operations, helping them achieve peak performance. Today, Ecolab delivers $16 billion in annual sales, employs 48,000 associates and serves customers in more than 170 countries and 40 industries. The company helps protect one-third of the world’s food production and a quarter of the power generated while delivering innovative solutions across food, hospitality, healthcare, data centers, microelectronics and life sciences. As the world’s water company, Ecolab plays an important role in AI growth by supporting the full water needs of advanced computing—from ultra‑pure water for chip manufacturing, to water solutions that support the power behind AI, to direct liquid cooling systems for high‑density computing that improves performance while reducing environmental impact through circular water use. In life sciences, Ecolab delivers end to end solutions that support the development and manufacturing of life-saving drugs, helping customers operate safely and consistently at scale while improving performance and reducing environmental impact. Through its comprehensive approach, Ecolab protects what’s vital, with a goal by 2030 to help protect 2 billion people from infections and conserve enough drinking water for 1 billion people, while continuing to enhance business performance.
Ecolab. Protecting What’s Vital.
www.ecolab.com
Ecolab will host a live webcast to review the first quarter earnings announcement today at 1:00 p.m. Eastern Time. The webcast, along with related materials, will be available to the public on Ecolab's website at www.ecolab.com/investor. A replay of the webcast and related materials will be available at that site.
Cautionary Statements Regarding Forward-Looking Information
This news release contains certain statements relating to future events and our intentions, beliefs, expectations and predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “we believe,” “we expect,” “estimate,” “project,” “may,” “will,” “intend,” “plan,” “believe,” “target,” “forecast” (including the negative or variations thereof) or similar terminology used in connection with any discussion of future plans, actions or events generally identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding macroeconomic conditions and our financial and business performance and prospects, including sales, earnings, special gains and charges, raw material costs, margins, pricing, currency translation, productivity, investments, acquisitions and new business. These statements are based on the current expectations of management of the company. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this news release. In particular, the ultimate results of any restructuring initiative depend on a number of factors, including the development of final plans, the impact of local regulatory requirements regarding employee terminations, the time necessary to develop and implement the restructuring initiatives and the level of success achieved through such actions in improving competitiveness, efficiency and effectiveness.
Additional risks and uncertainties that may affect operating results and business performance are set forth under Item 1A of our most recent Form 10-K, and our other public filings with the Securities and Exchange Commission (the "SEC"), and include the impact of economic factors such as the worldwide economy, interest rates, foreign currency risk, reduced sales and earnings in our international operations resulting from the weakening of local currencies versus the U.S. dollar, demand uncertainty, supply chain challenges and inflation; the vitality of the markets we serve; exposure to global economic, political and legal risks related to our international operations, including international trade policies, geopolitical instability and the escalation of armed conflicts; our increasing reliance on artificial intelligence technologies in our products, services and operations; information technology infrastructure failures or breaches in data security; difficulty in procuring raw materials or fluctuations in raw material costs; our ability to successfully execute organizational change and management transitions; the occurrence of severe public health outbreaks not limited to COVID-19; our ability to acquire complementary businesses and to effectively integrate such businesses; our ability to execute key business initiatives; our ability to successfully compete with respect to value, innovation and customer support; pressure on operations from consolidation of customers or vendors; restraints on pricing flexibility due to contractual obligations and our ability to meet our contractual commitments; the costs and effects of complying with laws and regulations, including those relating to the environment, climate change standards, and to the manufacture, storage, distribution, sale and use of our products, as well as to the conduct of our business generally, including labor and employment and anti-corruption; potential safety incidents; potential chemical spill or release; potential to incur significant tax liabilities or indemnification liabilities relating to the separation and split-off of our ChampionX business; the occurrence of litigation or claims, including class action lawsuits; the loss or insolvency of a major customer or distributor; repeated or prolonged government and/or business shutdowns or similar events; acts of war or terrorism; natural or man-made disasters; water shortages; severe weather conditions; our commitments, goals, targets, objectives and initiatives related to sustainability, and our public statements and disclosures regarding them; changes in tax laws and unanticipated tax liabilities; potential loss of deferred tax assets; our indebtedness, and any failure to comply with covenants that apply to our indebtedness; potential losses arising from the impairment of goodwill or other assets; and other uncertainties or risks reported from time to time in our reports to the SEC. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this news release may not occur. We caution that undue reliance should not be placed on forward-looking statements, which speak only as of the date made. Ecolab does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in expectations, except as required by law.
Non-GAAP Financial Information
This news release and certain of the accompanying tables include financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”).
These non-GAAP financial measures may include:
fixed currency sales organic sales adjusted cost of sales adjusted gross profit adjusted gross margin fixed currency operating income fixed currency operating income margin adjusted operating income adjusted fixed currency operating income adjusted fixed currency operating income margin organic operating income organic operating income margin adjusted tax rate adjusted net income attributable to Ecolab adjusted diluted earnings per share free cash flow We provide these measures as additional information regarding our operating results. We use these non-GAAP measures internally to evaluate our performance and in making financial and operational decisions, including with respect to incentive compensation. We believe that our presentation of these measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparison of results.
Our non-GAAP financial measures for adjusted cost of sales, adjusted gross margin, adjusted gross profit and adjusted operating income exclude the impact of special (gains) and charges and our non-GAAP financial measures for adjusted tax rate, adjusted net income attributable to Ecolab and adjusted diluted earnings per share further exclude the impact of discrete tax items. Adjusted diluted earnings per share also excludes the impact of the Ovivo Electronics acquisition in the fourth quarter of 2025. We include items within special (gains) and charges and discrete tax items that we believe can significantly affect the period-over-period assessment of operating results and not necessarily reflect costs and/or income associated with historical trends and future results. After tax special (gains) and charges are derived by applying the applicable local jurisdictional tax rate to the corresponding pre-tax special (gains) and charges.
We evaluate the performance of our international operations based on fixed currency rates of foreign exchange, which eliminate the translation impact of exchange rate fluctuations on our international results. Fixed currency amounts included in this release are based on translation into U.S. dollars at the fixed foreign currency exchange rates established by management at the beginning of 2026. We also provide our segment results based on public currency rates for informational purposes.
Our reportable segments do not include the impact of intangible asset amortization from the Nalco, Purolite and Ovivo Electronics transactions or the impact of special (gains) and charges as these are not allocated to the Company’s reportable segments.
Our non-GAAP financial measures for organic sales, organic operating income and organic operating income margin are at fixed currency and exclude the impact of special (gains) and charges where applicable, the results of our acquired businesses from the first twelve months post acquisition and the results of divested businesses from the twelve months prior to divestiture.
We define free cash flow as net cash provided by operating activities less cash outlays for capital expenditures. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. It should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. We believe free cash flow is meaningful to investors as it functions as a useful measure of performance and we use this measure as an indication of the strength of the Company and its ability to generate cash.
These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. Investors should not rely on any single financial measure when evaluating our business. We recommend that investors view these measures in conjunction with the GAAP measures included in this news release. Reconciliations of our non-GAAP measures are included in the following "Supplemental Non-GAAP Reconciliations" and “Supplemental Diluted Earnings per Share Information” tables included in this news release.
We do not provide reconciliations for non-GAAP estimates on a forward-looking basis (including those contained in this news release) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of various items that have not yet occurred, are out of our control and/or cannot be reasonably predicted, and that would impact reported earnings per share and the reported tax rate, the most directly comparable forward-looking GAAP financial measures to adjusted earnings per share and the adjusted tax rate. For the same reasons, we are unable to address the probable significance of the unavailable information.
(ECL-E)
ECOLAB INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
First Quarter Ended
March 31
%
(millions, except per share)
2026
2025
Change
Product and equipment sales
$3,174.6
$2,901.9
Service and lease sales
891.5
793.1
Net sales
4,066.1
3,695.0
10
%
Product and equipment cost of sales
1,786.2
1,605.4
Service and lease cost of sales
509.1
454.8
Cost of sales (1)
2,295.3
2,060.2
11
%
Selling, general and administrative expenses
1,102.4
1,050.0
5
%
Special (gains) and charges (1)
46.4
29.5
Operating income
622.0
555.3
12
%
Other (income) expense
(8.8
)
(13.0
)
(32
)
%
Interest expense, net
72.7
58.3
25
%
Income before income taxes
558.1
510.0
9
%
Provision for income taxes
121.5
103.5
17
%
Net income including noncontrolling interest
436.6
406.5
7
%
Net income attributable to noncontrolling interest
4.0
4.0
Net income attributable to Ecolab
$432.6
$402.5
7
%
Earnings attributable to Ecolab per common share
Basic
$1.53
$1.42
8
%
Diluted
$1.52
$1.41
8
%
Weighted-average common shares outstanding
Basic
282.0
283.4
0
%
Diluted
283.7
285.3
(1
)
%
(1) Cost of sales and Special (gains) and charges in the Consolidated Statement of Income above include the following:
First Quarter Ended
March 31
(millions)
2026
2025
Cost of sales
One Ecolab
$1.6
$4.8
Other restructuring
9.7
-
Subtotal (a)
11.3
4.8
Special (gains) and charges
One Ecolab
31.4
39.4
Acquisition and integration activities
14.1
1.5
Sale of global surgical solutions business
-
1.6
Other
0.9
(13.0
)
Subtotal
46.4
29.5
Total special (gains) and charges
$57.7
$34.3
(a) Special charges of $11.3 million and $4.8 million in the first quarter of 2026 and 2025, respectively, were recorded in product and equipment cost of sales.
ECOLAB INC.
REPORTABLE SEGMENT INFORMATION
(unaudited)
First Quarter Ended March 31
Fixed Currency Rates
Public Currency Rates
%
%
(millions)
2026
2025
Change
2026
2025
Change
Net Sales
Global Water
$2,035.2
$1,899.5
7
%
$2,043.0
$1,826.4
12
%
Global Institutional & Specialty
1,507.7
1,454.8
4
%
1,511.4
1,418.0
7
%
Global Pest Elimination
310.1
287.4
8
%
310.8
280.6
11
%
Global Life Sciences
200.9
181.4
11
%
200.9
170.0
18
%
Subtotal at fixed currency rates
4,053.9
3,823.1
6
%
4,066.1
3,695.0
10
%
Currency impact
12.2
(128.1
)
*
-
-
*
Consolidated reported GAAP net sales
$4,066.1
$3,695.0
10
%
$4,066.1
$3,695.0
10
%
Operating Income (loss)
Global Water
$297.8
$278.7
7
%
$299.3
$264.1
13
%
Global Institutional & Specialty
347.5
308.4
13
%
348.2
301.2
16
%
Global Pest Elimination
51.7
47.7
8
%
51.9
46.5
12
%
Global Life Sciences
37.5
31.0
21
%
37.7
26.6
42
%
Corporate
(114.8
)
(83.5
)
*
(115.1
)
(83.1
)
*
Subtotal at fixed currency rates
619.7
582.3
6
%
622.0
555.3
12
%
Currency impact
2.3
(27.0
)
*
-
-
*
Consolidated reported GAAP operating income
$622.0
$555.3
12
%
$622.0
$555.3
12
%
* Not meaningful.
As shown in the “Fixed Currency Rates” tables above, we evaluate the performance of our international operations based on fixed currency exchange rates, which eliminate the impact of exchange rate fluctuations on our international operations. Amounts shown in the “Public Currency Rates” tables above reflect amounts translated at actual public average rates of exchange prevailing during the corresponding period and are provided for informational purposes. The difference between the fixed currency exchange rates and the public currency exchange rates is reported as “Currency impact” in the “Fixed Currency Rates” tables above.
The Corporate segment includes amortization from the Nalco, Purolite and Ovivo Electronics transactions intangible assets. The Corporate segment also includes special (gains) and charges reported on the Consolidated Statement of Income.
ECOLAB INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31
December 31
March 31
(millions)
2026
2025
2025
Assets
Current assets
Cash and cash equivalents
$519.8
$646.2
$1,162.6
Accounts receivable, net
3,280.2
3,249.4
2,857.1
Inventories
1,572.0
1,490.4
1,547.2
Other current assets
670.7
569.6
514.2
Total current assets
6,042.7
5,955.6
6,081.1
Property, plant and equipment, net
4,397.2
4,276.6
3,775.8
Goodwill
9,438.7
9,227.0
7,864.5
Other intangible assets, net
3,524.2
3,688.5
3,228.7
Operating lease assets
775.1
765.9
750.7
Other assets
862.7
782.7
665.6
Total assets
$25,040.6
$24,696.3
$22,366.4
Liabilities and Equity
Current liabilities
Short-term debt
$1,573.2
$870.4
$614.2
Accounts payable
2,054.8
2,071.0
1,765.6
Compensation and benefits
571.4
721.5
540.1
Income taxes
127.4
134.3
178.5
Other current liabilities
1,768.9
1,737.5
1,510.8
Total current liabilities
6,095.7
5,534.7
4,609.2
Long-term debt
6,922.5
7,365.9
6,997.6
Pension and postretirement benefits
547.6
546.1
590.2
Deferred income taxes
389.5
329.9
249.4
Operating lease liabilities
603.5
596.5
598.8
Other liabilities
449.8
518.7
417.5
Total liabilities
15,008.6
14,891.8
13,462.7
Equity
Common stock
370.2
369.4
368.6
Additional paid-in capital
7,643.7
7,521.3
7,298.2
Retained earnings
13,060.5
12,834.0
11,735.2
Accumulated other comprehensive loss
(1,626.1
)
(1,874.3
)
(2,064.2
)
Treasury stock
(9,444.4
)
(9,079.6
)
(8,462.0
)
Total Ecolab shareholders’ equity
10,003.9
9,770.8
8,875.8
Noncontrolling interest
28.1
33.7
27.9
Total equity
10,032.0
9,804.5
8,903.7
Total liabilities and equity
$25,040.6
$24,696.3
$22,366.4
ECOLAB INC.
SUPPLEMENTAL NON-GAAP RECONCILIATIONS
(unaudited)
First Quarter Ended
March 31
(millions, except percent and per share)
2026
2025
Net sales
Reported GAAP net sales
$4,066.1
$3,695.0
Effect of foreign currency translation
(12.2
)
128.1
Non-GAAP fixed currency sales
4,053.9
3,823.1
Effect of acquisitions and divestitures
(96.6
)
-
Non-GAAP organic sales
$3,957.3
$3,823.1
Cost of sales
Reported GAAP cost of sales
$2,295.3
$2,060.2
Special (gains) and charges
11.3
4.8
Non-GAAP adjusted cost of sales
$2,284.0
$2,055.4
Gross profit
Reported GAAP gross profit
$1,770.8
$1,634.8
Special (gains) and charges
11.3
4.8
Non-GAAP adjusted gross profit
$1,782.1
$1,639.6
Gross margin
Reported GAAP gross margin
43.6
%
44.2
%
Non-GAAP adjusted gross margin
43.8
%
44.4
%
Operating income
Reported GAAP operating income
$622.0
$555.3
Special (gains) and charges at public currency rates
57.7
34.3
Non-GAAP adjusted operating income
679.7
589.6
Effect of foreign currency translation
(3.4
)
26.6
Non-GAAP adjusted fixed currency operating income
676.3
616.2
Effect of acquisitions and divestitures
(11.4
)
-
Non-GAAP organic operating income
$664.9
$616.2
Operating income margin
Reported GAAP operating income margin
15.3
%
15.0
%
Non-GAAP adjusted operating income margin
16.7
%
16.0
%
Non-GAAP organic operating income margin
16.8
%
16.1
%
ECOLAB INC.
SUPPLEMENTAL NON-GAAP RECONCILIATIONS
(unaudited)
First Quarter Ended
March 31
(millions, except percent and per share)
2026
2025
Net Income attributable to Ecolab
Reported GAAP net income attributable to Ecolab
$432.6
$402.5
Special (gains) and charges, after tax
45.5
25.1
Discrete tax net expense (benefit)
4.4
(0.5
)
Non-GAAP adjusted net income attributable to Ecolab
$482.5
$427.1
Diluted EPS attributable to Ecolab
Reported GAAP diluted EPS
$1.52
$1.41
Special (gains) and charges, after tax
0.16
0.09
Discrete tax net expense (benefit)
0.02
0.00
Non-GAAP adjusted diluted EPS
$1.70
$1.50
Provision for Income Taxes
Reported GAAP tax rate
21.8
%
20.3
%
Special gains and charges
(0.1
)
0.4
Discrete tax items
(0.7
)
0.1
Non-GAAP adjusted tax rate
21.0
%
20.8
%
ECOLAB INC.
SUPPLEMENTAL NON-GAAP RECONCILIATIONS
(unaudited)
First Quarter Ended March 31
2026
2025
(millions)
Fixed Currency
Impact of
Acquisitions
and
Divestitures
Organic
Fixed Currency
Impact of
Acquisitions
and
Divestitures
Organic
Net Sales
Global Water
$2,035.2
($95.0
)
$1,940.2
$1,899.5
$-
$1,899.5
Global Institutional & Specialty
1,507.7
-
1,507.7
1,454.8
-
1,454.8
Global Pest Elimination
310.1
(1.6
)
308.5
287.4
-
287.4
Global Life Sciences
200.9
-
200.9
181.4
-
181.4
Subtotal at fixed currency rates
4,053.9
(96.6
)
3,957.3
3,823.1
-
3,823.1
Currency impact
12.2
(128.1
)
Consolidated reported GAAP net sales
$4,066.1
$3,695.0
Operating Income (loss)
Global Water
$297.8
($20.4
)
$277.4
$278.7
$-
$278.7
Global Institutional & Specialty
347.5
-
347.5
308.4
-
308.4
Global Pest Elimination
51.7
0.6
52.3
47.7
-
47.7
Global Life Sciences
37.5
-
37.5
31.0
-
31.0
Corporate
(58.2
)
8.4
(49.8
)
(49.6
)
-
(49.6
)
Subtotal at fixed currency rates
676.3
(11.4
)
664.9
616.2
-
616.2
Special (gains) and charges at fixed currency rates
56.6
33.9
Reported OI at fixed currency rates
619.7
582.3
Currency impact
2.3
(27.0
)
Consolidated reported GAAP operating income
$622.0
$555.3
ECOLAB INC.
SUPPLEMENTAL DILUTED EARNINGS PER SHARE INFORMATION
(unaudited)
The table below provides a reconciliation of diluted earnings per share, as reported, to the non-GAAP measure of adjusted diluted earnings per share.
First
Second
Six
Third
Nine
Fourth
Quarter
Quarter
Months
Quarter
Months
Quarter
Year
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Mar. 31
June 30
June 30
Sept. 30
Sept. 30
Dec. 31
Dec. 31
2025
2025
2025
2025
2025
2025
2025
Diluted earnings per share, as reported (U.S. GAAP)
$1.41
$1.84
$3.25
$2.05
$5.30
$1.98
$7.28
Adjustments:
Special (gains) and charges (1)
0.09
0.07
0.16
0.08
0.24
0.21
0.45
Discrete tax expense (benefits) (2)
0.00
(0.02
)
(0.02
)
(0.06
)
(0.08
)
(0.12
)
(0.21
)
Impact of Ovivo Electronics on diluted earnings per share
0.00
0.00
0.00
0.00
0.00
0.01
0.01
Adjusted diluted earnings per share (Non-GAAP)
$1.50
$1.89
$3.39
$2.07
$5.46
$2.08
$7.53
First
Second
Six
Third
Nine
Fourth
Quarter
Quarter
Months
Quarter
Months
Quarter
Year
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Mar. 31
June 30
June 30
Sept. 30
Sept. 30
Dec. 31
Dec. 31
2026
2026
2026
2026
2026
2026
2026
Diluted earnings per share, as reported (U.S. GAAP)
$1.52
Adjustments:
Special (gains) and charges (3)
0.16
Discrete tax expense (benefits) (4)
0.02
Adjusted diluted earnings per share (Non-GAAP)
$1.70
Per share amounts do not necessarily sum due to changes in shares outstanding and rounding.
(1) Special (gains) and charges for 2025 includes charges of $25.1 million, $20.6 million, $22.0 million and $59.7 million, net of tax, in the first, second, third and fourth quarters, respectively. These charges were primarily related to One Ecolab.
(2) Discrete tax expenses (benefits) for 2025 includes ($0.5) million, ($5.0) million, ($16.3) million and ($35.7) million in the first, second, third and fourth quarters, respectively. These expenses (benefits) are primarily associated with the recognition of deferred tax attributes, share-based compensation excess tax benefits, the filing of federal, state, and foreign tax returns, and other discrete expenses (benefits).
(3) Special (gains) and charges for 2026 includes $45.5 million, net of tax, in the first quarter. These charges were primarily related to One Ecolab and acquisition and integration costs for the Ovivo Electronics and pending CoolIT Systems acquisitions.
(4) Discrete tax expenses (benefits) for 2026 includes $4.4 million in the first quarter. These expenses (benefits) are primarily associated with share-based compensation excess tax benefits and other discrete expenses (benefits).
Ecolab (ECL - Free Report) came out with quarterly earnings of $1.7 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.06%. A quarter ago, it was expected that this cleaning, food-safety and pest-control services company would post earnings of $2.06 per share when it actually produced earnings of $2.08, delivering a surprise of +0.97%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Ecolab, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $4.07 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.05%. This compares to year-ago revenues of $3.7 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ecolab shares have added about 2% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Ecolab?While Ecolab has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ecolab was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.13 on $4.42 billion in revenues for the coming quarter and $8.45 on $17.47 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Ecovyst (ECVT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.
This specialty chemical producer is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +600%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ecovyst's revenues are expected to be $193.38 million, up 19.2% from the year-ago quarter.
Ecolab (ECL - Free Report) reported $4.07 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 10%. EPS of $1.70 for the same period compares to $1.50 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.02 billion, representing a surprise of +1.05%. The company delivered an EPS surprise of +0.06%, with the consensus EPS estimate being $1.70.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ecolab performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Fixed Currency Rates- Global Pest Elimination: $310.1 million versus $295.72 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.Net Sales- Fixed Currency Rates- Global Water: $2.04 billion versus the three-analyst average estimate of $1.97 billion.Net Sales- Fixed Currency Rates- Global Life Sciences: $200.9 million compared to the $178.13 million average estimate based on three analysts.Net Sales- Fixed Currency Rates- Global Institutional & Specialty: $1.51 billion compared to the $1.45 billion average estimate based on three analysts. The reported number represents a change of +7.2% year over year.Net Sales- Public Currency Rates- Global Life Sciences: $200.9 million compared to the $183.6 million average estimate based on two analysts.Net Sales- Public Currency Rates- Global Pest Elimination: $310.8 million versus $306.7 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.Net Sales- Public Currency Rates- Global Institutional & Specialty: $1.51 billion compared to the $1.5 billion average estimate based on two analysts. The reported number represents a change of +6.6% year over year.Net Sales- Public Currency Rates- Global Water: $2.04 billion versus the two-analyst average estimate of $2.05 billion.Operating Income (loss)- Fixed Currency Rates- Global Life Sciences: $37.5 million versus $29.91 million estimated by three analysts on average.Operating Income (loss)- Fixed Currency Rates- Global Pest Elimination: $51.7 million versus the three-analyst average estimate of $57.18 million.Operating Income (loss)- Fixed Currency Rates- Global Institutional & Specialty: $347.5 million versus the three-analyst average estimate of $323.38 million.Operating Income (loss)- Fixed Currency Rates- Corporate: $-114.8 million compared to the $-54.34 million average estimate based on three analysts.View all Key Company Metrics for Ecolab here>>>
Shares of Ecolab have returned +2.1% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways ECL delivered adjusted EPS in line, as GAAP EPS also rose from the prior year.Ecolab revenue topped expectations with Digital sales up and double-digit growth in subscriptions.ECL saw growth in Water, Pest and Life Sciences and raised sales outlook, including Ovivo Electronics. Ecolab Inc. (ECL - Free Report) has reported first-quarter 2026 adjusted earnings per share (EPS) of $1.70, up 13.3% year over year. The metric was in line with the Zacks Consensus Estimate.
GAAP EPS for the quarter was $1.52, up 7.8% year over year.
Shares of Ecolab gained nearly 0.9% in today’s pre-market trading.
ECL’s Revenue DetailsRevenues grossed $4.07 billion in the reported quarter, up 10% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.
Ecolab’s organic sales were $3.96 billion, up 3.5% from the prior-year period.
Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.
Ecolab’s Segmental AnalysisThe Global Water segment’s fixed currency sales of $2.04 billion marked 7.1% year-over-year growth, driven by a 5% benefit from the Ovivo Electronics acquisition and organic sales growth. Organic sales were $1.94 billion, up 2.1% year over year.
The segment’s performance was driven by more than 20% organic growth in Global High-Tech, reflecting robust growth across both microelectronics and data centers. Food & Beverage continued to grow mid-single digits, driven by attractive new business wins from the One Ecolab growth strategy. Light Water delivered steady performance, driven by solid gains in transportation. These, driven by good new business wins, stabilized the headwind from softer sales in Heavy Water and Paper.
The Global Institutional & Specialty arm’s fixed currency and organic sales were $1.51 billion, a year-over-year uptick of 3.6% both on a reported and organic basis. Institutional unit’s improved performance was driven by good growth with hospitality customers. Specialty unit’s sales grew high-single digits, with accelerated growth driven by robust new business wins and continued value pricing.
The Global Pest Elimination segment’s fixed currency sales of $310.1 million improved 7.9% year over year on a reported basis. This reflected strong organic growth and a 1% benefit from attractive, targeted acquisitions in North America. Organic sales were $308.5 million, up 7.3% year over year. Strong organic sales growth was led by robust gains in restaurants, food retail, food & beverage and healthcare, which continue to benefit from the One Ecolab growth strategy.
The Global Life Sciences arm’s fixed currency sales and organic sales were $200.9 million each, reflecting year-over-year growth of 10.7% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by bioprocessing, which more than doubled its sales during the quarter. This, along with robust growth in pharmaceutical & personal care, overcame temporary capacity constraints within Life Sciences’ industrial water purification business.
ECL’s Margin AnalysisIn the quarter under review, Ecolab’s gross profit improved 8.3% year over year to $1.77 billion. However, the gross margin contracted 69 basis points (bps) to 43.6%.
Selling, general and administrative expenses increased 4.9% year over year to $1.10 billion.
Adjusted operating profit totaled $668.4 million, increasing 14.3% from the prior-year quarter. The adjusted operating margin in the quarter expanded 61 bps to 16.4%.
Ecolab’s Financial PositionThe company exited first-quarter 2026 with cash and cash equivalents of $519.8 million compared with $646.2 million at the end of fourth-quarter 2025. Total debt at the end of first-quarter 2026 was $8.49 billion compared with $8.24 billion at the end of the fourth quarter of 2025.
Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.75%.
ECL’s GuidanceEcolab has provided its outlook for the second quarter of 2026 and has revised the 2026 guidance.
The company expects an adjusted EPS of $2.02 to $2.12 for the second quarter, suggesting an 7%-12% increase from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $2.13.
Including the acquisition of Ovivo Electronics, ECL now expects reported sales to increase 9%-11% and organic sales to rise 6%-7% compared with the prior outlook of 7%-9% and 3%-4% uptick, respectively, in 2026.
For 2026, Ecolab continues to expect an adjusted EPS of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2025 period’s reported number). The Zacks Consensus Estimate for adjusted EPS is pegged at $8.45.
Our Take on EcolabECL exited the first quarter of 2026 with in-line earnings and better-than-expected revenues. The company registered a robust year-over-year uptick in its top and bottom lines, along with solid performances across all segments. The expansion of the adjusted operating margin bodes well for the stock.
Per management, Ecolab’s performance in the reported quarter was driven by strong value pricing, accelerated volume growth and improved productivity, demonstrating the strength of its technology- and service-led model. Its core businesses also delivered strong performance as Institutional and Specialty both improved, and Food & Beverage continued to significantly outperform market trends. These looked promising for the stock.
However, the ongoing soft market demand in Ecolab’s Heavy Water and Paper was disappointing. The contraction of the gross margin does not bode well for the stock.
ECL’s Zacks Rank & Key PicksEcolab currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .
The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted EPS is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.
Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.
Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.
Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.
Ecolab Inc (ECL) reports robust earnings with a 13% EPS growth, while navigating commodity inflation and geopolitical pressures. Summary
Adjusted Diluted EPS Growth: 13% growth in the first quarter.Organic Sales Growth: 4% increase, driven by 3% value pricing and 1% volume growth.Operating Income Margin Expansion: Expanded by 70 basis points to 16.8%.Global High-tech and Digital Growth: More than 20% growth.Life Sciences Growth: Accelerated to 11%, with bioprocessing sales more than doubling.Pest Elimination Growth: 7% growth.Specialty Growth: 9% growth driven by cost-optimizing innovation.Food and Beverage Growth: 5% growth.Organic Operating Income Margin: Expanded by 70 basis points to 16.8%.Expected EPS Growth for 2026: 12% to 15% growth, excluding short-term impact from CoolIT acquisition.
Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Ecolab Inc ECL reported a strong first quarter with adjusted diluted EPS growth of 13%, driven by a 4% increase in organic sales.The company experienced significant growth in its Global High-tech and digital sectors, both exceeding 20% growth, fueled by digital adoption and AI infrastructure expansion.Life Sciences saw an 11% growth, particularly in bioprocessing, where sales more than doubled, indicating successful investments in talent and innovation.Pest Elimination delivered a robust 7% growth, supported by share gains from the One Ecolab initiative and the new Pest Intelligence offering.Ecolab Inc (ECL) is on track to achieve its 20% operating income margin target by 2027, with expectations of further margin expansion in the second half of the year. Negative Points The company faces high single-digit commodity cost inflation, which is expected to persist throughout the year, impacting second-quarter EPS growth.The pending CoolIT acquisition is anticipated to reduce quarterly EPS by approximately $0.20 in the second half of the year.Ecolab Inc (ECL) is dealing with challenges in its paper and heavy water segments, which have been under pressure and are only beginning to stabilize.The conflict in the Middle East has led to increased global energy costs, adding pressure across supply chains.Despite strong overall performance, the company acknowledges that the operating environment remains dynamic and complex, requiring ongoing management and adaptation. Q & A Highlights Q: In your outlook, you mentioned expecting gross margins to stabilize in the second half. How does this fit into your goal of reaching a 20% operating income margin by 2027, especially with the CoolIT acquisition?
A: Christophe Beck, CEO: We have learned to manage energy costs effectively. With commodity costs expected to rise by 9% in Q2, we plan to stabilize gross margins in the second half, excluding Ovivo, which would result in a 70 to 80 basis point increase. Our focus remains on growth, particularly in high-tech, life sciences, and digital sectors, which are less impacted by energy costs. We are confident in achieving our 20% operating income margin target by 2027.
Q: Could you elaborate on the macro scenario embedded in your guidance? Does it assume a stable demand environment or a cautious customer posture due to higher energy costs and geopolitical uncertainties?
A: Christophe Beck, CEO: Our guidance is based 90% on execution. We assume a 9% commodity inflation in Q2, expecting it to remain high through the year. We anticipate 1% volume growth in the second half, with pricing in the 5% to 6% range, leading to 6% to 7% top-line growth. Our growth engines are performing well, and we are focused on growth and managing performance.
Q: Can you discuss the performance and cross-sell opportunities of Ovivo and CoolIT within your high-tech offerings?
A: Christophe Beck, CEO: Global Hi-Tech is becoming a major growth engine, with Ovivo and CoolIT contributing significantly. Ovivo's ultra-pure water technology is crucial for microelectronics, while CoolIT's direct-to-chip cooling is in high demand for data centers. Both businesses are expected to grow rapidly, with Ovivo in the mid-teens and CoolIT exceeding 30% growth, enhancing our high-tech portfolio.
Q: How is the One Ecolab initiative performing, and are there ways to further accelerate the program?
A: Christophe Beck, CEO: One Ecolab has been successful, particularly in Food and Beverage United and with our top 35 customers, who are growing faster than the company average. Our Egentech technology is driving significant savings and performance improvements. We are still early in the journey, but the pace is picking up, aligning with our growth strategy.
Q: Can you provide more details on the $0.20 per quarter dilution from the CoolIT acquisition and its impact in 2027?
A: Scott Kirkland, CFO: The $0.20 per quarter dilution is expected in the second half of 2026, with the impact neutralizing in 2027 due to the roll-off of Nalco acquisition amortization. We anticipate EPS growth to remain in the 12% to 15% range, supported by CoolIT's high growth and margin contributions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
New facility brings deep expertise closer to Asian customers, strengthening Ecolab’s global network
SEOUL, South Korea--(BUSINESS WIRE)--Building on the continued growth and strong performance of its Life Sciences business, Ecolab is further expanding its global bioprocessing capabilities to support biopharmaceutical manufacturers worldwide. Today, Ecolab Life Sciences announced the opening of a new Bioprocessing Applications Lab (BPAL) in Dongtan, Korea, its first bioprocessing facility in Asia. The new center further strengthens the company’s global Life Sciences footprint and supports customers operating in one of the world’s most advanced biopharmaceutical manufacturing markets.
BPAL Korea is the latest example of Ecolab Life Sciences’ long-term investment in the life sciences industry, building on continued innovation across the company’s bioprocessing portfolio, including its affinity resin technologies.
Share The Korea BPAL supports a full range of process development activities from early-stage testing through studies that replicate manufacturing at scale, building on Ecolab’s established bioprocessing applications network in the United States and the United Kingdom. The facility enables hands-on collaboration with Ecolab’s bioprocessing experts to help customers optimize purification processes, enhance cost and process efficiency, and advance programs toward commercial readiness.
Korea has emerged as a global center for biopharmaceutical manufacturing, particularly in biosimilars that expand access to advanced therapies worldwide. In this highly competitive environment, manufacturers require speed, technical rigor and alignment with global standards. With bioprocessing experts now based locally, customers can progress development more efficiently by avoiding overseas material transfers, while maintaining consistency and cost efficiencies across global operations.
“Biopharmaceutical manufacturers across Asia are under increasing pressure to scale with speed while meeting demanding regulatory and performance expectations,” said Jenny Tan, vice president and general manager, Ecolab Life Sciences APAC and India. “BPAL Korea strengthens our ability to work side by side with customers, bringing deep local expertise together with Ecolab’s global, integrated bioprocessing network.”
BPAL Korea is the latest example of Ecolab Life Sciences’ long-term investment in the life sciences industry, building on continued innovation across the company’s bioprocessing portfolio, including its affinity resin technologies. By expanding its global network of development and applications centers, Ecolab Life Sciences is helping customers drive growth and scale advanced therapies with speed, reliability, and confidence worldwide.
To learn more about Ecolab Life Sciences’ bioprocess development capabilities and how BPAL Korea supports scalable, regulatory-ready purification processes, visit Ecolab’s Purolite™ Resins website here.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL) is a global leader in water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. For more than a century, Ecolab has advanced innovation by integrating science-based solutions, data-driven insights, AI technology and world-class service. This unique combination enables Ecolab to partner with customers to define what best-in-class looks like and scale it across their operations, helping them achieve peak performance. Today, Ecolab delivers $16 billion in annual sales, employs 48,000 associates and serves customers in more than 170 countries and 40 industries. The company helps protect one-third of the world’s food production and a quarter of the power generated while delivering innovative solutions across food, hospitality, healthcare, data centers, microelectronics and life sciences. As the world’s water company, Ecolab plays an important role in AI growth by supporting the full water needs of advanced computing—from ultra‑pure water for chip manufacturing, to water solutions that support the power behind AI, to direct liquid cooling systems for high‑density computing that improves performance while reducing environmental impact through circular water use. In life sciences, Ecolab delivers end to end solutions that support the development and manufacturing of life-saving drugs, helping customers operate safely and consistently at scale while improving performance and reducing environmental impact. Through its comprehensive approach, Ecolab protects what’s vital, with a goal by 2030 to help protect 2 billion people from infections and conserve enough drinking water for 1 billion people, while continuing to enhance business performance.
Ecolab. Protecting What’s Vital.
www.ecolab.com
Follow us on LinkedIn @Ecolab, Instagram @Ecolab_Inc and Facebook @Ecolab.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Agnico Eagle Mines?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Agnico Eagle Mines (AEM - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $3.20 a share, just one day from its upcoming earnings release on April 30, 2026.
By taking the percentage difference between the $3.20 Most Accurate Estimate and the $3.19 Zacks Consensus Estimate, Agnico Eagle Mines has an Earnings ESP of +0.25%. Investors should also know that AEM is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AEM is just one of a large group of Basic Materials stocks with a positive ESP figure. Ecolab (ECL - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on August 4, 2026, Ecolab holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.16 a share 97 days from its next quarterly update.
Ecolab's Earnings ESP figure currently stands at +1.37% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.13.
AEM and ECL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Concurrent Investment Advisors LLC lifted its stake in Ecolab Inc. (NYSE:ECL – Free Report) by 38.2% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 9,159 shares of the basic materials company’s stock after acquiring an additional 2,533 shares during the period. Concurrent Investment Advisors LLC’s holdings in Ecolab were worth $2,404,000 at the end of the most recent reporting period.
A number of other large investors have also recently made changes to their positions in ECL. Vanguard Group Inc. boosted its holdings in shares of Ecolab by 2.1% in the third quarter. Vanguard Group Inc. now owns 25,190,115 shares of the basic materials company’s stock worth $6,898,565,000 after acquiring an additional 527,902 shares during the period. Balyasny Asset Management L.P. boosted its holdings in shares of Ecolab by 195.9% in the third quarter. Balyasny Asset Management L.P. now owns 670,778 shares of the basic materials company’s stock worth $183,699,000 after acquiring an additional 444,053 shares during the period. M&T Bank Corp boosted its holdings in shares of Ecolab by 594.6% in the fourth quarter. M&T Bank Corp now owns 493,525 shares of the basic materials company’s stock worth $129,560,000 after acquiring an additional 422,471 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Ecolab by 115.6% in the second quarter. AQR Capital Management LLC now owns 727,370 shares of the basic materials company’s stock worth $193,753,000 after acquiring an additional 389,981 shares during the period. Finally, Holocene Advisors LP bought a new position in shares of Ecolab in the third quarter worth $97,664,000. 74.91% of the stock is owned by institutional investors.
Trending Headlines about Ecolab Here are the key news stories impacting Ecolab this week:
Positive Sentiment: Ecolab beat Q1 revenue estimates with reported sales of $4.07B (+10% y/y) and accelerated organic growth in Life Sciences, Global High‑Tech, Institutional and Specialty—driving continued double‑digit EPS growth. Ecolab Delivers Accelerated Sales Growth and Double-Digit EPS Growth Positive Sentiment: Digital sales and strong demand in life sciences/tech were highlighted as growth drivers, supporting near-term revenue momentum. ECL Stock Up in Pre-Market Post In-Line Q1 Earnings, Gross Margin Down Neutral Sentiment: Reported adjusted EPS of $1.70 matched consensus; revenue beat but gross margin tightened versus prior year—mixed signal for profitability trends. Ecolab (ECL) Q1 Earnings Match Estimates Neutral Sentiment: The company maintained FY2026 adjusted EPS guidance of $8.43–$8.63, essentially in line with consensus—providing some reassurance about full‑year targets despite near‑term uncertainty. MarketBeat Ecolab Coverage Negative Sentiment: Ecolab set Q2 EPS guidance of $2.02–$2.12, which sits slightly below consensus and prompted investor caution; management flagged higher costs tied to the Iran war as a driver of elevated near‑term expense. Ecolab forecasts second-quarter profit below estimates as Iran war pushes up costs Negative Sentiment: Reaction: shares slipped as investors focused on the mixed guidance and margin pressure despite the revenue beat—creating short‑term downside even with constructive demand trends. Ecolab slips after in-line Q1; Q2 earnings guidance mostly below consensus Insider Transactions at Ecolab In other news, Director Tracy B. Mckibben sold 1,265 shares of the firm’s stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $308.66, for a total transaction of $390,454.90. Following the transaction, the director directly owned 11,358 shares of the company’s stock, valued at approximately $3,505,760.28. This trade represents a 10.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Christophe Beck sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $307.37, for a total value of $6,147,400.00. Following the transaction, the chief executive officer directly owned 90,794 shares in the company, valued at $27,907,351.78. This trade represents a 18.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.50% of the company’s stock.
Analysts Set New Price Targets ECL has been the topic of a number of recent analyst reports. Weiss Ratings downgraded Ecolab from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, April 21st. UBS Group lowered their price objective on Ecolab from $312.00 to $293.00 and set a “neutral” rating on the stock in a research report on Thursday, April 9th. BMO Capital Markets increased their price objective on Ecolab from $323.00 to $345.00 and gave the stock an “outperform” rating in a research report on Friday, February 13th. Deutsche Bank Aktiengesellschaft upgraded Ecolab from a “hold” rating to a “buy” rating and set a $325.00 price objective on the stock in a research report on Monday, April 20th. Finally, Citigroup lowered their price objective on Ecolab from $345.00 to $330.00 and set a “buy” rating on the stock in a research report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $322.82.
View Our Latest Report on ECL
Ecolab Trading Down 0.4% Shares of ECL stock opened at $266.88 on Wednesday. The business’s fifty day moving average is $277.47 and its 200 day moving average is $273.46. Ecolab Inc. has a 52-week low of $240.92 and a 52-week high of $309.27. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.81 and a current ratio of 1.08. The company has a market capitalization of $75.37 billion, a PE ratio of 36.66, a price-to-earnings-growth ratio of 2.12 and a beta of 1.02.
Ecolab (NYSE:ECL – Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The basic materials company reported $1.70 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.70. Ecolab had a return on equity of 22.73% and a net margin of 12.91%.The business had revenue of $4.07 billion for the quarter, compared to the consensus estimate of $4.02 billion. During the same quarter last year, the business posted $1.50 earnings per share. The company’s revenue for the quarter was up 10.0% on a year-over-year basis. Ecolab has set its FY 2026 guidance at 8.430-8.630 EPS and its Q2 2026 guidance at 2.020-2.120 EPS. On average, equities research analysts anticipate that Ecolab Inc. will post 8.45 EPS for the current fiscal year.
Ecolab Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 17th were given a dividend of $0.73 per share. The ex-dividend date was Tuesday, March 17th. This represents a $2.92 dividend on an annualized basis and a yield of 1.1%. Ecolab’s dividend payout ratio (DPR) is presently 40.11%.
Ecolab Profile (Free Report)
Ecolab, Inc is a global provider of water, hygiene and infection prevention solutions and services. The company develops and supplies cleaning and sanitizing chemicals, dispensing equipment, water-treatment systems, pest elimination services and related technologies designed to help businesses maintain clean, safe and efficient operations. Its offerings span both products and onsite services, often paired with technical support and training.
Ecolab serves a broad range of end markets including hospitality and foodservice, food and beverage processing, healthcare, manufacturing and industrial operations, and energy and utilities.
Featured Stories Five stocks we like better than Ecolab Want to see what other hedge funds are holding ECL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Ecolab Inc. (NYSE:ECL – Free Report).
Receive News & Ratings for Ecolab Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ecolab and related companies with MarketBeat.com's FREE daily email newsletter.
Comerica Bank reduced its stake in shares of Ecolab Inc. (NYSE:ECL – Free Report) by 6.5% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 63,721 shares of the basic materials company’s stock after selling 4,440 shares during the quarter. Comerica Bank’s holdings in Ecolab were worth $16,728,000 at the end of the most recent reporting period.
Other hedge funds have also added to or reduced their stakes in the company. Wexford Capital LP purchased a new position in Ecolab during the 3rd quarter valued at $25,000. JPL Wealth Management LLC purchased a new position in Ecolab during the 3rd quarter valued at $26,000. Corundum Trust Company INC purchased a new position in Ecolab during the 3rd quarter valued at $28,000. SJS Investment Consulting Inc. increased its position in Ecolab by 1,177.8% during the 3rd quarter. SJS Investment Consulting Inc. now owns 115 shares of the basic materials company’s stock valued at $31,000 after purchasing an additional 106 shares during the period. Finally, FSA Wealth Management LLC increased its position in Ecolab by 88.7% during the 3rd quarter. FSA Wealth Management LLC now owns 117 shares of the basic materials company’s stock valued at $32,000 after purchasing an additional 55 shares during the period. 74.91% of the stock is owned by hedge funds and other institutional investors.
Insider Activity In related news, CEO Christophe Beck sold 20,000 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $307.37, for a total transaction of $6,147,400.00. Following the sale, the chief executive officer directly owned 90,794 shares of the company’s stock, valued at approximately $27,907,351.78. This represents a 18.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Tracy B. Mckibben sold 1,265 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $308.66, for a total transaction of $390,454.90. Following the sale, the director directly owned 11,358 shares in the company, valued at $3,505,760.28. This trade represents a 10.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.50% of the company’s stock.
More Ecolab News Here are the key news stories impacting Ecolab this week:
Positive Sentiment: Ecolab beat Q1 revenue estimates with reported sales of $4.07B (+10% y/y) and accelerated organic growth in Life Sciences, Global High‑Tech, Institutional and Specialty—driving continued double‑digit EPS growth. Ecolab Delivers Accelerated Sales Growth and Double-Digit EPS Growth Positive Sentiment: Digital sales and strong demand in life sciences/tech were highlighted as growth drivers, supporting near-term revenue momentum. ECL Stock Up in Pre-Market Post In-Line Q1 Earnings, Gross Margin Down Neutral Sentiment: Reported adjusted EPS of $1.70 matched consensus; revenue beat but gross margin tightened versus prior year—mixed signal for profitability trends. Ecolab (ECL) Q1 Earnings Match Estimates Neutral Sentiment: The company maintained FY2026 adjusted EPS guidance of $8.43–$8.63, essentially in line with consensus—providing some reassurance about full‑year targets despite near‑term uncertainty. MarketBeat Ecolab Coverage Negative Sentiment: Ecolab set Q2 EPS guidance of $2.02–$2.12, which sits slightly below consensus and prompted investor caution; management flagged higher costs tied to the Iran war as a driver of elevated near‑term expense. Ecolab forecasts second-quarter profit below estimates as Iran war pushes up costs Negative Sentiment: Reaction: shares slipped as investors focused on the mixed guidance and margin pressure despite the revenue beat—creating short‑term downside even with constructive demand trends. Ecolab slips after in-line Q1; Q2 earnings guidance mostly below consensus Wall Street Analyst Weigh In ECL has been the topic of a number of research analyst reports. Stifel Nicolaus boosted their price objective on shares of Ecolab from $300.00 to $337.00 and gave the company a “buy” rating in a research report on Wednesday, February 11th. Jefferies Financial Group upped their target price on shares of Ecolab from $315.00 to $352.00 and gave the stock a “buy” rating in a research report on Wednesday, February 11th. Berenberg Bank raised shares of Ecolab from a “hold” rating to a “buy” rating and set a $326.00 target price on the stock in a research report on Monday, March 16th. Deutsche Bank Aktiengesellschaft raised shares of Ecolab from a “hold” rating to a “buy” rating and set a $325.00 target price on the stock in a research report on Monday, April 20th. Finally, Royal Bank Of Canada upped their target price on shares of Ecolab from $294.00 to $337.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $322.82.
Read Our Latest Research Report on ECL
Ecolab Stock Down 0.4% NYSE:ECL opened at $266.88 on Wednesday. The firm’s 50-day moving average price is $277.47 and its 200-day moving average price is $273.46. The company has a market capitalization of $75.37 billion, a PE ratio of 36.66, a P/E/G ratio of 2.12 and a beta of 1.02. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.08 and a quick ratio of 0.81. Ecolab Inc. has a 1-year low of $240.92 and a 1-year high of $309.27.
Ecolab (NYSE:ECL – Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $1.70 EPS for the quarter, meeting the consensus estimate of $1.70. Ecolab had a net margin of 12.91% and a return on equity of 22.73%. The company had revenue of $4.07 billion for the quarter, compared to the consensus estimate of $4.02 billion. During the same period in the prior year, the firm posted $1.50 EPS. Ecolab’s revenue for the quarter was up 10.0% on a year-over-year basis. Ecolab has set its FY 2026 guidance at 8.430-8.630 EPS and its Q2 2026 guidance at 2.020-2.120 EPS. On average, equities analysts predict that Ecolab Inc. will post 8.45 EPS for the current fiscal year.
Ecolab Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 17th were given a dividend of $0.73 per share. This represents a $2.92 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, March 17th. Ecolab’s dividend payout ratio is 40.11%.
Ecolab Profile (Free Report)
Ecolab, Inc is a global provider of water, hygiene and infection prevention solutions and services. The company develops and supplies cleaning and sanitizing chemicals, dispensing equipment, water-treatment systems, pest elimination services and related technologies designed to help businesses maintain clean, safe and efficient operations. Its offerings span both products and onsite services, often paired with technical support and training.
Ecolab serves a broad range of end markets including hospitality and foodservice, food and beverage processing, healthcare, manufacturing and industrial operations, and energy and utilities.
Featured Articles Five stocks we like better than Ecolab
Receive News & Ratings for Ecolab Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ecolab and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEComerica Bank Reduces Holdings in United Parcel Service, Inc. $UPS
NEXT HEADLINE »First National Bank of Hutchinson Has $29.09 Million Position in iShares Core S&P 500 ETF $IVV
ST. PAUL, Minn.--(BUSINESS WIRE)--Ecolab will host a live webcast of its annual meeting of stockholders. As indicated in our proxy statement, the 2026 Annual Meeting of Stockholders will be a virtual-only meeting.
Details for the public webcast are as follows:
TIME:
9:30 a.m. Central Time
DATE:
Thursday, May 7, 2026
DURATION:
Approximately 30 minutes
LOCATION:
www.virtualshareholdermeeting.com/ECL2026
ARCHIVE:
A replay of the webcast will be available 24 hours after the end of the meeting
To be admitted to the Annual Meeting at www.virtualshareholdermeeting.com/ECL2026, and to participate and ask questions during the meeting, a stockholder must enter the 16-digit control number found on the proxy card, voting instruction form or notice of internet availability previously mailed or made available to stockholders.
Stockholders and other interested parties may also register as guests in listen only mode without the 16-digit control number.
Online access to the audio webcast will open 15 minutes prior to the start of the 2026 Annual Meeting.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL) is a global leader in water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. For more than a century, Ecolab has advanced innovation by integrating science-based solutions, data driven insights, AI technology and world-class service. This unique combination enables Ecolab to partner with customers to define what best-in-class looks like and scale it across their operations, helping them achieve peak performance. Today, Ecolab delivers $16 billion in annual sales, employs 48,000 associates and serves customers in more than 170 countries and 40 industries. The company helps protect one-third of the world’s food production and a quarter of the power generated while delivering innovative solutions across food, hospitality, healthcare, data centers, microelectronics and life sciences. As the world’s water company, Ecolab plays an important role in AI growth by supporting the full water needs of advanced computing—from ultra pure water for chip manufacturing, to water solutions that support the power behind AI, to direct liquid cooling systems for high density computing that improves performance while reducing environmental impact through circular water use. In life sciences, Ecolab delivers end to end solutions that support the development and manufacturing of life-saving drugs, helping customers operate safely and consistently at scale while improving performance and reducing environmental impact. Through its comprehensive approach, Ecolab 8 protects what’s vital, with a goal by 2030 to help protect 2 billion people from infections and conserve enough drinking water for 1 billion people, while continuing to enhance business performance.
ST. PAUL, Minn.--(BUSINESS WIRE)--The board of directors of Ecolab Inc. today declared a regular quarterly cash dividend of $0.73 per common share, to be paid July 15, 2026, to shareholders of record at the close of business on June 16, 2026.
Ecolab has paid cash dividends on its common stock for 89 consecutive years.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL) is a global leader in water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. For more than a century, Ecolab has advanced innovation by integrating science-based solutions, data driven insights, AI technology and world-class service. This unique combination enables Ecolab to partner with customers to define what best-in-class looks like and scale it across their operations, helping them achieve peak performance. Today, Ecolab delivers $16 billion in annual sales, employs 48,000 associates and serves customers in more than 170 countries and 40 industries. The company helps protect one-third of the world’s food production and a quarter of the power generated while delivering innovative solutions across food, hospitality, healthcare, data centers, microelectronics and life sciences. As the world’s water company, Ecolab plays an important role in AI growth by supporting the full water needs of advanced computing—from ultra pure water for chip manufacturing, to water solutions that support the power behind AI, to direct liquid cooling systems for high density computing that improves performance while reducing environmental impact through circular water use. In life sciences, Ecolab delivers end to end solutions that support the development and manufacturing of life-saving drugs, helping customers operate safely and consistently at scale while improving performance and reducing environmental impact. Through its comprehensive approach, Ecolab protects what’s vital, with a goal by 2030 to help protect 2 billion people from infections and conserve enough drinking water for 1 billion people, while continuing to enhance business performance.
Lennar (NYSE:LEN) Updates Q3 2026 Earnings GuidanceLennar (NYSE:LEN) updated its third quarter 2026 earnings guidance. The company provided EPS guidance of 1.200-1.400 for the period, compared to the consensus estimate of 1.710.
MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in StockMarketBeat
MSA Safety Incorporporated (NYSE:MSA - Get Free Report) CFO Julie Beck bought 448 shares of the stock in a transaction dated Thursday, June 11th. The stock was acquired at an average price of $158.69 per share, with a total value of $71,093.12. Following the completion of the purchase, the chief financial officer owned 3,825 shares of the company's stock, valued at $606,989.25. This represents a 13.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.
NYSE:MSA
Read MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in Stock
3 hours ago
Insider Selling: NBT Bancorp (NASDAQ:NBTB) Director Sells 2,100 Shares of StockMarketBeat
NBT Bancorp Inc. (NASDAQ:NBTB - Get Free Report) Director Heidi Hoeller sold 2,100 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $48.03, for a total transaction of $100,863.00. Following the transaction, the director owned 11,560 shares of the company's stock, valued at approximately $555,226.80. This represents a 15.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.
NASDAQ:NBTB
Read Insider Selling: NBT Bancorp (NASDAQ:NBTB) Director Sells 2,100 Shares of Stock
3 hours ago
Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) StockMarketBeat
IGM Financial Inc. (TSE:IGM - Get Free Report) Director Douglas Milne sold 1,600 shares of the business's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of C$80.61, for a total value of C$128,976.00. Following the sale, the director directly owned 800 shares in the company, valued at C$64,488. The trade was a 66.67% decrease in their ownership of the stock.
TSE:IGM
Read Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) Stock
2025 Growth & Impact Report shows how Ecolab is built for growth in the AI era
ST. PAUL, Minn.--(BUSINESS WIRE)--The world is entering a period of historic growth, complexity and opportunity. As artificial intelligence reshapes industries and demand for energy, food and water accelerates, how companies grow next will matter as much as how fast they grow.
In a rapidly changing world, Ecolab remains constant. Today, the company released its 2025 Growth & Impact Report highlighting how Ecolab continues to deliver strong business performance while deepening its impact on customers and communities in the areas that matter most.
Technologies like AI promise extraordinary progress, but they cannot scale without mastering water.
“Water is the foundation of life and business. We cannot create more water, but we can reimagine how we use it,” said Christophe Beck, Chairman, President and CEO, Ecolab. “Companies that act decisively, apply proven solutions and work in partnership will lead the next era of growth.”
In 2025, Ecolab partnered with customers across more than 40 industries and 170 countries to deliver performance and growth while protecting vital resources around the world. Together, Ecolab helped customers:
Conserve the annual drinking water needs of more than 849 million people, equivalent to 245 billion gallons of water Safeguard 7.7 million people from pollution-induced illnesses by avoiding 4.7 million metric tons of greenhouse gas emissions Protect 1.7 billion people from foodborne illnesses and infections Realize $12.9 billion in cumulative valuei using Ecolab solutions and services That performance translated into real-world results, reinforcing how performance and impact fuel each other. While Ecolab’s greatest impact is delivered through its customers, the company applies the same discipline across its operations and communities:
High-performing teams: Delivered record sales, earnings per share, operating income margin and cash flows, fueled by a culture of safety, inclusion and performance. World-class operations: Reduced Scope 1 and 2 emissions by 44% from a 2018 base year, powered 92% of operations with renewable electricity and improved water use efficiency by 36%. Global water leadership: Advanced basin-level action as a co-founder of the United Nations Water Resilience Coalition, expanded Alliance for Water Stewardship certification to 16 Ecolab facilities and partnered with Water.org to expand global access to safe water and sanitation. Breakthrough digital innovation: Accelerated water, digital and AI solutions, including the Water Use Efficiency Index with CDP and Ecolab® Water Navigator IQ™. Positive community impact: Invested $24.2 million globally through the Ecolab Foundation to strengthen communities where Ecolab operates. Ecolab is built for this moment. By delivering strong performance while addressing the world’s most pressing resource challenges, the company is helping lead the next era of growth the right way. Explore Ecolab’s full 2025 Growth & Impact Report at: https://www.ecolab.com/corporate-responsibility/growth-and-impact-report.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL) is a global leader in water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. For more than a century, Ecolab has advanced innovation by integrating science-based solutions, data-driven insights, AI technology and world-class service. This unique combination enables Ecolab to partner with customers to define what best-in-class looks like and scale it across their operations, helping them achieve peak performance. Today, Ecolab has $16 billion in annual sales, 48,000 associates and customers in more than 170 countries and 40 industries. The company helps protect one-third of the world’s food production and a quarter of the power generated while delivering innovative solutions across food, healthcare, data centers, microelectronics, life sciences and hospitality. Ecolab’s comprehensive approach protects what’s vital, aiming by 2030 to help protect 2 billion people from infections and enough drinking water for 1 billion people while enhancing business performance.
Key Takeaways Following insider buys is a solid way to gauge long-term sentiment on a stock. Many strict rules apply to insiders, with a much longer holding period than most. CHTR, WCN, and ECL have all seen insiders step up. Many investors keep a close eye on insider transactions, as they can often give a decent read surrounding the longer-term picture.
Of course, it’s important to note that insiders have a longer holding period than most, and many strict rules apply to their transactions.
Recently, insiders of several companies – Charter Communications (CHTR - Free Report) , Waste Connections (WCN - Free Report) , and Ecolab (ECL - Free Report) – have made splashes, acquiring shares. Let’s take a closer look at the transactions for those interested in trading like the insiders.
Ecolab Director BuysEcolab shares had a strong start to 2026 before cooling off in recent months, overall down 6% and underperforming relative to the S&P 500. A director recently picked up 1k shares at an overall transaction value of just over $250k, bringing their total shares held to roughly 25k.
The share's weakness over the last several months could have reflected an enticing opportunity for the director, with the growth picture remaining decently solid for a company residing in the Basic Materials sector. EPS is expected to grow by 13% in its current fiscal year and 14% in FY27, with sales expected to be up 9% in FY26 and 5.4% in FY27, respectively.
Shares also pay a nice dividend, currently yielding 1.2% annually. Dividend growth is also there, with Ecolab sporting an 8.8% five-year annualized dividend growth rate. Below is a chart illustrating the company’s dividends/share on a quarterly basis.
Image Source: Zacks Investment Research
Charter Communications Director Makes Big SplashA director of Charter Communications made a big splash recently, acquiring nearly 10k shares at an overall transaction value of just under $1.4 million. The director now holds approximately 19.3k shares, with the buy essentially doubling their position.
CHTR shares have had a tough ride in 2026 so far, down nearly 33% and facing big pressure after its latest set of quarterly results. Sales growth is expected to be flat for its current and next fiscal years, but earnings are still forecasted to grow 19% and 11%, respectively. While the improving profitability picture is a nice positive, the weak sales growth is a big factor that’s weighed on overall sentiment.
Image Source: Zacks Investment Research
That said, the recent insider buys do help instill a level of confidence from a long-term perspective, but it’s more beneficial to simply keep an eye on the stock for now and wait until a positive set of quarterly results rolls in to help confirm a turnaround in its revenue outlook.
Waste Connections CEO BuysThe CEO of Waste Connections recently dove in with a sizable 50k share purchase, with the overall transaction value coming in at roughly $7.6 million. They now hold just over 300k WCN shares, with the recent purchase increasing their position by a fairly large margin.
WCN shares have also faced some adverse action in 2026, down over 9% and underperforming relative to the S&P 500. But the growth picture still remains solid, with earnings forecasted to grow 7% in its current FY26 and then see an acceleration to a 12.3% growth rate in 2027. Concerning the top line, sales are expected to grow 5.6% in FY26 and 6% in FY27.
Sales growth has remained steady over recent years, with shares also currently yielding 0.8% annually. It's shown a strong commitment to increasingly rewarding shareholders, boasting a 11.5% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
Many investors closely monitor insider buys, looking to receive insights into the longer-term picture. The transactions shouldn’t be relied on for near-term performance, as insiders’ holding periods are longer than most, and many strict rules apply.
Rather, investors can see insider buys as an overall net positive concerning the longer-term outlook.
All stocks above – Charter Communications (CHTR - Free Report) , Waste Connections (WCN - Free Report) , and Ecolab (ECL - Free Report) – have seen recent insider activity.
Key Takeaways Ecolab posted 4% organic sales growth in Q1 2026, driven by pricing and volume gains.ECL's Global High-Tech business grew more than 20% organically on semiconductor demand.Ecolab Digital topped $400M in annualized revenue with AI and automation-driven solutions. Ecolab Inc. (ECL - Free Report) has been gaining from its solid product portfolio. The optimism, led by a solid first-quarter 2026 performance and continued focus on research and development, is expected to contribute further. However, concerns regarding cost fluctuations persist.
This Zacks Rank #3 (Hold) stock has lost 5.3% in the year-to-date period against the industry’s 7.7% growth. The S&P 500 Composite has increased 8.1% during the same time frame.
The renowned water, hygiene and infection prevention solutions and services provider has a market capitalization of $69.2 billion. It projects 14.3% growth for the next five years and expects to maintain a strong performance in the future. Ecolab’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met once, delivering an average surprise of 0.23%.
Image Source: Zacks Investment Research
Reasons Favoring Ecolab’s GrowthStrong Product Portfolio With a Focus on R&D: In first-quarter 2026, Ecolab’s organic sales rose 4%, driven by 3% pricing and 1% volume growth, reflecting the strong value proposition of its portfolio. Per management, the company continues to benefit from a robust innovation pipeline, with increasing focus on digitally enabled solutions that enhance customer productivity and sustainability.
Platforms like 3D TRASAR and other connected monitoring solutions are gaining traction by helping customers optimize water usage, energy consumption and operational efficiency. Management noted that these technology-driven offerings deliver measurable savings, strengthen long-term customer relationships and support premium pricing, reinforcing Ecolab’s competitive position across its end markets.
Ecolab’s Global High-Tech Business & Digital Platform: Per management, Ecolab’s Global High-Tech business remains a key long-term growth driver, supported by rising semiconductor manufacturing and data-center infrastructure investments worldwide. In first-quarter 2026, the segment delivered more than 20% organic sales growth, driven by new business wins across microelectronics and data centers. Management also noted that the Ovivo Electronics acquisition strengthens Ecolab’s ultrapure water capabilities for semiconductor fabs and, together with the pending CoolIT Systems acquisition, is expected to create a roughly $1.5 billion Global High-Tech platform.
Meanwhile, Ecolab Digital continues to scale as another important growth engine, with annualized revenues surpassing $400 million. Management highlighted that the platform leverages AI, predictive analytics, remote monitoring and automation to enhance customer productivity and sustainability outcomes, while addressing a $13 billion market opportunity, including nearly $3 billion within the existing customer base.
Strong Q1 Results: ECL exited the first quarter of 2026 with in-line earnings and better-than-expected revenues. The company registered a robust year-over-year uptick in its top and bottom lines, along with solid performances across all segments. The expansion of the adjusted operating margin bodes well for the stock.
Per management, Ecolab’s performance in the reported quarter was driven by strong value pricing, accelerated volume growth and improved productivity, demonstrating the strength of its technology- and service-led model. Its core businesses also delivered strong performance as Institutional and Specialty both improved, and Food & Beverage continued to significantly outperform market trends. These looked promising for the stock.
A Factor That May Offset ECL’s GainsCost Fluctuations: Ecolab faces risks from raw material cost volatility, inflationary pressures and supply-chain disruptions, which could weigh on margins and profitability. Management expects commodity costs to rise at a high single-digit rate beginning in second-quarter 2026, primarily driven by energy-related expenses.
The company remains exposed to fluctuations in raw material availability and pricing, as well as challenges in renewing supply agreements on favorable terms, which could adversely impact operating results, financial position and cash flows. Additionally, geopolitical tensions and broader economic slowdowns may disrupt global sourcing and supplier performance, limiting Ecolab’s ability to secure raw materials efficiently and at competitive prices.
Estimate TrendEcolab is witnessing a negative estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for its earnings has moved south by 11 cents to $8.47 per share.
The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $4.4 billion, indicating a 9.4% improvement from the year-ago quarter’s reported number.
Key PicksSome better-ranked stocks from the same medical industry are Pacific Biosciences of California (PACB - Free Report) , Globus Medical (GMED - Free Report) and Biodesix (BDSX - Free Report) .
Pacific Biosciences of California, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted loss per share of 12 cents, which surpassed the Zacks Consensus Estimate by 29.4%. Revenues of $37 million missed the Zacks Consensus Estimate by 9.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACB’s earnings are estimated to decline at a rate of 12.2% against the industry’s 16.9% growth in 2027. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 29.76%.
Globus Medical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $1.12, which outpaced the Zacks Consensus Estimate by 21.7%. Revenues of $760 million surpassed the Zacks Consensus Estimate by 4%.
GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% rise. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.26%.
Biodesix, currently carrying a Zacks Rank of 2, reported a first-quarter 2026 adjusted loss per share of 81 cents, which beat the Zacks Consensus Estimate by 35.71%. Revenues of $26 million beat the Zacks Consensus Estimate by 12.3%.
BDSX has an estimated earnings growth rate of 36% for 2026 compared with the industry’s 13.4% rise. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.56%.
ST. PAUL, Minn.--(BUSINESS WIRE)--Scott Kirkland, CFO, will address financial analysts at the William Blair Annual Growth Stock Conference on Tuesday June 2, 2026. Ecolab will offer a webcast of Mr. Kirkland’s presentation. Details for the webcast are as follows:
To access the webcast, visit the Events & Presentations section of Ecolab’s Investor website at www.ecolab.com/investor and click on the webcast details.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL) is a global leader in water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. For more than a century, Ecolab has advanced innovation by integrating science-based solutions, data driven insights, AI technology and world-class service. This unique combination enables Ecolab to partner with customers to define what best-in-class looks like and scale it across their operations, helping them achieve peak performance. Today, Ecolab delivers $16 billion in annual sales, employs 48,000 associates and serves customers in more than 170 countries and 40 industries. The company helps protect one-third of the world’s food production and a quarter of the power generated while delivering innovative solutions across food, hospitality, healthcare, data centers, microelectronics and life sciences. As the world’s water company, Ecolab plays an important role in AI growth by supporting the full water needs of advanced computing—from ultra pure water for chip manufacturing, to water solutions that support the power behind AI, to direct liquid cooling systems for high density computing that improves performance while reducing environmental impact through circular water use. In life sciences, Ecolab delivers end to end solutions that support the development and manufacturing of life-saving drugs, helping customers operate safely and consistently at scale while improving performance and reducing environmental impact. Through its comprehensive approach, Ecolab protects what’s vital, with a goal by 2030 to help protect 2 billion people from infections and conserve enough drinking water for 1 billion people, while continuing to enhance business performance. www.ecolab.com
Follow us on LinkedIn @Ecolab, Instagram @Ecolab_Inc and Facebook @Ecolab.
A month has gone by since the last earnings report for Ecolab (ECL - Free Report) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ecolab due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Ecolab Q1 Earnings In-Line, Revenues Up Y/Y, Gross Margin DownEcolab has reported fourth-quarter 2025 adjusted earnings per share of $2.08, up 14.9% year over year. The bottom line surpassed the Zacks Consensus Estimate by 0.8%.
GAAP earnings per share for the quarter was $1.98, up 19.3% year over year.
Full-year adjusted earnings per share was $7.53, reflecting a 13.2% increase from the year-ago period. The metric topped the Zacks Consensus Estimate by a penny.
ECL’s Revenue Details
Revenues grossed $4.19 billion in the reported quarter, up 4.8% year over year. The metric topped the Zacks Consensus Estimate by 0.1%.
Ecolab’s organic sales were $4 billion, up 2.9% from the prior-year period.
Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.
Full-year revenues were $16.08 billion, reflecting a 2.2% improvement from the year-ago period on a reported basis (up 3% on an organic basis). The metric lagged the Zacks Consensus Estimate by 0.2%.
Ecolab’s Segmental Analysis
The Global Water segment’s fixed currency sales of $2.02 billion marked 2.5% year-over-year growth. Organic sales were $2 billion, up 2.2% year over year. The segment’s underlying sales grew mid-single digits, excluding Basic Industries and Paper. Light & Heavy’s progress was led by strength in Global High-Tech, improved growth in downstream and solid gains in manufacturing, which offset softer sales in Basic Industries. Robust new business gains in Food & Beverage, which leveraged the One Ecolab growth strategy, drove a further acceleration in sales growth. Lower Paper sales reflected new business wins that were offset by soft customer production rates.
The Global Institutional & Specialty arm’s fixed currency sales were $1.49 billion, a year-over-year uptick of 2.8% on a reported basis. Organic sales were also $1.49 billion, up 2.7% year over year. Institutional unit’s underlying performance reflected good growth with hospitality customers and modestly higher sales to hospitals. Specialty unit delivered continued strong sales growth, driven by robust new business wins and continued value pricing.
The Global Pest Elimination segment’s fixed currency sales of $307.2 million improved 6.7% year over year on a reported basis. Organic sales were $306.8 million, up 6.6% year over year. Strong organic sales growth was led by robust gains in food & beverage, restaurants and food retail, which continue to benefit from the One Ecolab growth strategy.
The Global Life Sciences arm’s fixed currency sales and organic sales were $191.4 million each, reflecting year-over-year growth of 6.5% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by continued double-digit growth in bioprocessing and strong growth in pharmaceutical & personal care despite ongoing capacity constraints within Life Sciences’ industrial water purification business.
ECL’s Q4 Margin Analysis
In the quarter under review, Ecolab’s gross profit improved 6.4% year over year to $1.85 billion. The gross margin expanded 69 basis points (bps) to 44%.
Selling, general and administrative expenses increased 1% year over year to $1.06 billion.
Adjusted operating profit totaled $786.6 million, increasing 14.6% from the prior-year quarter. The adjusted operating margin in the quarter expanded 162 bps to 18.7%.
Ecolab’s Financial Position
The company exited fourth-quarter 2025 with cash and cash equivalents of $646.2 million compared with $1.96 billion at the end of the third quarter. Total debt at the end of fourth-quarter 2025 was $8.24 billion compared with $8.07 billion at third-quarter end.
Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.09%.
ECL’s Guidance for Q1 & 2026
Ecolab has provided its outlook for the first quarter and has initiated the full-year 2026 guidance.
The company expects adjusted earnings per share of $1.67-$1.73 for the first quarter, suggesting an 11%-15% rally from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $1.69.
Including the acquisition of Ovivo Electronics, ECL expects reported sales to increase 7%-9% and organic sales to rise 3%-4% in 2026.
For 2026, Ecolab expects adjusted earnings per share of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2024 period’s reported number). The Zacks Consensus Estimate for adjusted earnings per share is pegged at $8.44.
Ecolab has reported first-quarter 2026 adjusted earnings per share of $1.70, up 13.3% year over year. The metric was in line with the Zacks Consensus Estimate.
GAAP earnings per share for the quarter was $1.52, up 7.8% year over year.
ECL’s Revenue DetailsRevenues grossed $4.07 billion in the reported quarter, up 10% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.
Ecolab’s organic sales were $3.96 billion, up 3.5% from the prior-year period.
Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.
Ecolab’s Segmental AnalysisThe Global Water segment’s fixed currency sales of $2.04 billion marked 7.1% year-over-year growth, driven by a 5% benefit from the Ovivo Electronics acquisition and organic sales growth. Organic sales were $1.94 billion, up 2.1% year over year.
The segment’s performance was driven by more than 20% organic growth in Global High-Tech, reflecting robust growth across both microelectronics and data centers. Food & Beverage continued to grow mid-single digits, driven by attractive new business wins from the One Ecolab growth strategy. Light Water delivered steady performance, driven by solid gains in transportation. These, driven by good new business wins, stabilized the headwind from softer sales in Heavy Water and Paper.
The Global Institutional & Specialty arm’s fixed currency and organic sales were $1.51 billion, a year-over-year uptick of 3.6% both on a reported and organic basis. Institutional unit’s improved performance was driven by good growth with hospitality customers. Specialty unit’s sales grew high-single digits, with accelerated growth driven by robust new business wins and continued value pricing.
The Global Pest Elimination segment’s fixed currency sales of $310.1 million improved 7.9% year over year on a reported basis. This reflected strong organic growth and a 1% benefit from attractive, targeted acquisitions in North America. Organic sales were $308.5 million, up 7.3% year over year. Strong organic sales growth was led by robust gains in restaurants, food retail, food & beverage and healthcare, which continue to benefit from the One Ecolab growth strategy.
The Global Life Sciences arm’s fixed currency sales and organic sales were $200.9 million each, reflecting year-over-year growth of 10.7% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by bioprocessing, which more than doubled its sales during the quarter. This, along with robust growth in pharmaceutical & personal care, overcame temporary capacity constraints within Life Sciences’ industrial water purification business.
ECL’s Margin AnalysisIn the quarter under review, Ecolab’s gross profit improved 8.3% year over year to $1.77 billion. However, the gross margin contracted 69 basis points (bps) to 43.6%.
Selling, general and administrative expenses increased 4.9% year over year to $1.10 billion.
Adjusted operating profit totaled $668.4 million, increasing 14.3% from the prior-year quarter. The adjusted operating margin in the quarter expanded 61 bps to 16.4%.
Ecolab’s Financial PositionThe company exited first-quarter 2026 with cash and cash equivalents of $519.8 million compared with $646.2 million at the end of fourth-quarter 2025. Total debt at the end of first-quarter 2026 was $8.49 billion compared with $8.24 billion at the end of the fourth quarter of 2025.
Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.75%.
ECL’s GuidanceEcolab has provided its outlook for the second quarter of 2026 and has revised the 2026 guidance.
The company expects adjusted earnings per share of $2.02 to $2.12 for the second quarter, suggesting an 7%-12% increase from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $2.13.
Including the acquisition of Ovivo Electronics, ECL now expects reported sales to increase 9%-11% and organic sales to rise 6%-7% compared with the prior outlook of 7%-9% and 3%-4% uptick, respectively, in 2026.
For 2026, Ecolab continues to expect adjusted earnings per share of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2025 period’s reported number). The Zacks Consensus Estimate for adjusted earnings per share is pegged at $8.45.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, Ecolab has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ecolab has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Join Get Blue™, co-founded by Water.org's Matt Damon and Gary White, and partners Gap Inc., Starbucks, Amazon, and Ecolab to shop, share, and donate to help end the global water crisis.
Get Blue™ is partnering with iconic brands like Gap, Starbucks, Amazon, and Ecolab to turn everyday actions into a powerful force to Bring Water Home™ and help end the global water crisis. Water.org aims to bring safe water access to more than 200 million people by 2030 through its proven solution that helps local bank partners provide small loans to families. Get Blue makes it simple for anyone to participate through shopping for exclusive Get Blue product collaborations; engaging with creators, celebrities, and artists; and donating directly to Get Blue. , /PRNewswire/ -- Water.org, the global nonprofit working to bring safe water and sanitation to the world, is launching Get Blue™, a community created in partnership with Gap Inc., Starbucks, Amazon, and Ecolab to help Bring Water Home™. Get Blue is an open invitation to turn everyday actions like shopping, sharing, and donating into safe water for families who need it most.
Experience the full interactive Multichannel News Release here: https://www.multivu.com/waterorg/9402051-en-waterorg-partnership-launch-get-blue-global-movement
Water.org co-founder Matt Damon shares how Get Blue™ works - how everyday actions help bring safe water home for families in need.
To ignite collective community action around the global water crisis, Water.org co-founder Matt Damon debuts rap alter-ego "The Nomad," dropping a track with GRAMMY®-winner Hit-Boy for Get Blue™.
$5 from every purchase from Gap’s Get Blue™ Collection will be donated to help end the global water crisis.
With every purchase of a Blue Coconut Refresher or Iced Blue Coconut Matcha, Starbucks will donate to Water.org to support clean water access.
Launching later this summer, when customers say 'Alexa, donate to Get Blue™,' stream music, or shop the Get Blue Storefront, Amazon will donate to Water.org to support safe water access.
As the official water management partner of Get Blue™, Ecolab, which helps 40+ industries use water more efficiently, will commit $1 million through the Ecolab Foundation. More than 2 billion people lack access to safe water — that's one in four people globally. For many families, water is out of reach resulting in hours of walking, high costs, or relying on unsafe sources — a daily reality that costs people their time, health, and futures. No one should have to wait, walk, or overpay for safe water. Get Blue is a collective effort to change this, helping scale Water.org's proven solutions to reach more people.
Get Blue makes it easy to act. When you shop Get Blue products or donate directly, you are helping support Water.org's local financial partners provide small, affordable loans so families can get the pipes, pumps, or plumbing they need at home. $5 helps one person, and $25 helps a family get lasting access to safe water or sanitation — it's impact that keeps on giving. In fact, when a loan is repaid (and 98% are), that money can help another family get a loan to bring safe water home. It's a pay-it-forward approach that helps families solve the problem themselves, and the more people Water.org reaches, the further each dollar goes.
"Water.org has changed the future for more than 90 million people, proving our solutions work at scale," says Gary White, CEO and co-founder of Water.org. "To bring water home for everyone, everywhere within our lifetimes, we have to scale even faster. That's why Water.org launched Get Blue — a community built on collaboration, bringing together industry leaders, creators, and people to take action. When brands join us, they invite their communities into this work. That is how progress happens — one person, one action at a time."
Get Blue is brought to life through its founding partners who have created products and experiences that make it simple for people to participate. Upcoming launches include:
Gap: The Get Blue Drop
Gap's limited-edition Get Blue Collection reimagines classic Gap icons like denim, tees, and sweats to help end the global water crisis. Gap brings years of experience reducing water use across its supply chain, having saved more than 6 billion liters of water since 2016.
Launching today, the assortment spans adults, kids, and toddler and will be available in select Gap stores and online at gap.com. With each purchase from the Get Blue Collection, Gap will donate $5 to Water.org, helping empower people in need with the resources to get safe water at home.
Starbucks: Blue Drinks for Big Impact
On June 16, Starbucks will launch two limited-edition drinks created exclusively to support Get Blue:
The Iced Blue Coconut Matcha: Tropical and creamy, this iced Matcha features sweet mango flavors and is topped with a vibrant Toasted Coconut Cold Foam blended with blue spirulina. The Blue Coconut Refresher: Toasted coconut, strawberry, and acai flavors are hand-shaken with ice and blue spirulina. This beverage is where vibrant flavor meets summer refreshment. From June 16 through July 7, Starbucks will donate $0.25 to Water.org for every purchase of the Iced Blue Coconut Matcha or a Blue Coconut Refresher, making it simple for customers to spark change with an everyday routine, like ordering a Starbucks beverage.
Starbucks has a long-standing commitment to expanding access to safe water in the communities it serves, including coffee, tea, and cocoa-growing regions. Through its partnership with Water.org and investment in WaterEquity — the impact-investing asset manager established by Water.org to mobilize capital for water and sanitation solutions — Starbucks has helped more than 700,000 people gain access to safe water or sanitation.
For more details visit here.
Amazon: Shop, Stream, Support
Starting this summer, Amazon will integrate Get Blue across its business to make it simple for customers to take action on the global water crisis — whether through their voice, their listening habits, or their everyday shopping. Highlights include:
Donate with Alexa+: Simply say "Alexa, donate to Get Blue" and Amazon will contribute $5 on their behalf, at no cost to the customer. It's an easy way to help connect someone to safe water access. Stream It Forward with Amazon Music: Every time a customer plays a participating artist's REDISCOVER playlist on Amazon Music, Amazon donates $1 to Water.org, turning everyday listening into safe water for communities in need. The Get Blue Storefront: A dedicated storefront on Amazon brings together exclusive Get Blue products — including curated selections from coalition partners — with a portion of every purchase supporting Water.org. Amazon is a long-time partner of Water.org, helping change the lives of 1.25 million people with access to safe water or sanitation. Amazon also made a catalytic donation to Water.org to help WaterEquity launch its Water & Climate Resilience Fund, an investment vehicle focused on climate resilient infrastructure in emerging markets.
Ecolab: Connecting Water Savings with Community Impact
Ecolab provides global water solutions and services for businesses across more than 40 industries, helping them use water more efficiently, improve operational performance, and protect local water supplies.
As the official water management partner of Get Blue, Ecolab will commit $1 million through the Ecolab Foundation, with $500K delivered immediately and $500K delivered upon helping its customers achieve 255 billion gallons of water savings through the use of its products this year.
Additional Brands Join the Get Blue Community
Support for Get Blue continues to grow with the following companies signing on as the newest Get Blue partners committed to helping solve the global water crisis.
AccuWeather: As the official weather partner for Get Blue, AccuWeather will feature a full campaign takeover on its app and network on June 9 to raise awareness and drive donations for Get Blue, and the company will continue to support donations online throughout the month of June. Ripple: As Get Blue's exclusive digital asset and payments partner, Ripple is providing vital seed funding that builds on its collaboration with Water.org. Through Ripple Payments and Ripple USD (RLUSD), Water.org can move funds faster and more cost-effectively to microfinance partners — supporting affordable loans for the water and sanitation solutions families need to survive and thrive. TikTok: This summer, TikTok will support Get Blue in a variety of ways to inspire its global community to learn about the water crisis and take action via creator storytelling and community engagement. Additional partners, product launches and activations will roll out in the coming months to help bring safe water home.
Recruiting the Music Community to Drive Action
To raise awareness of the water crisis and ignite collective community action around Get Blue, Water.org co-founder Matt Damon is using creativity and dynamic storytelling in service of the mission. Dropping today in a short video, Damon attempts a new career as a rapper — The Nomad (Damon spelled backwards) — who is determined to create music to educate and mobilize consumers for safe water access. In the video, Damon debuts his self-written rap and calls on friends Hit-Boy, a GRAMMY® Award-winning artist and producer, alongside Teddy Walton, a GRAMMY Award-winning songwriter, producer, and DJ, to collaborate with him to spread the Get Blue message far and wide. Producer Aaron Bow also collaborated with Walton on the creative effort.
"Music moves people in ways that few things can. It connects us, crosses borders, and makes us feel part of something bigger than ourselves. That's what Get Blue is built on," says Damon. "I won't stop looking for creative ways to draw attention, encourage participation and drive donations to help solve the global water crisis. Now, through the Get Blue community, there are easy ways to get involved whether you shop, donate directly, or share on social. I'm inviting my friends, colleagues, and anyone who cares about water access to join us and help Bring Water Home."
Mobilizing Creators and the TikTok Community to Join #GetBlue
Anyone can be part of the Get Blue community by joining #GetBlue on TikTok. To raise awareness of the more than 2 billion people who lack access to safe water at home, Get Blue supporters are encouraged to film themselves changing one thing blue — like wearing their favorite Get Blue product, painting their nails blue, or swapping to a blue reusable water bottle — then nominate friends and followers to do the same and pass it on using #GetBlue.
Donate to Get Blue
Direct donations to Get Blue will help power Water.org's smart solutions that break down the barriers between people living in poverty and access to safe water and sanitation.
Donate at GetBlue.water.org/donate.
"A direct donation at any level can help change the future for millions of people who need safe water. Every donation brings us one step closer to bringing safe water access home for all," says Damon.
To learn more about Get Blue visit GetBlue.water.org or follow us on Instagram and TikTok.
About Get Blue
Get Blue™ is a global movement mobilizing brands, creators, consumers, and capital to Bring Water Home™ and help solve the global water crisis. Co-created with founding partners including Gap Inc., Amazon, Starbucks, and Ecolab in partnership with Water.org, Get Blue brings the power of the collective organization's commerce to one of the world's most pressing challenges. Proceeds of specially branded Get Blue products will directly power Water.org's proven solutions to connect families to safe water and sanitation. Get Blue was created in collaboration with global brand consultancy Wolff Olins. Learn more at GetBlue.water.org.
About Water.org
Water.org is a global nonprofit organization that has transformed more than 90 million lives through access to safe water and sanitation. Founded by Gary White and Matt Damon, Water.org's solutions — WaterCredit, WaterEquity, and WaterConnect — offer distinct and complementary approaches that break down barriers between people and access to safe water. Collaboration is central to the strength of Water.org's approach. In 2026, a roster of world-renowned brands and Water.org partnered to launch Get Blue, a global movement harnessing culture and commerce to take action to solve the water crisis. Learn more at Water.org and GetBlue.water.org.
About Gap Inc.
Gap Inc., a purpose-driven house of iconic brands, is the largest specialty apparel company in America. Its Old Navy, Gap, Banana Republic, and Athleta brands offer clothing, accessories, and lifestyle products for men, women and children available worldwide through company-operated and franchise stores, and e-commerce sites. Since 1969, Gap Inc. has created products and experiences that shape culture, while doing right by employees, communities and the planet through its commitment to bridge gaps to create a better world. For more information, please visit www.gapinc.com.
About Gap
Gap is a globally recognized icon of casual American style. Founded in San Francisco in 1969, Gap champions originality by creating loved essentials and delivering culturally-relevant experiences that celebrate individuality. Gap is an apparel and accessories brand that offers GapKids, babyGap, Gap Maternity, GapBody and GapFit collections as well as limited-edition collections with GapStudio and with partner brands through GapX. The brand also serves value-conscious customers with exclusively designed collections for Gap Outlet and Gap Factory Stores. Gap is the namesake brand of the global specialty retailer, Gap Inc. (NYSE: GAP) and connects with customers online and in company-operated and franchise retail locations globally. For more information, please visit gap.com.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to responsibly sourcing and roasting high-quality arabica coffee. Today, with a global footprint of more than 41,000 company-operated and licensed coffeehouses and a growing presence in consumer-packaged goods, we are the world's premier purveyor of specialty coffee. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at about.starbucks.com or starbucks.com.
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth's Most Customer-Centric Company, Earth's Best Employer, and Earth's Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL) is a global leader in water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. For more than a century, Ecolab has advanced innovation by integrating science based solutions, data driven insights, AI technology and world class service. This unique combination enables Ecolab to partner with customers to define what best in class looks like and scale it across their operations, helping them achieve peak performance. Today, Ecolab has $16 billion in annual sales, 48,000 associates and customers in more than 170 countries and 40 industries. The company helps protect one third of the world's food production and a quarter of the power generated while delivering innovative solutions across food, healthcare, data centers, microelectronics, life sciences and hospitality. Ecolab's comprehensive approach protects what's vital, aiming by 2030 to help protect 2 billion people from infections and enough drinking water for 1 billion people while enhancing business performance. www.ecolab.com
About AccuWeather, Inc. and AccuWeather.com
AccuWeather, recognized and documented as the most accurate and most used source of weather forecasting and warnings in the world, has saved over 12,000 lives, prevented injury to over 100,000 people, minimized reputational harm, and saved companies tens of billions of dollars. A billion people around the world rely on AccuWeather's proven Superior Accuracy™ across our consumer digital platforms. AccuWeather.com is the #1 weather destination and one of the top 100 most-visited websites in the world, and our award-winning AccuWeather app delivers detailed real-time forecasts to millions of smartphones. AccuWeather forecasts also appear on digital signage, in 700 newspapers, are heard on over 400 radio stations, and viewed on 100 television stations. The AccuWeather Network and AccuWeather NOW® reach an audience of over 125 million on cable and streaming platforms. AccuWeather For Business serves more than half of the Fortune 500 companies and thousands of other businesses and government agencies globally who pay to subscribe to the best and most accurate weather forecasting service. Visit AccuWeather.com for the most accurate hyperlocal forecasts, weather news, and information, and download the free AccuWeather app for Android or iOS.
About Ripple
Founded in 2012, Ripple is the leading provider of blockchain-based enterprise solutions across traditional and digital finance. Its solutions span global payments, custody, liquidity, and treasury management, serving as a one-stop shop for moving, storing, exchanging, and managing value. Ripple's stablecoin, RLUSD, and the cryptocurrency XRP underpinning these solutions allow Ripple and its customers to shape the modern financial system.
About TikTok
TikTok is the leading destination for mobile video. With a mission to inspire creativity and bring joy, TikTok's global headquarters are in Los Angeles and Singapore, and its offices include New York, London, Dublin, Paris, Berlin, Dubai, Jakarta, Seoul, and Tokyo.
CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) announced that the Company’s Board of Directors approved a quarterly cash dividend of $0.45 per share of common stock payable on June 15, 2026, to shareholders of record at the close of business on May 15, 2026. Cintas has a strong record of returning capital to its shareholders and has consistently raised its dividend each year since Cintas’ initial public offering 42 years ago in 1983.
Any future dividend declarations, including the amount of any dividends, are at the discretion of the Board of Directors and dependent upon then-existing conditions, including the Company’s operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that the Board of Directors may deem relevant.
Cintas
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have added about 5.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Cintas' Q3 Earnings Surpass Estimates, Revenues Increase Y/YCintas reported third-quarter fiscal 2026 earnings of $1.24 per share, which beat the Zacks Consensus Estimate of $1.23 by 0.8%. The bottom line increased 8.8% from $1.13 in the year-ago quarter. Revenues of $2.84 billion surpassed the consensus estimate of $2.82 billion by 0.7% and rose 8.9% year over year.
The top line was driven by 8.2% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.
Cintas’ Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses like Uniform Direct Sale and Fire Protection Services are included in All Other. Quarterly sales data is briefly discussed below.
Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.18 billion, up 7.7% year over year from $2.02 billion. Segment operating income rose to $521.0 million from $489.5 million, reflecting steady demand and operating leverage.
The First Aid and Safety Services segment delivered revenues of $346.8 million, increasing 14.9% from $301.8 million in the prior-year quarter. Operating income climbed to $87.3 million from $71.5 million, supported by strong demand for safety and compliance solutions.
Revenues from the All Other segment totaled $317.2 million, up 10.8% from $286.3 million a year ago. Segment operating income increased to $51.5 million from $48.8 million.
Margin ProfileCintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 8% year over year to $1.39 billion. Cintas reported gross profit of $1.45 billion, up 9.8% year over year. Gross margin improved 40 basis points to 51.0%, marking a record high.
Selling and administrative expenses totaled $788.6 million, up from $709.5 million a year ago, reflecting continued investments in the business. Despite this increase, operating income rose 8.2% to $659.9 million.
Operating margin was 23.2%, slightly down from 23.4% in the prior-year quarter due to a $15 million gain recorded last year from asset sales. Net income increased 8.4% to $502.5 million, with a tax rate of 20.6%.
Cintas’ Balance Sheet & Cash FlowExiting the first nine months of fiscal 2026, Cintas had cash and cash equivalents of $183.2 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $2.43 billion compared with $2.42 billion at the end of fiscal 2025.
In the first nine months of fiscal 2026, it generated net cash of $1.57 billion from operating activities, up 2.7% from the year-ago period. Capital expenditures in the same period totaled $299.1 million, up 1.6% year over year.
The company repurchased shares worth $933.2 million compared with $678.1 million in the year-ago period. Dividend payments totaled $520.9 million, up 14.8% year over year.
Cintas Raises FY26 OutlookFollowing a strong third-quarter performance, Cintas raised its fiscal 2026 guidance. The company now expects revenues between $11.21 billion and $11.24 billion.
Adjusted earnings per share are projected in the range of $4.86-$4.90. The guidance excludes non-recurring costs associated with the pending UniFirst acquisition.
Management expects net interest expense of approximately $101 million and an effective tax rate of 20.0% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, Cintas has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cintas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCintas belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, G-III Apparel Group (GIII - Free Report) , has gained 17.1% over the past month. More than a month has passed since the company reported results for the quarter ended January 2026.
G-III Apparel reported revenues of $771.49 million in the last reported quarter, representing a year-over-year change of -8.1%. EPS of $0.30 for the same period compares with $1.27 a year ago.
For the current quarter, G-III Apparel is expected to post a loss of $0.30 per share, indicating a change of -257.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for G-III Apparel. Also, the stock has a VGM Score of A.
Concurrent Investment Advisors LLC lifted its holdings in shares of Cintas Corporation (NASDAQ:CTAS – Free Report) by 34.0% during the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 14,326 shares of the business services provider’s stock after purchasing an additional 3,633 shares during the period. Concurrent Investment Advisors LLC’s holdings in Cintas were worth $2,694,000 at the end of the most recent reporting period.
Several other large investors also recently made changes to their positions in CTAS. Key Capital Management INC bought a new stake in shares of Cintas during the fourth quarter worth $28,000. Triumph Capital Management acquired a new position in shares of Cintas during the third quarter valued at $29,000. Alpine Bank Wealth Management lifted its stake in shares of Cintas by 1,092.9% during the third quarter. Alpine Bank Wealth Management now owns 167 shares of the business services provider’s stock valued at $34,000 after acquiring an additional 153 shares during the period. Aventura Private Wealth LLC acquired a new position in shares of Cintas during the fourth quarter valued at $34,000. Finally, WPG Advisers LLC lifted its stake in shares of Cintas by 90.0% during the third quarter. WPG Advisers LLC now owns 171 shares of the business services provider’s stock valued at $35,000 after acquiring an additional 81 shares during the period. Institutional investors own 63.46% of the company’s stock.
Cintas Price Performance Shares of CTAS opened at $174.22 on Wednesday. The company has a current ratio of 1.98, a quick ratio of 1.74 and a debt-to-equity ratio of 0.51. Cintas Corporation has a 1 year low of $165.60 and a 1 year high of $229.24. The stock has a market cap of $69.70 billion, a P/E ratio of 49.21, a price-to-earnings-growth ratio of 3.06 and a beta of 1.01. The stock’s 50-day moving average price is $184.51 and its two-hundred day moving average price is $187.40.
Cintas (NASDAQ:CTAS – Get Free Report) last issued its earnings results on Wednesday, March 25th. The business services provider reported $1.24 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $1.24. Cintas had a return on equity of 41.47% and a net margin of 17.57%.The firm had revenue of $2.84 billion for the quarter, compared to analysts’ expectations of $2.82 billion. During the same quarter last year, the business earned $1.13 earnings per share. The company’s revenue was up 8.9% compared to the same quarter last year. On average, equities analysts predict that Cintas Corporation will post 4.89 earnings per share for the current year.
Cintas Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 15th will be issued a dividend of $0.45 per share. The ex-dividend date is Friday, May 15th. This represents a $1.80 dividend on an annualized basis and a yield of 1.0%. Cintas’s dividend payout ratio (DPR) is 50.85%.
Insider Transactions at Cintas In other Cintas news, Director Ronald W. Tysoe sold 4,666 shares of the firm’s stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $178.87, for a total transaction of $834,607.42. Following the transaction, the director owned 22,448 shares in the company, valued at approximately $4,015,273.76. This trade represents a 17.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 14.90% of the company’s stock.
Analysts Set New Price Targets Several brokerages have recently issued reports on CTAS. Wells Fargo & Company raised Cintas from a “cautious” rating to an “overweight” rating and upped their price target for the company from $205.00 to $245.00 in a research note on Wednesday, January 14th. UBS Group reaffirmed a “buy” rating on shares of Cintas in a research note on Thursday, March 12th. Robert W. Baird raised Cintas from a “neutral” rating to an “outperform” rating and set a $250.00 price target on the stock in a research note on Wednesday, March 11th. Argus raised Cintas to a “strong-buy” rating in a research note on Wednesday, January 21st. Finally, Bank of America began coverage on Cintas in a research note on Tuesday, February 17th. They set a “neutral” rating and a $215.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $215.17.
Check Out Our Latest Research Report on Cintas
Cintas Company Profile (Free Report)
Cintas Corporation (NASDAQ: CTAS) is a provider of business services and products focused on workplace appearance, safety and facility maintenance. The company is best known for its uniform rental and corporate apparel programs, which include rental, leasing and direct-purchase options, laundering and garment repair. Cintas markets its services to a wide range of end-users, including manufacturing, food service, healthcare, hospitality, retail and government customers.
Beyond uniforms, Cintas offers a suite of facility services and products designed to help organizations maintain clean, safe and compliant workplaces.
Further Reading Five stocks we like better than Cintas
Receive News & Ratings for Cintas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cintas and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEConcurrent Investment Advisors LLC Invests $2.13 Million in Beam Therapeutics Inc. $BEAM
NEXT HEADLINE »Martin Marietta Materials, Inc. $MLM Shares Sold by D.A. Davidson & CO.
Comerica Bank lessened its holdings in shares of Cintas Corporation (NASDAQ:CTAS – Free Report) by 7.4% during the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 73,287 shares of the business services provider’s stock after selling 5,873 shares during the period. Comerica Bank’s holdings in Cintas were worth $13,783,000 at the end of the most recent reporting period.
Several other large investors also recently made changes to their positions in the business. Ashton Thomas Private Wealth LLC grew its holdings in shares of Cintas by 56.3% during the fourth quarter. Ashton Thomas Private Wealth LLC now owns 2,954 shares of the business services provider’s stock worth $555,000 after purchasing an additional 1,064 shares during the last quarter. Aprio Wealth Management LLC grew its holdings in shares of Cintas by 7.1% during the fourth quarter. Aprio Wealth Management LLC now owns 1,496 shares of the business services provider’s stock worth $292,000 after purchasing an additional 99 shares during the last quarter. Camelot Portfolios LLC bought a new stake in shares of Cintas during the fourth quarter worth $26,000. Retirement Solution LLC bought a new stake in shares of Cintas during the fourth quarter worth $308,000. Finally, Pictet Asset Management Holding SA grew its holdings in shares of Cintas by 10.0% during the fourth quarter. Pictet Asset Management Holding SA now owns 2,002,205 shares of the business services provider’s stock worth $376,647,000 after purchasing an additional 181,952 shares during the last quarter. Institutional investors own 63.46% of the company’s stock.
Insiders Place Their Bets In other Cintas news, Director Ronald W. Tysoe sold 4,666 shares of the stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $178.87, for a total value of $834,607.42. Following the transaction, the director owned 22,448 shares of the company’s stock, valued at approximately $4,015,273.76. This represents a 17.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 14.90% of the company’s stock.
Cintas Trading Up 0.1% NASDAQ:CTAS opened at $174.22 on Wednesday. Cintas Corporation has a 1-year low of $165.60 and a 1-year high of $229.24. The business’s 50-day moving average price is $184.51 and its two-hundred day moving average price is $187.40. The company has a current ratio of 1.98, a quick ratio of 1.74 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $69.70 billion, a price-to-earnings ratio of 49.21, a PEG ratio of 3.06 and a beta of 1.01.
Cintas (NASDAQ:CTAS – Get Free Report) last released its earnings results on Wednesday, March 25th. The business services provider reported $1.24 earnings per share for the quarter, meeting the consensus estimate of $1.24. Cintas had a return on equity of 41.47% and a net margin of 17.57%.The firm had revenue of $2.84 billion for the quarter, compared to analyst estimates of $2.82 billion. During the same quarter in the prior year, the firm posted $1.13 earnings per share. The company’s quarterly revenue was up 8.9% on a year-over-year basis. On average, equities analysts expect that Cintas Corporation will post 4.89 earnings per share for the current year.
Cintas Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 15th will be paid a $0.45 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $1.80 annualized dividend and a yield of 1.0%. Cintas’s dividend payout ratio is presently 50.85%.
Wall Street Analysts Forecast Growth Several analysts have recently commented on the company. Argus upgraded Cintas to a “strong-buy” rating in a report on Wednesday, January 21st. Weiss Ratings cut Cintas from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, April 1st. UBS Group restated a “buy” rating on shares of Cintas in a report on Thursday, March 12th. Stifel Nicolaus decreased their target price on Cintas from $222.00 to $190.00 and set a “hold” rating on the stock in a report on Thursday, March 26th. Finally, Wells Fargo & Company upgraded Cintas from a “cautious” rating to an “overweight” rating and increased their target price for the stock from $205.00 to $245.00 in a report on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $215.17.
Check Out Our Latest Stock Analysis on Cintas
Cintas Profile (Free Report)
Cintas Corporation (NASDAQ: CTAS) is a provider of business services and products focused on workplace appearance, safety and facility maintenance. The company is best known for its uniform rental and corporate apparel programs, which include rental, leasing and direct-purchase options, laundering and garment repair. Cintas markets its services to a wide range of end-users, including manufacturing, food service, healthcare, hospitality, retail and government customers.
Beyond uniforms, Cintas offers a suite of facility services and products designed to help organizations maintain clean, safe and compliant workplaces.
Read More Five stocks we like better than Cintas Want to see what other hedge funds are holding CTAS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cintas Corporation (NASDAQ:CTAS – Free Report).
Receive News & Ratings for Cintas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cintas and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINECertuity LLC Has $667,000 Stock Position in Texas Instruments Incorporated $TXN
NEXT HEADLINE »Cwm LLC Reduces Stock Position in Zimmer Biomet Holdings, Inc. $ZBH
Monolithic Power Systems climbed during the quarter due to strong quarterly results as well as a favorable outlook associated with demand trends. Microsoft traded down despite delivering robust earnings results and providing forward guidance above consensus expectations. During the first quarter, we purchased both Palo Alto Networks and Cintas and sold Dynatrace and Verisk Analytics.
