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HOUSTON, May 21, 2026 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or "KULR"), an energy-systems platform company that enables the safe, certifiable deployment of ultra-high-power lithium battery systems for space and defense programs, mobility applications, hyperscale AI data centers, and telecom infrastructure OEMs, today announced that it is advancing next-generation drone battery pack integration using Factorial Inc.’s solid-state and lithium-metal battery cell technologies.

The initiative is part of a broader global effort by Factorial to accelerate deployment of its next-generation battery platform across drone systems in the United States, Europe, and Asia-Pacific. In the United States, KULR is supporting integration work focused on optimizing Factorial cells for demanding unmanned aircraft systems (“UAS”) flight environments through KULR’s expertise in battery safety, thermal management, pack design, and mission-critical energy systems.

As drone missions become longer-range, more autonomous, and increasingly important across commercial, industrial, and defense applications, conventional lithium-ion battery systems can face limitations in endurance, weight, and pulse power. KULR’s work with Factorial cells is intended to support the development of battery pack solutions that can help address these constraints while maintaining a focus on safety, reliability, and manufacturability.

“Factorial is pushing the frontier of solid-state and lithium-metal battery innovation, and its next-generation cell technologies have the potential to meaningfully expand what is possible across electrified flight applications,” said Michael Mo, Chief Executive Officer of KULR Technology Group. “By integrating Factorial’s cells into KULR's advanced battery pack architectures, we believe these technologies can help support higher-energy, higher-power solutions for drone platforms operating in demanding environments, where performance, safety, and reliability are becoming increasingly important.”

“We couldn't be more excited to have KULR as a strategic partner," said Siyu Huang, CEO of Factorial. "They bring best-in-class battery platform and pack integration capabilities to a U.S. drone market that is scaling faster than ever. Solid-state and lithium-metal technology is ready for deployment at scale — and partners like KULR are the ones bringing it into the field.” 

KULR and Factorial recently showcased initial battery pack demonstrations at XPONENTIAL 2026 in Detroit, one of the world’s leading events for robotics, autonomy, and uncrewed systems. The demonstration highlighted the potential for Factorial cell-powered battery packs to support next-generation UAS applications across aerospace, defense, robotics, and autonomous system markets.

KULR’s role in the U.S. integration effort builds on its broader strategy to expand the KULR ONE platform into mission-critical battery applications where performance, safety, certification readiness, and manufacturability are essential design requirements. The Company’s KULR ONE Air platform is being developed to support advanced drone, UAS, eVTOL, and electric aviation applications.

About KULR Technology Group, Inc.
KULR Technology Group, Inc. (NYSE American: KULR) is an energy-systems platform company delivering certifiable battery safety, vibration-mitigation, and thermal control solutions that enable ultra-high-power lithium-ion systems and sensitive electronics to operate reliably across space and defense missions, mobility applications, hyperscale AI data centers, and telecom infrastructure OEMs. Learn more at KULR.ai.

Find KULR: Website | X | Telegram | LinkedIn | Instagram | TikTok | Facebook

Investor Relations:
KULR Technology Group, Inc.
Phone: 858-866-8478 x 847
Email: [email protected]

Safe Harbor Statement
This release contains certain forward-looking statements based on our current expectations, intentions and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on March 31, 2026, as may be amended or supplemented by other reports we file with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. All such forward-looking statements that are provided by management in this release are based on information available at this time, and management expects that internal expectations may change over time. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1c70dd55-cb3e-4cd6-8569-f07d2842bd13

HOUSTON, June 09, 2026 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or "KULR"), an energy-systems platform company that enables the safe, certifiable deployment of ultra-high-power lithium battery systems for space and defense programs, mobility applications, hyperscale AI data centers, and telecom infrastructure applications, today announced the appointments of Dr. Michael Kimel as Chief Financial Officer and Mr. Steven Perez as a new independent Board member of the Company, each effective June 9, 2026. In connection with his appointment as Chief Financial Officer, Dr. Kimel resigned from the Company’s Board of Directors effective June 9, 2026.

Dr. Kimel, an executive economist with more than 30 years of experience improving profitability, optimizing cost structures, and leading data-driven financial strategy, previously served as Audit Committee Chair of KULR’s Board of Directors. Dr. Kimel has spent his career helping organizations improve margins, optimize pricing, and create more disciplined financial and operating frameworks. He founded Pricimetrics, a consulting firm focused on profit maximization, and prior to that served as Senior Vice President of Pricing and Analytics at OmniSource United. Previously he served as Senior Director of Pricing and Market Analytics at Toyo Tire Holdings of Americas Inc. Earlier in his career, he held pricing, analytics, and strategy roles at FirstEnergy, and Sears Holdings. Dr. Kimel holds a Ph.D. in Economics from the University of California, Los Angeles.

“I am pleased to welcome Mike Kimel as KULR’s Chief Financial Officer,” said Michael Mo, Co-Founder and Chief Executive Officer of KULR Technology Group. “Mike has already begun helping KULR sharpen its operating discipline, pricing framework, and margin improvement initiatives. His background in financial strategy, economics, and profitability improvement makes him well suited to lead KULR’s next phase of disciplined, profitable growth.”

“I am honored to step into the CFO role at such an important time for KULR,” said Dr. Kimel. “The Company has a significant opportunity to build on its differentiated battery safety and energy systems platform while at the same time implementing its Operating Discipline Framework -- strengthening financial discipline, improving operating leverage, and aligning capital allocation with long-term shareholder value creation. I look forward to working closely with Michael, the Board, and the leadership team supporting KULR’s next stage of growth.”

Steven Perez brings more than 25 years of sales, marketing, product marketing, and go-to-market leadership experience across some of Silicon Valley’s most successful technology companies. Most recently, Mr. Perez served in multiple director-level enterprise sales roles at Twilio (NYSE: TWLO), including Regional Sales Director where he managed large-scale revenue portfolios and led teams providing communications software, customer engagement, and AI solutions to independent software vendors and enterprise platform customers. Earlier in his career, Mr. Perez held sales, product marketing, and field marketing roles at Salesforce, LinkedIn, Adobe EchoSign, Jive Software, Sun Microsystems and Philips Electronics North America. Mr. Perez holds a Bachelor of Science degree in Business Administration with a concentration in Financial Management from California Polytechnic State University, San Luis Obispo.

KULR CEO Michael Mo added, “I am pleased to welcome Steven Perez to KULR’s Board. Steve brings deep enterprise sales and go-to-market experience from category-defining technology companies. As KULR continues to scale its advanced battery systems across demanding commercial, defense, aerospace, and energy infrastructure markets, Steve’s experience building and managing high-performing sales organizations will be highly valuable to the Company.”

“I am excited to join KULR’s Board as the Company continues to commercialize its advanced battery systems and energy management platforms,” said Steven Perez. “KULR is addressing critical power, safety, and performance requirements across markets where reliability is mission-critical. I look forward to working closely with the leadership team to build on the Company’s go-to-market strategy and helping the team scale customer adoption.”

About KULR Technology Group, Inc.
KULR Technology Group, Inc. (NYSE American: KULR) is an energy-systems platform company delivering certifiable battery safety, vibration-mitigation, and thermal control solutions that enable ultra-high-power lithium-ion systems and sensitive electronics to operate reliably across space and defense missions, mobility applications, hyperscale AI data centers, and telecom infrastructure applications. Learn more at KULR.ai.

Find KULR: Website | X | Telegram | LinkedIn | Instagram | TikTok | Facebook

Investor Relations:
KULR Technology Group, Inc.
Phone: 858-866-8478 x 847
Email: [email protected]

Safe Harbor Statement
This release contains certain forward-looking statements based on our current expectations, intentions and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on March 31, 2026, as may be amended or supplemented by other reports we file with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. All such forward-looking statements that are provided by management in this release are based on information available at this time, and management expects that internal expectations may change over time. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

10-year agreement will directly support AI innovation in the UK's leading academic and research communities, aligned with the goals of the Government's AI Opportunities Action Plan. Reinforces Kao Data's Harlow campus as a leading hub for industrial-scale AI research, enterprise and AI cloud computing via one of the UK's largest AI cloud deployments. Powered by 100% renewable energy and using direct-to-chip liquid cooling to minimise water usage, the deployment at Kao Data reinforces Nebius's approach to sustainability. , /PRNewswire/ -- Kao Data, the specialist developer and operator of data centres engineered for AI and advanced computing, has today announced a multi-megawatt (MW) AI infrastructure deployment with Nebius (NASDAQ: NBIS), the leading AI cloud company, at its Harlow data centre campus.

The 22MW, 10-year agreement will support AI innovation within the UK's world-leading academic and research communities, and the roll-out of the Government's AI Opportunities Action Plan - reinforcing Kao Data's Harlow campus as a leading European hub for industrial-scale AI research, enterprise and GPU-accelerated computing.

Today Nebius is one of the fastest-growing, global leaders in AI cloud computing. Its innovative Nebius AI Cloud platform and managed inference service, Nebius Token Factory, will be hosted within Kao Data's Harlow campus, which is one of the UK's most advanced computing environments, specifically engineered for AI.

Crucially, with Kao Data's Harlow campus powered by 100% renewable energy, supported by HVO-powered generators, and its KLON-03 facility using the latest advancements in energy efficient, direct-to-chip liquid cooling to minimise water usage, the data centre campus will ensure Nebius's UK infrastructure is aligned with the company's approach to sustainable AI.

Speaking on the announcement, Spencer Lamb, CEO, Kao Data, said, "Today marks a significant milestone in the evolution of the Kao Data portfolio and a landmark moment in the UK's AI ambitions. Nebius is an impressive global AI cloud operator, and we are delighted to welcome such a significant deployment into our Harlow data centre campus. This partnership proves that despite challenging macroeconomic circumstances, demand for industrial scale, UK-based, cutting-edge AI remains high, with Kao Data the perfect platform for the latest AI workloads."

"We're pleased to be continuing our expansion in the UK with Kao Data," said Andrey Korolenko, Chief Product and Infrastructure Officer at Nebius. "The UK is a major destination for AI and is becoming an important part of Nebius's global footprint. By bringing dedicated capacity to support inference workloads, we can enable UK AI builders and enterprises to achieve their AI goals."

A Reference Platform NVIDIA Cloud Partner, Nebius is building a full-stack AI cloud platform for developers and companies — from data and model training to production deployment. Part of the capacity at Kao Data will be dedicated to Nebius Token Factory, a production-scale inference platform that enables AI companies and digital enterprises to deploy and optimise open AI models at scale.

The new 22MW deployment at Kao Data also forms part of Nebius' £1.7 Billion investment into the UK, which was announced this morning — further highlighting Nebius's role in enhancing the country's domestic compute capacity by enabling British organisations and industry to harness the power of AI to drive economic growth via one of the UK's largest AI cloud deployments.

Kao Data's Harlow data centre campus, which is home to the UK's largest cluster of advanced AI, academic research and life science computing workloads, combines world-class infrastructure with a strong sustainability profile that make it perfectly suited to AI and high-performance computing (HPC) systems.

With data centres set to be developed in Park Royal, West London, Greater Manchester and further capacity in Harlow during the coming years, Kao Data is committed to providing the industrial-scale computing power that underpins the UK Government's sovereign AI ambitions.

About Kao Data 

Kao Data leads the industry, pioneering the development and operation of UK and European data centres engineered for AI and advanced computing. With hyperscale-inspired facilities east and west of London, and northern England's largest data centre planned for Greater Manchester, we are home to technology's most demanding computing infrastructure. 

Its award-winning, NVIDIA DGX-Ready certified data centres are designed, engineered, and operated by one of the industry's most respected teams. Together, this provides colocation customers deploying mission-critical AI, enterprise, and cloud workloads with a secure, scalable, and sustainable compute environment, backed by a guarantee of 100% uptime. 

Kao Data's data centre portfolio includes more than 237 MW of IT load, either currently operational, under development or planned – all of which is under-pinned by the highest energy efficiency, sustainability and ESG credentials. 

Backed by leading international investors, and with several pioneering 'industry firsts' to our name, Kao Data represents the future in industrial scale, high-capacity data centres for AI and the next generation of compute. 

Kaodata.com 

SOURCE Kao Data

Throughout 2025, Nebius Group (NBIS +4.80%) focused on expanding its primary artificial intelligence (AI) cloud infrastructure business. This expansion drew investor attention when the company announced two significant agreements with hyperscalers, leading to the full utilization of its available data center capacity.

The stock tripled last year as the company exceeded bold revenue estimates. That guidance has continued to impress investors, and after Nebius reported Q1 results last month, the stock continued to plow higher. Shares soared 67.2% last month, according to data provided by S&P Global Market Intelligence. Investors now need to consider whether the stock has more room to run.

Image source: The Motley Fool.

Eye-popping numbers Despite the company posting sales of only $105 million in the second quarter of 2025, management increased its prior guidance, forecasting an annual revenue run rate of up to $1.1 billion by the end of 2025. It ended up at a revenue run rate of $1.25 billion.

That incredible growth rate is only accelerating. Management now sees over $3 billion in revenue for 2026, ending the year at a rate that could see it more than double again in 2027. The global provider of AI cloud infrastructure is scaling capacity to justify those predictions. And first-quarter results show the demand is there.

Nebius' record pipeline more than quadrupled quarter over quarter in Q1. The company is actively preparing to support that demand.

It's all about compute capacity The shift from AI training to the inference phase is spurring that demand. In the inference phase, a model utilizes the patterns and relationships acquired during training to evaluate new data and generate results.

This process might include activities like image classification, stock price prediction, speech recognition, or any other task the model is designed to perform. Inference is crucial because it enables the practical deployment of AI models, allowing them to provide insights or automate decisions in real-world scenarios.

As recently as last August, Nebius had contracts in place for over 1 gigawatt (GW) of power to support compute needs. That has now quadrupled, with the company saying last month that it expects to exceed 4 GW in contracted capacity by the end of 2026.

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As is the case with many fast-growing technology stocks, though, investors have bid up shares, anticipating a long runway of continued explosive growth. That doesn't mean it's too late to own Nebius shares. It just means that investor expectations should include the possibility that shares could correct in the short- or medium-term, and that it might take an extended period to realize market-beating returns going forward.

The artificial intelligence revolution is shifting from experimental software to heavy infrastructure and specialized interfaces. Choosing between two hot AI plays, Nebius Group N.V. (NBIS 3.97%) and SoundHound AI (SOUN 3.85%) requires deciding where the greatest value lies.

Nebius Group N.V. operates as a full-stack cloud provider designed specifically for heavy AI workloads, while SoundHound AI focuses on the conversational layer of the technology. While both companies are scaling rapidly to meet modern demand, they offer distinct exposure to the hardware-heavy and software-specific ends of the machine learning market.

The case for Nebius Group N.V.Nebius Group N.V. builds a comprehensive platform for AI workloads, offering everything from model training to production deployment. As investors evaluate opportunities among tech stocks, infrastructure providers like this often represent the backbone of the movement. The company serves global enterprises in healthcare, robotics, and financial services using data centers located across the U.S., Europe, and Israel.

In FY 2025, revenue reached nearly $529.8 million, representing a significant year-over-year increase of roughly 350%. The company reported net income of close to $101.7 million for the same period. This resulted in a net margin of approximately 19.2%, demonstrating the company's ability to generate profit as it scales its cloud footprint.

As of its December 2025 balance sheet, the debt-to-equity ratio, which compares total debt to shareholder equity, is approximately 1.1x. The current ratio, a measure of a company's ability to cover short-term debts with short-term assets, stands at roughly 3.1x. Free cash flow was approximately negative $3.7 billion. Note that stock-based compensation accounted for roughly 21.6% of operating cash flow, which inflates reported cash generation, as SBC is a non-cash expense added back in the cash flow statement.

The case for SoundHound AISoundHound AI provides voice and conversational AI agents that businesses deploy across kiosks, drive-thrus, and in-vehicle systems. Its strategy focuses on the automotive and restaurant industries, helping brands like Hyundai and Stellantis integrate natural language interfaces. For the year ended Dec. 31, 2025, no single customer accounted for more than 10% of total revenues, which helps mitigate the risks associated with customer concentration.

During FY 2025, revenue grew by nearly 99.4% to reach approximately $168.9 million. Despite this strong top-line performance, the company reported a net loss of close to $14.0 million for the fiscal year. The net margin was roughly -8.3%, a significant improvement from the much wider losses reported in previous years.

Risk profile comparisonNebius Group N.V. faces intense competition from larger hyperscalers such as Amazon.com (AMZN 2.39%) and Microsoft (MSFT 1.29%), which possess significantly deeper pockets for data center expansion. The company is also subject to rapid technological shifts that could make its current infrastructure less efficient for future AI models. Furthermore, operating across multiple international jurisdictions subjects the business to complex and evolving data sovereignty and privacy regulations.

SoundHound AI must navigate the risks of "hallucinatory" or inaccurate AI outputs, which could damage its reputation with restaurant and automotive clients. It competes against massive technology companies like Alphabet (GOOGL 1.95%), which have established ecosystems in mobile and vehicle software. Additionally, the business is dependent on third-party cloud connectivity and is sensitive to cyclical downturns in the global automotive market.

Valuation comparisonSoundHound AI appears more attractively priced on a P/S ratio basis, while Nebius Group N.V. trades at a significant premium based on its Forward P/E relative to the broader sector.

MetricNebius Group N.V.SoundHound AISector BenchmarkForward P/E191.6xn/a16.9xP/S ratio103.2x18.9xSector benchmark uses the SPDR XLC sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

AI is suddenly so ubiquitous in our everyday lives and so popular in the stock market that it can be difficult to gauge long-term prospects for related stocks.

To SoundHound AI’s benefit, it’s a more established business, having been involved in speech recognition since being founded in 2005. In the past year, the company has chalked up impressive results, including counting 12 of the world’s 15 largest banks, 4 of the 5 largest automakers, and 4 of the 5 largest airlines among its customers.

It’s fair to question what competitive moat an AI speech recognition business has in an age where AI’s capabilities are growing by leaps and bounds. It’s not beyond the realm of possibility that larger competitors like Alphabet or Apple Inc (AAPL +0.59%) could take over the speech recognition space by leveraging their massive war chests and popularity of their other products.

Nebius Group, N.V., on the other hand, is a newcomer to AI. It used to be part of the Russian Internet giant Yandex. It was split from Yandex to separate the Russian (Yandex) parts of the business from the non-Russian (Nebius) parts. That left Nebius with a lot of cash and few unconnected businesses. Just last year Nebius decided to go all-in on AI, electing to use its large cash pile to buy up thousands of top-tier chips from NVDIA (NVDA 3.39%) and turn itself into a hyperscaler. The audacious move paid off, with annual sales topping $500 million last year. The year prior, before it dove into AI, it sold less than a fifth of that.

If you can stomach NBIS’s very high valuation and believe AI is a long-term, transformational technology, then Nebius Group and its aggressive push to be counted among the giants of AI make it the choice. The lessons of AI, so far, are that size matters.

LONDON--(BUSINESS WIRE)--Nebius, the AI cloud company, today announced the Physical AI Living Lab, a six-month program that equips British and European robotics startups with NVIDIA's physical AI development tools and Nebius's AI cloud infrastructure.

Physical AI depends on large-scale simulation, synthetic data, and accelerated compute that most early-stage robotics companies cannot assemble on their own. The Physical AI Living Lab removes that barrier, putting the same class of tooling and compute used to build physical AI at scale into the hands of founders, so they can move from simulation to real-world deployment faster.

The Lab builds on Nebius and NVIDIA's collaboration to create a cloud platform for robotics and physical AI. The companies intend to extend the Physical AI Living Lab to other regions over time and bring in further cohorts as the program grows.

Evan Helda, Head of Physical AI at Nebius, said:

"Most robotics teams can build a strong model — the bottleneck is getting the simulation, synthetic data, and compute in place to take it further. The Living Lab is built around that problem: founders get the full NVIDIA physical AI stack on Nebius AI Cloud and direct time with our engineers, so they spend time building robots, not assembling infrastructure. That proximity works both ways — working shoulder-to-shoulder with these teams sharpens how we run physical AI ourselves, and that feedback loop is exactly what we want to replicate as we bring the Lab to more cohorts and regions."

Anthony Hills, Director, UK&I, NVIDIA, said:

"The UK has world-class robotics and AI research, but there's still a real gap between that innovation and scaled, market-ready solutions in physical AI. This lab is about closing that gap by giving UK founders affordable access to the first two computers physical AI needs most: cloud-scale training on Nebius and NVIDIA's full simulation and synthetic data stack, including Cosmos and Isaac, running on NVIDIA RTX PRO GPUs. By removing the compute and tooling barriers that usually slow robotics companies down, we're giving UK startups a clear path from promising prototype to deployed systems that can move the needle for the UK economy and society."

Participating startups in the Physical AI Living Lab will work hands-on using NVIDIA technologies to deploy their physical AI workloads — NVIDIA OSMO for workload orchestration, NVIDIA Cosmos world foundation models, and NVIDIA Isaac Sim and NVIDIA Isaac Lab for robot simulation and training — together with the NVIDIA Physical AI Data Factory Blueprint, all running on Nebius infrastructure. Synthetic data generation is provided through Voxel51's FiftyOne integration, built on Cosmos world foundation models.

The first phase of the Physical AI Living Lab will run on Nebius's UK-based infrastructure, built on NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs. Beyond the simulation and training tools, participants build, fine-tune and run their models on Nebius AI Cloud — the company's full-stack platform for taking AI from data and training through to production deployment.

Applications run through the NVIDIA Inception pipeline. The first cohort will begin in September 2026. Engineers from both Nebius and NVIDIA will provide technical guidance throughout the program.

About Nebius

Nebius, the AI cloud company, is building the full-stack platform for developers and companies to take charge of their AI future — from data and model training to production deployment. Founded on deep in-house technological expertise and operating at scale with a rapidly expanding global footprint, Nebius serves startups and enterprises building AI products, agents and services worldwide.

Nebius is listed on Nasdaq (NASDAQ: NBIS) and headquartered in Amsterdam.

For more information please visit www.nebius.com

Media kit www.nebius.com/media-kit.

Disclaimer

Forward-looking statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our future financial and business performance, strategy, expected growth, planned investments and capital expenditures, capacity expansion plans, anticipated future financing transactions and expected financial results, are forward-looking statements. The words "anticipate," "believe," "continue," "estimate," "expect," "guide," "intend," "likely," "may," "will" and similar expressions and their negatives are intended to identify forward-looking statements.

These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from the results predicted or implied by such statements, and our reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted or implied by such statements include, among others: market, macroeconomic and geopolitical conditions; our ability to build, operate and manage our businesses to the desired scale; competitive pressures; technological developments; our ability to secure and retain clients; our ability to secure additional capital to enable the growth of the business; unpredictable sales cycles; and potential pricing pressures; as well as those risks and uncertainties related to our continuing businesses included under the captions "Risk Factors" and "Operating and Financial Review and Prospects" in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC on April 30, 2026, which is available on our investor relations website at https://nebius.com/investor-hub and on the SEC website at www.sec.gov.

All information in this press release is as of the date hereof (unless stated otherwise). Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date hereof and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.

Nebius (NASDAQ: NBIS) stock surged more than 4% in pre-market trading on Tuesday, June 9, as the company announced a new Physical AI Living Lab project with Nvidia (NASDAQ: NVDA).

According to the official press release, the project is a six-month program meant to prop up British and European robotics startups by introducing them to Nvidia’s physical AI development tools and Nebius’s own AI cloud infrastructure.

At press time, Nebius stock was sitting at $227.3 in pre-market, with the last closing price at $218. While the past week has been tough for the company – it’s down nearly 20% on the five-day chart – its overall performance this year has been more than solid, as it’s up 142% year-to-date.

24-hour NBIS share price. Source: Google Finance Nebius and Nvidia introduce Physical AI Living Lab Specifically, participants in the Physical AI Living Lab program will be able to leverage Nvidia’s Cosmos, Isaac, and OSMO platforms for simulation, synthetic data generation, and AI model development.

The Living Lab is powered by Nvidia’s latest Blackwell GPUs. This, the partners promise, will give AI startups access to high-performance computing capabilities needed for large-scale robotics training workloads.

“Most robotics teams can build a strong model — the bottleneck is getting the simulation, synthetic data, and compute in place to take it further. The Living Lab is built around that problem: founders get the full NVIDIA physical AI stack on Nebius AI Cloud and direct time with our engineers, so they spend time building robots, not assembling infrastructure,” said Evan Helda, Head of Physical AI at Nebius.

The first cohort of startups is scheduled to begin the program in September 2026. In the future, the two partners intend to extend the Physical AI Living Lab to other regions and bring in further cohorts as the program grows.

Featured image via Shutterstock

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Key Takeaways NBIS plans a 1.7B euros U.K. AI expansion with three new NVIDIA-powered infrastructure deployments.Nebius expects its U.K. deployments to deliver 65 MW of AI computing capacity by 2027.NBIS signed a 10-year deal with Kao Data for 22 MW of AI infrastructure at Harlow campus. Nebius Group N.V. (NBIS - Free Report) has emerged as an ambitious player seeking to establish itself as a leading AI cloud provider. Recently, it announced plans to invest approximately £1.7 billion in expanding AI compute capacity across the UK. The investment includes three new deployments of advanced NVIDIA-powered infrastructure. The initiative represents one of the largest AI infrastructure commitments in the country and aligns closely with the U.K. government's ambition to become a global AI powerhouse.

Nebius launched its first U.K. deployment of NVIDIA Blackwell Ultra infrastructure in late 2025. Building on that foundation, the company now plans to establish three additional sites across the UK, deploying the latest generations of NVIDIA’s (NVDA - Free Report) full-stack AI factory platform technology. When fully operational in 2027, these deployments are expected to deliver 65 MW of AI computing capacity. The investment directly supports the U.K. government’s AI Opportunities Action Plan, which seeks to accelerate AI adoption across industries while strengthening domestic technological capabilities.

The U.K. investment is part of a broader strategy by Nebius to establish itself as a leading full-stack AI cloud provider. Recent additions to its platform, including integrations with AI-focused companies such as Tavily, Eigen AI and Clarifai, have enhanced its capabilities in agentic search, inference and AI deployment. Combined with the launch of Nebius AI Cloud 3.5 and expanded serverless AI services, the company is positioning itself as a comprehensive platform for enterprise AI adoption.

To further accelerate the UK’s AI future, NBIS forged a partnership with Kao Data. Per the agreement, Nebius will deploy 22 MW of AI infrastructure at Kao Data’s Harlow data centre campus under a 10-year contract, creating one of the largest AI-focused cloud deployments in the country. NBIS will host its AI Cloud platform and Token Factory inference service at Kao Data’s state-of-the-art campus. The deal supports the U.K. government's AI Opportunities Action Plan and contributes directly to expanding the nation's domestic AI computing capacity.

How NBIS’ Adversaries Ramp Up AI InvestmentsCoreWeave, Inc. (CRWV - Free Report) has built a diversified customer base of leading AI developers and enterprises. Beyond GPUs, it offers a full AI cloud platform with compute, storage, networking and software services. Supported by expanding power capacity and infrastructure investments, the company is well-positioned to meet growing demand for AI cloud services and support future growth. Recently, it became the first AI cloud provider to complete the bring-up and full system-level validation of NVDA Vera Rubin NVL72, a next-generation AI platform, positioning CRWV at the forefront of next-generation AI infrastructure and strengthening its competitive advantage in the rapidly expanding AI cloud market.

Microsoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. AI business surpassed $37 billion ARR in the fiscal third quarter. The Azure AI platform continues to benefit from demand across AI and non-AI services, with customer demand exceeding available capacity. It added another GW of capacity during the quarter and remains on track to double its overall data center footprint within two years. New data center investments were announced across four continents. In May, it signed new agreements with U.S. and U.K. government partners, the Center for AI Standards and Innovation and the AI Security Institute to advance AI testing and safety evaluation frameworks.

NBIS Price Performance, Valuation and EstimatesShares of Nebius have gained 160.5% year to date compared with the Internet–Software and Services industry’s growth of 11.5%.

Image Source: Zacks Investment Research

From a valuation standpoint, NBIS trades at a forward price-to-sales of 8.45X, higher than the industry’s 4.21X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised upward over the past 60 days.

Image Source: Zacks Investment Research

NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Nebius Group NBIS jumped more than 5% on Tuesday after the AI cloud company launched a new Physical AI Living Lab with NVIDIA (NVDA), expanding its efforts to support robotics startups across the UK and Europe.

Nebius said the six-month program will provide selected startups with access to NVIDIA's physical AI software tools and Nebius AI Cloud infrastructure. The initiative is designed to help companies accelerate the transition from virtual testing environments to real-world deployment of robotics systems.

Nebius said the first group of participants is expected to begin the program in September 2026. The company added that the project may be extended to additional regions over time as demand for physical AI development grows.

Nebius noted that the initial phase will run on its UK-based infrastructure powered by NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs. NVIDIA said the collaboration is intended to help startups overcome computing and development hurdles that can slow commercialization efforts.

The launch further expands the relationship between Nebius and NVIDIA as both companies target growing demand for AI-driven robotics applications.

Finding artificial intelligence (AI) stocks to buy now and hold over the next decade is tricky. Nobody knows for sure what AI will hold, but every investor knows that buying now gives the best shot at maximum returns. The question is, which ones to buy?

I've got two rapidly growing stocks that look like strong stock picks for the next decade. However, there is an increased risk with these two, so returns aren't guaranteed. But if they do pan out, they could easily crush their peers.

Image source: Getty Images.

SoundHound AI SoundHound AI (SOUN +3.70%) is involved in a critical area of AI. Currently, most interactions with generative AI are via a keyboard.

However, talking to a generative AI agent is also possible with some platforms. The application of that technology is massive and has the potential to automate a lot of jobs in the customer service industry. SoundHound AI helps facilitate that automation and has already rolled out its products in restaurant drive-throughs in several chains.

While this market is relatively small, SoundHound AI could grow into a massive entity if it can automate customer service interactions in the financial, healthcare, and insurance industries. It's already signing customers in these sectors and could lead to major growth down the road.

Today's Change

(

3.70

%) $

0.25

Current Price

$

7.00

During its most recent quarter, revenue rose 52% year over year, but various acquisitions skew some of the growth SoundHound AI reports. It made another one in the first quarter with its LivePerson acquisition and now targets a minimum of $350 million to $400 million in revenue by the end of 2027. For reference, SoundHound AI has generated $184 million in revenue over the past 12 months. That's solid growth ahead, but investors will want to see more over the next decade, especially if it can break into one of those key industries.

With SoundHound AI focused on growing its platform, it shouldn't come as a surprise to investors that it's deeply unprofitable. It posted an operating loss margin of 118% in Q1, which is a deep hole to claw out of. However, if it can rapidly grow over the next decade, it may turn into a highly profitable company once growth isn't the primary focus.

I think SoundHound AI is a solid, long-shot investment. If it pans out, it will be a monster stock. On the flip side, SoundHound AI's business may be disrupted by a larger AI player, so success is far from guaranteed.

Nebius Nebius (NBIS +4.80%) is a completely different company in the AI realm. It's known as a neocloud company, which indicates it is a cloud computing business that's entirely focused on AI.

Nebius has a full-stack offering that gives its clients everything they need to train and run AI applications, and its product is becoming a hit. It has landed major contracts with Microsoft (MSFT 1.75%) and Meta Platforms, and Nvidia has also taken a stake in the business. The Nvidia deal gives Nebius early access to new technologies, making it a critical company to partner with to understand the capabilities of new technology before it's widely rolled out.

Today's Change

(

4.80

%) $

10.16

Current Price

$

221.85

All of this has resulted in a booming business, with Nebius' revenue rising a jaw-dropping 684% in Q1. That's not a flash in the pan, either. Wall Street analysts are bullish on Nebius' future, with 550% revenue growth expected this year and 219% projected in 2027. That's monster growth that will transform the business and make investors a ton of money, but there's something to watch out for.

From a profitability standpoint, Nebius posted an operating loss margin of 32%, which is far better than SoundHound AI's. While it's not fully profitable, with Nebius's rapid growth rates, it will easily be able to bridge the gap between losses and profits as it grows into its new business over the next decade.

Nebius' success or future isn't in question, but its business economics may be. Nebius is raising and borrowing capital to expand its data center footprint. This creates a bit of an unstable future if the return on investment is a bit lower than they hoped. Nebius will need the AI build-out to continue and customers to stay on long after its completion to transform from a money-losing business to a profitable one.

However, there are several cloud computing companies that have already achieved success in this realm, so Nebius could still be successful. Still, it's far from guaranteed, although I like its chances more than SoundHound AI's.

Monday's share price surge for Entain PLC (LSE:ENT) and Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT) reflects genuine relief at the Wall Street Journal's report of bipartisan Senate legislation. But a bill is not a business model, and the forces driving prediction market growth remain intact.

The market's reaction to the Journal's report is understandable. Entain jumped 9%, Flutter rose 5% premarket, and analysts at Citi were quick to call it.

On the surface, legislation that would strip Kalshi and Polymarket of their ability to offer sports contracts looks like a significant competitive reprieve for licensed operators who have spent years and hundreds of millions of dollars navigating state-by-state regulatory approval.

The rally may be getting ahead of the reality.

A bill is not yet a law

Congressional legislation targeting a well-funded industry with sympathetic executive-branch regulators is rarely straightforward.

The CFTC chairman, Michael Selig, has publicly positioned his agency as the preeminent and exclusive federal regulator of prediction markets, and the Trump administration's broader orientation, including Donald Trump Jr.'s advisory roles at both Kalshi and Polymarket, is not one of hostility toward the sector.

Getting a bill through both chambers in that environment will require sustained political will that bipartisan support alone cannot guarantee.

Even if the bill passes, the platforms' legal firepower is substantial. Polymarket is backed by up to $2 billion from Intercontinental Exchange; Kalshi raised $1 billion in its latest funding round. Both will litigate aggressively, and federal preemption arguments could stall implementation for years.

The structural shift is already priced in

The deeper problem for regulated operators is that prediction markets have already demonstrated something the Senate bill cannot undo: there is enormous consumer appetite for a product that looks and feels like sports betting but is not classified as such.

That appetite exists in California and Texas, two of the country's largest states, where conventional sportsbooks cannot legally operate. Kalshi ran advertising campaigns there.

The demand did not disappear when Nevada or Arizona moved against the platforms; it simply looked for the next available channel.

If the legislation the Journal describes forces Kalshi and Polymarket to retreat from US sports markets, then consumer demand does not automatically flow to FanDuel or DraftKings.

The regulatory gap these platforms exploited exists because federal and state frameworks were never designed with binary event contracts in mind. Closing one specific backdoor does not redesign the architecture.

The longer competitive logic

Prediction markets also carry a structural advantage that legislation cannot easily address: they are genuinely global. Blockchain-based platforms operating across multiple jurisdictions are considerably harder to contain than a domestic sportsbook.

A determined operator with the right infrastructure could continue offering sports contracts to US users through offshore entities, much as offshore poker sites did for years after the Unlawful Internet Gambling Enforcement Act of 2006.

Monday's moves in Entain and Flutter reflect a real reduction in near-term competitive pressure. But investors pricing in a permanent resolution to the prediction market threat are likely to be disappointed. The bill, if it passes, buys time. It does not buy the future.

Vaultz Capital PLC (AQSE:V3TC, FRA:VJ2, OTCQB:VZTCF) said it raised £1 million to strengthen working capital and support a strategic refocus towards possible acquisitions in energy transition and the digital economy.

The Aquis-listed company issued new ordinary shares priced at 2.2p each, with Regent Resources Capital Corporation subscribing for the full amount.

The issue price was the prevailing bid price on 1 June and represented an approximate 8% discount to Vaultz’s 20-day volume-weighted average price. 

Vaultz said the proceeds will be used to settle around £320,000 of outstanding trade creditors, provide working-capital headroom and fund transaction-related costs linked to its pipeline of acquisition opportunities.

The company said it is considering significant corporate transactions across strategic minerals, artificial intelligence and digital infrastructure.

Vaultz also plans to appoint Ian Burns as a non-executive director, subject to standard regulatory due diligence. Burns is founder and executive director of Via Executive Limited and managing director of Regent Mercantile Holdings Limited.

The company said it currently intends to substantially maintain its Bitcoin holding, though it would re-evaluate that treasury policy if it undertakes a significant transaction. Vaultz holds 134 Bitcoin, valued at about £7.3 million using a reference Bitcoin price of US$73,653 and a GBP/USD rate of 1.35.

After adjusting for the subscription proceeds and trade creditors, Vaultz estimated an unaudited net asset value following admission at around £8 million, equivalent to about 3.1p per ordinary share.

'Shaping Canada's Longevity Advantage' challenge will invite innovators to deliver solutions that strengthen health, financial resilience and social connection across longer lives

The challenge is an initiative of Manulife's Longevity Institute, driving Canadian solutions for a longer‑living society

, /PRNewswire/ - Manulife, in partnership with UpLink, the World Economic Forum's early-stage innovation initiative, and the Forum's Centre for Financial and Monetary Systems today announced the launch of a new innovation challenge, 'Shaping Canada's Longevity Advantage,' focused on enabling lifelong health, wealth and purpose across multistage lives.

Canadians are living longer, more complex lives, often balancing their own health and financial needs while supporting ageing parents or caregiving for others. Insights from the National Institute on Ageing's Ageing in Canada Survey, conducted by the NIA with support from Manulife, highlight the urgency of this challenge: 43 per cent of older Canadians are at high risk of social isolation, while only 29 per cent feel they can afford to retire. These realities underscore the need for practical, near-term solutions that help people live not just longer, but better, supported by stronger financial resilience, meaningful connections, and confidence across life stages. The 'Shaping Canada's Longevity Advantage' challenge invites innovators to deliver integrated solutions that create measurable improvements in critical areas impacting longevity in Canada.

The challenge will focus on innovations across three opportunity areas:

Financial resilience across life stages, including budgeting and saving tools designed for longer lifespans, AI-enabled financial planning solutions, modern retirement and care planning platforms, and financing solutions that support caregivers balancing work, family and care responsibilities. Healthy aging for all, including digitally enabled health navigation solutions, preventative health and wellness innovations that help delay or manage chronic illness, and tools and platforms that directly support caregivers in coordinating care and maintaining their own wellbeing. Purpose and connection, including digital, physical and nature-based spaces that foster social engagement, AI-supported platforms that reduce isolation, and intergenerational initiatives that strengthen community ties, belonging and shared purpose. Through this Canada-focused challenge, Manulife, UpLink and the Forum's Centre for Financial and Monetary Systems aim to surface and support solutions that respond to the realities of longer lives, helping individuals build resilience, stay connected, and maintain a sense of purpose at every stage.

This initiative is aligned to the Manulife Longevity Institute, a recently launched global research, thought leadership, innovation, advocacy, and community investment platform that will help people thrive at every age.

A call to strengthen Canada's approach to longevity

"Living longer should also mean living healthier—and Canadians need the right support to make that possible. As lifespans increase, people need help navigating care, preventing illness, and managing chronic conditions. Shaping Canada's Longevity Advantage reflects our commitment to giving Canadians the tools and confidence they need to live healthier lives at every stage."

-     Naveed Irshad, President and CEO, Manulife Canada

"As Canadians live longer, financial planning is no longer about a single life stage, but a multi-decade journey with growing complexity. Financial resilience is becoming central to healthy longevity. Investing in innovators developing AI-enabled modern savings and planning tools, and caregiver support reinforces our commitment to offering advisors and plan sponsors the resources they need to help individuals secure their financial futures and live longer lives with confidence." 

-     Paul Lorentz, President and CEO, Manulife Wealth & Asset Management

"The longevity economy is emerging as a defining force shaping future growth and resilience. With Canada officially becoming a 'super-aged' country in 2026, the time to turn challenges into opportunities is now. Through our partnership with Manulife and the Forum's Centre for Financial and Monetary Systems, the Global Longevity Innovation Initiative strengthens the conditions needed to scale early-stage innovation and drive real-world impact that promotes healthy ageing, purpose, and financial resilience across generations."

-     John Dutton, Head of UpLink, World Economic Forum

Challenge details

Full details and entry information can be found here.

The challenge is part of Manulife's broader, multiyear partnership with the World Economic Forum's UpLink initiative, reflecting a shared commitment to accelerating innovation in the longevity economy and supporting solutions that improve quality of life as people live longer. It also supports the World Economic Forum's broader efforts to address the demographic and financial realities of global ageing.

Shaping Canada's Longevity Advantage marks the third challenge in this partnership, building on successful challenges previously delivered in the United States and Asia. Together, the Manulife-powered UpLink challenges support a global ecosystem of innovators accelerating solutions across health, financial resilience and well-being, reflecting the company's commitment to driving global change through locally relevant, place-based solutions.

For more information on the Manulife Longevity Institute, visit Manulife.com/Longevity. 

About Manulife

Manulife Financial Corporation is a leading international financial services provider, headquartered in Toronto, Canada. Anchored in our ambition to be the number one choice for customers, we operate as Manulife across Canada and Asia, and primarily as John Hancock in the United States, providing financial advice, insurance and health solutions for individuals, groups and businesses. Through Manulife Wealth & Asset Management, we offer global investment solutions, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2025, we had more than 37,000 employees, over 106,000 agents, and thousands of distribution partners, serving over 37 million customers with operations across 25 markets globally. We trade as 'MFC' on the Toronto, New York, and Philippine stock exchanges, and under '945' on the Hong Kong stock exchange. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

About Manulife Longevity Institute

The Manulife Longevity Institute is a global research, thought leadership, innovation, advocacy, and community investment platform to drive action that can help people live longer, healthier, and more financially secure lives. Underpinned by a $350 million signature commitment, its focus is on helping people extend their healthy years, promoting greater financial resilience for all. As a global insurer, retirement plan provider, and asset manager, Manulife is uniquely placed to help lead this change. The Institute's work will support Manulife's Impact Agenda strategy by investing in organizations that are growing the longevity economy, convening research collaborations with leading academic institutions and think tanks, and producing thought leadership to advance awareness and action on the issues impacting populations as they age. The Institute will be known as the John Hancock Longevity Institute in the United States. The actions of the Institute will be guided by a Steering Committee of members of Manulife's Executive and Global Leadership Teams and in partnership with a robust ecosystem of partners and experts who champion longevity across Canada, Asia, and the US. Canada, Asia, and the US.

For more information, please visit Manulife.com/Longevity.  

About UpLink

UpLink, the World Economic Forum's early-stage innovation engine, connects purpose-driven innovators with the partnerships, resources and capital they need to scale solutions for the markets and economies critical to a resilient, sustainable and prosperous world. UpLink envisions a future where profit and purpose go hand in hand — where innovation drives competitiveness, inclusion, and long-term value, where economic growth uplifts people while restoring the planet, and where resilience is the foundation of thriving, future-proof economies. For further information, click here.

Media contact

Manulife:

Emily English
[email protected]
647-544-2800

SOURCE Manulife Financial Corporation

At first, Intact Financial, Great-West Lifeco, Manulife, and Sun Life look like they belong in the same bucket. But when digging deeper, there are differences to consider. These four insurers don't grow the same way, they don't take the same risks, and they won't appeal to the same type of investor. These four all offer respectable income, but the better question is this: which business do you want to own for the next decade?

Toronto, Ontario--(Newsfile Corp. - May 1, 2026) - Jordy Chilcott, Head of Retail Intermediary Distribution, Canada, Co-President and Co-Chief Executive Officer, Manulife Investment Management Limited ("Manulife" or the "Company") and his team, joined Keith Wu, Head, Exchange Traded Products, Toronto Stock Exchange ("TSX"), to close the market and celebrate the launch of the their Manulife All-in-One ETFs:

Manulife Conservative ETF Portfolio (TSX: MCAP)Manulife Balanced ETF Portfolio (TSX: MBAP)Manulife Growth ETF Portfolio (TSX: MGAP)Cannot view this video? Visit:
https://www.youtube.com/watch?v=saxBSSYfKIg

The Manulife All-in-One ETFs feature actively managed asset allocation with exposure across 15 equity and fixed income asset classes.

As part of Manulife Financial Corporation, Manulife Wealth & Asset Management's mission is to make decisions easier and lives better by helping people invest confidently to pursue a more secure financial future. Their strength comes from the diversity of their global asset management expertise and distribution capabilities. Their global investment teams span equities, fixed income, alternative credit, private markets, and multi-asset solutions. They provide investment, financial advice, and retirement plan services to millions of individuals, institutions, and retirement plan members worldwide. At the heart of their approach are three cultural pillars: Partner for Progress, Trust through Transparency, and Intellectual Curiosity. These values shape how they build long-term relationships, develop differentiated investment strategies, and empower advisors and clients to seek meaningful financial outcomes. Whether through cutting-edge technology, AI innovation, personalized advice, or sustainable stewardship, Manulife Wealth & Asset Management is a trusted partner helping clients navigate complexity and invest with confidence.

For additional information, please visit manulifeim.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295560

Source: Toronto Stock Exchange

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Manulife's inaugural global Impact Week brings longevity commitment to life through social connection and purpose-driven community action

Thousands of colleagues mobilized in support of local charities, exemplifying Manulife's strong winning team and culture

, /PRNewswire/ - Manulife hosted its inaugural Impact Week, a volunteer initiative designed to strengthen well-being, build social connection, and unite teams through purpose-driven community action.

Pragashini Fox, Manulife's Chief People Officer, and colleagues volunteering at Anishnabeg Outreach in Kitchener, On. (CNW Group/Manulife Financial Corporation)

Naveed Irshad, President and CEO, Manulife Canada, and colleagues at Toronto’s Yonge Street Mission (YSM). (CNW Group/Manulife Financial Corporation)

Colleague volunteering at a local food bank in Toronto. (CNW Group/Manulife Financial Corporation)

Manulife’s President and CEO Phil Witherington joins Toronto middle school students for a conversation about financial literacy. (CNW Group/Manulife Financial Corporation)

Manulife’s President and CEO Phil Witherington joins Toronto middle school students for a conversation about financial literacy. (CNW Group/Manulife Financial Corporation)

Manulife colleagues in Japan take part in a river clean-up effort. (CNW Group/Manulife Financial Corporation)

Colleagues volunteering at the Nova Scotia SPCA in Dartmouth. (CNW Group/Manulife Financial Corporation)

John Hancock colleagues supporting Cradles for Crayons in Boston. (CNW Group/Manulife Financial Corporation)

From April 27 to May 1 in North America, and April 27 to May 8 across Asia, colleagues mobilized to support community partners focused on health and well-being, financial resilience, food security, education and additional causes linked to longevity. Manulife offers its 37,000 colleagues an annual paid Volunteer Day benefit, and Impact Week provided a globally-aligned opportunity for colleagues to use that benefit and volunteer together.

"We have a long history of community stewardship at Manulife, and Impact Week reflects our continued commitment to our communities around the world," said Phil Witherington, President and CEO, Manulife. "Strengthening our winning team and culture and empowering health, wealth, and longevity are two of our strategic priorities, and volunteering is a powerful way to advance both, by deepening connection, building belonging, and turning our values into action. I'm proud of Team Manulife this week for getting outside with one another and capturing the scale of our global footprint to make a real difference."

Results and Highlights from Impact Week 2026

During Impact Week:

21,724 volunteer hours were logged globally, with community impact continuing beyond the week 234 volunteer activities were completed across 22 communities Volunteering: A Longevity Driver

Impact Week reflects Manulife's commitment to longevity, translating insights on connection and purpose into real‑world impact while reinforcing the role volunteering plays in well-being and quality of life. Research shows positive effects of volunteering include:

Longer, healthier lives, including lower blood pressure, improved physical health and reduced mortalityi. Better mental health, with increased purpose and connection and reduced stress, anxiety and depressionii. Stronger cognitive health, including slower cognitive decline and improved social connectioniii. "Longevity isn't only influenced by physical and financial well-being — it's shaped by how we live and connect," said Karen Leggett, Global Chief Marketing Officer, Manulife. "Volunteering builds purpose, social connection, and resilience — factors linked to longer, healthier lives. Impact Week gives our colleagues the opportunity to serve our communities while also investing in their own longevity."

Manulife Colleagues Driving Global Impact Through Local Action

A hallmark of Impact Week was its flexibility, which helped strengthen connection across teams, bringing colleagues together around shared purpose and reinforcing a culture of inclusion. Alongside curated volunteer opportunities, teams designed their own initiatives through Team Grants, which enabled groups of 10 or more to support non-profit partners with funding and hands‑on effort.  

"Impact Week created space for colleagues to have dedicated time to come together and make a difference in their communities," said Pragashini Fox, Chief People Officer, Manulife. "By offering a global Volunteer Day and empowering teams to lead local initiatives, we're strengthening connection, belonging, and a shared sense of purpose across Manulife. When colleagues come together in service, it builds the connections that underpin strong, inclusive teams."

Manulife's Legacy of Community Stewardship

Impact Week continues a long tradition of community involvement at Manulife. Since 1888, when the company donated its first ambulance to help improve community health, Manulife has continued to evolve how it contributes to stronger communities, recognizing that wellbeing includes not only physical health, but also the purpose and connection that come from showing up for others.

Impact Week aligns closely with the work of the Manulife Longevity Institute, a global research, thought leadership, innovation, advocacy, and community investment platform that will help people thrive at every age. Learn more about Manulife's Longevity research and insights at: Manulife.com/longevity. 

About Manulife

Manulife Financial Corporation is a leading international financial services provider, headquartered in Toronto, Canada. Anchored in our ambition to be the number one choice for customers, we operate as Manulife across Canada and Asia, and primarily as John Hancock in the United States, providing financial advice, insurance and health solutions for individuals, groups and businesses. Through Manulife Wealth & Asset Management, we offer global investment solutions, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2025, we had more than 37,000 employees, over 106,000 agents, and thousands of distribution partners, serving over 37 million customers with operations across 25 markets globally. We trade as 'MFC' on the Toronto, New York, and Philippine stock exchanges, and under '945' on the Hong Kong stock exchange. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

About Manulife Longevity Institute

The Manulife Longevity Institute is a global research, thought leadership, innovation, advocacy, and community investment platform to drive action that can help people live longer, healthier, and more financially secure lives. Underpinned by a $350 million signature commitment, its focus is on helping people extend their healthy years, promoting greater financial resilience for all. As a global insurer, retirement plan provider, and asset manager, Manulife is uniquely placed to help lead this change. The Institute's work will support Manulife's Impact Agenda strategy by investing in organizations that are growing the longevity economy, convening research collaborations with leading academic institutions and think tanks, and producing thought leadership to advance awareness and action on the issues impacting populations as they age. The Institute will be known as the John Hancock Longevity Institute in the United States. The actions of the Institute will be guided by a Steering Committee of members of Manulife's Executive and Global Leadership Teams and in partnership with a robust ecosystem of partners and experts who champion longevity across Canada, Asia, and the US. Canada, Asia, and the US.
For more information, please visit Manulife.com/Longevity. 

Media contact
Manulife:
Emily English
[email protected]
647-544-2800

SOURCE Manulife Financial Corporation

TSX/NYSE/PSE: MFC    SEHK: 945                                                                            C$ unless otherwise stated                                                                

, /PRNewswire/ - Manulife Financial Corporation ("Manulife" or the "Company") reported its first quarter results for the period ended March 31, 2026, delivering double-digit core EPS and new business CSM growth year over year.

Key highlights for the first quarter of 2026 ("1Q26") include:

Core earnings1 of $1.8 billion, up 8% on a CER basis2 compared with the first quarter of 2025 ("1Q25") Net income attributed to shareholders of $1.1 billion, up $0.7 billion from 1Q25 Core EPS3 of $1.06, up 11%2 from 1Q25. EPS of $0.65, up 178%2 from 1Q25 Core ROE3 of 16.5% and ROE of 10.1% LICAT ratio4 of 136% APE sales up 7%5, new business CSM up 16%2 and new business value ("NBV") up 7%5 from 1Q25 Global Wealth and Asset Management ("Global WAM") net outflows5 of $4.4 billion, compared with $0.5 billion of net inflows in 1Q25 "We delivered a solid first quarter, executing our strategy and demonstrating the strength of our diversified portfolio. We generated double-digit growth in core EPS, and new business momentum continued to build, driving double-digit growth in new business CSM across all three insurance segments, despite macroeconomic uncertainty.

"Asia achieved another strong quarter, with 22% growth in core earnings and 15% growth in new business value, reflecting robust contributions from key markets in the region. In Global WAM, core EBITDA margin3 improved year over year, notwithstanding the impact of the eMPF transition, and Manulife | Comvest contributed positively to margin, core earnings and net inflows.

"We made sustained progress against our strategic priorities — expanding our health proposition with new partnerships in Asia and Canada, advancing Global WAM through our partnership with L&G6, and further differentiating our U.S. product offerings. We scaled AI delivery across our global footprint to enhance distributor experience and improve productivity and efficiency. We remain well positioned to deliver our targets and capture growth, generating sustainable value for shareholders."7

— Phil Witherington, Manulife President & Chief Executive Officer

"Our balance sheet and financial performance demonstrated resilience during a volatile quarter. Excess capital remained strong, our financial leverage ratio improved, and book value per common share increased to an all-time high8. We continued to deploy capital in a disciplined manner, returning $1.2 billion to shareholders through dividends and share buybacks, and on the acquisition of Schroders Indonesia. Core ROE was 16.5% for the quarter, an increase of 90 basis points compared with 1Q25, and our expense efficiency ratio of 46%3 remained in-line year over year, while continuing strategic investments in AI and reflecting the impact of the Comvest acquisition in Global WAM."

— Colin Simpson, Manulife Chief Financial Officer

Results at a Glance

($ millions, unless otherwise stated)

Quarterly Results

1Q26

1Q25

Change2,5

Net income attributed to shareholders

$  1,147

$     485

149 %

Core earnings

$  1,836

$  1,767

8 %

EPS ($)

$    0.65

$    0.25

178 %

Core EPS ($)

$    1.06

$    0.99

11 %

ROE

10.1 %

3.9 %

6.2 pps

Core ROE

16.5 %

15.6 %

0.9 pps

Book value per common share ($)

$  26.30

$  25.88

2 %

Adjusted BV per common share ($)3

$  39.01

$  36.66

6 %

Financial leverage ratio (%)3

22.5 %

23.9 %

(1.4) pps

APE sales

$  2,821

$  2,689

7 %

New business CSM

$  1,019

$     907

16 %

NBV

$    944

$     907

7 %

Global WAM net flows ($ billions)

$    (4.4)

$      0.5

- %

Results by Segment

($ millions, unless otherwise stated)

Quarterly Results

1Q26

1Q25

Change5

Asia (US$)

Net income attributed to shareholders

$   433

$   435

2 %

Core earnings

598

492

22 %

APE sales

1,599

1,412

11 %

New business CSM

585

498

15 %

NBV

533

457

15 %

Canada

Net income attributed to shareholders

$   238

$   222

7 %

Core earnings

352

374

(6) %

APE sales

416

491

(15) %

New business CSM

103

91

13 %

NBV

152

180

(16) %

U.S. (US$)

Net income attributed to shareholders

$   101

$  (397)

- %

Core earnings

241

251

(4) %

APE sales

155

120

29 %

New business CSM

83

70

19 %

NBV

44

48

(8) %

Global WAM

Net income attributed to shareholders

$   403

$   443

(5) %

Core earnings

448

454

2 %

Gross flows ($ billions)5

56.0

50.3

15 %

Average AUMA ($ billions)5

1,118

1,041

11 %

Core EBITDA margin (%)

29.0 %

28.4 %

60 bps

Strategic Highlights

We are executing to expand our diversified portfolio and further strengthen distribution capabilities and product leadership

In Asia, we received recognition as Asia's Best Insurance Provider for Wealth Management at the 2026 Euromoney Private Banking Awards, a leading benchmark in the private banking and wealth management industry. This acknowledgement reflects our strong growth momentum, innovative product suite for high-net-worth ("HNW") customer segments, value-added service, international capabilities, and trusted relationships with our distribution partners across all HNW channels.

In Global WAM, we completed the acquisition of PT Schroder Investment Management Indonesia ("Schroders Indonesia") with $3.5 billion of assets under management ("AUM") as of March 31, 2026. The acquisition strengthens our position as the largest asset manager in Indonesia9 and enables us to deliver enhanced value to our clients and stakeholders by leveraging the firm's local expertise and client relationships.

In addition, we entered into a strategic partnership with L&G6 to enhance our distribution, investment management, and product development capabilities. The partnership is intended to combine our global asset management expertise and distribution platform with L&G's strengths as a global asset manager and distribution capabilities, especially across Europe, bringing together complementary capabilities to expand access to differentiated investment solutions across institutional, retirement, and retail channels.

In the U.S., we further differentiated our product portfolio through enhancements to our indexed and hybrid indexed universal life offerings, better positioning us to address evolving income-protection and wealth-accumulation needs and supporting our growth strategy. Furthermore, we reinforced our industry-leading large-case underwriting capabilities by increasing auto-bind limits through reinsurer support, simplifying underwriting and reducing friction for complex submissions.

We are deploying AI globally to enhance distributor experience, drive efficiency, and deliver value

We accelerated our momentum across our enterprise AI platform, establishing production‑ready environments and enabling initial scalable use cases, while leveraging new strategic partnerships with Akka10 and Adaptive ML11. In addition, our developers across the organization continued to adopt assisted and autonomous AI capabilities, increasing their productivity by 30% while enabling reinvestment to support business growth and develop new capabilities to serve our customers. Together, we expect these advancements will enhance our ability to deploy AI at scale with speed, consistency, and in alignment with our Responsible AI Principles.

Building on the roll out of agent and advisor AI tools in a number of our Asia markets in 2025, we launched our distributor AI tool in Vietnam to support faster access to product information, premium calculations and simplified illustrations for customers. In Japan, we also enhanced our AI tool to provide a unified, always-available entry point to information about our independent agents, including their affiliations, branch details, and product license eligibility, enabling us to provide better and faster support to these agents.

In Global WAM, we introduced an AI‑powered sales platform in U.S. Retail to better integrate data, enabling more personalized advisor conversations and smarter sales deployment. This platform allows sales teams to prioritize the most promising opportunities, driving an approximately 40% increase in meaningful advisor interactions and supporting higher flows.

In the U.S., we continued to realize benefits from scaling GenAI investments in underwriting through the expansion of our Quick Quote support tool, enabling us to automate nearly half of preliminary assessments, which accelerated average turnaround time from days to minutes and enabled underwriters to focus on more complex cases.

In Canada, we enhanced online claims processing for our Affinity health & dental business through AI-driven document processing for the majority of manually processed claims, which improved processing speed and accelerated payments to customers.

We are advancing our health, wealth and longevity strategy while establishing new strategic partnerships 

In Asia, we established an exclusive partnership with Guardant Health to offer the Shield™ Multi‑Cancer Detection test ("Shield MCD test")12 to eligible customers in Hong Kong, Singapore, and the Philippines. The collaboration makes us the first insurer in Asia to offer the Shield MCD test, broadening access to early cancer detection and advancing our commitment to improving customer health outcomes and longevity.

In Canada, we partnered with Osara Health®, a global provider of evidence-based cancer support programs to pilot the Cancer Coach™ program and offer eligible Group Benefits members structured and personalized support for navigating the daily challenges that accompany a cancer diagnosis, treatment, and recovery.

We also advanced Manulife's commitment to longevity through a partnership with the National Institute on Ageing, supporting the release of the Ageing in Canada Survey, one of Canada's most comprehensive annual snapshots of aging, and building on our commitment to health, wealth and financial wellbeing.

In the U.S., we launched John Hancock Vitality PRO, a distributor-facing engagement platform designed to support the promotion of John Hancock Vitality and to enhance producer loyalty. Early adoption continues to build, reinforcing engagement in John Hancock Vitality and our mission to help customers live longer, healthier, better lives.

Continued business growth drove core earnings higher13

Core earnings of $1.8 billion in 1Q26, up 8% from 1Q25

The increase in core earnings reflected strong business growth in Asia and Global WAM, the net positive impact of 2025 updates to actuarial methods and assumptions, and a net improvement in insurance experience, partially offset by lower investment spreads in the U.S. and the impact of the eMPF transition in Hong Kong.

Asia core earnings increased 22%, reflecting continued business growth and the net positive impact of 2025 updates to actuarial methods and assumptions, partially offset by less favourable insurance experience. Global WAM core earnings increased 2%, driven by higher net fee income from favourable market impacts over the past 12 months, contribution from the Manulife | Comvest business, and continued expense discipline, partially offset by the impact of the eMPF transition in Hong Kong and lower performance fees. Canada core earnings decreased 6%, reflecting unfavourable insurance experience in Group Insurance in 1Q26, compared with favourable experience in 1Q25. The variance in insurance experience was largely driven by higher long-term disability claims, along with higher expenses to support the growing business and transformational investment to elevate customer experience in Group Insurance. This was partially offset by business growth in the segment, the net positive impact of 2025 updates to actuarial methods and assumptions, and a lower charge in the expected credit loss provision. U.S. core earnings decreased 4%, primarily driven by lower investment spreads, partially offset by favourable net insurance experience in 1Q26 compared with unfavourable experience in 1Q25. Corporate and Other core earnings improved by $12 million, reflecting the non-recurrence of the 1Q25 provision for the California wildfires in our P&C reinsurance business, partially offset by lower investment income and higher expenses from continued strategic investments in transformational efforts, including AI-focused initiatives. Net Income attributed to shareholders of $1.1 billion in 1Q26, $0.7 billion higher compared with 1Q25

The $0.7 billion increase in net income was primarily driven by a smaller net charge related to market experience and core earnings growth. The net charge from market experience in 1Q26 reflected lower-than-expected returns on public equity and lower-than-expected returns on alternative long-duration assets, mainly related to real estate, timber, and private equity investments. The market experience in 1Q25 included a $0.7 billion realized loss related to the RGA U.S. Reinsurance Transaction from the sale of debt instruments, which was offset by an associated change in Other Comprehensive Income with a net neutral impact to book value.14

Insurance new business growth momentum continued, with a double-digit increase in new business CSM across all segments

APE sales, new business CSM and NBV increased 7%, 16%, and 7%, respectively, reflecting the strength of our diversified business portfolio

Asia delivered strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of 11%, 15% and 15%, respectively, driven by higher sales volumes and a more favourable business mix, reflecting growth in Hong Kong, Japan and Singapore across all three new business metrics. NBV margin improved modestly to 38.2%.5 Canada APE sales and NBV decreased 15% and 16%, respectively, driven by lower Group Insurance sales, partially offset by higher Individual Insurance sales. New business CSM increased 13%, reflecting the growth in Individual Insurance from higher participating life insurance sales. In the U.S., APE sales and new business CSM increased 29% and 19%, respectively, reflecting increased demand for our accumulation insurance products supported by recent product enhancements. NBV decreased 8%, primarily driven by product mix, partially offset by higher sales volumes. Global WAM net outflows of $4.4 billion in 1Q26, compared with net inflows of $0.5 billion in 1Q25

Retirement net outflows were $2.8 billion in 1Q26 compared with net outflows of $2.6 billion in 1Q25, driven by higher member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the U.S., partially offset by lower retirement plan redemptions in Canada. Retail net outflows were $5.8 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25, primarily driven by higher net outflows in active mutual funds through third-party intermediaries in North America, including a few large model redemptions in the U.S. Institutional Asset Management net inflows were $4.2 billion in 1Q26 compared with net inflows of $2.6 billion in 1Q25, driven by net flows from the Manulife | Comvest business, and higher net sales from money market mandates in mainland China and from Manulife | CQS products, partially offset by lower net flows in equity mandates and lower deployments in private equity mandates. New business growth continued to drive higher organic CSM and CSM balance

CSM15 was $25,589 million as at March 31, 2026

CSM increased $620 million compared with December 31, 2025. Organic CSM movement contributed $650 million of the increase, representing an 11% annualized growth in our CSM net of NCI balance16, primarily driven by the impact of new business, interest accretion and net favourable insurance experience, partially offset by amortization recognized in core earnings. Inorganic CSM movement was a decrease of $30 million, primarily driven by the unfavourable impacts of equity market performance and interest rate movements, partially offset by the impacts of changes in foreign currency exchange rates. Post-tax CSM net of NCI1 was $21,255 million as at March 31, 2026.

___________________________

(1)

Core earnings and post-tax contractual service margin net of NCI ("post-tax CSM net of NCI") are non-GAAP financial measures. For more information on non-GAAP and other financial measures, see "Non-GAAP and other financial measures" below and in our 1Q26 Management's Discussion and Analysis ("1Q26 MD&A").

(2)

Percentage growth/declines in core earnings, diluted core earnings per common share ("core EPS"), diluted earnings (loss) per share ("EPS"), new business contractual service margin net of NCI ("new business CSM"), and net income attributed to shareholders are stated on a constant exchange rate ("CER") basis and are non-GAAP ratios.

(3)

Core EPS, core ROE, core EBITDA margin, expense efficiency ratio, adjusted book value per common share ("adjusted BV per common share"), and financial leverage ratio are non-GAAP ratios.

(4)

Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI") as at March 31, 2026. LICAT ratio is disclosed under the Office of the Superintendent of Financial Institutions ("OSFI's") Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.

(5)

For more information on annualized premium equivalent ("APE") sales, new business value ("NBV"), net flows, gross flows, average asset under management and administration ("average AUMA") and new business value margin ("NBV margin"), see "Non-GAAP and other financial measures" below. In this news release, percentage growth/decline in APE sales, NBV, net flows, gross flows, and average AUMA are stated on a constant exchange rate basis.

(6)

Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as "L&G".

(7)

See "Caution regarding forward-looking statements" below.

(8)

Under IFRS 17.

(9)

Based on AUM as of February 2026.

(10)

Akka provides a secure and scalable software foundation to build trusted AI-powered business applications.

(11)

Adaptive ML provides a reinforcement-learning-powered engine to fine-tune, evaluate, and deploy open-source small language models (SLMs) for enterprise applications.

(12)

The Shield MCD test is intended to detect 10 cancers with a single blood draw, and is for export use only outside of the United States.

(13)

See section A1 "Profitability" in our 1Q26 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.

(14)

The reinsurance transaction with the Reinsurance Group of America, Incorporated ("RGA U.S. Reinsurance Transaction") closed January 1, 2025.

(15)

Net of non-controlling interests ("NCI").

(16)

Percentage growth / decline in our CSM net of NCI balance from organic CSM movement is stated on a constant exchange rate basis and is a non-GAAP ratio. This percentage is calculated as the annualized year-to-date change in organic CSM net of NCI divided by the December 31, 2025 CSM net of NCI balance.

Earnings Results Conference Call

Manulife will host a conference call and live webcast on its First Quarter 2026 results on May 14, 2026, at 8:00 a.m. (ET). To access the conference call, dial 1-888-317-6003 or 1-647-846-2809 (Passcode: 7290517#). Please call in 15 minutes before the scheduled start time. You will be required to provide your name and organization to the operator. You may access the webcast at https://www.manulife.com/en/investors/results-and-reports. 

The archived webcast will be available following the call at the same URL as above. A replay of the call will also be available until August 14, 2026, by dialing 1-855-669-9658 or 1-412-317-0088 (Passcode: 1809675#).

The First Quarter 2026 Statistical Information Package is also available on the Manulife website at https://www.manulife.com/en/investors/results-and-reports. 

This earnings news release should be read in conjunction with the Company's First Quarter 2026 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three months ended March 31, 2026, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, which is available on our website at https://www.manulife.com/en/investors/results-and-reports. The Company's 1Q26 MD&A and additional information relating to the Company is available on the SEDAR+ website at https://www.sedarplus.ca and on the U.S. Securities and Exchange Commission's ("SEC") website at https://www.sec.gov. 

Any information contained in, or otherwise accessible through, websites mentioned in this news release does not form a part of this document unless it is expressly incorporated by reference.

Media Inquiries

Investor Relations

Fiona McLean

Derek Theobalds

(437) 441-7491

(416) 254-1774

[email protected] 

[email protected] 

Earnings

The following table presents net income attributed to shareholders, consisting of core earnings and details of the items excluded from core earnings:

Quarterly Results

($ millions)

1Q26

4Q25

1Q25

Core earnings

Asia

$        820

$        785

$        705

Canada

352

413

374

U.S.

331

319

361

Global Wealth and Asset Management

448

490

454

Corporate and Other

(115)

(14)

(127)

Total core earnings

$      1,836

$      1,993

$      1,767

Items excluded from core earnings

Market experience gains (losses)

(666)

(441)

(1,332)

Change in actuarial methods and assumptions that flow directly through income

-

-

-

Restructuring charge

-

(12)

-

Amortization of acquisition-related intangible assets(1)

(18)

(12)

-

Reinsurance transactions, tax-related items and other

(5)

(29)

50

Net income attributed to shareholders

$      1,147

$      1,499

$        485

(1)

Includes the amortization of intangible assets acquired in a business combination, except for amortization of software and distribution agreements. This item is excluded from core earnings commencing in 3Q25. Prior periods have not been restated as these amounts are not considered material, and use the definition of core earnings in effect for those periods. See our definition of core earnings in section E3 "Non-GAAP and Other Financial Measures" of the 1Q26 MD&A.

Non-GAAP and other financial measures

The Company prepares its Consolidated Financial Statements in accordance with IFRS as issued by the International Accounting Standards Board. We use a number of non-GAAP and other financial measures to evaluate overall performance and to assess each of our businesses. This section includes information required by National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure in respect of "specified financial measures" (as defined therein).

Non-GAAP financial measures include core earnings (loss); core earnings available to common shareholders; core earnings before interest, taxes, depreciation and amortization ("core EBITDA"); core expenses; adjusted book value; post-tax contractual service margin; post-tax contractual service margin net of NCI ("post-tax CSM net of NCI"); CSM net of NCI; assets under management ("AUM"); and core revenue. In addition, non-GAAP financial measures include the following stated on a constant exchange rate ("CER") basis: any of the foregoing non-GAAP financial measures; net income attributed to shareholders; and common shareholders' net income.

Non-GAAP ratios include core return on common shareholders' equity ("core ROE"); diluted core earnings per common share ("core EPS"); expense efficiency ratio; adjusted book value per common share; financial leverage ratio; core EBITDA margin; growth in the CSM net of NCI from organic CSM movement; and percentage growth/decline on a constant exchange rate basis in any of the above non-GAAP financial measures and non-GAAP ratios; net income attributed to shareholders; diluted earnings per common share ("EPS"), CSM, and new business CSM.

Other specified financial measures include NBV; APE sales; gross flows; net flows; average assets under management and administration ("average AUMA"); NBV margin; and percentage growth/decline in these foregoing specified financial measures. In addition, explanations of the components of the CSM movement, other than  new business CSM are provided in our 1Q26 MD&A.

Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and, therefore, might not be comparable to similar financial measures disclosed by other issuers. Therefore, they should not be considered in isolation or as a substitute for any other financial information prepared in accordance with GAAP. For more information on non-GAAP financial measures, including those referred to above, see the section "Non-GAAP and other financial measures" in our 1Q26 MD&A, which is incorporated by reference.

Reconciliation of core earnings to net income attributed to shareholders – 1Q26
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

1Q26

Asia

Canada

U.S.

Global WAM

Corporate

 and Other

Total

Income (loss) before income taxes

$        776

$        325

$        159

$        489

$       (283)

$      1,466

Income tax (expenses) recoveries

Core earnings

(100)

(88)

(78)

(88)

42

(312)

Items excluded from core earnings

(27)

26

57

12

14

82

Income tax (expenses) recoveries

(127)

(62)

(21)

(76)

56

(230)

Net income (post-tax)

649

263

138

413

(227)

1,236

Less: Net income (post-tax) attributed to

Non-controlling interests

33

-

-

10

-

43

Participating policyholders

21

25

-

-

-

46

Net income (loss) attributed to shareholders (post-tax)

595

238

138

403

(227)

1,147

Less: Items excluded from core earnings (post-tax)

Market experience gains (losses)

(225)

(114)

(193)

(22)

(112)

(666)

Changes in actuarial methods and assumptions that flow directly through income

-

-

-

-

-

-

Restructuring charge

-

-

-

-

-

-

Amortization of acquisition-related intangible assets

-

-

-

(18)

-

(18)

Reinsurance transactions, tax related items and other

-

-

-

(5)

-

(5)

Core earnings (post-tax)

$        820

$        352

$        331

$        448

$       (115)

$      1,836

Income tax on core earnings (see above)

100

88

78

88

(42)

312

Core earnings (pre-tax)

$        920

$        440

$        409

$        536

$       (157)

$      2,148

Core earnings, CER basis and U.S. dollars – 1Q26
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

1Q26

Asia

Canada

U.S.

Global WAM

Corporate

 and Other

Total

Core earnings (post-tax)

$        820

$        352

$        331

$        448

$       (115)

$      1,836

CER adjustment(1)

-

-

-

-

-

-

Core earnings, CER basis (post-tax)

$        820

$        352

$        331

$        448

$       (115)

$      1,836

Income tax on core earnings, CER basis(2)

100

88

78

88

(42)

312

Core earnings, CER basis (pre-tax)

$        920

$        440

$        409

$        536

$       (157)

$      2,148

Core earnings (U.S. dollars) – Asia and U.S. segments

Core earnings (post-tax)(3), US $

$        598

$        241

CER adjustment US $(1)

-

-

Core earnings, CER basis (post-tax), US $

$        598

$        241

(1)

The impact of updating foreign exchange rates to that which was used in 1Q26.

(2)

Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

(3)

Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 1Q26.

Reconciliation of core earnings to net income attributed to shareholders – 4Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

4Q25

Asia

Canada

U.S.

Global WAM

Corporate

 and Other

Total

Income (loss) before income taxes

$        899

$        354

$        101

$        542

$          9

$      1,905

Income tax (expenses) recoveries

Core earnings

(101)

(111)

(75)

(93)

52

(328)

Items excluded from core earnings

(102)

25

55

10

30

18

Income tax (expenses) recoveries

(203)

(86)

(20)

(83)

82

(310)

Net income (post-tax)

696

268

81

459

91

1,595

Less: Net income (post-tax) attributed to

Non-controlling interests

26

-

-

7

-

33

Participating policyholders

47

16

-

-

-

63

Net income (loss) attributed to shareholders (post-tax)

623

252

81

452

91

1,499

Less: Items excluded from core earnings (post-tax)

Market experience gains (losses)

(121)

(158)

(238)

(1)

77

(441)

Changes in actuarial methods and assumptions that flow directly through income

-

-

-

-

-

-

Restructuring charge

-

(3)

-

(9)

-

(12)

Amortization of acquisition-related intangible assets

-

-

-

(12)

-

(12)

Reinsurance transactions, tax related items and other

(41)

-

-

(16)

28

(29)

Core earnings (post-tax)

$        785

$        413

$        319

$        490

$        (14)

$      1,993

Income tax on core earnings (see above)

101

111

75

93

(52)

328

Core earnings (pre-tax)

$        886

$        524

$        394

$        583

$        (66)

$      2,321

Core earnings, CER basis and U.S. dollars – 4Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

4Q25

Asia

Canada

U.S.

Global WAM

Corporate and Other

Total

Core earnings (post-tax)

$       785

$       413

$       319

$       490

$        (14)

$     1,993

CER adjustment(1)

(14)

-

(6)

(6)

(1)

(27)

Core earnings, CER basis (post-tax)

$       771

$       413

$       313

$       484

$        (15)

$     1,966

Income tax on core earnings, CER basis(2)

99

111

74

92

(52)

324

Core earnings, CER basis (pre-tax)

$       870

$       524

$       387

$       576

$        (67)

$     2,290

Core earnings (U.S. dollars) – Asia and U.S. segments

Core earnings (post-tax)(3), US $

$       564

$       229

CER adjustment US $(1)

(1)

(1)

Core earnings, CER basis (post-tax), US $

$       563

$       228

(1)

The impact of updating foreign exchange rates to that which was used in 1Q26.

(2)

Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

(3)

Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 4Q25.

Reconciliation of core earnings to net income attributed to shareholders – 1Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

1Q25

Asia

Canada

U.S.

Global WAM

Corporate and Other

Total

Income (loss) before income taxes

$       870

$       305

$      (731)

$       528

$      (273)

$       699

Income tax (expenses) recoveries

Core earnings

(101)

(89)

(84)

(86)

29

(331)

Items excluded from core earnings

(30)

30

246

2

7

255

Income tax (expenses) recoveries

(131)

(59)

162

(84)

36

(76)

Net income (post-tax)

739

246

(569)

444

(237)

623

Less: Net income (post-tax) attributed to

Non-controlling interests

67

-

-

1

(2)

66

Participating policyholders

48

24

-

-

-

72

Net income (loss) attributed to shareholders (post-tax)

624

222

(569)

443

(235)

485

Less: Items excluded from core earnings (post-tax)

Market experience gains (losses)

(77)

(152)

(930)

(11)

(162)

(1,332)

Changes in actuarial methods and assumptions that flow directly through income

-

-

-

-

-

-

Restructuring charge

-

-

-

-

-

-

Amortization of acquisition-related intangible assets

-

-

-

-

-

-

Reinsurance transactions, tax related items and other

(4)

-

-

-

54

50

Core earnings (post-tax)

$       705

$       374

$       361

$       454

$      (127)

$     1,767

Income tax on core earnings (see above)

101

89

84

86

(29)

331

Core earnings (pre-tax)

$       806

$       463

$       445

$       540

$      (156)

$     2,098

Core earnings, CER basis and U.S. dollars – 1Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

1Q25

Asia

Canada

U.S.

Global WAM

Corporate and Other

Total

Core earnings (post-tax)

$       705

$       374

$       361

$       454

$      (127)

$     1,767

CER adjustment(1)

(31)

-

(16)

(15)

-

(62)

Core earnings, CER basis (post-tax)

$       674

$       374

$       345

$       439

$      (127)

$     1,705

Income tax on core earnings, CER basis(2)

96

89

80

84

(28)

321

Core earnings, CER basis (pre-tax)

$       770

$       463

$       425

$       523

$      (155)

$     2,026

Core earnings (U.S. dollars) – Asia and U.S. segments

Core earnings (post-tax)(3), US $

$       492

$       251

CER adjustment US $(1)

-

1

Core earnings, CER basis (post-tax), US $

$       492

$       252

(1)

The impact of updating foreign exchange rates to that which was used in 1Q26.

(2)

Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

(3)

Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 1Q25.

Core earnings available to common shareholders
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Quarterly Results

Full Year Results

1Q26

4Q25

3Q25

2Q25

1Q25

2025

Core earnings

$  1,836

$  1,993

$  2,035

$  1,726

$  1,767

$  7,521

Less: Preferred share dividends and other equity distributions

58

103

58

103

57

321

Core earnings available to common shareholders

1,778

1,890

1,977

1,623

1,710

7,200

CER adjustment(1)

-

(27)

(16)

(21)

(62)

(126)

Core earnings available to common shareholders, CER basis

$  1,778

$  1,863

$  1,961

$  1,602

$  1,648

$  7,074

(1)

The impact of updating foreign exchange rates to which was used in 1Q26.

Core ROE
($ millions, unless otherwise stated)

Quarterly Results

Full Year Results

1Q26

4Q25

3Q25

2Q25

1Q25

2025

Core earnings available to common shareholders

$  1,778

$  1,890

$  1,977

$  1,623

$  1,710

$  7,200

Annualized core earnings available to common shareholders (post-tax)

$  7,211

$  7,498

$  7,844

$  6,510

$  6,935

$  7,200

Average common shareholders' equity (see below)

$ 43,717

$ 43,759

$ 43,238

$ 43,448

$ 44,394

$ 43,709

Core ROE (annualized) (%)

16.5 %

17.1 %

18.1 %

15.0 %

15.6 %

16.5 %

Average common shareholders' equity

Total shareholders' and other equity

$ 50,632

$ 50,121

$ 50,716

$ 49,080

$ 51,135

$ 50,121

Less: Preferred shares and other equity

6,660

6,660

6,660

6,660

6,660

6,660

Common shareholders' equity

$ 43,972

$ 43,461

$ 44,056

$ 42,420

$ 44,475

$ 43,461

Average common shareholders' equity

$ 43,717

$ 43,759

$ 43,238

$ 43,448

$ 44,394

$ 43,709

CSM and post-tax CSM information
($ millions pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

As at

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

CSM

$    27,325

$    26,568

$    26,283

$    23,722

$    23,713

Less: CSM for NCI

1,736

1,599

1,565

1,406

1,417

CSM, net of NCI

$    25,589

$    24,969

$    24,718

$    22,316

$    22,296

CER adjustment(1)

-

332

(66)

197

(556)

CSM, net of NCI, CER basis

$    25,589

$    25,301

$    24,652

$    22,513

$    21,740

CSM by segment

Asia

$    18,228

$    17,750

$    17,580

$    15,786

$    15,904

Asia NCI

1,736

1,599

1,565

1,406

1,417

Canada

4,432

4,459

4,490

4,133

4,052

U.S.

2,927

2,760

2,649

2,386

2,329

Corporate and Other

2

-

(1)

11

11

CSM

$    27,325

$    26,568

$    26,283

$    23,722

$    23,713

CSM, CER adjustment(1)

Asia

$          -

$       282

$        (74)

$       143

$      (486)

Asia NCI

-

46

50

80

23

Canada

-

-

-

-

-

U.S.

-

50

8

54

(70)

Corporate and Other

-

-

-

1

-

Total

$          -

$       378

$        (16)

$       278

$      (533)

CSM, CER basis

Asia

$    18,228

$    18,032

$    17,506

$    15,929

$    15,418

Asia NCI

1,736

1,645

1,615

1,486

1,440

Canada

4,432

4,459

4,490

4,133

4,052

U.S.

2,927

2,810

2,657

2,440

2,259

Corporate and Other

2

-

(1)

12

11

Total CSM, CER basis

$    27,325

$    26,946

$    26,267

$    24,000

$    23,180

Post-tax CSM

CSM

$    27,325

$    26,568

$    26,283

$    23,722

$    23,713

Marginal tax rate on CSM

(4,510)

(4,403)

(4,347)

(3,940)

(3,929)

Post-tax CSM

$    22,815

$    22,165

$    21,936

$    19,782

$    19,784

CSM, net of NCI

$    25,589

$    24,969

$    24,718

$    22,316

$    22,296

Marginal tax rate on CSM net of NCI

(4,334)

(4,236)

(4,181)

(3,789)

(3,772)

Post-tax CSM net of NCI

$    21,255

$    20,733

$    20,537

$    18,527

$    18,524

(1)

The impact of reflecting CSM and CSM net of NCI using the foreign exchange rates for the Statement of Financial Position in effect for 1Q26.

New business CSM(1) detail, CER basis
($ millions pre-tax, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Quarterly Results

Full Year Results

1Q26

4Q25

3Q25

2Q25

1Q25

2025

New business CSM

Hong Kong

$      316

$      244

$      287

$      286

$      316

$    1,133

Japan

167

159

76

74

81

390

Mainland China

114

55

112

63

126

356

Singapore

165

159

182

140

138

619

Other(2)

40

80

55

100

54

289

Asia

802

697

712

663

715

2,787

Canada

103

135

109

100

91

435

U.S.

114

188

145

119

101

553

Total new business CSM

$    1,019

$    1,020

$      966

$      882

$      907

$    3,775

New business CSM, CER adjustment(3)

Hong Kong

$         -

$       (4)

$       (1)

$       (2)

$      (13)

$      (20)

Japan

-

(6)

(5)

(6)

(6)

(23)

Mainland China

-

1

3

2

-

6

Singapore

-

(1)

1

1

1

2

Other(2)

-

(1)

(1)

(1)

(2)

(5)

Asia

-

(11)

(3)

(6)

(20)

(40)

Canada

-

-

-

-

-

-

U.S.

-

(4)

(1)

(1)

(4)

(10)

Total new business CSM

$         -

$      (15)

$       (4)

$       (7)

$      (24)

$      (50)

New business CSM, CER basis

Hong Kong

$      316

$      240

$      286

$      284

$      303

$    1,113

Japan

167

153

71

68

75

367

Mainland China

114

56

115

65

126

362

Singapore

165

158

183

141

139

621

Other(2)

40

79

54

99

52

284

Asia

802

686

709

657

695

2,747

Canada

103

135

109

100

91

435

U.S.

114

184

144

118

97

543

Total new business CSM, CER basis

$    1,019

$    1,005

$      962

$      875

$      883

$    3,725

(1)

New business CSM is net of NCI.

(2)

Other includes Cambodia, Indonesia, International High Net Worth, Malaysia, Myanmar, the Philippines and Vietnam.

(3)

The impact of updating foreign exchange rates to that which was used in 1Q26.

Net income financial measures on a CER basis
($ Canadian millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Quarterly Results

Full Year Results

1Q26

4Q25

3Q25

2Q25

1Q25

2025

Net income (loss) attributed to shareholders:

Asia

$    595

$    623

$    895

$    830

$    624

$  2,972

Canada

238

252

449

390

222

1,313

U.S.

138

81

(75)

36

(569)

(527)

Global WAM

403

452

523

482

443

1,900

Corporate and Other

(227)

91

7

51

(235)

(86)

Total net income (loss) attributed to shareholders

1,147

1,499

1,799

1,789

485

5,572

Preferred share dividends and other equity distributions

(58)

(103)

(58)

(103)

(57)

(321)

Common shareholders' net income (loss)

$  1,089

$  1,396

$  1,741

$  1,686

$    428

$  5,251

CER adjustment(1)

Asia

$       -

$     (6)

$      9

$     (8)

$    (40)

$    (45)

Canada

-

(1)

2

(1)

2

2

U.S.

-

(1)

(2)

-

24

21

Global WAM

-

(8)

(1)

(5)

(20)

(34)

Corporate and Other

-

(3)

(2)

3

9

7

Total net income (loss) attributed to shareholders

-

(19)

6

(11)

(25)

(49)

Preferred share dividends and other equity distributions

-

-

-

-

-

-

Common shareholders' net income (loss)

$       -

$    (19)

$      6

$    (11)

$    (25)

$    (49)

Net income (loss) attributed to shareholders, CER basis

Asia

$    595

$    617

$    904

$    822

$    584

$  2,927

Canada

238

251

451

389

224

1,315

U.S.

138

80

(77)

36

(545)

(506)

Global WAM

403

444

522

477

423

1,866

Corporate and Other

(227)

88

5

54

(226)

(79)

Total net income (loss) attributed to shareholders, CER basis

1,147

1,480

1,805

1,778

460

5,523

Preferred share dividends and other equity distributions, CER basis

(58)

(103)

(58)

(103)

(57)

(321)

Common shareholders' net income (loss), CER basis

$  1,089

$  1,377

$  1,747

$  1,675

$    403

$  5,202

Asia net income attributed to shareholders, U.S. dollars

Asia net income (loss) attributed to shareholders, US $(2)

$    433

$    447

$    649

$    600

$    435

$  2,131

CER adjustment, US $(1)

-

3

10

(1)

(9)

3

Asia net income (loss) attributed to shareholders, U.S. $, CER basis(1)

$    433

$    450

$    659

$    599

$    426

$  2,134

Net income (loss) attributed to shareholders (pre-tax)

Net income (loss) attributed to shareholders (post-tax)

$  1,147

$  1,499

$  1,799

$  1,789

$    485

$  5,572

Tax on net income attributed to shareholders

215

292

283

307

47

929

Net income (loss) attributed to shareholders (pre-tax)

1,362

1,791

2,082

2,096

532

6,501

CER adjustment(1)

-

(17)

(20)

(23)

(18)

(78)

Net income (loss) attributed to shareholders (pre-tax), CER basis

$  1,362

$  1,774

$  2,062

$  2,073

$    514

$  6,423

(1)

The impact of updating foreign exchange rates to that which was used in 1Q26.

(2)

Asia net income attributed to shareholders (post-tax) in Canadian dollars is translated to U.S. dollars using the U.S. dollar Statement of Income rate for the reporting period.

Adjusted book value
($ millions)

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

As at

Common shareholders' equity

$    43,972

$    43,461

$    44,056

$    42,420

$    44,475

Post-tax CSM, net of NCI

21,255

20,733

20,537

18,527

18,524

Adjusted book value

$    65,227

$    64,194

$    64,593

$    60,947

$    62,999

Reconciliation of Global WAM core earnings to core EBITDA
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Quarterly Results

Full Year Results

1Q26

4Q25

3Q25

2Q25

1Q25

2025

Global WAM core earnings (post-tax)

$    448

$    490

$    525

$    463

$    454

$  1,932

Add back taxes, acquisition costs, other expenses and deferred sales commissions

Core income tax (expenses) recoveries (see above)

88

93

82

89

86

350

Amortization of deferred acquisition costs and other depreciation

63

61

44

51

46

202

Amortization of deferred sales commissions

24

24

21

20

22

87

Core EBITDA

$    623

$    668

$    672

$    623

$    608

$  2,571

CER adjustment(1)

-

(9)

(2)

(5)

(20)

(36)

Core EBITDA, CER basis

$    623

$    659

$    670

$    618

$    588

$  2,535

(1)

The impact of updating foreign exchange rates to that which was used in 1Q26.

Core EBITDA margin and core revenue
($ millions, unless otherwise stated)

Quarterly Results

Full Year Results

1Q26

4Q25

3Q25

2Q25

1Q25

2025

Core EBITDA margin

Core EBITDA

$     623

$     668

$     672

$     623

$    608

$   2,571

Core revenue

$  2,146

$  2,285

$  2,175

$  2,069

$  2,140

$   8,669

Core EBITDA margin

29.0 %

29.2 %

30.9 %

30.1 %

28.4 %

29.7 %

Global WAM core revenue

Other revenue per financial statements

$  1,930

$  2,147

$  2,145

$  1,851

$  1,986

$   8,129

Less: Other revenue in segments other than Global WAM

(56)

28

121

(53)

11

107

Other revenue in Global WAM (fee income)

$  1,986

$  2,119

$  2,024

$  1,904

$  1,975

$   8,022

Investment income per financial statements

$  4,536

$  5,358

$  4,682

$  4,740

$  4,234

$ 19,014

Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities per financial statements

(1,384)

1,106

3,784

2,377

(992)

6,275

Total investment income

3,152

6,464

8,466

7,117

3,242

25,289

Less: Investment income in segments other than Global WAM

3,015

6,300

8,275

6,924

3,089

24,588

Investment income in Global WAM

$     137

$     164

$     191

$     193

$    153

$      701

Total other revenue and investment income in Global WAM

$  2,123

$  2,283

$  2,215

$  2,097

$  2,128

$   8,723

Less: Total revenue reported in items excluded from core earnings

Market experience gains (losses)

(28)

(1)

24

20

(14)

29

Revenue related to integration and acquisitions

5

(1)

16

8

2

25

Global WAM core revenue

$  2,146

$  2,285

$  2,175

$  2,069

$  2,140

$   8,669

Core expenses
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Quarterly Results

Full Year Results

1Q26

4Q25

3Q25

2Q25

1Q25

2025

Core expenses

General expenses – Statements of Income

$  1,251

$  1,327

$  1,232

$  1,140

$  1,202

$  4,901

Directly attributable acquisition expense for contracts measured using the PAA method and products without a CSM(1)

48

48

42

40

42

172

Directly attributable maintenance expense(1)

552

542

524

514

532

2,112

Total expenses

1,851

1,917

1,798

1,694

1,776

7,185

Less: General expenses included in items excluded from core earnings

Restructuring charge

-

16

-

-

-

16

Amortization of acquisition-related intangible assets

23

16

8

-

-

24

Integration and acquisition

-

7

22

-

-

29

Legal provisions and Other expenses

1

5

10

5

-

20

Total

24

44

40

5

-

89

Core expenses

$  1,827

$  1,873

$  1,758

$  1,689

$  1,776

$  7,096

CER adjustment(2)

-

(18)

(5)

(12)

(39)

(74)

Core expenses, CER basis

$  1,827

$  1,855

$  1,753

$  1,677

$  1,737

$  7,022

Total expenses

$  1,851

$  1,917

$  1,798

$  1,694

$  1,776

$  7,185

CER adjustment(2)

-

(18)

(5)

(11)

(40)

(74)

Total expenses, CER basis

$  1,851

$  1,899

$  1,793

$  1,683

$  1,736

$  7,111

(1)

Expenses are components of insurance service expenses on the Statements of Income that flow directly through income.

(2)

The impact of updating foreign exchange rates to that which was used in 1Q26.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

From time to time, Manulife makes written and/or oral forward-looking statements, including in this document. In addition, our representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbour" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995.

The forward-looking statements in this document include, but are not limited to, statements with respect to our ability to achieve our medium-term financial and operating targets, the anticipated benefits of the acquisition of Schroders Indonesia and the partnership between Global WAM and L&G, the expected benefits and value derived from the use of AI and also relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "suspect", "outlook", "expect", "intend", "estimate", "anticipate", "believe", "plan", "forecast", "objective", "seek", "aim", "continue", "goal", "restore", "embark" and "endeavour" (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements and they should not be interpreted as confirming market or analysts' expectations in any way.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.

Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, inflation rates, currency rates, investment losses and defaults, market liquidity and creditworthiness of guarantors, reinsurers and counterparties); changes in laws and regulations; changes in accounting standards applicable in any of the territories in which we operate; changes in regulatory capital requirements; our ability to obtain premium rate increases on in-force policies; our ability to execute strategic plans and changes to strategic plans; downgrades in our financial strength or credit ratings; our ability to maintain our reputation; impairments of goodwill or intangible assets or the establishment of provisions against future tax assets; the accuracy of estimates relating to morbidity, mortality and policyholder behaviour; the accuracy of other estimates used in applying accounting policies and actuarial methods and embedded value methods; our ability to implement effective hedging strategies and unforeseen consequences arising from such strategies; our ability to source appropriate assets to back our long-dated liabilities; level of competition and consolidation; our ability to market and distribute products through current and future distribution channels; unforeseen liabilities or asset impairments arising from acquisitions and dispositions of businesses; the realization of losses arising from the sale of investments classified fair value through other comprehensive income; our liquidity, including the availability of financing to satisfy existing financial liabilities on expected maturity dates when required; obligations to pledge additional collateral; the availability of letters of credit to provide capital management flexibility; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, including tax audits, tax litigation or similar proceedings; our ability to adapt products and services to the changing market; our ability to attract and retain key executives, employees and agents; the appropriate use and interpretation of complex models or deficiencies in models used; political, legal, operational and other risks associated with our operations; geopolitical uncertainty, including international conflicts and trade disputes; acquisitions and our ability to complete acquisitions including the availability of equity and debt financing for this purpose; the disruption of or changes to key elements of the Company's or public infrastructure systems; environmental concerns, including climate change; our ability to protect our intellectual property and exposure to claims of infringement; our ability to execute our digital plans and to deploy future digital use cases, including with respect to AI, the anticipated benefits from the Schroders Indonesia acquisition and the partnership between Global WAM and L&G, and our inability to withdraw cash from subsidiaries.

Additional information about material risk factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found under "Risk Management and Risk Factors" and "Critical Actuarial and Accounting Policies" in the Management's Discussion and Analysis in our most recent annual report, under "Risk Management and Risk Factors Update" and "Critical Actuarial and Accounting Policies" in the Management's Discussion and Analysis in our most recent interim report, and in the "Risk Management" note to the Consolidated Financial Statements in our most recent annual and interim reports, as well as elsewhere in our filings with Canadian and U.S. securities regulators.

The forward-looking statements in this document are, unless otherwise indicated, stated as of the date hereof and are presented for the purpose of assisting investors and others in understanding our financial position and results of operations, our future operations, as well as our objectives and strategic priorities, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statements, except as required by law.  

SOURCE Manulife Financial Corporation

C$ unless otherwise stated                                 TSX/NYSE/PSE: MFC          SEHK: 945

, /PRNewswire/ - Manulife's Board of Directors today announced quarterly shareholders' dividends on the following non-cumulative preferred shares of Manulife Financial Corporation, payable on or after June 19, 2026 to shareholders of record at the close of business on May 29, 2026:

Class A Shares Series 2 - $0.29063 per share Class A Shares Series 3 - $0.28125 per share Class 1 Shares Series 3 - $0.14675 per share Class 1 Shares Series 4 - $0.226850 per share Class 1 Shares Series 9 - $0.373625 per share Class 1 Shares Series 11 - $0.384938 per share Class 1 Shares Series 13 - $0.396875 per share Class 1 Shares Series 15 - $0.360938 per share Class 1 Shares Series 17 - $0.346375 per share Class 1 Shares Series 19 - $0.323063 per share Class 1 Shares Series 25 - $0.371375 per share About Manulife

Manulife Financial Corporation is a leading international financial services provider, headquartered in Toronto, Canada. Anchored in our ambition to be the number one choice for customers, we operate as Manulife across Canada and Asia, and primarily as John Hancock in the United States, providing financial advice, insurance and health solutions for individuals, groups and businesses. Through Manulife Wealth & Asset Management, we offer global investment solutions, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2025, we had more than 37,000 employees, over 106,000 agents, and thousands of distribution partners, serving over 37 million customers with operations across 25 markets globally. We trade as 'MFC' on the Toronto, New York, and Philippine stock exchanges, and under '945' on the Hong Kong stock exchange.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.   

Media Contact:
Fiona McLean
Manulife
437-441-7491
[email protected]

Investor Relations:
Derek Theobalds
Manulife
416-254-1774
[email protected] 

SOURCE Manulife Financial Corporation

Manulife Financial Corporation (MFC:CA) Shareholder/Analyst Call Transcript

5 Undervalued Stocks To Secure Your High Yield PortfolioManulife Financial NYSE: MFC reported what executives described as solid first-quarter 2026 results, with growth in insurance sales and earnings in Asia helping offset pressure in Global Wealth and Asset Management and unfavorable insurance experience in Canada.

President and Chief Executive Officer Phil Witherington said the company built on its 2025 momentum despite “heightened macro uncertainty,” pointing to double-digit growth in new business contractual service margin, or CSM, across each insurance segment. Manulife’s CSM balance rose 18%, while new business CSM increased 16% from the prior year.

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3 High Short Interest Stocks that Investors are Getting WrongCore earnings per share rose 11% year over year, which Witherington said was in line with the company’s medium-term target. Core return on equity was 16.5%, up 90 basis points from a year earlier, as management reiterated its goal of reaching 18% or higher by 2027.

Chief Financial Officer Colin Simpson said net income for the quarter was $1.1 billion, reflecting a market experience charge driven primarily by public equity performance. He added that most equity markets had “largely reversed their first quarter underperformance” by the time of the call. The company also recorded a $242 million charge in its ALDA portfolio, primarily tied to lower-than-expected returns in real estate, timber and private equity investments.

Asia Drives Growth as Japan, Hong Kong and Singapore Post Gains Asia remained a key contributor to Manulife’s results. Witherington said the region generated strong sales, with meaningful growth in Hong Kong, Japan and Singapore. Simpson said Asia annualized premium equivalent, or APE, sales rose 11% year over year, supported by double-digit growth in those three markets. Hong Kong delivered record quarterly sales after a softer fourth quarter, with APE sales up 18% from a year earlier.

Asia core earnings increased 22% year over year, reflecting business growth and the favorable net impact of last year’s basis change, partly offset by less favorable insurance experience.

During the question-and-answer session, Steve Finch, President and CEO of Manulife Asia, said Japan’s performance reflected continued momentum from 2025 and the company’s effort to broaden its product lineup across distribution channels. Finch said Manulife had introduced whole life and investment-linked products that “hit the mark” with customer needs. He said the environment in Japan remained supportive for insurance, aided by customer demand for retirement savings and an interest rate backdrop that improved product attractiveness.

Asked whether first-quarter Asia earnings were a good baseline, Finch said the quarter was “a good base” for future growth, subject to normal variability.

Global WAM Sees Outflows Despite Record Gross Flows Global Wealth and Asset Management recorded net outflows of $4.4 billion in the quarter, despite record gross flows. Simpson said outflows were driven by active mutual fund redemptions in North America retail and, to a lesser extent, U.S. retirement plan redemptions. These pressures were partially offset by institutional inflows, including contributions from the recently acquired Comvest business and CQS.

Paul Lorentz, President and CEO of Global Wealth and Asset Management, said gross flows reached $56 billion, up 13% from the prior quarter and 15% from the prior year. He said two model redemptions late in the quarter accounted for $3.4 billion of the $4.4 billion in net outflows and were related to partners reallocating asset mix rather than performance.

Global WAM core EBITDA margin expanded 60 basis points from the prior year, helped by AUMA growth, the Comvest acquisition and expense discipline, partly offset by the Hong Kong eMPF transition and lower performance fees. Core earnings grew 2%.

Lorentz said the eMPF impact was consistent with prior guidance at about CAD 33 million in the quarter, and that some one-time transition costs would not recur in the second quarter. He said the second-quarter earnings run rate should approach the $500 million mark, assuming current market levels.

Canada Pressured by Group Insurance Experience Manulife Canada reported a 15% decline in APE sales, reflecting lower group insurance sales, partially offset by higher individual insurance sales. New business CSM rose 13%, driven by growth in individual insurance.

Canada core earnings declined 6% year over year, mainly due to unfavorable group insurance experience compared with favorable experience in the prior year. Simpson said the pressure reflected higher incidence and lower recoveries in long-term disability, as well as higher expenses tied to business growth and transformation investments.

Naveed Irshad, President and CEO of Manulife Canada and Global Head of Inforce Management and Group Reinsurance, said the company saw modestly higher long-term disability incidence and lower recoveries. He also cited experience losses in travel insurance due to recent global disruptions, which management does not expect to persist. Irshad said Manulife began hiring additional case managers in 2025 after disability caseloads exceeded target levels following business growth, and expects Canada segment total insurance experience to improve toward more normal levels by year-end.

Witherington noted that group sales can be lumpy and said persistency is a better metric for that business. He said persistency remains strong.

U.S. Sales Rise on Adjustable Products and Expanded Distribution In the U.S., APE sales increased 29% year over year, driven by demand for insurance accumulation products. New business CSM also grew strongly. Core earnings declined modestly, mainly due to lower investment spreads, partly offset by favorable insurance experience.

Brooks Tingle, President and CEO of John Hancock, said the quarter marked the seventh consecutive period of strong new business growth. He pointed to a more than 50% increase in the wholesaling team from a year earlier, and said Manulife continues to benefit from differentiated offerings tied to wellness and longevity through its Vitality platform.

Tingle said the company’s U.S. business has largely moved away from long-duration guarantees since 2010, and that its current block is “virtually entirely adjustable.” Witherington said that shift should change the composition of U.S. earnings over time, with net investment income declining and insurance service results increasing as CSM is generated and amortized.

Capital Position Remains Strong as Management Reaffirms Targets Manulife ended the quarter with a LICAT ratio of 136%, which Simpson said was $25 billion above its supervisory target ratio. The financial leverage ratio was 22.5%, below the company’s medium-term target of 25%.

Adjusted book value per share rose 6% from a year earlier to $39.01, even as the company returned $5.3 billion of capital to shareholders over the past year. During the quarter, Manulife returned $1.2 billion through dividends and buybacks. Its new buyback program, announced previously, allows the company to repurchase up to 2.5% of common shares outstanding.

Simpson said Manulife continues to expect 60% to 70% of earnings to convert into remittances, supported by a shift toward capital-generative products and strong subsidiary capital positions.

Management also highlighted strategic initiatives, including the acquisition of Schroders Indonesia, a partnership with L&G, expanded U.S. distribution and new AI tools across the enterprise. Witherington said developer productivity rose 30% in the quarter from AI tools, while an AI-powered U.S. retail sales platform in Global WAM increased meaningful advisor interactions by 40%.

Witherington said Manulife remains focused on executing its refreshed strategy and reaffirmed the company’s 18%+ core ROE target by the end of 2027. “We stand by the 18%+ Investor Day target,” he said, adding that he expects improvements through 2026.

About Manulife Financial NYSE: MFCManulife Financial Corporation is a multinational insurance and financial services company headquartered in Toronto, Ontario. Founded in the late 19th century as The Manufacturers Life Insurance Company, Manulife provides a broad range of financial products and services to individual and institutional clients. Its core businesses include life and health insurance, retirement and pension solutions, wealth and asset management, and group benefits.

In wealth and asset management, Manulife operates through Manulife Investment Management and offers mutual funds, segregated funds, institutional asset management, and retirement plan solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Changes Include Canada Segment, Hong Kong, AI and Data, and Technology and Operations New Team Structure Enables Execution Against Strategic Priorities for Long-term Growth TORONTO, May 21, 2026 /PRNewswire/ - Manulife has announced changes to its executive and senior leadership teams across Canada, Hong Kong, AI and Data, and Technology and Operations to enable sustainable, long-term growth as the company executes its refreshed enterprise strategy. "These important leadership changes ensure we have the right capabilities, both at the enterprise level and in our key markets of Canada and Hong Kong, to achieve our bold ambition and deliver against our new strategic priorities," said Phil Witherington, President and CEO of Manulife.

Manulife stock sold off almost 6% after Q1 2026 earnings on a single line item, while its Asia core earnings grew 22% and NBV 15%. The residual income valuation model anchored on Damodaran's industry beta puts intrinsic value at C$76 vs. C$52; on per-name beta, roughly fair. MFC's reported P/B of 2.0x ignores C$25.6B of net CSM. On adjusted book value, MFC trades at 1.3x.

Indexes for US equity real estate investment trusts fell further alongside the broader stock market during the week ended March 13. The Dow Jones Equity All REIT index closed the recent week down 1.52%, while the S&P 500 and Dow Jones Industrial Average fell 1.60% and 1.99%, respectively. The healthcare REIT index was the only property sector index to rise and was up 1.17%.

NEWTON, Mass.--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) today announced that it will issue a press release containing its first quarter 2026 financial results after the Nasdaq closes on Monday, May 4, 2026. On Tuesday, May 5, 2026 at 10:00 a.m. Eastern Time, President and Chief Executive Officer Christopher Bilotto, Chief Financial Officer and Treasurer Matthew Brown and Vice President Anthony Paula will host a conference call to discuss these results. The conference call tel.

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NEWTON, Mass.--(BUSINESS WIRE)--Diversified Healthcare Trust (Nasdaq: DHC) today announced its financial results for the quarter ended March 31, 2026, which can be found at the Quarterly Reports section of DHC's website at https://www.dhcreit.com/investors/financial-information/quarterly/default.aspx.

A conference call to discuss DHC's first quarter 2026 financial results will be held on Tuesday, May 5, 2026 at 10:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 329-4297 or (412) 317-5435 (if calling from outside the United States and Canada); a pass code is not required. A replay will be available for one week by dialing (855) 669-9658; the replay pass code is 1482489. A live audio webcast of the conference call will also be available in a listen-only mode on DHC's website, at www.dhcreit.com. The archived webcast will be available for replay on DHC's website after the call. The transcription, recording and retransmission in any way of DHC's first quarter conference call are strictly prohibited without the prior written consent of DHC.

About Diversified Healthcare Trust:

DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of March 31, 2026, DHC’s approximately $6.2 billion portfolio included 285 properties in 33 states and Washington, D.C., with 23,901 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 250 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of March 31, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. For more information, visit www.dhcreit.com.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

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