Track market-moving stories before they get noisy

U.S. Bancorp (NYSE: USB) announced today that Chairman and CEO Gunjan Kedia and Vice Chair and Chief Financial Officer John Stern will participate in the Morgan Stanley U.S. Financials Conference.

The fireside chat will begin at 9:45 a.m. ET on Wednesday, June 10 in New York.

A live audio webcast will be available on the day of the conference, at the “Webcasts and Presentations” section of the U.S. Bank Investor Relations website. A replay will be made available on the same site following the event.

About U.S. Bancorp

Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients throughout the U.S., Canada and Europe, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 105th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260603993477/en/

So far this year, shares of United Parcel Service (UPS 0.51%), better known as UPS, have been choppy. On one hand, investors know full well that the transportation company is in transition mode.

On the other hand, impatience has led many in the market to sell or avoid the delivery company's shares on concerns that its turnaround efforts will fail to meet expectations. While frustrating for existing investors, this signals a strong opportunity for those who have yet to enter a position.

I believe that what appears to be a headwind is, in actuality, a major tailwind for the company and the stock. Therefore, the market's lukewarm sentiment regarding this transportation stock works in your favor.

Image source: Getty Images.

Why UPS is phasing out Amazon deliveries Early last year, UPS first unveiled its plans to reduce its Amazon delivery volume by 50% before the second half of this year. UPS's reasoning for this was pretty straightforward. While Amazon was UPS's largest customer by revenue, making up 11.8% of overall sales in 2024, the comapany's orders made up 20% to 25% its total U.S. package volume.

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By removing this low-margin package delivery volume, UPS could both reduce labor costs and devote newly opened-up capacity to delivering higher-volume packages. Yet, while there is big long-term potential with this plan, so far, other concerns have weighed more heavily on the minds of UPS stock investors.

Throughout 2025, issues like trade tensions and a weakening macro backdrop negatively affected shipping demand. Results fell short of expectations, and the company temporarily stopped issuing guidance. All of this led to a drop in investor confidence, triggering a sharp pullback in shares.

Although UPS shares have bounced back since late 2025, the stock has since stayed rangebound around $100 per share. Despite recently delivering better-than-expected results, as mentioned above, investors have been impatient about the pace of improved operating results.

Now's the perfect time to hop aboard UPS's turnaround may not be happening as quickly as the market would like, but it is indeed happening. Overall, UPS's revenue and earnings declined year over year. Again, however, this is due to the Amazon phase-out. In its pivot toward higher-margin customers, UPS continues to make improvements.

As discussed on its latest post-earnings conference call, daily volumes among small and medium-sized businesses (SMBs) rose 1.6% during the first quarter of 2026. Overall revenue per package was up 6.5%, while the company's revenue from delivering healthcare products hit a record $3 billion. Further incremental improvements could follow.

Management reiterated its 2026 guidance. Sell-side analysts remain bullish as well, anticipating earnings per share (EPS) to stabilize in 2026 before rising 12.2% to $8 per share in 2027. In the years ahead, shares could rally in line with earnings growth or perhaps even benefit from multiple expansion.

UPS trades at 14 times forward earnings but has traded at between 15 and 20 times earnings in the past. While you wait for further improved results, the stock remains a high-yield dividend stock. Currently, shares have a forward dividend yield of 6.6%. UPS is a strong opportunity despite the mixed sentiment.

National Transportation Safety Board officials questioned how fractures were reported in the years leading up to November's UPS jet accident.

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Investors love dividend stocks, especially the blue-chip variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Blue-chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of economic conditions. The term “blue chip” originated in poker, where it refers to the highest-value chip.

Here are some characteristics of blue-chip stocks:

Market capitalization: Blue-chip stocks are often large-cap companies with market valuations of $10 billion or more. Dividends: Most blue-chip stocks pay dividends, which are regular payments made to investors from a company’s revenue. Market indexes: Blue-chip stocks are often included in major market indexes, such as the S&P 500, the S&P 100, and the Dow Jones Industrial Average. Volatility: Blue-chip stocks are usually less volatile than other stocks. We screened our 24/7 Wall St. blue-chip dividend research database to identify top blue-chip companies that have disappointed so far this year. While all are regarded as some of the best companies in the world, for various reasons, they have underperformed this year and look poised to rebound later in 2026. All are rated Buy at top Wall Street firms that we cover at 24/7 Wall St.

Why do we cover dividend blue-chip stocks?

Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Clorox With products that never go out of style and shares down over 11% in 2026, this is the perfect buy for conservative investors, and it pays a 5.44% dividend. Clorox (NYSE: CLX | CLX Price Prediction) is a multinational manufacturer and marketer of consumer and professional products. Despite some earnings turbulence in recent years, Clorox has maintained its dividend streak and is expected to cross the 50-year mark in 2026.

The company operates through four segments:

Health and Wellness Household Lifestyle International The Health and Wellness segment consists of cleaning, disinfecting, and professional products marketed and sold under these brands:

Clorox Clorox2 Pine-Sol Scentiva Tilex Liquid-Plumr Formula 409 This segment includes laundry additives, home care products, bags and wraps, cat litter, and water filtration.

Its Household segment consists of bags and wraps, cat litter, and grilling products marketed and sold under the Glad, Fresh Step, Scoop Away, and Kingsford brands in the United States.

The Lifestyle segment consists of food, water-filtration, and natural personal care products marketed and sold under the Hidden Valley, Brita, and Burt’s Bees brands. The International segment consists of products sold outside the United States, including laundry additives, home care products, bags and wraps, cat litter, water filtration products, and others.

Jefferies has a Buy rating with a $125 target price.

Home Depot Home Depot (NYSE: HD) is the largest home improvement retailer in the United States. The stock is down more than 14% in 2026, amid sluggish housing market conditions and consumer spending pressures that are affecting the company’s earnings. However, with mortgage interest rates and home prices still high, many people will likely stay put, and this is the top retailer to own now. It pays a solid 2.21% dividend.

Home Depot operates as a home improvement retailer, selling various:

Building materials Home improvement products Lawn and garden products Décor products Facilities maintenance, repair, and operations products Its offerings extend beyond products. The company also provides a wide range of installation services for:

Flooring Water heaters Baths Garage doors Cabinets Cabinet makeovers Countertops Sheds Furnaces Central air systems Windows It further enhances its customer experience with tool and equipment rental services. This diverse portfolio of products and services positions Home Depot for potential market growth and resilience.

Home Depot primarily serves:

Homeowners and professional renovators/remodelers General contractors Maintenance professionals Handypersons Property managers Building service contractors Specialty tradespeople, such as electricians, plumbers, and painters It also sells its products through websites, including homedepot.com, homedepot.ca, and homedepot.com.mx; blinds.com, an online site for custom window coverings; thecompanystore.com, an online site for textiles and décor products; and through Home Depot stores.

Piper Sandler has an Overweight rating and a massive $421 target price.

McDonald’s McDonald’s (NYSE: MCD) is an American multinational fast-food chain. The stock is down over 10% in 2026, and it pays a solid 2.55% dividend. The legacy fast-food heavyweight is a solid pick when the economy goes south or north and is among the safest large-cap restaurant ideas. McDonald’s is approaching the 50-year mark of dividend increases and is widely seen as a likely entrant to the Dividend Kings, given its consistent dividend growth and durable business model.

McDonald’s operates and franchises McDonald’s restaurants in the United States and internationally. Approximately 95% of McDonald’s roughly 13,500 U.S. restaurants are owned and operated by independent business owners. The company’s restaurants offer:

Hamburgers and cheeseburgers Chicken sandwiches and nuggets Fries Salads Shakes Frozen desserts Sundaes Soft serve cones Bakery items Soft drinks Coffee Muffins Sausages Biscuit and bagel sandwiches Oatmeal Hash browns Breakfast burritos Hotcakes J.P. Morgan has an Overweight rating with a $305 target price.

Procter & Gamble Procter & Gamble (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company, and today it focuses on providing branded consumer packaged goods worldwide. The stock is down over 14% from its 52-week high. The company has maintained strong margins and continued its 69-year dividend-increase streak, which yields 2.95%.

The company’s segments include 5

Beauty Grooming Health Care Fabric & Home Care Baby Feminine & Family Care Its products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries.

Procter & Gamble offers products under such brands as:

Head & Shoulders Herbal Essences Pantene Rejoice Olay Old Spice Safeguard Secret SK-II Braun Gillette Venus Crest Oral-B Ariel Downy Gain Tide Always Always Discreet Tampax Bounty Jefferies has a Buy rating with a $179 target price objective.

UPS United Parcel Service (NYSE: UPS) announced it is cutting its shipping volume for e-commerce giant Amazon by more than 50% by the second half of 2026. The company said the move is part of its broader strategy to focus on more profitable, less risky business segments. The package delivery giant was one of the worst performers among top dividend picks, down 6% in 2026, and now has a dividend yield of 6.49%. It faces headwinds from the decline in its Amazon business and from expectations of slower economic growth.

The company provides a range of integrated logistics solutions for customers in more than 200 countries and territories. It operates through two segments:

U.S. Domestic Package International Package The U.S. Domestic Package segment offers a range of domestic air and ground package transportation services within the United States. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services. The ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.

The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, and other businesses.

Jefferies has a Buy rating with a $130 price objective.

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Strong cross-border capabilities and fast transit times support production-critical supply chains throughout North America

ATLANTA--(BUSINESS WIRE)--UPS (NYSE: UPS) today announced it has invested nearly $50 million in network capabilities and dedicated industry teams to help automotive and industrial manufacturers operate with greater resilience and precision. As supply chains face ongoing pressure from automation, geopolitical shifts and evolving regulatory demands, UPS is uniquely positioned to help customers navigate complexity through its end-to-end global network, advanced technology and deep industry expertise.

UPS announced it has invested nearly $50 million in network capabilities and dedicated industry teams to help automotive and industrial manufacturers operate with greater resilience and precision.

Share Building on this, UPS announced the expansion of its North American Air Freight (NAAF) capabilities – introducing time-definite heavy air freight service to and from Mexico for the first time and extending coverage across North America to better support production-critical supply chains. Unlike fragmented, multi-carrier models, UPS integrates transportation, brokerage and warehousing into a single solution, reducing handoffs and simplifying cross-border shipping.

“Our automotive and industrial customers want an easy button for logistics,” said Matt Guffey, UPS chief commercial and strategy officer. “They need reliability, visibility and a partner that understands their supply chains – end to end, today and tomorrow. We have made strategic investments to build the team and the network that meets their needs unlike any other in the industry.”

Beginning in August, NAAF will offer 1-, 2- and 3-day service options to and from Mexico that help manufacturers move high-value, time-sensitive parts with greater speed and predictability. For UPS customers, this means fewer delays at the border, improved visibility from origin to destination and greater confidence in keeping production lines running.

A Network Built to Serve Automotive and Industrial Manufacturers

In recent years, UPS has modernized its network to improve reliability, visibility and speed — delivering measurable results for every customer, including automotive and industrial manufacturers:

Competitive value for less-than-truckload shipments with UPS Ground with Freight Pricing for shipments over 150 lbs., ideal for automotive and industrial shippers seeking small-package reliability. Expanded early delivery reach with UPS delivering to more U.S. businesses next day by 10:30 a.m. than other major carriers, a critical advantage for tight production schedules. Enhanced visibility and control through automation across 67.5% of UPS facilities and RFID sensing technology embedded throughout UPS’s network. On-demand, after-hours delivery via Roadie, a UPS Company, enabling parts to be delivered same-day to dealerships and repair shops securely without requiring staff on-site. David MacNeil, chief executive officer of WeatherTech, weighed in on his company’s experience working with UPS to ship automotive accessories: “When we know what to expect from shipping, it helps us plan with confidence. That clarity allows us to stay focused on delivering a great experience for our customers.”

Dedicated Industry Teams Serving Automotive and Industrial Customers

Complementing its end-to-end network, UPS has established a dedicated team of more than 300 subject matter experts with deep automotive and industrial manufacturing expertise – supported by thousands of UPSers across the network who are ready to serve and deliver.

This combination of network investment and expertise comes at a critical time, as supply chain performance has become a defining factor in speed to market, cost control and long-term competitiveness for manufacturers around the world.

Industrial and automotive companies face pressure to modernize and manage complex global supply chains. UPS is investing to help them move faster, gain control and operate with confidence — delivering industry-specific solutions at competitive pricing that simplify operations, improve visibility and keep supply chains running.

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. More information can be found at www.ups.com, about.ups.com and investors.ups.com.

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Wall Street doesn't like to wait, with impatient investors often drawn to today's best-performing businesses. That's understandable to some degree, but it ignores the fact that every business will eventually face adversity. When adversity strikes, patient investors who can think long-term may find they have an edge over those who are overly short-term focused.

That's the big picture today with United Parcel Service (UPS 0.51%) and Stanley Black & Decker (SWK +0.59%). Both of these industrial stocks are working on turnarounds and seeing early signs of success. But investors aren't interested because financial results are still relatively weak. Here's why, a decade from now, you may regret not buying these stocks.

Image source: Getty Images.

UPS and Stanley Black & Decker are necessity businesses While nobody needs to send a package or buy a tool, per se, the world wouldn't work the way it does without the products and services that UPS and Stanley Black & Decker provide. That's the long-term underpinning that supports both of them. Of course, it also helps that both are industry giants, with well-established brands and customer relationships. Neither will be easily replaced.

From a big-picture perspective, they are both good companies. In fact, Stanley Black & Decker is a Dividend King, with over 50 years of consecutive annual dividend increases. You can't create a record like that by accident; it requires consistent, strong execution throughout the entire business cycle. UPS went public only in 1999, so it doesn't have the same track record. However, the dividend has generally trended higher since its IPO.

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That said, neither of these two businesses is hitting on all cylinders today. That's why the stocks are down materially from their recent highs, pushing UPS' yield up to 6.4% and Stanley Black & Decker's to 4.2%. Both are at the high end of the historical yield range for these leading industrial companies. That suggests there's an opportunity here for investors who think long term.

The problems are slowly getting better Both UPS and Stanley Black & Decker are in the middle of business overhauls. Each company is looking to slim down and cut costs, focusing on their most profitable businesses. They have each sold businesses, closed less productive facilities, and increased spending on technology. Stanley Black & Decker has also been heavily focused on reducing leverage after a debt-funding acquisition spree. Wall Street appears to be taking a show-me attitude in both cases.

Only the early signs of success have already started to roll in, and Wall Street isn't taking notice. For example, UPS has seen its revenue per piece in the U.S. market increase for several consecutive quarters, despite overall revenue declines in the U.S. business. A part of the process has involved reducing the volume of packages it carries from low-margin customers like Amazon (AMZN 1.24%). So you would expect to see revenues decline even as profit margins improved. It looks like the company's turnaround remains solidly on track.

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Stanley Black & Decker, meanwhile, has seen its gross profit margin improve and its leverage fall over the last couple of years. Again, that's exactly the goal the company is working toward, and Wall Street doesn't seem to care because it is focused on the near-term issues around inflation and tariffs.

Get paid well to wait for investors to notice If you buy these two high-yield industrial stocks today, you are setting yourself up to collect an attractive passive income stream. You are also getting in early on the turnarounds that are starting to take shape at UPS and Stanley Black & Decker, which means you could see capital appreciation, too. Neither stock is likely to be an immediate success story, but if you don't buy them today, you'll likely look back a decade from now and wish you had.

United Parcel Service (UPS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this package delivery service have returned +10.1% over the past month versus the Zacks S&P 500 composite's +5.5% change. The Zacks Transportation - Air Freight and Cargo industry, to which UPS belongs, has gained 3% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, UPS is expected to post earnings of $1.67 per share, indicating a change of +7.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.1% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $7.1 points to a change of -0.8% from the prior year. Over the last 30 days, this estimate has changed -0.1%.

For the next fiscal year, the consensus earnings estimate of $7.9 indicates a change of +11.2% from what UPS is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, UPS is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of UPS, the consensus sales estimate of $21.51 billion for the current quarter points to a year-over-year change of +1.3%. The $89.78 billion and $93.42 billion estimates for the current and next fiscal years indicate changes of +1.3% and +4.1%, respectively.

Last Reported Results and Surprise HistoryUPS reported revenues of $21.2 billion in the last reported quarter, representing a year-over-year change of -1.6%. EPS of $1.07 for the same period compares with $1.49 a year ago.

Compared to the Zacks Consensus Estimate of $21.03 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.88%.

Over the last four quarters, UPS surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

UPS is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UPS. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

United Parcel Service is reiterated as a buy, with shares undervalued by 10% and a compelling 6.0% dividend yield. UPS delivered Q1 EPS and revenue beats, reaffirmed FY 2026 guidance, and expects margin expansion as cost pressures abate in H2. Operational improvements include reduced Amazon volume, cost-saving initiatives, and record penetration in healthcare and SMB segments.

United Parcel Service's (UPS 0.51%) stock has fallen 50% since hitting a high in early 2022. The stock, however, is up 30% from its lows in Oct. 2025. The market is starting to believe the company's turnaround plan is gaining traction. If you wait too long to buy it, you may miss out on the investment opportunity.

UPS isn't expecting much from the second quarter Buying UPS before July 15 should get you in before the company reports second-quarter earnings. Those earnings aren't expected to be great reading. But that's not the point. The key here is that UPS has been telling investors that the first half of 2026 would be weak, with the second half coming in stronger.

Image source: Getty Images.

In other words, the end of the second quarter will be the inflection point. It will be the point in time when the industrial giant's financial results start to turn around. There are already important signs of progress, with a steady increase in revenue per piece in the U.S. business being a key sign of the company's early turnaround success.

Not a great year, but an important change of direction To be fair, the full year is likely to be roughly flat with 2025, with revenue and operating margin barely budging (though revenue per piece is expected to keep rising, ending up mid-single digits for the year). However, the company believes the trends will shift between the first and second half.

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In the first half of 2026, revenues are expected to fall, with margins remaining under pressure. But in the second half, revenues are expected to start growing, with margins improving. The company didn't materially alter its view when it reported first-quarter 2026 earnings in late April. In fact, the CEO doubled down, telling investors that the turnaround effort was still on track. I believe there will be a similarly positive update when the company reports second-quarter earnings.

More aggressive investors should consider buying now Risk-averse investors probably won't want to buy UPS, given the turnaround story it is working on. However, for more aggressive investors, that turnaround appears to be coming to an end. The business upturn will come, if management is correct, in the second half of the year. The stock is already moving higher, but if you act before the company reports second-quarter earnings, you can still get in before the rest of Wall Street catches on to the change in direction.

© Justin Sullivan / Getty Images

The Fed’s pivot to 3.75% has revived the bull case for cyclical income stocks, and United Parcel Service (NYSE:UPS | UPS Price Prediction) sits at the center of that narrative. With shares at $103.26 and a yield north of 6%, the question for retirees is simple: can UPS actually keep paying?

The Dividend at a Glance Metric Value Annual Dividend $6.56 Dividend Yield 6.09% Quarterly Payment $1.64 Consecutive Years of Increases Streak broken in 2025 (held flat) Aristocrat/King Status No Payout Ratios Are Stretched Thin Metric Value Assessment Earnings Payout (FY25) ~92% Concerning FCF Payout (FY25) ~113% Red flag OCF Coverage 1.56x Borderline UPS paid $5.398 billion in dividends in 2025 against $4.765 billion of free cash flow. EPS of $7.16 versus a $6.56 annual dividend leaves almost no margin. Q2 2025 free cash flow was negative $775 million, yet the dividend was paid in full. That gap was bridged with financing, not earnings.

Balance Sheet Adds Pressure, Not Cushion Metric Value Assessment Cash on Hand $5.80B Adequate Shareholders’ Equity $15.79B Eroding Q3 25 Interest Expense YoY +26.5% Tightening Rising debt service is the quiet threat. Even with the Fed easing to 3.75%, the 10-year sits at 4.55%, keeping refinancing costs elevated.

The Streak Just Broke Year Quarterly Dividend 2026 $1.64 2025 $1.64 2024 $1.63 2022 $1.52 2021 $1.02 The token $0.01 raise from 2023 to 2024, followed by a flat 2025 and 2026, signals management is protecting cash rather than rewarding shareholders.

What Management Is Actually Saying On the Q1 2026 call, CEO Carol Tomé framed the moment plainly: “The first quarter of 2026 marked a critical transition period for UPS in which we needed to flawlessly execute several major strategic actions and we delivered.” CFO Brian Dykes guided to $5.5 billion of free cash flow against $5.4 billion of planned dividends. That covers the payout by a hair, with a $1.3 billion pension contribution still on the table.

Verdict: Safe for Now, But Moderate Risk Dividend Safety Rating: Moderate Risk. The yield is real, the Amazon glide-down is nearly complete, and $3 billion in 2026 cost savings is landing. But a 113% FCF payout and a frozen dividend are facts. The dividend looks supportable if 2026 free cash flow lands at the guided $5.5 billion and the back half delivers margin expansion. Risk rises if Q2 or Q3 FCF disappoints, because there is no cushion left to absorb a miss.

MCKINNEY, Texas, April 20, 2026 /PRNewswire/ -- Globe Life Inc. (NYSE: GL) announces the live audio webcast of its 2026 Annual Meeting of Shareholders, on Thursday, April 30, 2026 at 10:00am Central.

Virtual Meeting via Live Audio Webcast
To attend the meeting online:

Go to www.virtualshareholdermeeting.com/GL2026 Registered and beneficial shareholders - Enter the 16-digit control number included on your proxy card or voting instruction form. Guests may attend and listen to the meeting. The Company's Annual Meeting will be conducted in accordance with its Shareholders' Rights Policy and Robert's Rules of Order.

Globe Life Inc. is a holding company specializing in life and supplemental health insurance for the middle-income market distributed through multiple channels, including direct to consumer and exclusive and independent agencies.

SOURCE Globe Life Inc.

, /PRNewswire/ -- Globe Life Inc. (NYSE: GL) reported today that for the quarter ended March 31, 2026, net income was $3.39 per diluted common share, compared with $3.01 per diluted common share for the year-ago quarter. Net operating income was $3.43 per diluted common share, compared with $3.07 per diluted common share for the year-ago quarter. The Company also increased full-year 2026 earnings guidance to a range of $15.40 to $15.90, an increase of $0.35 at the midpoint.

HIGHLIGHTS:

Net income as an ROE was 17.9% for the three months ended March 31, 2026. Book value per share was $77.03, an increase of 19% over the year-ago quarter. Net operating income as an ROE excluding accumulated other comprehensive income (AOCI) was 14.0% for the three months ended March 31, 2026. Book value per share excluding AOCI was $98.56, an increase of 12% over the year-ago quarter. Net income per share increased 13% and net operating income per share increased 12% over the year-ago quarter. Life net sales grew at each division, resulting in a 6% increase in total life net sales over the year-ago quarter. At the American Income Life Division, life underwriting margin increased 7%, life premium increased 5%, and life net sales increased 3% over the year-ago quarter. At the Liberty National Division, life net sales increased 13% and life underwriting margin increased 11% over the year-ago quarter. Additionally, the average producing agent count increased 9% over the year-ago quarter. At the Family Heritage Division, health net sales increased 22%, health underwriting margin increased 11%, and health premium increased 10% over the year-ago quarter. Additionally, the average producing agent count increased 10% over the year-ago quarter. At the Direct to Consumer Division, life underwriting margin increased 15% and life net sales increased 8% over the year-ago quarter. At the United American Division, health net sales increased from $28 million to approximately $62 million and health underwriting margin increased from approximately $2 million to $5 million over the year-ago quarter. Health premium increased 22% over the year-ago quarter. 1.4 million shares of Globe Life Inc. common stock were repurchased during the quarter at a total cost of $203 million. Note: As used in the earnings release, "Globe Life," the "Company," "we," "our," and "us" refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

RESULTS OF OPERATIONS

Net operating income, a non-GAAP(1) financial measure, has been used consistently by Globe Life's management for many years to evaluate the operating performance of the Company, and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as realized investment gains and losses and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure.

The following table represents Globe Life's operating summary for the three months ended March 31, 2026 and 2025:

Operating Summary

Per Share

Three Months Ended

March 31,

Three Months Ended

March 31,

2026

2025

%

Chg.

2026

2025

%

Chg.

Insurance underwriting income(2)

$       4.42

$       3.98

11

$   352,405

$   336,315

5

Excess investment income(2)

0.46

0.42

10

36,654

35,870

2

Interest on debt

(0.43)

(0.41)

5

(34,000)

(34,992)

(3)

Parent company expense

(0.04)

(0.04)

(3,533)

(3,050)

Income tax expense

(0.85)

(0.77)

10

(67,703)

(64,891)

4

Stock compensation benefit (expense), net of tax     

(0.13)

(0.12)

(10,303)

(9,915)

Net operating income

3.43

3.07

12

273,520

259,337

5

Reconciling items, net of tax:

Realized gain (loss)

(0.01)

—

(1,167)

67

Non-operating expenses

—

—

(72)

—

Legal proceedings

(0.02)

(0.06)

(1,755)

(4,841)

Net income(3)

$       3.39

$       3.01

$   270,526

$   254,563

Weighted average diluted shares outstanding

79,741

84,480

(1)

GAAP is defined as accounting principles generally accepted in the United States of America.

(2)

Definitions included within this document.

(3)

A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report.

Note: Tables in this earnings release may not sum due to rounding.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

MANAGEMENT VS. GAAP MEASURES

Shareholders' equity, excluding AOCI, and book value per share, excluding AOCI, are non-GAAP measures that are utilized by management to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. Management views the business in this manner because it creates more meaningful and easily identifiable trends, as we exclude fluctuations resulting from changes in interest rates. Shareholders' equity and book value per share are the most directly comparable GAAP measures. 

Three Months Ended

March 31,

2026

2025

Net income

$     270,526

$     254,563

Net operating income

273,520

259,337

Net income as an ROE(1)

17.9 %

19.0 %

Net operating income as an ROE (excluding AOCI)(1)               

14.0 %

14.1 %

March 31,

2026

2025

Shareholders' equity

$   6,084,596

$   5,425,416

Impact of adjustment to exclude AOCI

1,700,791

1,970,873

Shareholders' equity, excluding AOCI

$   7,785,387

$   7,396,289

Book value per share

$        77.03

$        64.50

Impact of adjustment to exclude AOCI

21.53

23.42

Book value per share, excluding AOCI

$        98.56

$        87.92

(1)

Calculated using average shareholders' equity for the measurement period.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

INSURANCE OPERATIONS: 

Life insurance accounted for 79% of the Company's insurance underwriting margin for the quarter and 67% of total premium revenue. 

Health insurance accounted for 21% of the Company's insurance underwriting margin for the quarter and 33% of total premium revenue.

Net sales of life insurance increased 6% for the quarter, and net health sales increased 58%. 

The following table summarizes Globe Life's premium revenue by product type for the three months ended March 31, 2026 and 2025:

Insurance Premium Revenue

     Quarter Ended     

March 31, 2026

March 31, 2025

%

Chg.

Life insurance

$       853,205

$       829,863

3

Health insurance                                                

416,908

369,791

13

Total

$     1,270,113

$     1,199,654

6

INSURANCE UNDERWRITING INCOME

Insurance underwriting margin is management's measure of profitability of the Company's life and health segments' underwriting performance, and consists of premiums less policy obligations (excluding interest on policy liabilities), commissions and other acquisition expenses. Insurance underwriting income is the sum of the insurance underwriting margins of the life and health segments, plus annuity and other income, less administrative expenses. It excludes the investment segment, interest on debt, Parent Company expense, stock compensation expense and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of underwriting results by distribution channel. Insurance underwriting income, a non-GAAP measure, is a component of net operating income, which is reconciled to net income in the Results of Operations section above.

The following table summarizes Globe Life's insurance underwriting income by segment for the three months ended March 31, 2026 and 2025:

Insurance Underwriting Income

Quarter Ended

March 31, 2026

% of

Premium

March 31, 2025

% of

Premium

%

Chg.

Insurance underwriting margins:

Life

$       349,058

41

$       337,264

41

3

Health

94,504

23

84,721

23

12

443,562

421,985

5

Annuity and other income

3,129

1,879

Administrative expenses

(94,286)

(87,549)

Insurance underwriting income     

$       352,405

$       336,315

5

Per share

$            4.42

$            3.98

11

The ratio of administrative expenses to premium was 7.4%, compared with 7.3% for the year-ago quarter.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNEL 

Our distribution channels consist of the following exclusive divisions: American Income Life Division (American Income), Liberty National Division (Liberty National), Family Heritage Division (Family Heritage), Direct to Consumer Division (Direct to Consumer); and an independent agency, United American Division (United American).

Total premium, underwriting margins, first-year collected premium and net sales by all distribution channels are shown at https://investors.globelifeinsurance.com at "Financial Reports and Other Financial Information."

Life Underwriting Margin

Quarter Ended

March 31,

2026

2025

Amount

% of
Premium

Amount

% of
Premium

% Chg.

American Income

$     209,008

46

$     196,169

45

7

Direct to Consumer

73,638

30

64,200

26

15

Liberty National

35,292

35

31,772

33

11

Other

31,120

62

45,123

90

(31)

Total

$     349,058

41

$     337,264

41

3

Life Premium

Quarter Ended

March 31,

2026

2025

%

Chg.

American Income

$     459,200

$     437,866

5

Direct to Consumer                

244,223

245,600

(1)

Liberty National

99,885

96,182

4

Other

49,897

50,215

(1)

Total

$     853,205

$     829,863

3

Life Net Sales(1)

Quarter Ended

March 31,

2026

2025

%

Chg.

American Income

$     101,337

$      98,555

3

Direct to Consumer                    

27,188

25,175

8

Liberty National

25,358

22,469

13

Other

3,488

2,152

62

Total

$     157,371

$     148,351

6

(1)

Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued is before cancellations, as cancellations do not contribute to premium income.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL

Health Underwriting Margin

Quarter Ended

March 31,

2026

2025

Amount

% of
Premium

Amount

% of
Premium

%
Chg.

United American

$       5,281

3

$       1,617

1

227

Family Heritage

43,745

36

39,249

35

11

Liberty National

25,670

54

25,982

54

(1)

American Income

18,771

60

19,389

63

(3)

Direct to Consumer

1,037

5

(1,516)

(8)

Total

$      94,504

23

$      84,721

23

12

Health Premium

Quarter Ended

March 31,

2026

2025

%

Chg.

United American

$     194,426

$     159,848

22

Family Heritage

123,139

112,354

10

Liberty National

47,579

47,922

(1)

American Income

31,119

30,691

1

Direct to Consumer      

20,645

18,976

9

Total

$     416,908

$     369,791

13

Health Net Sales(1)

Quarter Ended

March 31,

2026

2025

%

Chg.

United American

$      61,534

$      27,708

122

Family Heritage

32,713

26,816

22

Liberty National

6,968

7,198

(3)

American Income

4,317

4,870

(11)

Direct to Consumer       

618

645

(4)

Total

$     106,150

$      67,237

58

(1)

Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued is before cancellations, as cancellations do not contribute to premium income.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

PRODUCING EXCLUSIVE AGENT COUNT RESULTS BY DISTRIBUTION CHANNEL 

Quarterly Average

Producing Agent Count(1)

Quarter Ended

Quarter Ended

March 31,

December 31,

2026

2025

%
Chg.

2025

American Income     

11,064

11,510

(4)

11,699

Liberty National

4,031

3,688

9

3,965

Family Heritage

1,561

1,417

10

1,640

(1)

The quarterly average producing agent count is based on the actual count at the beginning and end of each week during the period.

INVESTMENTS 

Management uses excess investment income as the measure to evaluate the performance of the investment segment. It is defined as net investment income less the required interest attributable to policy liabilities. We also view excess investment income per diluted common share as an important and useful measure to evaluate performance of the investment segment, since it takes into consideration our stock repurchase program.

The following table summarizes Globe Life's investment income, excess investment income, and excess investment income per diluted common share.

Excess Investment Income

Quarter Ended

March 31,

2026

2025

%

Chg.

Net investment income

$     289,824

$    280,614

3

Interest on policy liabilities(1)

(253,170)

(244,744)

3

Excess investment income     

$      36,654

$      35,870

2

Per share

$         0.46

$         0.42

10

(1)

Interest on policy liabilities, at original discount rates, is a component of total policyholder benefits, a GAAP measure.

Net investment income increased 3% and average invested assets increased approximately 2%. Required interest on policy liabilities increased 3% and average policy liabilities increased 4%.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

The composition of the investment portfolio at book value at March 31, 2026 is as follows:

Investment Portfolio

As of

March 31, 2026

Amount

% of Total

Fixed maturities at fair value(1)               

$    17,579,376

86

Mortgage loans

461,025

2

Policy loans

749,108

4

Other long-term investments(2)     

1,435,099

7

Short-term investments

183,790

1

Total

$    20,408,398

(1)

As of March 31, 2026, fixed maturities at amortized cost were $19.1 billion, net of $3.3 million of allowance for credit losses.

(2)

Includes $1.07 billion of investments accounted for under the fair value option which have a cost of $1.06 billion as of March 31, 2026.

Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of March 31, 2026 are as follows:

Fixed Maturity Portfolio by Sector

As of

March 31, 2026

Investment
Grade

Below
Investment
Grade

Total
Amortized
Cost, net

Corporate bonds

$   14,672,909

$      472,686

$   15,145,595

Municipals

3,401,697

1,960

3,403,657

Government, agencies, and GSEs(1)                           

465,510

—

465,510

Other asset-backed securities

79,381

35,945

115,326

Total

$   18,619,497

$      510,591

$   19,130,088

(1)

Government-Sponsored Enterprises

Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at March 31, 2026 and the corresponding amounts of net unrealized gains and losses recognized in accumulated other comprehensive income (loss).

As of

Amortized

Cost

Allowance for
Credit Losses

Net Unrealized
Gains
(Losses)

Fair
Value

March 31, 2026       

$           19,133,385

$         (3,297)

$    (1,550,712)

$    17,579,376

At amortized cost, net of allowance for credit losses, and at fair value, 97% of fixed maturities were rated "investment grade." The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.32% during the first quarter of 2026, compared with 5.25% in the year-ago quarter.
Globe Life is not a party to any credit default swaps and does not participate in securities lending.

GLOBE LIFE INC.
Earnings Release—Q1 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

Comparable information for acquisitions of fixed maturity and other investments is as follows:

Fixed Maturity Acquisitions

Quarter Ended

March 31,

2026

2025

Amount

$    418,753

$    244,845

Average annual effective yield          

6.2 %

6.4 %

Average rating

A

A-

Average life (in years) to:

Next call

40.3

40.7

Maturity

42.1

43.1

Other Investment Acquisitions

Quarter Ended

March 31,

2026

2025

Limited partnerships

$        11,453

$        15,831

Mortgage loans

58,519

35,621

Common stock

1,574

502

Company owned life insurance            

75,000

—

Total

$      146,546

$        51,954

SHARE REPURCHASE:

During the quarter, the Company repurchased 1.4 million shares of Globe Life Inc. common stock at a total cost of $203 million and an average share price of $141.24.

LIQUIDITY/CAPITAL:

Globe Life's operations consist primarily of writing basic protection life and supplemental health insurance policies which generate strong and stable cash flows. These cash flows are not impacted by volatile equity markets. Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.

NON-GAAP MEASURES:

In this news release, Globe Life includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing broader perspective. Globe Life's definitions of non-GAAP measures may differ from other companies' definitions. More detailed financial information, including various GAAP and non-GAAP measurements, is located at https://investors.globelifeinsurance.com on the Investors page under "Financial Reports and Other Financial Information."

CAUTION REGARDING FORWARD-LOOKING STATEMENTS: 
This press release may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:

1) Economic and other conditions, including the impact of inflation, immigration, geopolitical events, escalating tariff and non-tariff trade measures imposed by the U.S. and other countries, and other governmental actions on the U.S. economy and/or U.S. consumer confidence, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life's assumptions;

2) Regulatory developments, including changes in accounting standards or governmental regulations (particularly those impacting taxes and changes to the Federal Medicare program that would affect Medicare Supplement);

3) Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance;

4) Interest rate changes that affect product sales, financing costs, and/or investment yields;

5) General economic, industry sector or individual debt issuers' financial conditions (including developments and volatility arising from geopolitical events, particularly in certain industries that may compromise part of our investment portfolio) that may affect the current market value of securities we own, or that may impair an issuer's ability to make principal and/or interest payments due on those securities;

6) Changes in the competitiveness of the Company's products and pricing;

7) Litigation results;

8) Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from the impact of higher than anticipated inflation);

9) The ability to obtain timely and appropriate premium rate increases for health insurance policies from our regulators;

10) The ability of our subsidiaries to pay dividends to the Parent Company and to receive required regulatory approvals on such amounts;

11) The customer response to new products and marketing initiatives;

12) Reported amounts in the consolidated financial statements which are based on management estimates and judgments which may differ from the actual amounts ultimately realized;

13) Compromise by a malicious actor or other event that causes a loss of secure data from, or inaccessibility to, our computer and other information technology systems;

14) The Company's ability to attract and retain agents;

15) The severity, magnitude, and impact of natural or man-made catastrophic events, including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and terrorism, on our operations and personnel, commercial activity and demand for our products; and

16) Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period.

Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission, including those described in the "Risk Factors" section of our most recent Annual Report on Form 10-K. Globe Life specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.

EARNINGS RELEASE CONFERENCE CALL WEBCAST:

Globe Life will provide a live audio webcast of its first quarter 2026 earnings release conference call with financial analysts at 11:00 am (Eastern) tomorrow, April 23, 2026. Access to the live webcast and replay will be available at https://investors.globelifeinsurance.com on the Calls and Meetings page, at the Conference Calls on the Web icon. Immediately following this press release, supplemental financial reports will be available before the conference call on the Investors page menu of the Globe Life website at "Financial Reports."  

APPENDIX

GLOBE LIFE INC.

GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

March 31,

2026

2025

Revenue:

Life premium

$      853,205

$      829,863

Health premium

416,908

369,791

Total premium

1,270,113

1,199,654

Net investment income

289,824

280,614

Realized gains (losses)

(1,478)

85

Other income

1,160

69

Total revenue

1,559,619

1,480,422

Benefits and expenses:

Life policyholder benefits(1)

518,850

509,756

Health policyholder benefits(2)

263,734

233,929

Other policyholder benefits

7,000

7,080

Total policyholder benefits

789,584

750,765

Amortization of deferred acquisition costs

118,282

105,515

Commissions, premium taxes, and non-deferred acquisition costs     

169,886

164,323

Other operating expense

113,735

108,746

Interest expense

34,000

34,992

Total benefits and expenses

1,225,487

1,164,341

Income before income taxes

334,132

316,081

Income tax benefit (expense)

(63,606)

(61,518)

Net income

$      270,526

$      254,563

Basic net income per common share

$          3.45

$          3.05

Diluted net income per common share

$          3.39

$          3.01

(1)

Net of total remeasurement  gain of $18.9 million for the three months ended March 31, 2026, and a total remeasurement gain of $8.5 million for the same period in 2025.

(2)

Net of a total remeasurement gain of $6.0 million for the three months ended March 31, 2026, and a total remeasurement gain of $0.4 million for the same period in 2025.

SOURCE Globe Life Inc.

For the quarter ended March 2026, Globe Life (GL - Free Report) reported revenue of $1.56 billion, up 5.5% over the same period last year. EPS came in at $3.43, compared to $3.07 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.57 billion, representing a surprise of -0.38%. The company delivered an EPS surprise of -0.98%, with the consensus EPS estimate being $3.46.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Globe Life performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Total premium: $1.27 billion compared to the $1.27 billion average estimate based on four analysts. The reported number represents a change of +5.9% year over year.Revenue- Net investment income: $289.82 million versus $290.01 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.Life Underwriting Margin- Liberty National: $35.29 million versus $35.06 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.1% change.Life Underwriting Margin- Direct to Consumer: $73.64 million compared to the $68.04 million average estimate based on three analysts. The reported number represents a change of +14.7% year over year.Life Underwriting Margin- American Income: $209.01 million compared to the $211.68 million average estimate based on three analysts. The reported number represents a change of +6.5% year over year.Revenue- Life premium- American Income Exclusive: $459.2 million compared to the $465.58 million average estimate based on three analysts. The reported number represents a change of +4.9% year over year.Revenue- Life premium- Direct to Consumer: $244.22 million compared to the $245.31 million average estimate based on three analysts. The reported number represents a change of -0.6% year over year.Revenue- Life premium- Other agencies: $49.9 million compared to the $50.14 million average estimate based on three analysts. The reported number represents a change of -0.6% year over year.Revenue- Health Premium- United American: $194.43 million compared to the $184.79 million average estimate based on three analysts. The reported number represents a change of +21.6% year over year.Revenue- Health premium- Liberty National: $47.58 million versus the three-analyst average estimate of $48.51 million. The reported number represents a year-over-year change of -0.7%.Revenue- Health premium- American Income: $31.12 million versus the three-analyst average estimate of $32.05 million. The reported number represents a year-over-year change of +1.4%.Revenue- Health premium- Direct to Consumer: $20.65 million versus the three-analyst average estimate of $20.58 million. The reported number represents a year-over-year change of +8.8%.View all Key Company Metrics for Globe Life here>>>

Shares of Globe Life have returned +8.9% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways Globe Life posted Q1 EPS of $3.43, missing estimates despite 11.7% year-over-year growth.GL's results were lifted by higher premiums, underwriting income, and investment income.Rising expenses, including benefits and admin costs, offset revenue gains and pressured earnings. Globe Life Inc. (GL - Free Report) reported first-quarter 2026 net operating income of $3.43 per share, which missed the Zacks Consensus Estimate by 0.9%. The bottom line, however, improved 11.7% year over year, driven by higher insurance underwriting income.

While higher premiums, stronger underwriting income, and increased investment income supported results, these gains were offset by elevated expenses, resulting in an earnings miss.

Globe Life Inc. Price, Consensus and EPS SurpriseBehind the HeadlinesGlobe Life reported total premium revenues of $1.3 billion, up 6% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.

Net investment income increased 3.3% year over year to $289.8 million.

The company reported operating revenues of $1.56 billion, up 5.3% from the year-ago quarter’s level. The improvement was driven by growth in Life and Health insurance premiums and improved net investment income. The top line missed the Zacks Consensus Estimate by 0.4%

Excess investment income, a measure of profitability, increased 2.2% year over year to $36.7 million.

Total insurance underwriting income increased 5% year over year to $352.4 million. The increase can be attributed to higher Health underwriting income.

Administrative expenses were up 7.7% year over year to $94.3 million.

Total benefits and expenses increased 5.3% year over year to $1.2 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes, and non-deferred acquisition costs, and other operating expense.

Segmental Results of GLPremium revenues at Life increased 3% year over year to $853.2 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income and Liberty National rose 5% and 4%, respectively. Net sales of $157.4 million increased 6% year over year. Underwriting margins increased 3% to $349.1 million.

Health insurance premium revenues rose 13% year over year to $416.9 million, primarily driven by higher premiums from United American, Family Heritage and Direct to Consumer. Net health sales increased 58% to $106.2 million. Underwriting margins increased 12% to $94.5 million.

Globe Life’s Financial UpdateShareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of March 31, 2026, increased 5.3% year over year to $7.8 billion.

As of March 31, 2026, Globe Life reported book value per share, excluding AOCI, of $98.56, up 12.1% year over year.
Operating return on equity, excluding AOCI, was 14% in the reported quarter, which contracted 10 basis points year over year.

GL’s Share RepurchaseGlobe Life repurchased 1.4 million shares worth $203 million in the reported quarter.

2026 ViewGlobe Life raised its full-year 2026 net operating income to the range of $15.40-$15.90 per diluted share.

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

Performance of Other InsurersThe Progressive Corporation (PGR - Free Report) reported first-quarter 2026 earnings per share of $4.96, which beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. PGR’s net premiums written were $23.6 billion in the reported quarter, up 6.5% from $22.2 billion a year ago. Net premiums earned grew 8% to $20.9 billion, which beat the Zacks Consensus Estimate by 1.5%.

Progressive’s operating revenues grew 8.2% year over year to $22.3 billion, driven by higher net premiums earned, an increase in net investment income, a rise in fees and other revenues and higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%

The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. The increase was primarily driven by lower catastrophe losses and higher net investment income. Travelers’ total revenues remained flat year over year at $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.

Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. TRV’s net investment income increased 8.4% to $1 billion, primarily due to the long-term fixed income investment portfolio.

W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which outpaced the Zacks Consensus Estimate by 15%. The bottom line increased 23.4% year over year. W.R. Berkley’s net premiums written were about $3.7 billion, up 2.8% year over year. Operating revenues totaled $3.6 billion, up 4% year over year. However, the top line missed the consensus estimate by 0.28%.

WRB’s net investment income grew 6.6% to $338.2 million. Total expenses increased 2.2% to $3 billion. The loss ratio decreased 100 basis points (bps) to 62.2, while the expense ratio improved 80 bps year over year to 28.6.

Posted by Defense World Staff on Apr 25th, 2026

Asset Management One Co. Ltd. trimmed its position in Globe Life Inc. (NYSE:GL – Free Report) by 78.0% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,972 shares of the company’s stock after selling 10,518 shares during the quarter. Asset Management One Co. Ltd.’s holdings in Globe Life were worth $421,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in GL. AQR Capital Management LLC lifted its holdings in Globe Life by 98.6% during the 2nd quarter. AQR Capital Management LLC now owns 1,402,690 shares of the company’s stock valued at $174,340,000 after purchasing an additional 696,548 shares during the last quarter. Balyasny Asset Management L.P. bought a new stake in Globe Life during the 3rd quarter worth about $80,925,000. Westfield Capital Management Co. LP bought a new stake in Globe Life during the 3rd quarter worth about $61,569,000. Comerica Bank grew its holdings in Globe Life by 865.4% during the 3rd quarter. Comerica Bank now owns 152,662 shares of the company’s stock worth $21,826,000 after acquiring an additional 136,849 shares during the last quarter. Finally, Qube Research & Technologies Ltd grew its holdings in Globe Life by 368.7% during the 3rd quarter. Qube Research & Technologies Ltd now owns 137,461 shares of the company’s stock worth $19,653,000 after acquiring an additional 108,135 shares during the last quarter. Institutional investors own 81.61% of the company’s stock.

Insider Buying and Selling at Globe Life In related news, EVP Michael Clay Majors sold 30,000 shares of the business’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $146.89, for a total transaction of $4,406,700.00. Following the transaction, the executive vice president directly owned 47,066 shares in the company, valued at approximately $6,913,524.74. The trade was a 38.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Frank M. Svoboda sold 12,500 shares of the business’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $144.78, for a total transaction of $1,809,750.00. Following the transaction, the chief executive officer owned 35,868 shares in the company, valued at approximately $5,192,969.04. The trade was a 25.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 82,807 shares of company stock valued at $12,041,286 in the last 90 days. Company insiders own 2.11% of the company’s stock.

Globe Life Stock Performance Shares of GL opened at $152.31 on Friday. Globe Life Inc. has a 12 month low of $111.13 and a 12 month high of $155.08. The stock has a market capitalization of $11.95 billion, a price-to-earnings ratio of 10.53 and a beta of 0.47. The company has a current ratio of 0.07, a quick ratio of 0.07 and a debt-to-equity ratio of 0.39. The firm has a fifty day simple moving average of $143.66 and a 200 day simple moving average of $139.51.

Globe Life (NYSE:GL – Get Free Report) last released its earnings results on Wednesday, April 22nd. The company reported $3.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.46 by ($0.03). Globe Life had a return on equity of 21.30% and a net margin of 19.38%.The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.56 billion. During the same quarter in the previous year, the company posted $3.07 EPS. The business’s revenue was up 5.3% on a year-over-year basis. Globe Life has set its FY 2026 guidance at 15.400-15.90 EPS. Research analysts forecast that Globe Life Inc. will post 15.37 EPS for the current fiscal year.

Globe Life Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 3rd will be issued a dividend of $0.33 per share. The ex-dividend date is Thursday, April 2nd. This is a positive change from Globe Life’s previous quarterly dividend of $0.27. This represents a $1.32 dividend on an annualized basis and a yield of 0.9%. Globe Life’s dividend payout ratio is presently 9.13%.

Analysts Set New Price Targets A number of brokerages have commented on GL. Wells Fargo & Company increased their price objective on shares of Globe Life from $171.00 to $172.00 and gave the stock an “overweight” rating in a report on Friday, April 10th. Piper Sandler raised Globe Life to a “strong-buy” rating in a report on Thursday, April 2nd. Texas Capital raised Globe Life to a “strong-buy” rating in a report on Wednesday, March 18th. Weiss Ratings raised Globe Life from a “hold (c+)” rating to a “buy (b)” rating in a report on Monday, April 13th. Finally, Truist Financial boosted their price objective on Globe Life from $180.00 to $185.00 and gave the stock a “buy” rating in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Globe Life presently has an average rating of “Buy” and an average price target of $172.67.

Get Our Latest Analysis on Globe Life

About Globe Life (Free Report)

Globe Life, traded on the NYSE under the symbol GL, is a U.S.-based insurance holding company that underwrites and distributes a range of life and supplemental health insurance products. Through its subsidiary brands—Globe Life, American Income Life, Liberty National Life, United American Insurance Company and Family Heritage Life—it offers term life, whole life, fixed annuities and supplemental health coverage designed to meet the needs of individuals and families across various socioeconomic segments.

The company’s product suite includes low-cost, easy-to-understand life insurance policies, accidental death and dismemberment coverage, hospital indemnity plans and specified disease insurance.

See Also Five stocks we like better than Globe Life Want to see what other hedge funds are holding GL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Globe Life Inc. (NYSE:GL – Free Report).

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Key Takeaways Globe Life revenue gains are driven by life and health premiums plus investment income. GL expects 2026 sales growth across American Income, Liberty National and Family Heritage. Globe Life's liquidity and capital strength support buybacks and eight years of dividend hikes. Shares of Globe Life Inc. (GL - Free Report) closed at $151.08 on Friday, near its 52-week high of $156.69. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $145.42 and $140.34, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.

Earnings of Globe Life grew 16.1% in the last five years, better than the industry average of 0.6%. GL has a solid surprise history. The stock has a solid track record of beating earnings estimates in two of the last four quarters while missing in the other two, with an average being 1.06%.

Image Source: Zacks Investment Research

GL is an OutperformerShares of Globe Life have gained 25.1% in the past year, outperforming its industry and the Finance sector’s growth of 6.1% and 12.2%, respectively.

GL has outperformed its peers, Aflac Incorporated (AFL - Free Report) and Unum Group (UNM - Free Report) , which have risen 7.2% and 0.1%, respectively, in the past year, while AMERISAFE, Inc. (AMSF - Free Report) has lost 35.9%.

Image Source: Zacks Investment Research

GL Shares are AffordableGlobe Life shares are trading at a discount compared to the industry. Its forward price-to-earnings multiple of 9.53X is lower than the industry average of 12.65X, the Finance sector’s 15.79X and the Zacks S&P 500 Composite’s 22.16X. Also, it has a Value Score of A.

GL’s Growth Projection EncouragesThe Zacks Consensus Estimate for Globe Life’s 2026 earnings per share indicates a year-over-year increase of 6.2%. The consensus estimate for revenues is pegged at $6.41 billion, implying a year-over-year improvement of 6.3%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 7.8% and 6.1%, respectively, from the corresponding 2026 estimates.

Target Price Reflects Potential UpsideBased on short-term price targets offered by 13 analysts, the Zacks average price target is $173.23 per share. The average indicates a potential 13.6% upside from the last closing price.

Image Source: Zacks Investment Research

GL’s Return on CapitalGL’s trailing 12-month return on equity is 20.9%, ahead of the industry average of 13.8%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders’ equity.

Also, the return on invested capital (ROIC) in the trailing 12 months was 12.5%, better than the industry average of 6.6%. Its ROIC has been increasing over the last few quarters amid capital investment made over the same time frame. This reflects the company’s efficiency in utilizing funds to generate income.

Key Points to Note for Globe LifeGlobe Life has been witnessing a positive trend in revenues, driven by premium growth in its Life Insurance and Health Insurance segments and net investment income.

The strong performance of the American Income and Liberty National divisions should drive the top line in the future. Liberty National is likely to continue to benefit from improved productivity and agent count. GL’s expansion initiatives to capture heavily populated and less penetrated areas should drive growth in the future.

Globe Life expects net life sales of mid-single-digit growth at American Income, low double-digit growth at Liberty National, and low single-digit growth at direct-to-consumer in 2026. The company expects Net health sales of mid-single-digit growth for Liberty National and low double-digit growth for Family Heritage in 2026. For United American, the company is currently projecting high-teens growth for 2026.

Moreover, net investment income continues to be another important driver of the company’s top-line growth and has been exhibiting improvement over the last few years. The metric is likely to keep growing, riding on improved invested assets and higher interest rates on new investments.

The company has maintained a strong liquidity position with sufficient cash-generation capabilities. Its operations comprise writing basic protection life and supplemental health insurance policies, which generate strong and stable cash flows. For 2025, Globe Life has targeted a consolidated Company Action Level RBC ratio of 300% to 320%.

A strong capital position enables Globe Life to enhance its shareholder value via share buybacks and dividend payouts. The insurer has continuously been increasing its dividend over the past eight years (2017-2024), witnessing a CAGR of 7%.

ConclusionGlobe Life’s higher life and health sales, improved invested assets, increased productivity and agent count, strong liquidity position and effective capital deployment make it an attractive stock.

Globe Life has a VGM Score of A. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.

Higher return on capital, impressive dividend history, and solid growth projections should continue to benefit the insurer over the long term. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A month has gone by since the last earnings report for Globe Life (GL - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Globe Life due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Globe Life Q1 Earnings Miss Estimates, Rise Y/Y on Higher Premiums

Globe Life Inc. reported first-quarter 2026 net operating income of $3.43 per share, which missed the Zacks Consensus Estimate by 0.9%. The bottom line, however, improved 11.7% year over year, driven by higher insurance underwriting income. While higher premiums, stronger underwriting income, and increased investment income supported results, these gains were offset by elevated expenses, resulting in an earnings miss.

Behind the HeadlinesGlobe Life reported total premium revenues of $1.3 billion, up 6% year over year. This upside was primarily driven by higher premiums from Life and Health insurance. Net investment income increased 3.3% year over year to $289.8 million. The company reported operating revenues of $1.56 billion, up 5.3% from the year-ago quarter’s level. The improvement was driven by growth in Life and Health insurance premiums and improved net investment income. The top line missed the Zacks Consensus Estimate by 0.4%

Excess investment income, a measure of profitability, increased 2.2% year over year to $36.7 million. Total insurance underwriting income increased 5% year over year to $352.4 million. The increase can be attributed to higher Health underwriting income. Administrative expenses were up 7.7% year over year to $94.3 million.

Total benefits and expenses increased 5.3% year over year to $1.2 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes, and non-deferred acquisition costs, and other operating expense.

Segmental Results of GLPremium revenues at Life increased 3% year over year to $853.2 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income and Liberty National rose 5% and 4%, respectively. Net sales of $157.4 million increased 6% year over year. Underwriting margins increased 3% to $349.1 million.

Health insurance premium revenues rose 13% year over year to $416.9 million, primarily driven by higher premiums from United American, Family Heritage and Direct to Consumer. Net health sales increased 58% to $106.2 million. Underwriting margins increased 12% to $94.5 million.

Globe Life’s Financial UpdateShareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of March 31, 2026, increased 5.3% year over year to $7.8 billion.
As of March 31, 2026, Globe Life reported book value per share, excluding AOCI, of $98.56, up 12.1% year over year. Operating return on equity, excluding AOCI, was 14% in the reported quarter, which contracted 10 basis points year over year.

GL’s Share RepurchaseGlobe Life repurchased 1.4 million shares worth $203 million in the reported quarter.

2026 ViewGlobe Life raised its full-year 2026 net operating income to the range of $15.40-$15.90 per diluted share.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresAt this time, Globe Life has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Globe Life has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways American Income, Liberty National and Family Heritage boost continued growth in life and health sales in GL. Net investment income is supported by higher invested assets and improved rates on new investments. Strong liquidity and capital levels support share buybacks, dividends and long-term growth initiatives. Shares of Globe Life Inc. (GL - Free Report) hit a 52-week high of $160.74 on Tuesday. Shares closed at $159.33 after gaining 32.7% over the past year, outperforming the industry, sector, and the Zacks S&P 500 composite over the same period.

GL has outperformed its peers, Aflac Incorporated (AFL - Free Report) and Unum Group (UNM - Free Report) , which have risen 13.1% and 11.7%, respectively, in the past year, while AMERISAFE, Inc. (AMSF - Free Report) has lost 31.1%.

Image Source: Zacks Investment Research

With a capitalization of $12.37 billion, the average number of shares traded in the last three months was 0.5 million.

GL Trading Above 50-Day and 200-Day Moving AveragesShares of Globe Life are trading above the 50-day and 200-day simple moving averages (SMAs) at $150.92 and $141.94, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.

Image Source: Zacks Investment Research

GL Shares are AffordableGlobe Life shares are trading at a discount compared to the industry. Its forward price-to-earnings multiple of 9.91X is lower than the industry average of 12.97X, the Finance sector’s 15.79X, and the Zacks S&P 500 Composite’s 21.5X. Also, it has a Value Score of A.

Image Source: Zacks Investment Research

GL’s Growth Projection EncouragesThe Zacks Consensus Estimate for Globe Life’s 2026 earnings per share indicates a year-over-year increase of 7.5%. The consensus estimate for revenues is pegged at $6.40 billion, implying a year-over-year improvement of 6.2%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 6.6% and 6.5%, respectively, from the corresponding 2026 estimates.

Target Price Reflects Potential UpsideBased on short-term price targets offered by 13 analysts, the Zacks average price target is $175.77 per share. The average indicates a potential 11.8% upside from the last closing price.

Image Source: Zacks Investment Research

GL’s Return on CapitalGL’s trailing 12-month return on equity is 20.9%, ahead of the industry average of 13.8%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders’ equity.

Also, the return on invested capital (ROIC) in the trailing 12 months was 12.5%, better than the industry average of 6.6%. Its ROIC has been increasing over the last few quarters amid capital investment made over the same time frame. This reflects the company’s efficiency in utilizing funds to generate income.

Key Points to Note for Globe LifeGlobe Life has been witnessing a positive trend in revenues, driven by premium growth in its Life Insurance and Health Insurance segments and net investment income.

The strong performance of the American Income and Liberty National divisions should drive the top line in the future. Liberty National is likely to continue to benefit from improved productivity and agent count. GL’s expansion initiatives to capture heavily populated and less penetrated areas should drive growth in the future.

Globe Life expects net life sales of mid-single-digit growth at American Income, low double-digit growth at Liberty National, and low single-digit growth at direct-to-consumer in 2026. The company expects Net health sales of mid-single-digit growth for Liberty National and low double-digit growth for Family Heritage in 2026. For United American, the company is currently projecting high-teens growth for 2026.

Moreover, net investment income continues to be another important driver of the company’s top-line growth and has been exhibiting improvement over the last few years. The metric is likely to keep growing, riding on improved invested assets and higher interest rates on new investments.

The company has maintained a strong liquidity position with sufficient cash-generation capabilities. Its operations comprise writing basic protection life and supplemental health insurance policies, which generate strong and stable cash flows. For 2026, Globe Life has targeted a consolidated Company Action Level RBC ratio of 300% to 320%.

A strong capital position enables Globe Life to enhance its shareholder value via share buybacks and dividend payouts. The insurer has continuously been increasing its dividend over the past eight years (2017-2024), witnessing a CAGR of 7%.

ConclusionGlobe Life’s higher life and health sales, improved invested assets, increased productivity and agent count, strong liquidity position and effective capital deployment make it an attractive stock.

Coupled with the impressive dividend history, solid growth projections, and higher return on equity, as well as the affordability of shares, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With fiscal 2026 third-quarter (ended May 10) net sales of $69.2 billion, Costco Wholesale (COST +0.67%) is the world's third-biggest retailer. It's a favorite among shoppers, who appreciate extremely low prices on high-quality merchandise. The business benefits from a robust competitive position.

And the retail stock has delivered for investors. If you'd bought $10,000 worth of Costco shares 10 years ago, here's how much you'd have today.

Image source: The Motley Fool.

Over the last decade, Costco stock has produced a total return of 661% (as of June 1). A $10,000 starting capital allocation would be worth $76,110 today. It's hard to have any complaints when you see this type of performance in your portfolio.

The S&P 500 index, by comparison, generated a total return of 328% during the same time.

Today's Change

(

0.67

%) $

6.58

Current Price

$

982.27

Costco's success playbook is straightforward. The company continues to open new warehouses in the U.S. and internationally. It also keeps growing its membership base while occasionally raising annual prices. This has resulted in consistent revenue and profit gains, regardless of the macroeconomic backdrop.

Because it trades at an expensive valuation, however, investors should think long and hard about buying this retail stock right now. The current price-to-earnings ratio of 48.9 is almost double the S&P 500 index's multiple. This isn't a good entry point.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

ISSAQUAH, Wash., June 03, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $24.01 billion for the retail month of May, the four weeks ended May 31, 2026, an increase of 14.5 percent from $20.97 billion last year.

Net sales for the first 39 weeks were $221.19 billion, an increase of 10.0 percent from $201.02 billion last year.

Comparable sales for the periods ended May 31, 2026, were as follows:

 4 Weeks 39 WeeksU.S.13.7% 7.6%Canada9.2% 9.2%Other International9.7% 10.9%    Total Company12.5% 8.3%Digitally-Enabled

21.1% 21.6%     Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

 4 Weeks 39 WeeksU.S.8.7% 6.6%Canada5.3% 7.5%Other International6.9% 6.6%    Total Company8.0% 6.7%Digitally-Enabled

20.9% 21.1%     Additional discussion of these results is available in a pre-recorded message. It can be accessed by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Wednesday, June 10, 2026.

Costco currently operates 931 warehouses, including 639 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland, and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia, and China.

Certain statements contained in this document and the pre-recorded message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs and global conflicts), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:Costco Wholesale Corporation Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305 Bryan Starnes, 425/427-7403   COST-Sales

Costco Wholesale Corporation (COST) Period Ending/ Trading Statement Call Prepared Remarks Transcript

Costco Wholesale (COST +0.67%) just reported an outstanding earnings report with its highest quarterly growth in years. Walmart (WMT +0.44%) reported phenomenal results as well just two weeks ago, and since these two companies are the largest physical supermarket companies in the U.S., that says a lot about the resilience of the U.S. consumer right now.

However, despite the brilliant results, both Costco and Walmart fell after earnings. Is this a warning for investors?

Image source: Getty Images.

Shoppers keep shopping Costco's revenue increased 11.6% year over year in the 2026 fiscal third quarter (ended May 10), its highest rate since 2022. Comparable sales (comps) were up 9.8%, and earnings per share were $4.28, up from $4.93 the year before. The last five weeks of the quarter were the company's highest-volume five-week period ever.

Although higher fuel costs have been negatively impacting many companies, Costco is using the volatility to its advantage, providing lower-cost gas and attracting members who don't usually fill up at its stations. Members who fuel up at Costco also tend to spend more overall.

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As usual, there was strong growth across metrics, with membership fee income up 10.7% and executive membership up 9.6%.

Walmart's performance tells a similar story. In the 2027 fiscal first quarter (ended April 30), sales were up 7.3% over last year, with a 4.1% increase in U.S. comps. Earnings per share (EPS) were up from $0.61 to $0.66. Global membership fee revenue was up 17.4%, and the company continues to leverage its 10,000+ global store base to fulfill orders quickly, a key advantage over other supermarkets.

All of its businesses are performing well, including the high-margin advertising business, which was up 37% year over year.

But that might end soon Despite fabulous results, both Costco and Walmart stock fell after the releases.

WMT data by YCharts

Costco stock had already been falling after Walmart's report, as seen in the chart above. The macro picture is worrisome, as Walmart CFO John Rainey noted: "We see with our customers that the high-income customer is spending with confidence in many categories, while the lower-income consumer is more budget-conscious and perhaps navigating financial distress."

That's a warning about the continued resilience of the U.S. consumer. As inflation remains relentless and fuel prices increase, the economy, which has been strong, might start feeling the pinch.

But there's more to the story.

Warning to Wall Street? Despite worries about the economy, the market continues to zoom higher. The S&P 500 keeps hitting new highs, and it's up nearly 11% year to date as of this writing. As it climbs, it's becoming more expensive. The cyclically adjusted P/E, or CAPE ratio, is nearly 40, its second-highest level in more than a century of tracking. The previous high of 44 was reached right before the dot-com bubble burst in 2000, ushering in three consecutive years of S&P 500 losses.

How does that play into what's happening at Costco and Walmart? Both stocks have become quite expensive; Costco trades at 49 times trailing-12-month earnings, while Walmart trades at 41 times trailing-12-month earnings. Those are premium valuations, which means that neither company can afford any missteps.

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In other words, at these prices, any negativity, even only in sentiment, can send the stock down. And that goes for the entire market. Warren Buffett is famous for noting that he gets fearful when the market is greedy. Bull markets don't have to imply greed, but unreasonable valuations do. Today, even safe dividend stocks like Walmart and Costco are trading at valuations well above multi-year averages.

In this situation, investors should make sure that they're well diversified with anchor stocks that can protect their funds in the case of a downturn, and be choosy about new stock purchases.

Costco (COST +0.67%) stock is experiencing a rare dip.

*Stock prices used were the afternoon prices of June 2, 2026. The video was published on June 4, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Costco Wholesale shares are trending higher. Why is COST stock trading higher? What Triggered Friday’s Market MeltdownThe turbulence was sparked by a hotter-than-expected May jobs report showing 172,000 added nonfarm payrolls, which crushed expectations and reignited fears of aggressive monetary tightening.

As odds of a quarter-point rate hike surged, Treasury yields spiked, with the 10-year rising to 4.54%. This macroeconomic pressure sent the tech-heavy Nasdaq-100 plunging 4.4%, marking its worst daily decline since October 2025, while the broader S&P 500 retreated 2.5%.

The Power Of Costco's Membership-Based RevenueAs one of the heaviest weights in the consumer staples sector, Costco directly absorbed Friday’s defensive bid, and for good reason. The company’s membership-based model generates a near-guaranteed, recurring revenue stream that is largely insulated from economic cycles. Renewal rates consistently hover above 90%, providing the kind of earnings visibility that investors crave in uncertain macro environments.

Costco’s business model also benefits from the “trade-down” effect during periods of consumer stress. As households tighten budgets in response to higher borrowing costs, the warehouse club format, offering bulk goods at discounted prices, becomes increasingly attractive. That dynamic positions Costco as one of the rare retailers that can actually gain market share when the economic outlook darkens.

COST Shares Trade Flat Friday AfternoonCOST Price Action: Costco Wholesale shares were up 0.59% at $978.08 at the time of publication on Friday, according to Benzinga Pro data.

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Key Takeaways COST posted 21.5% digitally enabled comp growth in Q3 FY26, far above total comps of 9.8%.Costco rolled out digital card access, mobile wallet upgrades, app cake ordering and cart pre-scan.Costco said rec carousels drove 3x conversion and nearly $500M e-commerce sales; AI search traffic surged. Costco Wholesale Corporation’s (COST - Free Report) third-quarter fiscal 2026 results suggest that its digital business is evolving from a supporting channel into a meaningful growth engine. The company reported digitally enabled comparable sales growth of 21.5%, significantly outpacing total comparable sales growth of 9.8%. Adjusted digitally enabled comparable sales rose 20.8%, while site and app traffic jumped 37%, highlighting strong engagement across its digital ecosystem.

The momentum is being driven by more than just online transactions. Management pointed to a series of technology investments that are improving the member experience across both digital and warehouse channels. Enhancements such as digital membership card access, mobile wallet improvements, expanded cake ordering through the Costco app and the international rollout of its shopping cart pre-scan tool are helping simplify shopping and checkout processes.

Costco is also seeing tangible benefits from personalization efforts. In the quarter, personalized product recommendation carousels generated conversion rates three times higher than normal levels and contributed nearly $500 million in e-commerce sales. This indicates that the retailer is becoming more effective at connecting members with relevant products while driving higher digital engagement.

Another emerging opportunity is artificial intelligence. Costco noted triple-digit growth in traffic generated through AI-powered search platforms, with this traffic delivering the highest conversion rates among all sources. While still small today, management views AI-driven discovery as a potentially significant channel for attracting shoppers and highlighting Costco’s value proposition.

How Costco Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) continues to strengthen its digital ecosystem through faster fulfillment, marketplace expansion and AI-powered shopping tools. In the first quarter of fiscal 2027, Walmart reported a 26% increase in global e-commerce sales, driven by store-fulfilled delivery, marketplace growth and advertising services. Marketplace sales in the United States surged 50%, while Walmart highlighted rising engagement with its AI shopping assistant, Sparky and growing membership revenues from Walmart+.

Target Corporation (TGT - Free Report) is also investing in its omnichannel capabilities. In the first quarter of fiscal 2026, Target reported growth across both stores and digital channels, supported by higher traffic and technology investments. Target is enhancing digital merchandising, improving product discoverability and leveraging its stores-as-hubs model, which fulfills more than 95% of sales through stores. As Target accelerates technology initiatives and digital integration, it is aiming to deliver a more seamless shopping experience for guests.

What the Latest Metrics Say About CostcoCostco has seen its shares tumble 3.3% in the past three months compared with the industry’s decline of 1.5%. 

Image Source: Zacks Investment Research

From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 44.22, higher than the industry’s ratio of 31.29. However, it is trading below its 12-month median level of 46.71, indicating some moderation in valuation despite sustained investor confidence in the stock.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.3% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.7% rise in sales and 10.2% growth in earnings.

The consensus estimate for earnings per share for the current and next fiscal year has increased by 6 cents and 7 cents to $20.38 and $22.45, respectively, in the past 30 days.

Image Source: Zacks Investment Research

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