Revenue volatility masks underlying performance, as quarterly top-line growth has swung from a 57.9% surge to an 8.8% decline, while the loss ratio has ranged dramatically from 40.1% to 85.8% within six quarters, indicating inconsistent underwriting profitability.
Aflac Incorporated (AFL) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 18.09B | 17.44B | 19.13B | 18.84B | 19.15B | 21.55B | 22.26B | 22.24B | 21.71B | 21.6B | 22.49B | 20.81B | 22.61B | 23.83B | 25.27B | 22.09B | 20.66B | 18.25B | 16.55B | 15.39B | 14.62B | 14.36B | 13.28B | 11.45B | 10.26B | 9.6B | 9.7B | 8.64B | 7.1B | 7.25B | 7.1B |
| Revenue Growth % | 11.62% | -8.84% | 1.52% | -1.62% | -11.12% | -3.21% | 0.09% | 2.46% | 0.5% | -3.95% | 8.06% | -7.94% | -5.12% | -5.72% | 14.4% | 6.93% | 13.17% | 10.27% | 7.54% | 5.32% | 1.76% | 8.15% | 16.02% | 11.6% | 6.87% | -1.08% | 12.3% | 21.62% | -2.03% | 2.13% | -1.26% |
| Medical Costs & Claims | 8.34B | 10.65B | 12.31B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Medical Cost Ratio % | 46.09% | 61.07% | 64.37% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Gross Profit | 9.75B | 6.79B | 6.82B | 18.84B | 19.15B | 21.55B | 22.26B | 22.24B | 21.71B | 21.6B | 22.49B | 20.81B | 22.61B | 23.83B | 25.27B | 22.09B | 20.66B | 18.25B | 16.55B | 15.39B | 14.62B | 14.36B | 13.28B | 11.45B | 10.26B | 9.6B | 9.7B | 8.64B | 7.1B | 7.25B | 7.1B |
| Gross Margin % | 53.91% | 38.93% | 35.63% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -0.4% | -63.83% | -1.62% | -11.12% | -3.21% | 0.09% | 2.46% | 0.5% | -3.95% | 8.06% | -7.94% | -5.12% | -5.72% | 14.4% | 6.93% | 13.17% | 10.27% | 7.54% | 5.32% | 1.76% | 8.15% | 16.02% | 11.6% | 6.87% | -1.08% | 12.3% | 21.62% | -2.03% | 2.13% | -1.26% |
| Operating Expenses | 3.94B | 2.15B | 398M | 13.58B | 14.28B | 16.34B | 18.1B | 17.8B | 17.73B | 17.58B | 18.42B | 16.95B | 18.11B | 19.01B | 20.97B | 19.14B | 17.1B | 16.02B | 14.64B | 12.89B | 12.35B | 12.14B | 11.51B | 10.25B | 9B | 8.52B | 8.69B | 7.86B | 6.55B | 7.25B | 7.1B |
| OpEx / Revenue % | 21.76% | 12.31% | 2.08% | 72.07% | 74.58% | 75.83% | 81.32% | 80.01% | 81.65% | 81.4% | 81.92% | 81.44% | 80.13% | 79.79% | 82.98% | 86.65% | 82.76% | 87.76% | 88.44% | 83.77% | 84.51% | 84.5% | 86.65% | 89.53% | 87.73% | 88.74% | 89.57% | 91% | 92.24% | 100% | 100% |
| Depreciation & Amortization | 905M | 874M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 43M | 45M | 48M |
| Combined Ratio % | 67.84% | 73.39% | 66.45% | 72.07% | 74.58% | 75.83% | 81.32% | 80.01% | 81.65% | 81.4% | 81.92% | 81.44% | 80.13% | 79.79% | 82.98% | 86.65% | 82.76% | 87.76% | 88.44% | 83.77% | 84.51% | 84.5% | 86.65% | 89.53% | 87.73% | 88.74% | 89.57% | 91% | 92.24% | 100% | 100% |
| Operating Income | 5.82B | 4.64B | 6.42B | 5.26B | 4.87B | 5.21B | 4.16B | 4.45B | 3.98B | 4.02B | 4.07B | 3.86B | 4.49B | 4.82B | 4.3B | 2.95B | 3.56B | 2.23B | 1.91B | 2.5B | 2.26B | 2.23B | 1.77B | 1.2B | 1.26B | 1.08B | 1.01B | 778M | 551M | 0 | 0 |
| Operating Margin % | 32.16% | 26.61% | 33.55% | 27.93% | 25.42% | 24.17% | 18.68% | 19.99% | 18.35% | 18.6% | 18.08% | 18.56% | 19.87% | 20.21% | 17.02% | 13.35% | 17.24% | 12.24% | 11.56% | 16.23% | 15.49% | 15.5% | 13.35% | 10.47% | 12.27% | 11.26% | 10.43% | 9% | 7.76% | 0% | 0% |
| Operating Income Growth % | - | -27.68% | 21.95% | 8.07% | -6.51% | 25.22% | -6.43% | 11.6% | -0.87% | -1.2% | 5.31% | -14.01% | -6.75% | 11.95% | 45.83% | -17.16% | 59.33% | 16.77% | -23.41% | 10.38% | 1.71% | 25.55% | 48% | -4.85% | 16.47% | 6.82% | 30.08% | 41.2% | - | - | - |
| EBITDA | 6.84B | 5.51B | 6.42B | 5.26B | 4.87B | 5.21B | 4.16B | 4.45B | 3.98B | 4.02B | 4.07B | 3.86B | 4.49B | 4.82B | 4.3B | 2.95B | 3.56B | 2.23B | 1.99B | 2.5B | 2.26B | 2.23B | 1.77B | 1.2B | 1.26B | 1.08B | 1.01B | 778M | 594M | 45M | 48M |
| EBITDA Margin % | 37.84% | 31.63% | 33.55% | 27.93% | 25.42% | 24.17% | 18.68% | 19.99% | 18.35% | 18.6% | 18.08% | 18.56% | 19.87% | 20.21% | 17.02% | 13.35% | 17.24% | 12.24% | 12.01% | 16.23% | 15.49% | 15.5% | 13.35% | 10.47% | 12.27% | 11.26% | 10.43% | 9% | 8.36% | 0.62% | 0.68% |
| Interest Expense | 242M | 220M | 197M | 195M | 226M | 238M | 242M | 228M | 222M | 240M | 268M | 289M | 317M | 293M | 261M | 196M | 149M | 72M | 29M | 27M | 19M | 23M | 23M | 22M | 20M | 19M | 19M | 18M | 13M | 14M | 16M |
| Non-Operating Income | -181M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 5.79B | 4.53B | 6.42B | 5.26B | 4.87B | 5.21B | 4.16B | 4.45B | 3.98B | 4.02B | 4.07B | 3.86B | 4.49B | 4.82B | 4.3B | 2.95B | 3.56B | 2.23B | 1.91B | 2.5B | 2.26B | 2.23B | 1.77B | 1.2B | 1.26B | 1.08B | 1.01B | 778M | 551M | 0 | 0 |
| Pretax Margin % | 31.99% | 25.99% | 33.55% | 27.93% | 25.42% | 24.17% | 18.68% | 19.99% | 18.35% | 18.6% | 18.08% | 18.56% | 19.87% | 20.21% | 17.02% | 13.35% | 17.24% | 12.24% | 11.56% | 16.23% | 15.49% | 15.5% | 13.35% | 10.47% | 12.27% | 11.26% | 10.43% | 9% | 7.76% | 0% | 0% |
| Income Tax | 924M | 887M | 974M | 603M | 451M | 977M | -619M | 1.14B | 1.06B | -586M | 1.41B | 1.33B | 1.54B | 1.66B | 1.44B | 1.01B | 1.23B | 738M | 660M | 865M | 781M | 743M | 507M | 430M | 438M | 394M | 325M | 207M | 64M | 280M | 256M |
| Effective Tax Rate % | 15.97% | 19.57% | 15.18% | 11.46% | 9.26% | 18.76% | -14.88% | 25.67% | 26.69% | -14.58% | 34.62% | 34.41% | 34.29% | 34.43% | 33.38% | 34.34% | 34.63% | 33.02% | 34.48% | 34.61% | 34.5% | 33.38% | 28.6% | 35.89% | 34.79% | 36.45% | 32.11% | 26.61% | 11.62% | - | - |
| Net Income | 4.86B | 3.65B | 5.44B | 4.66B | 4.42B | 4.23B | 4.78B | 3.3B | 2.92B | 4.6B | 2.66B | 2.53B | 2.95B | 3.16B | 2.87B | 1.94B | 2.33B | 1.5B | 1.25B | 1.63B | 1.48B | 1.48B | 1.27B | 768M | 821M | 687M | 687M | 571M | 487M | 585M | 394M |
| Net Margin % | 26.88% | 20.91% | 28.46% | 24.73% | 23.07% | 19.64% | 21.46% | 14.86% | 13.45% | 21.31% | 11.82% | 12.17% | 13.05% | 13.25% | 11.34% | 8.77% | 11.27% | 8.2% | 7.58% | 10.62% | 10.15% | 10.33% | 9.53% | 6.71% | 8% | 7.16% | 7.08% | 6.61% | 6.86% | 8.07% | 5.55% |
| Net Income Growth % | 99.51% | -33.01% | 16.83% | 5.46% | 4.42% | -11.45% | 44.61% | 13.15% | -36.58% | 73.15% | 4.97% | -14.16% | -6.55% | 10.19% | 47.96% | -16.8% | 55.51% | 19.38% | -23.26% | 10.18% | 0% | 17.14% | 64.84% | -6.46% | 19.51% | 0% | 20.32% | 17.25% | -16.75% | 48.48% | 12.86% |
| EPS (Diluted) | 9.62 | 6.83 | 9.63 | 7.78 | 6.93 | 6.39 | 6.67 | 4.43 | 3.77 | 5.48 | 3.21 | 2.93 | 3.25 | 3.38 | 3.06 | 2.06 | 2.46 | 1.60 | 1.31 | 1.66 | 1.48 | 1.46 | 1.23 | 0.74 | 0.78 | 0.64 | 0.63 | 0.52 | 0.44 | 0.52 | 0.34 |
| EPS Growth % | 110.29% | -29.08% | 23.78% | 12.27% | 8.45% | -4.2% | 50.56% | 17.51% | -31.2% | 70.72% | 9.56% | -9.85% | -3.85% | 10.46% | 48.54% | -16.26% | 53.75% | 22.14% | -21.08% | 12.16% | 1.37% | 18.7% | 66.22% | -5.13% | 21.88% | 1.59% | 21.15% | 18.18% | -15.38% | 52.94% | 13.33% |
| EPS (Basic) | - | 6.86 | 9.68 | 7.81 | 6.96 | 6.42 | 6.69 | 4.45 | 3.79 | 5.52 | 3.23 | 2.94 | 3.27 | 3.40 | 3.07 | 2.08 | 2.48 | 1.61 | 1.33 | 1.68 | 1.50 | 1.48 | 1.25 | 0.75 | 0.80 | 0.66 | 0.65 | 0.54 | 0.46 | 0.54 | 0.36 |
| Diluted Shares Outstanding | 505.58M | 532.01M | 565.01M | 598.75M | 637.65M | 676.73M | 716.19M | 746.43M | 774.65M | 797.86M | 827.84M | 866.34M | 908M | 934.82M | 938.57M | 938.74M | 946.17M | 938.13M | 957.63M | 987.94M | 1B | 1.02B | 1.03B | 1.04B | 1.06B | 1.07B | 1.09B | 1.1B | 1.1B | 1.13B | 1.16B |
Quick answers to the most common questions about buying AFL stock.
For fiscal year 2025, Aflac Incorporated (AFL) reported total revenue of $17.44B. This represents a 145.6% increase compared to $7.10B in 1996.
Aflac Incorporated (AFL) is profitable, generating $3.65B in net income for the fiscal year ending 2025 with a net profit margin of 20.9%.
Aflac Incorporated (AFL) reported an operating income of $4.64B, resulting in an operating profit margin of 26.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Aflac Incorporated (AFL) generated $6.79B in gross profit for the year, representing a gross profit margin of 38.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Foreign currency translation volatility
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Momentum
Aflac's revenue trajectory shows severe quarterly volatility, swinging from a 57.9% surge in 2025Q3 to an 8.8% year-over-year decline in the most recent period, a pattern that appears driven more by foreign currency translation than by changes in underlying policy in-force.
The inconsistent revenue growth pattern, alternating between large positive and negative prints, is highly unusual for a supplemental insurance business built on recurring premiums and suggests that currency effects are the dominant driver of reported top-line movement. Investors should monitor constant-currency growth to separate the operational signal from the foreign exchange noise, as the recent revenue decline may not reflect a loss of policyholders but rather a weaker Yen translating into fewer U.S. dollars.
Loss Ratio Spike Signals Underwriting Stress
The most alarming trend in Aflac's income statement is the dramatic deterioration in underwriting profitability, with the loss ratio spiking to 85.8% in 2025Q1 and the combined ratio reaching 97.0% in 2024Q3, indicating periods where the core insurance business was operating at or near a loss.
While the combined ratio has recently recovered to 75.6%, the historical volatility is a significant red flag for a life insurer, as it implies unpredictable claims experience or reserve adjustments rather than the steady predictability typical of supplemental health products. The persistent gaps between the loss ratio and the combined ratio indicate that the expense ratio remains relatively stable, focusing the underwriting volatility squarely on the claims side, which warrants scrutiny regarding benefit ratio assumptions and claims reserving adequacy.
Persistent Earnings Quality Concerns
The strongest analytical challenge to Aflac's reported earnings stems from the extreme volatility in net income, which ranged from a $93 million loss in 2024Q3 to $1.9 billion in profit just one quarter earlier, a pattern that undermines confidence in the sustainability of any single period's earnings power.
This level of quarterly earnings inconsistency, coupled with the significant EPS miss of 7.4% in the most recent period against analyst estimates, suggests that non-operational items, likely including foreign currency impacts and possibly reserve releases or charges, are masking the true trajectory of the underlying business. The lack of formal guidance following the miss adds to the uncertainty, making it difficult for investors to discern whether the core insurance franchise is stable or experiencing structural headwinds that are being obscured by accounting volatility.
Prior-Year Releases May Inflate Current Results
The extreme swings in the loss ratio and operating income, such as the collapse from an 84.2% loss ratio to 54.0% between 2024Q3 and 2024Q4, strongly suggest that prior-period reserve releases have been a material contributor to recent reported profitability.
For a long-duration life insurer, such rapid improvement in the loss ratio is unlikely to stem solely from current-period claims experience and may indicate favorable development on older policy years that is artificially boosting current earnings. Investors should be cautious in extrapolating the recent favorable combined ratio trends, as they could reflect one-time reserve adjustments rather than a sustainable improvement in the underlying risk profile of the in-force block.
2024Q3 to 2024Q4: A Earnings Reversal
The single most critical inflection point in the dataset is the dramatic reversal between 2024Q3, when Aflac reported a net loss of $93 million, and the immediate recovery to $1.9 billion in net income in 2024Q4, a swing that appears disconnected from the modest sequential revenue change.
This extreme earnings volatility within a single quarter pair points to significant non-recurring items, potentially large foreign currency translation adjustments or reserve actions, rather than a fundamental operational turnaround. The episode highlights the inherent difficulty in forecasting Aflac's quarterly earnings and suggests that reported net income may be a poor proxy for the quarter-to-quarter cash generation of its insurance operations.