MET · Q2 FY2026
METLIFE INC Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $19.15B | $17.34B (yr ago) | Beat |
| EPS | $1.09 | $1.03 (yr ago) | Beat |
| Free Cash Flow | Not meaningful for an insurer | Not meaningful | Miss |
| Gross Margin | Not meaningful for an insurer | Not meaningful | Miss |
| Operating Margin | 8.4% pre-tax margin | 8.0% (yr ago) | Beat |
What changed
Revenue increased 10.5% year over year to $19.15 billion, while GAAP EPS rose 5.8% to $1.09. The more important operating change was adjusted EPS growth of 20.3% to $2.43, supported by favorable underwriting, broad volume growth and a lower diluted share count, while the supplied pre-tax margin improved 40 basis points to 8.4%.
Impact on the investment thesis
The initial post-quarter fair value is $101 per share, based on 1.75 times adjusted book value of $57.71. The strong operating quarter supports that multiple, but fair value remains close to the $96.78 market price because GAAP earnings were still constrained by investment and derivative losses.