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Corebridge reported adjusted earnings per share of $1.12 for Q2 FY2026, above the consensus estimate of $1.08. Revenue as counted by the consensus was $4.3 billion, below the $4.5 billion estimate.
Corebridge’s reported revenue was $3.9 billion, up from $2.7 billion a year earlier. Diluted EPS was −$0.04, compared with −$1.20 a year earlier. The company’s filing attributed the move to pre-tax income partly to lower realized losses, including lower losses on fixed-maturity securities sales.
Interim CFO Chris Filiaggi said growth in base spread and fee income supported adjusted operating earnings, while variable investment income held results back. He said individual retirement sales declined year over year, while life insurance sales increased. Institutional markets earnings grew as reserves and assets increased, he added.
Corebridge’s operating margin was 4.68%, compared with −17.3% a year earlier. Free cash flow was −$44.0 million, compared with −$259.0 million in Q2 FY2025.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $3.9 billion | $2.7 billion | 43.6% |
| Diluted EPS | −$0.04 | −$1.20 | — |
| Gross margin | 31.3% | 9.46% | 21.8 percentage points |
| Operating margin | 4.68% | −17.3% | 22.0 percentage points |
| Free cash flow | −$44.0 million | −$259.0 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.12 | $1.08 | Beat by 3.70% |
| Revenue | $4.3 billion | $4.5 billion | Missed by 4.67% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Marc Costantini said competition had tightened in simpler individual retirement products, prompting Corebridge to maintain pricing discipline and direct more capital toward institutional markets. Conditions improved as yields rose later in the quarter, he said. Asked about the shift, Costantini said retail sales momentum continued into July and that he expected a rebound in Q3.
Interim CFO Chris Filiaggi said individual retirement sales declined both year over year and sequentially, but net flows remained positive. He said the company prioritized “margin integrity over volume” and shifted capital toward areas offering better risk-adjusted returns. In group retirement, Filiaggi said Corebridge continued to move from spread-based products toward fee-based business; fee income grew, while lower spread income and higher expenses reduced operating income.
Analysts also pressed Filiaggi on spread compression. He reiterated the company’s guidance and said older business would continue to roll off, with compression expected to bottom out at the end of 2026. Costantini said he expected pension risk transfer activity to be weighted toward the second half, citing the pipeline and market activity.
On investments, Filiaggi said alternative investments underperformed amid declines in software and market volatility. Chief Investment Officer Lisa Longino said private equity fund marks drove the underperformance and that a backlog of exits limited gains that could offset some marks. She added that Corebridge had repositioned assets to increase yield while maintaining credit quality.
Costantini said shareholders had approved the merger and that Corebridge still expected it to close by year-end. He said federal antitrust review and the broker-dealer change-of-control approval were complete, while state and international regulatory filings had been submitted.
Guidance
Chris Filiaggi said Corebridge expected variable investment income returns to remain below target for the remainder of the year, as the company did not foresee the investment environment materially changing in the short term.