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MetLife reported Q2 FY2026 revenue of $19.2 billion, up 10.5% from $17.3 billion in Q2 FY2025. The consensus counted $19.1 billion of revenue for the quarter, compared with a $19.3 billion consensus estimate, while MetLife’s reported revenue measure was $19.2 billion. Adjusted EPS, as the consensus counts it, was $2.43 against a $2.30 consensus estimate, compared with diluted EPS of $1.09, up from $1.03 a year earlier.
The filing says adjusted premiums, fees and other revenues increased $805 million, or 6%, as every segment contributed. It attributes the increase to higher U.K. funded reinsurance, U.K. longevity reinsurance and structured-settlements premiums in RIS; life-product premiums in Korea; voluntary-product growth in Group Benefits; and the PineBridge acquisition in MIM. Gross margin was 25.6%, versus 24.8% a year earlier, while operating margin was 5.40%, versus 5.65%. MetLife reported free cash flow of $2.2 billion, compared with $2.2 billion a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $19.2 billion | $17.3 billion | 10.5% |
| Diluted EPS | $1.09 | $1.03 | 5.83% |
| Gross margin | 25.6% | 24.8% | 0.7 percentage points |
| Operating margin | 5.40% | 5.65% | −0.2 percentage points |
| Free cash flow | $2.2 billion | $2.2 billion | 1.87% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.43 | $2.30 | Beat by 5.65% |
| Revenue | $19.1 billion | $19.3 billion | Missed by 1.38% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On the Q2 call, Ramy, head of Group Benefits, said mortality results included about two points of favorability from prior-period development and lower-than-expected claim severity. He said MetLife expects those factors to normalize and said July results provided early evidence of moderation for the rest of 2026. In response to questions about pricing and mortality trends, Ramy said the mortality improvements for the older, retiree-heavy RIS population were in line with the assumptions embedded in MetLife’s expectations and reserves.
Ramy said RIS underwriting results were performing in line with MetLife’s pricing and reserving expectations. He also said MetLife expected RIS retained-balance growth of 3% to 5% for the full year. For Group Benefits, Ramy said the 4% to 7% growth range should be viewed as a multi-year measure, and he said dental seasonality pointed to more favorable non-medical health-ratio results in the second half than in the first half.
John, the chief financial officer, told analysts that MetLife expects a modest decline over time in its private-equity allocation in a relatively higher-rate environment. He said MetLife would continue investing in private equity, but expected distributions from its seasoned and diversified portfolio to outpace contributions.
MetLife’s filing said adjusted earnings available to common shareholders increased $211 million in the quarter, primarily reflecting favorable underwriting and other insurance adjustments, higher market factors and volume growth, partly offset by higher expenses. The filing attributed favorable underwriting in part to Group Benefits mortality results, while it said recurring investment income benefited from pension risk transfer and funding-agreement flows, real-estate income and higher fixed-income yields. It also said higher interest-crediting expenses partly offset those investment-income gains.
Guidance
Management’s formal guidance is not available for this quarter. On the Q2 call, Ramy said MetLife expected RIS retained-balance growth of 3% to 5% for the full year, and said Group Benefits growth should remain within a 4% to 7% multi-year range.