Wells Fargo Raises Aflac (AFL) Target, Revises Earnings Outlook and Valuation Approach

Aflac Incorporated (NYSE:AFL) is included among the 14 Best Affordable Dividend Stocks to Buy According to Analysts.

On February 25, Wells Fargo analyst Elyse Greenspan raised the firm’s price recommendation on Aflac Incorporated (NYSE:AFL) to $118 from $109. Itreiterated an Equal Weight rating on the shares. The firm said that after reviewing fourth-quarter guidance across the sector, it is lowering EPS estimates for many companies, as outlooks mostly came in at or below consensus expectations. Wells Fargo is also updating its valuation approach. The firm is now shifting its models to reflect 2027 EPS and introducing new 2028 EPS estimates as part of its longer-term outlook.

During the Q4 2025 earnings call, Chairman and CEO Daniel Amos highlighted the company’s financial strength. He said net earnings reached $2.64 per diluted share in the fourth quarter, while adjusted earnings came in at $1.57 per diluted share. He pointed to strong momentum in Aflac Japan. Sales increased 15.7% in the fourth quarter and rose 16% for the full year. Amos explained that much of this growth came from Miraito, the company’s cancer insurance product launched in March, which saw sales jump 35.6%. He also said early demand for the new medical product, Anshin Palette, launched in late December, had been encouraging.

Amos added that Aflac U.S. generated nearly $1.6 billion in new sales in 2025. More than one-third of those sales came in the fourth quarter alone. He said premium persistency stood at 79.2%, showing that customers are continuing to renew their policies. He emphasized that the company remains focused on profitable growth, careful underwriting, and disciplined expense management. He also said the board approved a 5.2% dividend increase for the first quarter of 2026. In 2025, Aflac returned significant capital to shareholders, including $3.5 billion spent to repurchase 33 million shares and $1.2 billion paid in dividends.

Aflac Incorporated (NYSE:AFL) provides supplemental health and life insurance through its operations in the United States and Japan, offering financial protection to policyholders and customers.

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