JXN earnings analysis
What we found in JXN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Jackson reported a substantial year-over-year GAAP earnings recovery, with Q2 revenue of $168 million versus negative $471 million and diluted EPS of $9.16 versus $2.34. Underlying operating results were stronger, led by Retail Annuities, higher RILA and fixed-index sales, and $287 million of quarterly free cash flow. Offsetting factors include worsening variable-annuity outflows, a loss in the closed block, and ongoing market-sensitive derivative and guarantee accounting volatility.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- GAAP earnings rebounded sharply
- GAAP revenue was $168 million, improving from a negative $471 million in Q2 2025, while GAAP diluted EPS was $9.16 versus $2.34 a year earlier and $(6.24) in Q1 2026. The revenue line remains heavily affected by derivative and market-risk-benefit accounting.
- Retail annuity operating earnings accelerated
- Retail Annuities pretax adjusted operating earnings rose $204 million year over year to $621 million. The increase reflected $155 million more spread income and an $81 million increase in fee income, partly offset by $16 million higher commissions and general expenses net of deferrals.
- RILA and FIA sales drove growth
- Total retail annuity sales increased 34% to $5.890 billion from $4.380 billion, led by RILA sales of $2.344 billion versus $1.385 billion and fixed-index annuity sales of $654 million versus $39 million.
- Cash generation supported capital returns
- Free cash flow was $287 million in Q2, nearly flat with $290 million a year ago; first-half free cash flow increased to $575 million from $503 million. The company returned $547 million to common holders in the first half, including $419 million of repurchases and $128 million of dividends.
- Liquidity and credit capacity improved
- Liquidity expanded: consolidated cash, cash equivalents and restricted cash rose to $5.986 billion at June 30 from $5.704 billion at year-end. Jackson also replaced its $1.0 billion revolver with a $1.25 billion facility maturing in June 2031.
- Other operating units improved
- Institutional Products pretax adjusted operating earnings rose to $29 million from $19 million, while Corporate and Other’s pretax adjusted operating loss narrowed to $22 million from $52 million.
- No risk-factor updates disclosed
- The filing states there were no material changes to risk factors from the 2025 Annual Report.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Variable-annuity outflows worsened
- Total net flows were negative $2.797 billion in Q2 2026 versus negative $2.511 billion a year earlier. Retail annuity net flows were negative $2.070 billion, as variable-annuity net outflows of $4.939 billion outweighed RILA net inflows of $2.142 billion.
- Closed-block earnings turned negative
- Closed Life and Annuity Blocks moved to a $10 million pretax adjusted operating loss from $22 million of earnings. Net investment income declined $41 million, primarily from lower limited-partnership income.
- Credit reserves and unrealized losses increased
- Mortgage-loan allowance for credit losses increased to $176 million at June 30, 2026 from $133 million at December 31, 2025, including a $53 million first-half provision. Net unrealized losses on available-for-sale debt securities also widened to $3.583 billion from $3.159 billion.
- Debt refinancing and interest burden remain
- JFI issued $750 million of 6.150% senior notes due 2037 during Q2, and $650 million of nearer-term obligations are identified for potential repayment: $400 million of JFI notes due June 2027 and $250 million of Jackson surplus notes due March 2027.
- Capital outlook depends on market assumptions
- The company’s stated capital-generation expectation of at least $1.2 billion assumes a 5% equity-market total return and rates following the December 31, 2025 forward curve. Equity or rate volatility can increase hedging costs and create GAAP earnings volatility.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $9.16
- Segment
- Retail Annuities operating revenue: $1.553 billion vs. $1.290 billion in Q2 2025; pretax adjusted operating earnings: $621 million vs. $417 million.
- Segment
- Institutional Products operating revenue: $140 million vs. $125 million; pretax adjusted operating earnings: $29 million vs. $19 million.
- Segment
- Closed Life and Annuity Blocks operating revenue: $269 million vs. $314 million; pretax adjusted operating earnings: $(10) million vs. $22 million.
- Segment
- Corporate and Other operating revenue: $43 million vs. $22 million; pretax adjusted operating loss: $(22) million vs. $(52) million.
What they said about what is next.
No revenue or EPS outlook was provided in the 10-Q. Management maintained its 2026 common-shareholder capital-return target of $900 million to $1.1 billion and expects 2026 free capital generation of at least $1.2 billion, assuming a 5% equity-market total return and interest rates follow the December 31, 2025 forward curve.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- In its Q1 2026 10-Q, Jackson Financial (JXN) reported revenues of $2.60 billion, beating estimates of $1.94 billion, and an EPS of $5.15, trailing the consensus of $5.90. Segment performance was mixed, with Retail…
- 10-K · February 24, 2026
- Jackson Financial reports record sales and growing AUM in 2025 with Total Sales of $23,211 million (up from $19,849 million in 2024) and AUM of $351,059 million (up from $324,718 million). Adjusted operating earnings…
- 10-Q · November 4, 2025
- Jackson Financial reported Q3 2025 revenues of $1,416 million, down from $2,121 million in Q3 2024, while delivering net income attributable to common shareholders of $65 million and diluted EPS of $0.92 (vs. a $(6.37)…
- 10-Q · May 7, 2025
- Jackson Financial reported total revenues of $3,750 million for Q1 2025, a large year-over-year improvement from $(322) million in Q1 2024 driven by net gains on derivatives and investments and higher investment income,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing JXN makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever