AIG · Q2 FY2026
AMERICAN INTERNATIONAL GROUP, INC. Q2 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $7.085B | $7.090B (yr ago) | Miss |
| EPS | $1.78 | $1.98 (yr ago) | Miss |
| Free Cash Flow | N/M for an insurer (table: $1.72B) | N/M (yr ago; table: $1.39B) | Miss |
| Gross Margin | N/M for an insurer | N/M (yr ago) | Miss |
| Operating Margin | 17.8% pre-tax margin | 21.8% pre-tax margin (yr ago) | Miss |
What changed
Revenue was effectively flat year over year at $7.085B, while EPS declined 10.1% to $1.78 and pre-tax margin contracted 4.0 percentage points to 17.8%. Results improved sequentially from Q1 FY2026, when revenue was $6.65B, EPS was $1.41 and pre-tax margin was 14.8%, but the year-over-year comparison remained weaker.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise, so this update establishes an initial base value of $76.58 per share. The quarter does not support a premium to the current earnings run rate because the sequential margin recovery was offset by lower year-over-year EPS and profitability.