MetLife (NYSE:MET) Reports Sales Below Analyst Estimates In Q1 CY2026 Earnings

Global insurance giant MetLife (NYSE:MET) fell short of the market’s revenue expectations in Q1 CY2026 as sales only rose 1.3% year on year to $19.07 billion. Its non-GAAP profit of $2.42 per share was 6.6% above analysts’ consensus estimates.

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Company Overview

Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE:MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.

Revenue Growth

Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Over the last five years, MetLife grew its revenue at a sluggish 3.2% compounded annual growth rate. This fell short of our benchmark for the insurance sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. MetLife’s annualized revenue growth of 4.4% over the last two years is above its five-year trend, which is encouraging. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, MetLife’s revenue grew by 1.3% year on year to $19.07 billion, falling short of Wall Street’s estimates.

Net premiums earned made up 69.1% of the company’s total revenue during the last five years, meaning insurance operations are MetLife’s largest source of revenue.

Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)

BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

MetLife’s BVPS declined at a 12.7% annual clip over the last five years. On a two-year basis, BVPS fell at a slower pace, dropping by 2.5% annually from $39.87 to $37.92 per share.

Over the next 12 months, Consensus estimates call for MetLife’s BVPS to grow by 70.3% to $58.37, elite growth rate.

Key Takeaways from MetLife’s Q1 Results

We were impressed by how significantly MetLife blew past analysts’ net premiums earned expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its book value per share missed and its revenue fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $80.22 immediately after reporting.

Big picture, is MetLife a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).