Should MetLife's (MET) Earnings Miss and Shifting Regional Mix Prompt Investor Reassessment?

• MetLife, Inc. recently reported its second-quarter 2025 results, posting revenue of US$17.34 billion and net income of US$729 million, both down compared to the same period last year and missing analyst estimates.
• A key insight was that growth in Latin America and EMEA partially offset weaker performance in Asia and core business segments, but could not fully counteract lower underwriting and investment returns.
• Let's examine how the earnings shortfall and business mix challenges may influence MetLife's investment narrative and outlook for future growth.

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MetLife Investment Narrative Recap

To remain confident in MetLife as a shareholder, you need to believe in the company’s ability to deliver steady earnings growth through diversification, disciplined capital management, and a focus on attractive international markets. While the recent second-quarter results missed expectations and highlighted operational pressure in Asia and core segments, these headwinds do not fundamentally alter the importance of successful execution in Group Benefits or the most significant risk: ongoing volatility in underwriting and investment returns.

Among recent announcements, MetLife’s completion of a US$211.1 million share buyback, finalized after this mixed earnings report, underscores the company’s focus on returning capital to shareholders regardless of quarterly results. While this confirms the company’s active approach to shareholder returns, it does not directly address the operational challenges that affected short-term performance.

In contrast, investors should be aware of ongoing uncertainty in underwriting and investment margins, especially since ...

Read the full narrative on MetLife (it's free!)

MetLife's outlook anticipates $82.6 billion in revenue and $6.2 billion in earnings by 2028. This is based on a projected 4.0% annual revenue growth rate, with earnings increasing by $1.9 billion from the current $4.3 billion.

Uncover how MetLife's forecasts yield a $94.14 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value opinions for MetLife range from US$77.46 to US$145.67 based on 3 analyses. Some focus on international growth potential, while others highlight risks to earnings from margin pressure, reminding you that beliefs about the company's future can vary widely.

Explore 3 other fair value estimates on MetLife - why the stock might be worth as much as 91% more than the current price!

Build Your Own MetLife Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MetLife research is our analysis highlighting 6 key rewards and 2 important warning signs that could impact your investment decision.
• Our free MetLife research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MetLife's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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