CNO Raises 2026 Operating EPS Guidance, With Midpoint Up 9%
Key Facts
CNO Financial Group raised its 2026 operating earnings per share outlook, saying the new midpoint is 9% above its previous guidance, according to its third-quarter results release. The update came as the company reported operating income of $179 million, or $1.90 per diluted share, for the three months ended in September. Operating EPS rose 47% from the same period, the release said. Chief Executive Gary Bhojwani said the company delivered an "excellent quarter," citing operating EPS growth and continued sales growth. The combination of higher guidance and the quarterly result puts improved operating performance at the center of the announcement, while operating income should be read alongside the actuarial impact the company reported.
The company reported net income of $161 million, or $1.71 per diluted share, in the third quarter, compared with operating income of $179 million and $1.90 per share. The figures reflect different measures of the quarterly result, both of which the company disclosed in its release. It also said its comprehensive annual actuarial review had a positive net impact of $44.9 million on both net income and operating income. That means the review helped bolster both measures during the quarter, according to CNO's disclosure. The release did not provide further details in the available facts on how that impact was distributed among the review's components.
Bhojwani said operating EPS rose 47% during the quarter and sales recorded their 17th consecutive quarter of growth. The sales growth streak offers additional context for the higher full-year outlook, as the CEO described growth continuing through 17 quarters, including the third-quarter results. In his remarks, Bhojwani linked the quarter he called excellent with growth in operating earnings and sales, without attributing it to a broader description of the company's business model. The announced update was thus based on a strong quarterly result and continued sales growth, according to the company. The published quote did not comment on market expectations or the stock's performance.
On market estimates, an earlier Investing.com report said analysts expected earnings of $1.10 per share and revenue of $1.01 billion for the quarter ended in September. Before the results announcement, those estimates were below the earnings per share of $1.26 and revenue of $1.28 billion reported in the second quarter. The previous quarter's figures provide a baseline for the quarterly estimates cited in the report, while CNO's official disclosures later showed operating income of $1.90 per diluted share. The available evidence does not provide a figure for actual third-quarter revenue, so the comparison here is between the earlier estimates and the reported second-quarter results. The available facts also do not measure the stock's movement after the results were published.
On Oct. 1, CNO completed its third reinsurance transaction with a wholly owned subsidiary in Bermuda. The transaction covered the reinsurance of about $270 million in statutory reserves for in-force graded benefit life insurance policies at Colonial Penn. The disclosure describes the amount as reserves covered by the arrangement, not the value of the transaction itself. It also identifies it as the third such arrangement with the Bermuda subsidiary. The transaction was included in the company background provided with the quarterly results, without the release attributing to it a goal related to improving the capital structure or setting long-term financial targets.
CNO scheduled a conference call to discuss its results for Oct. 30, 2026, at 11:00 a.m. Eastern time, according to its release. The call gives the company an opportunity to present and discuss the results after their publication, while the available facts provide no further details about the agenda or speakers. The announcement of the call coincided with the third-quarter results and updated annual guidance. The information disclosed here is limited to the specified date and time of the call. The available evidence did not include details on the market reaction after the conference.