Zacks Research has decreased its third-quarter 2026 earnings estimate for Axis Capital, citing weaker-than-expected results and a more cautious outlook for the Bermuda-based insurer’s future profits, despite sustained analyst optimism.
Zacks Research has lowered its third-quarter 2026 earnings forecast for Axis Capital Holdings, cutting its estimate to $2.87 a share from $3.38, a reduction that comes after the insurer posted a weaker-than-expected result for the previous quarter. The revised note, issued on Tuesday, also trimmed several later-period projections, signalling a more cautious view of the Bermuda-based speciality insurer’s earnings trajectory.
The latest downgrade follows Axis Capital’s second-quarter report on July 29, when the company said earnings came in at $2.84 a share, below analysts’ expectations of $3.25, even as revenue reached $1.75 billion and topped forecasts. The group reported a return on equity of 17% and net margin of 16.23%, and revenue rose 7.4% from a year earlier, but the earnings miss appears to have prompted fresh scrutiny of near-term profitability.
Zacks also reduced its full-year 2026 estimate to $12.58 a share from $13.54 and cut several quarterly forecasts for 2027 and 2028. The firm now sees fiscal 2027 earnings of $13.64 a share and fiscal 2028 earnings of $14.62, both below its previous figures. By contrast, in June Zacks had raised its third-quarter 2026 estimate to $3.38, while earlier in the spring it had lifted its full-year 2026 forecast, underscoring how quickly expectations have shifted.
Despite the lower estimates, broader analyst sentiment remains constructive. MarketBeat says Axis Capital still carries a consensus rating of Moderate Buy, with a mean price target of $120.50. On Thursday, the stock was trading at $100.07, near the lower end of its 12-month range of $88.07 to $119.99. The company, which operates across insurance and reinsurance lines, also continues to attract heavy institutional ownership, with hedge funds and other large investors holding more than 93% of the shares.
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