Q1 2026 results reset the earnings baseline

Loews (L) opened 2026 with Q1 revenue of US$4.6b and basic EPS of US$1.63, alongside net income of US$337m and a reported combined ratio of 102.2%. Over the past year, the company has seen revenue move from US$4.5b in Q1 2025 to US$4.6b in Q1 2026, while trailing twelve month EPS sits at US$7.88 on net income of US$1.63b. With trailing net profit margin at 8.8% and the latest quarter showing a combined ratio above 100%, the update gives investors a nuanced read on how underwriting pressure and overall profitability are balancing out.

See our full analysis for Loews.

With the headline figures on the table, the next step is to see how these results line up with the dominant narratives around Loews and where the story the numbers tell might conflict with widely held views.

102.2% combined ratio puts focus on underwriting

• The combined ratio of 102.2% in Q1 2026 compares with 98.4% in Q1 2025 and 92.8% in Q3 2025, so underwriting ran above the 100% breakeven level even as trailing net profit margin over the last year was 8.8% versus 7.5% a year earlier.
• What stands out for a bullish view is that underwriting pressure in this quarter sits alongside 23.1% trailing earnings growth and five year earnings growth of 8.8% per year. This suggests investors need to weigh the recent combined ratio figures against the longer run pattern of profitability and margin expansion.
  • The trailing 12 month net income of US$1.6b on US$18.5b of revenue gives that 8.8% margin, while quarterly net income has moved between US$337 million and US$504 million over the last four reported quarters.
  • Bulls who focus on the longer period earnings growth may see the 102.2% combined ratio as a single data point, but the previous trailing combined ratio of 94.7% for Q4 2025 shows that underwriting results have not been consistently above 100%.

Curious how numbers like the 102.2% combined ratio and 23.1% earnings growth shape the story around Loews, not just this quarter but over the past year, and how other investors are interpreting that mix of underwriting pressure and margin expansion, 📊 Read the what the Community is saying about Loews.

EPS and net income show recent step up

• On a trailing basis, basic EPS is US$7.88 and net income is US$1.6b, compared with basic EPS of US$6.09 and net income of US$1.3b in the trailing period ending Q1 2025, while quarterly EPS over the last year ranged from US$1.63 to US$2.43 with net income between US$337 million and US$504 million.
• What is interesting for a bullish angle built around earnings quality is that this higher trailing EPS sits on top of five year earnings growth of 8.8% per year and last year’s 23.1% earnings growth. Yet the latest single quarter EPS of US$1.63 is at the lower end of the recent range, which means anyone leaning on the bullish growth story needs to keep both the stronger trailing 12 month figures and the more modest Q1 outcome in view at the same time.
  • The move in trailing revenue from US$17.8b to US$18.5b over the past year sits alongside that EPS expansion, indicating that recent earnings strength has occurred over a revenue base that has edged higher in absolute terms.
  • Critics of a purely bullish take can point out that Q1 2026 net income of US$337 million is below the US$391 million and US$504 million seen in Q2 and Q3 2025, so the latest quarter does not by itself reinforce the strongest part of the growth narrative.

P/E of 13.4x versus peers and DCF fair value

• The P/E ratio of 13.4x sits above the US Insurance industry average of 11.3x but below the peer average of 14.5x, while the current share price of US$106.19 is about 5% below the DCF fair value of US$111.80 that was provided.
• For investors weighing a bullish case that the stock is reasonably priced for its earnings track record, the combination of 23.1% trailing earnings growth, an 8.8% net margin and a P/E that is higher than the broader industry but lower than peers, plus a share price sitting a little under the indicated DCF fair value, creates an interesting tension between paying a premium to the sector and seeing scope for upside if the peer comparison and margin profile stay supportive.
  • The trailing revenue base of US$18.5b and net income of US$1.6b provide the earnings foundation that the 13.4x P/E and the DCF fair value of US$111.80 are built on, so investors can compare these valuation signals directly to the underlying scale of the business.
  • The lack of substantial insider selling in the last three months sits alongside these valuation and profitability figures, which some bullish investors may view as consistent with a long term commitment to the current capital and earnings profile.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Loews's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this mix of pressure points and positives feels balanced rather than one sided, do not wait to check the full picture yourself and weigh both: 2 key rewards and 1 important warning sign

See What Else Is Out There

Loews shows pressure points around the 102.2% combined ratio and a Q1 2026 EPS and net income outcome that sit at the low end of recent quarters.

If that mix of underwriting strain and softer recent earnings makes you want steadier prospects, check out the 72 resilient stocks with low risk scores to quickly spot companies with more resilient profiles.

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.