White Mountains Insurance Group (WTM) opened 2026 with Q1 revenue of US$517.8 million and a basic EPS loss of US$12.59. This compares with basic EPS of US$13.22 on revenue of US$577.8 million in Q1 2025. Trailing twelve month revenue is US$3.7 billion and basic EPS is US$423.13. Over recent quarters, revenue has ranged from US$358 million in Q4 2024 to US$1.6 billion in Q4 2025. Basic EPS has moved from a loss of US$50.16 in Q4 2024 to US$322.14 in Q4 2025. This context frames a Q1 2026 print where margins and earnings quality are front of mind for investors.

See our full analysis for White Mountains Insurance Group.

With the latest results on the table, the next step is to see how these revenue and EPS swings line up against the most common narratives investors follow around White Mountains Insurance Group and its profitability profile.

Net margin at 28% on trailing US$3.7b revenue

• Over the last twelve months, White Mountains generated US$3.7b of revenue and US$1.0b of net income, which works out to a 28% net margin compared with 1.2% in the prior year period.
• What stands out for a more bullish take is that very large earnings growth of 3,669.2% over the last year and 25.3% annualized over five years sits alongside this 28% margin. However, Q1 2026 itself showed a net loss of US$27.2 million, which means any bullish view needs to weigh the strong trailing figures against the more volatile recent quarter.
  • Supporters of a bullish angle can point to the trailing US$1.0b net income as evidence that profitability has been strong over a full year, not just a single quarter.
  • At the same time, the swing from US$822.8 million of net income in Q4 2025 to a loss in Q1 2026 shows that headline growth rates are built on numbers that can move sharply from quarter to quarter.

Curious how these big margin and earnings swings fit into the broader story investors are telling about the company right now? 📊 Read the what the Community is saying about White Mountains Insurance Group.

Twelve month EPS of US$423.13 versus Q1 loss

• On a trailing basis, basic EPS is US$423.13, while Q1 2026 shows a basic EPS loss of US$12.59, following very high EPS of US$322.14 in Q4 2025 and losses of US$50.16 in Q4 2024.
• What is striking for a more cautious or bearish angle is that the data labels past earnings as high quality and shows very large growth. Yet the step from a US$322.14 EPS print in Q4 2025 to a loss in Q1 2026 underlines how individual periods can differ sharply even when the twelve month trend looks very strong.
  • Critics may focus on this pattern of swings, pointing to the move from an US$822.8 million net profit in Q4 2025 to a US$27.2 million loss in Q1 2026 as a reminder that reported earnings are not smooth.
  • Supporters, on the other hand, may argue that very large year on year EPS growth and five year growth of 25.3% are anchored in that US$1.0b trailing net income figure, which is still intact despite the recent quarterly loss.

Low 4.9x P/E versus DCF fair value gap

• The stock trades on a 4.9x P/E, below peers at 8.9x, the US insurance industry at 11.5x, and the broader US market at 19.3x. The current share price of US$2,080 sits above the stated DCF fair value of US$1,433.66.
• What is interesting for valuation focused investors is that the low P/E can support a value leaning narrative based on earnings, yet the DCF fair value gap points the other way. Anyone leaning bullish on the low multiple has to reconcile that with a model that prices fair value about US$646 below the current share price.
  • Supporters of the low P/E angle may highlight that very large trailing earnings growth and a 28% net margin are not fully reflected if the stock trades at roughly half the market multiple.
  • Others may pay closer attention to the DCF fair value figure, and see the current price to DCF gap as a sign that strong trailing results are already well recognized in the share price when viewed through that cash flow lens.

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 White Mountains Insurance Group'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.

Does this mix of strong trailing figures and a recent quarterly loss leave you on the fence? Take a closer look at the underlying data and move quickly to shape your own view by starting with the 2 key rewards.

See What Else Is Out There

Quarterly swings from US$822.8 million profit to a US$27.2 million loss and a DCF fair value below the current price highlight volatility and valuation tension.

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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.