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ACTBullishEarningsShort Term

High materiality8/10

Enact Reports Second Quarter 2026 Results; Announces $0.24 Quarterly Dividend

StockNews.AIAug 5, 4:20 PM EDT1 source

Trading thesisImportance 8/10

Bullish: earnings strength and higher capital returns may push ACT higher over the next 4–8 weeks.

AI summary

What happened and why it matters

Enact Holdings reported strong Q2 2026 results with GAAP net income of $175M and adjusted operating income of $177M, yielding ROE of 13.0% and adjusted ROE of 13.2%. New insurance written reached $15B, up 19% QoQ, while PMIERs sufficiency stood at 161%. The company lifted its 2026 capital return guidance to $550–$600M and continued share repurchases, signaling durable earnings and favorable capital deployment that could drive near-term upside in ACT.

Capital return guidance raised to $550-600M for 2026.
Q2 buybacks ~2.2M shares; $93M spent; remaining authorization ~$345M.
PMIERs sufficiency at 161% ($1.9B) above requirements.
NIW growth to $15B; QoQ rise supports revenue trajectory.

Sentiment rationale

The quarter beat, ROE stability, and notably higher capital-return guidance plus ongoing buybacks provide a clear fundamental driver for multiple expansion and a near-term price uptick.

Key facts

01
Q2 2026 GAAP net income $175M; diluted EPS $1.25.
02
Adjusted operating income $177M; adjusted EPS $1.26; ROE 13.0%.
03
NIW $15B; up 19% QoQ; PMIERs sufficiency 161%.
04
Capital return guidance raised to $550M-$600M; buybacks ongoing.
05
Shares repurchased: ~2.2M in Q2 ($93M); EMICO dividend $150M.

Earnings

Earnings. The release combines quarterly results with capital deployment actions, fitting a process-focused earnings category for a mortgage insurer and signaling balance-sheet strength through PMIERs and buybacks.