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Lincoln National Q3 Earnings Beat Estimates, Stock Up 2%
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Key Takeaways
LNC's Q3 adjusted EPS of $2.04 topped estimates but dipped 1% year over year.
Net investment income surged 9%, while total expenses fell 16.3% in the quarter.
Group Protection income jumped 36.7%, and annuity deposits climbed 32.1% year over year.
Shares of Lincoln National Corporation (LNC - Free Report) have risen 2% since it reported third-quarter 2025 results on Oct. 30. The quarterly earnings were supported by strong annuity deposits and solid Group Protection and Life Insurance performance. Higher net investment income, stable mortality results and a decline in total expenses also contributed to the upside. Nevertheless, the positives were partly offset by a decline in the insurance premiums of Annuities.
Lincoln National reported adjusted earnings per share (EPS) of $2.04, which surpassed the Zacks Consensus Estimate by 10.9%. However, the bottom line fell 1% year over year.
Adjusted operating revenues grew 3.8% year over year to $4.8 billion. However, the top line missed the consensus mark by 0.5%.
Lincoln National Corporation Price, Consensus and EPS Surprise
LNC’s estimated RBC ratio rose to more than 420% at the third-quarter end.
Insurance premiums advanced 1.4% year over year to $1.6 billion, falling short of the Zacks Consensus Estimate by 2.1%.
Fee income was $1.4 billion, which improved 2.4% year over year but missed the consensus mark by 2.2%. Net investment income advanced 9% year over year to $1.5 billion, which beat the consensus mark by 6.2%.
Meanwhile, other revenues of $206 million rose 28.8% year over year in the quarter under review.
Total expenses declined 16.3% year over year to $4 billion. Interest credited rose 8.4% year over year to $954 million.
Lincoln National incurred a net income of $445 million against the prior-year quarter’s net loss of $528 million.
Lincoln National’s Segmental Performances
The Annuities and Life Insurance segments form part of LNC’s Retail Solutions business, while Group Protection and Retirement Plan Services units make up the Workplace Solutions business.
The Annuities segment’s operating income totaled $310 million in the third quarter, which grew 3% year over year and surpassed the Zacks Consensus Estimate of $302.5 million, backed by increased spread income and a favorable equity market. The unit's operating revenues rose 6.3% year over year to $1.3 billion, driven by 12.4% growth in net investment income, partly offset by a 34.2% decline in insurance premiums. Total annuity deposits were $4.5 billion, which climbed 32.1% year over year.
The Life Insurance unit recorded an operating income of $25 million, improved from the prior-year quarter’s $22 million and beat the consensus mark by 0.4%. The metric benefited from stable mortality, higher alternative investment income and reduced net G&A expenses. Operating revenues grew 1.3% year over year to $1.6 billion. Total Life Insurance sales of $298 million advanced 144.3% year over year. Total deposits grew 78.1% year over year to $2.2 billion.
The Group Protection segment’s operating income climbed 36.7% year over year to $149 million and beat the Zacks Consensus Estimate of $120.6 million. The unit was supported by a persistent, favorable life experience. Operating revenues totaled $1.5 billion in the quarter under review, which improved 5.2% year over year. The metric was driven by a 5% rise in insurance premiums. Sales of $116 million rose 38.1% year over year.
The Retirement Plan Services segment recorded an operating income of $46 million, which rose 5% year over year and beat the consensus mark of $37.5 million. The metric benefited from the expansion of spreads and favorable equity markets. Operating revenues increased 2.4% year over year to $343 million. Total deposits were $5 billion, which advanced 19.8% year over year.
Other Operations incurred an operating loss of $99 million, wider than the year-ago quarter’s loss of $84 million and the Zacks Consensus Estimate of $97.3 million.
Lincoln National’s Financial Update (As of Sept. 30, 2025)
Lincoln National exited the third quarter with cash and invested cash of $10.7 billion, which rose from the 2024-end level of $5.8 billion. Total assets of $415.3 billion rose from the figure at the 2024-end of $390.8 billion.
Long-term debt amounted to $5.8 billion, down from the figure of $5.9 billion as of Dec. 31, 2024.
Total stockholders’ equity of $10.5 billion rose from the 2024-end level of $8.3 billion.
Book value per share, excluding accumulated other comprehensive income, was $69.66, which fell from the 2024-end level of $72.06. Adjusted income from operations ROE improved 80 basis points year over year to 11.3%.
LNC’s Dividend Update
Lincoln National paid out quarterly dividends of $85 million.
LNC’s 2026 Outlook
In 2026, the Annuities, Life Insurance, Group Protection and Retirement Plan Services units were projected to account for 55-65%, 10-15%, 20-30% and 5-15%, respectively, of the company’s total operating income earnings. The four units were likely to make up for 45-55%, 10-15%, 25-35% and 5-15%, respectively, of consolidated operating income over the long term.
Management targeted to achieve an RBC ratio of more than 420% in both 2026 and the long term.
The Zacks Consensus Estimate for T. Rowe Price’s current-year earnings of $9.75 per share has witnessed five upward revisions in the past seven days against none in the opposite direction. T. Rowe Price beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 4%. The consensus estimate for current-year revenues is pegged at $7.2 billion, implying 2.1% year-over-year growth.
The Zacks Consensus Estimate for Federated Hermes’ current-year earnings of $4.84 per share has witnessed three upward revisions in the past seven days against no movement in the opposite direction. Federated Hermes beat earnings estimates in each of the trailing four quarters, with the average surprise being 15.9%. The consensus estimate for current-year revenues is pegged at $1.8 billion, calling for 8.1% year-over-year growth.
The Zacks Consensus Estimate for Affiliated Managers Group’s current-year earnings is pegged at $25.13 per share, implying 17.7% year-over-year growth. In the past seven days, Affiliated Managers Group has witnessed four upward estimate revisions against one in the opposite direction. The consensus mark for the current-year revenues is pegged at $2.1 billion, calling for 1.6% year-over-year growth.
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Lincoln National Q3 Earnings Beat Estimates, Stock Up 2%
Key Takeaways
Shares of Lincoln National Corporation (LNC - Free Report) have risen 2% since it reported third-quarter 2025 results on Oct. 30. The quarterly earnings were supported by strong annuity deposits and solid Group Protection and Life Insurance performance. Higher net investment income, stable mortality results and a decline in total expenses also contributed to the upside. Nevertheless, the positives were partly offset by a decline in the insurance premiums of Annuities.
Lincoln National reported adjusted earnings per share (EPS) of $2.04, which surpassed the Zacks Consensus Estimate by 10.9%. However, the bottom line fell 1% year over year.
Adjusted operating revenues grew 3.8% year over year to $4.8 billion. However, the top line missed the consensus mark by 0.5%.
Lincoln National Corporation Price, Consensus and EPS Surprise
Lincoln National Corporation price-consensus-eps-surprise-chart | Lincoln National Corporation Quote
Key Takeaways From LNC’s Q3 Results
LNC’s estimated RBC ratio rose to more than 420% at the third-quarter end.
Insurance premiums advanced 1.4% year over year to $1.6 billion, falling short of the Zacks Consensus Estimate by 2.1%.
Fee income was $1.4 billion, which improved 2.4% year over year but missed the consensus mark by 2.2%. Net investment income advanced 9% year over year to $1.5 billion, which beat the consensus mark by 6.2%.
Meanwhile, other revenues of $206 million rose 28.8% year over year in the quarter under review.
Total expenses declined 16.3% year over year to $4 billion. Interest credited rose 8.4% year over year to $954 million.
Lincoln National incurred a net income of $445 million against the prior-year quarter’s net loss of $528 million.
Lincoln National’s Segmental Performances
The Annuities and Life Insurance segments form part of LNC’s Retail Solutions business, while Group Protection and Retirement Plan Services units make up the Workplace Solutions business.
The Annuities segment’s operating income totaled $310 million in the third quarter, which grew 3% year over year and surpassed the Zacks Consensus Estimate of $302.5 million, backed by increased spread income and a favorable equity market. The unit's operating revenues rose 6.3% year over year to $1.3 billion, driven by 12.4% growth in net investment income, partly offset by a 34.2% decline in insurance premiums. Total annuity deposits were $4.5 billion, which climbed 32.1% year over year.
The Life Insurance unit recorded an operating income of $25 million, improved from the prior-year quarter’s $22 million and beat the consensus mark by 0.4%. The metric benefited from stable mortality, higher alternative investment income and reduced net G&A expenses. Operating revenues grew 1.3% year over year to $1.6 billion. Total Life Insurance sales of $298 million advanced 144.3% year over year. Total deposits grew 78.1% year over year to $2.2 billion.
The Group Protection segment’s operating income climbed 36.7% year over year to $149 million and beat the Zacks Consensus Estimate of $120.6 million. The unit was supported by a persistent, favorable life experience. Operating revenues totaled $1.5 billion in the quarter under review, which improved 5.2% year over year. The metric was driven by a 5% rise in insurance premiums. Sales of $116 million rose 38.1% year over year.
The Retirement Plan Services segment recorded an operating income of $46 million, which rose 5% year over year and beat the consensus mark of $37.5 million. The metric benefited from the expansion of spreads and favorable equity markets. Operating revenues increased 2.4% year over year to $343 million. Total deposits were $5 billion, which advanced 19.8% year over year.
Other Operations incurred an operating loss of $99 million, wider than the year-ago quarter’s loss of $84 million and the Zacks Consensus Estimate of $97.3 million.
Lincoln National’s Financial Update (As of Sept. 30, 2025)
Lincoln National exited the third quarter with cash and invested cash of $10.7 billion, which rose from the 2024-end level of $5.8 billion. Total assets of $415.3 billion rose from the figure at the 2024-end of $390.8 billion.
Long-term debt amounted to $5.8 billion, down from the figure of $5.9 billion as of Dec. 31, 2024.
Total stockholders’ equity of $10.5 billion rose from the 2024-end level of $8.3 billion.
Book value per share, excluding accumulated other comprehensive income, was $69.66, which fell from the 2024-end level of $72.06. Adjusted income from operations ROE improved 80 basis points year over year to 11.3%.
LNC’s Dividend Update
Lincoln National paid out quarterly dividends of $85 million.
LNC’s 2026 Outlook
In 2026, the Annuities, Life Insurance, Group Protection and Retirement Plan Services units were projected to account for 55-65%, 10-15%, 20-30% and 5-15%, respectively, of the company’s total operating income earnings. The four units were likely to make up for 45-55%, 10-15%, 25-35% and 5-15%, respectively, of consolidated operating income over the long term.
Management targeted to achieve an RBC ratio of more than 420% in both 2026 and the long term.
LNC’s Zacks Rank & Other Key Picks
LNC currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Finance space are T. Rowe Price Group, Inc. (TROW - Free Report) , Federated Hermes, Inc. (FHI - Free Report) and Affiliated Managers Group, Inc. (AMG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for T. Rowe Price’s current-year earnings of $9.75 per share has witnessed five upward revisions in the past seven days against none in the opposite direction. T. Rowe Price beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 4%. The consensus estimate for current-year revenues is pegged at $7.2 billion, implying 2.1% year-over-year growth.
The Zacks Consensus Estimate for Federated Hermes’ current-year earnings of $4.84 per share has witnessed three upward revisions in the past seven days against no movement in the opposite direction. Federated Hermes beat earnings estimates in each of the trailing four quarters, with the average surprise being 15.9%. The consensus estimate for current-year revenues is pegged at $1.8 billion, calling for 8.1% year-over-year growth.
The Zacks Consensus Estimate for Affiliated Managers Group’s current-year earnings is pegged at $25.13 per share, implying 17.7% year-over-year growth. In the past seven days, Affiliated Managers Group has witnessed four upward estimate revisions against one in the opposite direction. The consensus mark for the current-year revenues is pegged at $2.1 billion, calling for 1.6% year-over-year growth.