A month has gone by since the last earnings report for Globe Life (GL Quick QuoteGL - Free Report) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Globe Life due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Globe Life Q4 Earnings Miss Estimates on Higher Expenses

Globe Life Inc.’s fourth-quarter 2025 net operating income of $3.39 per share missed the Zacks Consensus Estimate by 1.4%. The bottom line improved 8% year over year, primarily driven by higher insurance underwriting income.

Behind the Headlines

Globe Life reported total premium revenues of $1.2 billion, up 5% year over year. This upside was primarily driven by higher premiums from Life and Health insurance. Net investment income remains relatively flat year over year to $281.4 million.

The company reported operating revenues of $1.5 billion, up 4% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums, and higher other income. The top line missed the Zacks Consensus Estimate by 0.7%. Excess investment income, a measure of profitability, decreased 20% year over year to $30.8 million.

Total insurance underwriting income increased 6% year over year to $359.7 million. The increase was due to higher Life and Health underwriting income.
Administrative expenses were up 0.9% year over year to $92.2 million. Total benefits and expenses increased 3.1% year over year to $1.2 billion, primarily due to higher policyholder benefits, amortization of deferred acquisition costs and commissions, premium taxes, and non-deferred acquisition costs.

Segmental Results

Premium revenues at Life increased 3% year over year to $849.6 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income and Liberty National rose 6% and 4%, respectively. Net sales of $161.1 million increased 11% year over year. Underwriting margins increased 4% year over year to $350.4 million.

Health insurance premium revenues rose 9% year over year to $392.3 million, primarily driven by higher premiums from United American, Family Heritage, American Income and Direct to Consumer. Net health sales increased 71% year over year to $125.7 million. Underwriting margins increased 9% year over year to $98.9 million.

Financial Update

Shareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of Dec 31, 2025, increased 5.6% year over year to $7.75 billion.
As of Dec 31, 2025, Globe Life reported book value per share, excluding AOCI, of $96.16, up 11.2% year over year. Operating return on equity, excluding AOCI, was 16% for the twelve months ended Dec 31, 2025, which expanded 90 basis points year over year.

Share Repurchase

Globe Life repurchased shares worth $170 million in the reported quarter.

2026 View

GL estimates net operating income between $14.95 and $15.65 for the year ending Dec. 31, 2026, up from the previous guidance. 

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, Globe Life has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Globe Life has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.