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Lincoln National (LNC)
NYSE:LNC
Earnings Data
Report Date
May 07, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.69Last Year’s EPS
1.6Same Quarter Last Year
Moderate Buy
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated substantial progress: multi-quarter and multi-year earnings growth, record annuity account balances, strong alternative investment returns, improved capital ratios and liquidity, and a meaningful improvement in free cash flow conversion. Management also highlighted several strategic shifts (more spread-based annuity mix, Bermuda affiliate expansion, captive consolidation) that strengthen durability of earnings. Near-term headwinds include ongoing variable annuity outflows, Retirement Plan Services outflows, higher G&A/variable compensation in Q4, and technical reporting changes that will shift ~$50 million of NII out of annuities operating income in 2026. Overall, the positive operational and capital progress materially outweighs the manageable near-term and reporting-related challenges.Company Guidance
Adjusted Operating Income Growth
Fourth quarter adjusted operating income increased 31% year-over-year; Q4 adjusted operating income available to common stockholders was $434 million ($2.21 per diluted share). Full year 2025 adjusted income from operations available to common shareholders was over $1.5 billion, a 23% improvement vs. 2024 and the highest full-year adjusted operating income in four years.
Strong Net Income and Hedge Performance
Reported Q4 net income available to common stockholders of $745 million ($3.80 per diluted share). Hedge program performed in line with expectations; positive movement in market risk benefits contributed to GAAP net income being higher than adjusted operating income.
Annuities Sales and Account Growth
2025 annuity sales volumes up 25% year-over-year. RILA sales increased 35%, fixed annuity sales +11%, and variable annuity sales +27% for the full year. Ending annuity account balances net of reinsurance reached a record $175 billion, up 7% year-over-year; fixed annuity account balances increased 20% YoY.
Shift Toward Spread-Based Products
Spread-based products now represent 30% of total annuity account balances net of reinsurance (up from 27% a year ago). Net flows into spread-based products exceeded $1 billion in the quarter, supporting more stable earnings and capital-efficient mix.
Group Protection Performance
Group Protection delivered a record year: full-year operating earnings (ex. annual assumption review) of $493 million, up 16% year-over-year; full-year premium growth nearly 7%; Q4 operating income $109 million with margin of 7.9%. Supplemental health sales increased over 40%.
Life Business Turnaround
Life moved from an operating loss to positive earnings: Q4 operating earnings $77 million vs. operating loss of $15 million in prior-year quarter. Full year Life operating earnings (ex. annual assumption review) $146 million vs. operating loss of $71 million in prior year, an improvement of over $200 million. Executive benefits sales grew to $265 million from $59 million in 2024.
Investment and Alternative Returns
Alternative investments returned nearly 12% annualized for the quarter ($124 million) and approximately 10% for the full year (in line with target). New money invested at a yield of ~5.3% for the quarter and ~5.7% for the full year, materially above portfolio yield (65–110 bps differential). Portfolio credit quality remains high with 97% investment grade.
Capital Position and Liquidity Strengthened
Restored capital above the 400% RBC target with an additional ~20% risk buffer; leverage ratio improved by ~500 basis points since 2023 and is back at long-term target. Holding company liquidity ended the year at ~$1.1 billion ( ~$655 million net of $400 million prefunding for senior notes). Alpine (Bermuda affiliate) paid a $75 million dividend and is being used to enhance capital efficiency.
Free Cash Flow Improvement
Adjusted operating income grew from $908 million in 2023 to over $1.5 billion in 2025 (≈69% higher). Free cash flow conversion improved to 45% in 2025 (up 10 percentage points from 35% in 2023), with medium-term subsidiary remittance expectations rising (management referenced ~$1.2 billion medium-term remittances on slides/Q&A).
Operational and Structural Actions
Completed captive consolidation that reduced reserve financing costs and simplified legal structure (Q4 GAAP benefit ≈$10 million); management expects an incremental ~$25–30 million GAAP improvement to Life in 2026 plus additional free cash flow benefits. Ongoing expense discipline, technology modernization, expanded Bermuda affiliate role, and targeted distribution/product improvements.
LNC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
LNC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | $38.50 | $40.67 | +5.64% |
Oct 30, 2025 | $39.62 | $40.27 | +1.65% |
Jul 31, 2025 | $33.47 | $37.29 | +11.43% |
May 08, 2025 | $32.83 | $32.23 | -1.82% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Lincoln National (LNC) report earnings?
Lincoln National (LNC) is schdueled to report earning on May 07, 2026, After Close (Confirmed).
What is Lincoln National (LNC) earnings time?
Lincoln National (LNC) earnings time is at May 07, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LNC EPS forecast?
LNC EPS forecast for the fiscal quarter 2026 (Q1) is 1.69.