Lincoln National (NYSE:LNC) Issues Earnings Results, Beats Estimates By $0.35 EPS

Lincoln National (NYSE:LNC) announced its quarterly earnings data on Thursday. The financial services provider reported $2.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.86 by $0.35, FiscalAI reports. Lincoln National had a net margin of 6.46% and a return on equity of 18.52%. The company had revenue of $4.89 billion during the quarter, compared to analyst estimates of $4.85 billion. During the same period in the previous year, the business earned $1.91 EPS. The firm’s revenue for the quarter was down 2.8% on a year-over-year basis.

Here are the key takeaways from Lincoln National’s conference call:

• Financial momentum: Fourth-quarter Adjusted Operating Income rose ~31% year‑over‑year and management reported Q4 AOI available to common of $434 million, with full‑year adjusted operating income above $1.5 billion, marking the sixth consecutive quarter of YoY AOI growth.
• Stronger capital and cash generation: Capital rebuilt well above the 400% RBC target (with a ~20‑point buffer), leverage improved ~500 bps toward target, holding‑company liquidity ended ~$1.1 billion (net ~$655 million after pre‑funding), and free cash flow conversion improved to 45%.
• Annuities mix and reporting change: Annuity sales were up ~25% in 2025 with ~two‑thirds spread‑based and spread products now ~30% of balances (fixed retention now 100%), and management will reallocate net interest income on index‑hedge collateral from annuities operating to non‑operating income (would have shifted ~$50 million in 2025), which alters reported operating income presentation but not economics.
• Group protection strength: Group posted a record year—premiums grew ~7%, full‑year operating earnings (ex assumption review) rose ~16%, and margins reached about 9%, with management targeting continued 8%+ margins.
• Retirement plan headwinds: Retirement Plan Services faced participant outflows (net outflows ~$1 billion in the quarter), delivered flat full‑year operating earnings, and expects negative net flows in 2026 while prioritizing profitability and selective retention.

Lincoln National Trading Up 0.6%

Shares of Lincoln National stock opened at $40.90 on Friday. Lincoln National has a 1-year low of $27.58 and a 1-year high of $46.82. The company’s fifty day simple moving average is $42.98 and its 200-day simple moving average is $41.31. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.27 and a quick ratio of 0.28. The stock has a market capitalization of $7.77 billion, a PE ratio of 7.70, a P/E/G ratio of 0.43 and a beta of 1.30.

Insider Buying and Selling

In related news, EVP John Christopher Kennedy sold 3,519 shares of the firm’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $44.15, for a total value of $155,363.85. Following the transaction, the executive vice president directly owned 118,985 shares of the company’s stock, valued at approximately $5,253,187.75. This trade represents a 2.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.51% of the company’s stock.

Institutional Trading of Lincoln National

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Baird Financial Group Inc. bought a new position in shares of Lincoln National during the 1st quarter valued at approximately $241,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Lincoln National by 30.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 71,981 shares of the financial services provider’s stock valued at $2,585,000 after purchasing an additional 16,991 shares in the last quarter. Empowered Funds LLC boosted its position in shares of Lincoln National by 316.9% in the first quarter. Empowered Funds LLC now owns 59,115 shares of the financial services provider’s stock worth $2,123,000 after purchasing an additional 44,936 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Lincoln National by 5.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 623,322 shares of the financial services provider’s stock worth $22,383,000 after purchasing an additional 29,421 shares in the last quarter. Finally, Focus Partners Wealth increased its stake in shares of Lincoln National by 39.1% in the first quarter. Focus Partners Wealth now owns 19,530 shares of the financial services provider’s stock worth $701,000 after purchasing an additional 5,486 shares in the last quarter. Hedge funds and other institutional investors own 72.81% of the company’s stock.

Key Lincoln National News

Here are the key news stories impacting Lincoln National this week:

• Positive Sentiment: Q4 beat and strong profitability — LNC reported Q4 EPS of $2.21 vs. consensus $1.86 and revenue of $4.89B (vs. ~$4.85B), with fourth-quarter net income available to common of $745M and adjusted operating income of $434M; management highlighted record operating income. Lincoln National Corp (LNC) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Business mix & capital efficiency driving outperformance — Analysts and company commentary point to a favorable shift in business mix, stronger capital allocation and higher return-on-equity metrics that amplified results and underpin the stock rally. LNC Q4 Deep Dive: Business Mix Shift and Capital Efficiency Drive Outperformance
• Positive Sentiment: Market reaction / investor notes — Coverage pieces explain the stock jump (one notes a ~5.65% intraday move) driven by the beat, confirmed execution and clearer capital-return optionality (dividends/buybacks). That investor enthusiasm is boosting the shares. Why Lincoln National Corporation’s (LNC) Stock Is Up 5.65%
• Neutral Sentiment: Earnings call transcripts available — Full call transcripts (Seeking Alpha, Yahoo/MSN) provide management color on segment performance, capital actions and outlook; nothing in the transcripts so far contradicts the positive takeaways. Lincoln National Corporation (LNC) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Metric-level analysis — Note pieces (Zacks, others) compare key metrics to estimates and prior year; while EPS and operating income outperformed, some line-item trends warrant watching (see linked analysis). Compared to Estimates, Lincoln National (LNC) Q4 Earnings
• Negative Sentiment: Revenue trend and longer-term growth questions — Revenue was down ~2.8% year-over-year, highlighting that top-line growth remains a challenge even as margins and capital returns improve; investors should watch upcoming guidance and sales/renewal trends. Lincoln National (LNC) Beats Q4 Earnings and Revenue Estimates

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on LNC shares. Jefferies Financial Group upped their price target on Lincoln National from $52.00 to $59.00 and gave the company a “buy” rating in a report on Monday, December 15th. National Bank Financial set a $45.00 target price on Lincoln National in a research report on Thursday, January 8th. UBS Group raised their price target on shares of Lincoln National from $42.00 to $43.00 and gave the company a “neutral” rating in a report on Friday, October 31st. Mizuho initiated coverage on shares of Lincoln National in a research note on Tuesday, December 16th. They issued an “outperform” rating and a $52.00 price target for the company. Finally, Morgan Stanley restated an “overweight” rating on shares of Lincoln National in a research report on Monday, December 15th. Four investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $46.25.

About Lincoln National

Lincoln National Corporation, doing business as Lincoln Financial Group, is a diversified financial services holding company focused on providing retirement, insurance, and wealth management solutions in the United States and select international markets. Headquartered in Radnor, Pennsylvania, the company operates through several business segments, including Retirement Plan Services, Life Insurance, and Group Protection. Its offerings are designed to help individuals, families, and institutions plan and prepare for their financial futures.

The Retirement Plan Services segment delivers recordkeeping, administrative services, and investment management for defined contribution and defined benefit plans.