Lincoln National (NYSE:LNC) Posts Earnings Results, Beats Expectations By $0.28 EPS

Lincoln National (NYSE:LNC) issued its quarterly earnings results on Thursday. The financial services provider reported $2.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.96 by $0.28, FiscalAI reports. The business had revenue of $4.93 billion for the quarter, compared to analyst estimates of $4.89 billion. Lincoln National had a return on equity of 18.07% and a net margin of 9.17%.The firm’s revenue for the quarter was up 12.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.36 earnings per share.

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

• Adjusted operating income rose 3% year over year to $439 million, marking Lincoln Financial’s eighth consecutive quarter of annual earnings growth. Retirement Plan Services earnings increased 32%, while Life Insurance earnings benefited from favorable mortality.
• Lincoln agreed to reinsure approximately $5.8 billion of legacy Guaranteed Universal Life reserves with Talcott, reducing long-term mortality, lapse, and interest-rate risk. The transaction is expected to increase annual free cash flow by roughly $30 million to $40 million and close in the fourth quarter, subject to regulatory approval.
• Capital flexibility improved as holding-company cash net of prefunding reached about $900 million, the company issued $500 million of hybrid securities, and half of its preferred stock obligations was prefunded. Management said its existing share-repurchase authorization has been reconfirmed, though it did not provide timing for resuming buybacks.
• Results faced several offsets, including alternative-investment returns of approximately 4.9% versus a 10% target, $2.9 billion of annuity net outflows, and $2.4 billion of Retirement Plan Services outflows from unprofitable plan exits. Group Protection earnings and margins also declined year over year as unusually favorable disability experience normalized.

Lincoln National Stock Down 0.6%

Shares of LNC traded down $0.27 during trading hours on Friday, hitting $45.76. The stock had a trading volume of 1,163,360 shares, compared to its average volume of 2,056,868. The firm has a market capitalization of $8.75 billion, a P/E ratio of 5.30, a price-to-earnings-growth ratio of 2.93 and a beta of 1.17. The firm has a 50 day simple moving average of $38.04 and a 200-day simple moving average of $37.40. The company has a debt-to-equity ratio of 0.65, a current ratio of 0.25 and a quick ratio of 0.25. Lincoln National has a 1-year low of $32.18 and a 1-year high of $46.82.

Lincoln National Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be paid a dividend of $0.45 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $1.80 annualized dividend and a yield of 3.9%. Lincoln National’s dividend payout ratio is currently 20.88%.

Insider Activity

In other news, EVP Craigt T. Beazer sold 30,000 shares of Lincoln National stock in a transaction on Friday, June 5th. The shares were sold at an average price of $34.45, for a total transaction of $1,033,500.00. Following the completion of the sale, the executive vice president directly owned 103,906 shares of the company’s stock, valued at approximately $3,579,561.70. The trade was a 22.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 1.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Baird Financial Group Inc. purchased a new stake in Lincoln National in the first quarter worth $241,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Lincoln National by 30.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 71,981 shares of the financial services provider’s stock worth $2,585,000 after buying an additional 16,991 shares during the period. Empowered Funds LLC increased its stake in shares of Lincoln National by 316.9% in the 1st quarter. Empowered Funds LLC now owns 59,115 shares of the financial services provider’s stock worth $2,123,000 after acquiring an additional 44,936 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Lincoln National by 5.0% during 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 acquiring an additional 29,421 shares in the last quarter. Finally, Focus Partners Wealth grew its holdings in 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 during the period. Hedge funds and other institutional investors own 72.81% of the company’s stock.

Trending Headlines about Lincoln National

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

• Positive Sentiment: Quarterly earnings exceeded expectations. Lincoln Financial reported adjusted operating income of $2.24 per diluted share, ahead of consensus estimates ranging from $1.96 to $2.00. Revenue reached $4.93 billion, slightly above the $4.89 billion estimate, and increased 12.3% year over year. The company also reported $1.3 billion in net income available to common stockholders, or $6.72 per diluted share. Lincoln Financial Reports 2026 Second Quarter Results
• Positive Sentiment: A major legacy-block reinsurance deal supported the rally. The transaction appears to reinforce Lincoln National’s strategy of improving profitability and reducing the capital and risk burden associated with older insurance liabilities, helping drive the post-earnings advance. Lincoln National Is Up After Earnings Beat And Major Legacy Block Reinsurance Deal
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target. The firm increased its target from $46 to $51 and upgraded or reaffirmed an “outperform” rating, implying additional upside from recent trading levels. Benzinga analyst price-target report
• Neutral Sentiment: Lincoln National declared semiannual dividends on its Series C and Series D preferred stock. The announcement supports income-focused preferred shareholders but does not directly change the value of LNC common stock. Lincoln National Declares Series C and Series D Preferred Stock Dividends
• Negative Sentiment: Adjusted EPS declined from $2.36 in the year-ago quarter to $2.24, indicating that the earnings beat was helped by lower expectations despite higher revenue.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Wells Fargo & Company upped their price objective on shares of Lincoln National from $44.00 to $47.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Morgan Stanley reduced their target price on shares of Lincoln National from $43.00 to $40.00 and set an “overweight” rating for the company in a report on Thursday, May 21st. UBS Group lifted their price target on shares of Lincoln National from $39.00 to $44.00 and gave the company a “neutral” rating in a research note on Wednesday, July 8th. JPMorgan Chase & Co. lifted their price objective on shares of Lincoln National from $40.00 to $42.00 and gave the stock an “underweight” rating in a research report on Tuesday, July 21st. Finally, TD Cowen raised their target price on shares of Lincoln National from $37.00 to $42.00 and gave the stock a “hold” rating in a research note on Wednesday, July 22nd. Six research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $46.43.

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.