Lincoln Financial Group posted a strong fourth quarter, with results surpassing Wall Street expectations and prompting a notable positive market reaction. Management attributed this outperformance to disciplined execution on its strategic realignment, with particular emphasis on growing the annuity and group protection segments and optimizing the risk profile of its life insurance business. CEO Ellen G. Cooper highlighted, “The fundamental principles of foundational capital, a more efficient operating model, and our efforts to drive profitable growth are coming through in our results.”
Is now the time to buy LNC? Find out in our full research report (it’s free for active Edge members).
Lincoln Financial Group (LNC) Q4 CY2025 Highlights:
- Revenue: $4.89 billion vs analyst estimates of $4.83 billion (5.7% year-on-year growth, 1.3% beat)
- Adjusted EPS: $2.21 vs analyst estimates of $1.90 (16.5% beat)
- Adjusted Operating Income: $524 million vs analyst estimates of $536 million (10.7% margin, 2.2% miss)
- Market Capitalization: $8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lincoln Financial Group’s Q4 Earnings Call
-
Joel Hurwitz (Dowling and Partners) asked about the timing and scope of capital returns to shareholders, including share buybacks in 2026. CFO Christopher Michael Neczypor explained that while the priority remains maintaining capital buffers and preparing for preferred security redemptions, improving free cash flow should eventually enable increased returns to shareholders.
-
Thomas Gallagher (Evercore ISI) sought clarity on subsidiary remittance growth and how lower holding company expenses post-2027 could expand capital return capacity. Neczypor agreed that as remittances rise and interest expenses fall, more capital should become available for shareholder returns, though the company is focused on 2026–2027 targets for now.
-
Gallagher (Evercore ISI) also questioned the rationale for redefining net interest income allocations in annuities. Neczypor clarified that this change reflects the growing scale of RILA and aligns with industry practice, providing a clearer view of underlying operating performance and improving transparency.
-
Wesley Collin Carmichael (Wells Fargo) asked about the impact of captive consolidation in the life business on earnings and free cash flow. Neczypor noted that the action should yield $25–30 million in annual GAAP earnings improvement and further incremental free cash flow benefits, with more optimization opportunities ahead.
-
Suneet Kamath (Jefferies) inquired about the drivers of the projected increase in subsidiary remittances. Neczypor emphasized that robust free cash flow from business mix shifts and internal optimization will drive this growth, with potential for upside from external risk transfer deals not factored into current projections.
Catalysts in Upcoming Quarters
Looking ahead, our analysts are monitoring (1) the pace at which Lincoln Financial Group continues to shift its annuity sales mix toward spread-based and fixed indexed products, (2) progress on expense reduction and digital transformation initiatives to support margin stability, and (3) execution of capital deployment, including potential increases in shareholder returns as free cash flow grows. The evolution of competitive dynamics in the RILA market and further optimizations in the life segment will also be important indicators.
Lincoln Financial Group currently trades at $41.88, up from $38.50 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
Our Favorite Stocks Right Now
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.