Lincoln National (NYSE:LNC) Announces Earnings Results

Lincoln National (NYSE:LNC) announced 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. Lincoln National had a net margin of 12.21% and a return on equity of 17.35%. The firm had revenue of $4.93 billion for the quarter, compared to analyst estimates of $4.89 billion. During the same quarter in the previous year, the firm posted $2.36 EPS. The business’s revenue for the quarter was up 12.3% on a year-over-year basis.

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 Price Performance

LNC stock traded down $0.41 during midday trading on Friday, reaching $45.60. 2,553,686 shares of the company’s stock traded hands, compared to its average volume of 2,044,066. The company has a 50-day simple moving average of $38.23 and a two-hundred day simple moving average of $37.45. The company has a quick ratio of 0.25, a current ratio of 0.27 and a debt-to-equity ratio of 0.62. Lincoln National has a 1-year low of $32.18 and a 1-year high of $46.82. The company has a market cap of $8.72 billion, a price-to-earnings ratio of 3.95, a PEG ratio of 3.25 and a beta of 1.17.

Lincoln National Announces Dividend

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

More Lincoln National News

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

• Positive Sentiment: Q2 earnings and revenue beat expectations: Lincoln Financial reported adjusted operating income of $2.24 per diluted share, above the roughly $1.96–$2.00 analyst consensus, while revenue reached $4.93 billion versus expectations of $4.89 billion. Revenue increased 12.3% year over year, supporting investor confidence in the company’s profitability and execution. Lincoln Financial Reports 2026 Second Quarter Results
• Positive Sentiment: Legacy reinsurance deal adds to the bullish reaction: Coverage indicates that a major legacy-block reinsurance transaction, together with the earnings beat, helped drive a sharp post-results increase in LNC shares. The deal may reduce legacy risk and improve the company’s financial flexibility. Lincoln National Is Up After Earnings Beat and Major Legacy Block Reinsurance Deal
• Positive Sentiment: Analysts raised price targets and ratings: Mizuho increased its target from $51 to $53 and assigned an “outperform” rating. Keefe, Bruyette & Woods raised its target from $46 to $51 and also rated the shares “outperform,” signaling continued upside potential after the earnings report. Analyst price-target updates
• Neutral Sentiment: Preferred dividends declared: Lincoln’s board declared semiannual dividends on its Series C and Series D preferred stock. The announcement demonstrates continued capital-distribution activity but has limited direct impact on common-stock earnings. Preferred Stock Dividends
• Negative Sentiment: Some underlying metrics trailed estimates: Analysts noted that sales were below expectations, and quarterly EPS declined from $2.36 in the year-ago period despite the current-quarter beat. These factors could limit further upside if investors focus on growth quality and sustainability. Lincoln Financial Group Q2 Earnings

Analysts Set New Price Targets

LNC has been the topic of several analyst reports. Weiss Ratings lowered Lincoln National from a “buy (b-)” rating to a “hold (c)” rating in a research note on Monday, May 11th. Wells Fargo & Company boosted their price target on Lincoln National from $44.00 to $47.00 and gave the company an “overweight” rating in a research note on Thursday, July 9th. Keefe, Bruyette & Woods upped their price target on Lincoln National from $46.00 to $51.00 and gave the company an “outperform” rating in a research report on Friday. Morgan Stanley dropped their price objective on Lincoln National from $43.00 to $40.00 and set an “overweight” rating for the company in a research note on Thursday, May 21st. Finally, UBS Group lifted their price objective on Lincoln National from $39.00 to $44.00 and gave the company a “neutral” rating in a report on Wednesday, July 8th. Six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Lincoln National currently has a consensus rating of “Hold” and an average price target of $46.43.

Insider Buying and Selling

In other news, EVP Craigt T. Beazer sold 30,000 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $34.45, for a total transaction of $1,033,500.00. Following the sale, the executive vice president owned 103,906 shares in the company, valued at approximately $3,579,561.70. This represents a 22.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.03% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Transamerica Financial Advisors LLC acquired a new stake in Lincoln National in the 4th quarter valued at about $32,000. JPL Wealth Management LLC bought a new stake in shares of Lincoln National during the third quarter valued at approximately $29,000. Los Angeles Capital Management LLC acquired a new stake in shares of Lincoln National in the fourth quarter valued at approximately $34,000. Larson Financial Group LLC increased its holdings in shares of Lincoln National by 61.8% in the third quarter. Larson Financial Group LLC now owns 1,024 shares of the financial services provider’s stock valued at $41,000 after purchasing an additional 391 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in Lincoln National by 57.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,526 shares of the financial services provider’s stock worth $53,000 after purchasing an additional 555 shares during the last quarter. Institutional investors and hedge funds own 72.81% of the company’s stock.

Lincoln National Company Profile

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.