F&G Annuities & Life Inc (NYSE:FG), a leading provider of fixed annuities and life insurance, reported its fourth-quarter and full-year 2025 financial results on February 19, 2026. The earnings release presented a mixed financial picture, characterized by a significant revenue beat but a substantial miss on profitability, which appears to be shaping the market's initial reaction.
Earnings Snapshot: Revenue Beat vs. EPS Miss
The company's performance relative to Wall Street expectations for the fourth quarter of 2025 reveals a clear divergence between top-line strength and bottom-line pressure.
- Revenue: F&G reported sales of $1.77 billion, a 10.8% increase year-over-year. This figure comfortably exceeded the analyst consensus estimate of approximately $1.59 billion.
- Earnings Per Share (Non-GAAP): The company posted an adjusted profit of $0.91 per share. This result fell 24.4% short of the $1.24 per share analysts had anticipated.
This combination suggests that while the company's core business of selling annuity and insurance products remains robust, its profitability was squeezed during the quarter. Investors and analysts will be keen to understand the drivers behind this margin compression, which could include factors such as higher crediting rates on policies, increased acquisition costs, or reserve strengthening.
Market Reaction and Price Action
The immediate market reaction to the earnings report has been negative. Following the release, the stock traded lower in after-market activity. This price movement aligns with a market that often prioritizes earnings misses over revenue beats, particularly for financial services firms where profitability metrics are closely scrutinized. The negative after-market performance suggests investors are weighing the EPS shortfall more heavily than the strong sales growth at this juncture.
Summary of Key Announcements
The primary press release from F&G highlighted several operational and financial achievements for the full year 2025, beyond the quarterly figures. Management emphasized strong sales growth across its product portfolio, including fixed indexed annuities (FIAs) and pension risk transfer (PRT) solutions. The company also noted its continued focus on capital management and the strength of its balance sheet. The release from its majority owner, Fidelity National Financial (FNF), concurrently reported its own results, underscoring the performance of F&G as a key subsidiary.
Looking Ahead: Analyst Estimates for 2026
While the press release did not provide formal financial guidance, current analyst estimates offer a benchmark for future performance. For the upcoming first quarter of 2026, the consensus projects revenue of approximately $1.55 billion and earnings per share of $1.33. For the full year 2026, analysts are modeling sales of about $6.44 billion and EPS of $5.84. Investors will monitor F&G's upcoming quarterly reports to see if the company can realign its profitability with these expectations while maintaining its sales momentum.
For a detailed view of historical earnings, future estimates, and analyst revisions, you can review the data here: F&G Annuities & Life Earnings & Estimates.
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