Lincoln National Corp (NYSE:LNC) Reports Mixed Q3 2025 Results with Earnings Beat and Revenue Miss

Lincoln National Corp (NYSE:LNC) reported financial results for the third quarter of 2025, delivering a mixed performance relative to Wall Street expectations. The insurance and retirement services provider fell short on revenue while surpassing earnings estimates, leading to a notable positive market reaction in pre-market trading.

Earnings and Revenue Performance

The company's top-line results came in below analyst projections, with revenue of $4.78 billion representing a 3% decline compared to the same quarter last year and falling short of the $4.84 billion consensus estimate. This marks the second consecutive quarter of year-over-year revenue contraction for the financial services firm.

However, Lincoln Financial demonstrated stronger profitability than anticipated. The company posted adjusted operating income of $397 million, or $2.04 per diluted share, exceeding analyst estimates of $1.88 per share by approximately 9%. This earnings beat represents a significant improvement from the year-ago quarter's adjusted operating income of $358 million.

Key financial metrics from the quarter include:

• Net income available to common stockholders: $411 million ($2.12 per diluted share)
• Adjusted operating income available to common stockholders: $397 million ($2.04 per diluted share)
• Record annuities account balances of $174 billion, net of reinsurance
• Strong sales growth across all business segments

Market Reaction and Business Segment Performance

The market responded positively to the earnings results, with LNC shares rising approximately 3% in pre-market trading. This reaction suggests investors focused more on the earnings beat and strong underlying business performance than the revenue miss.

The company's diversified business model showed strength across multiple segments:

• Annuities delivered $318 million in operating income (up 6% year-over-year) with sales of $4.5 billion, increasing 32% from the prior-year quarter
• Life Insurance saw operating income of $54 million, a $40 million improvement from the prior-year quarter, driven by stable mortality and higher investment income
• Group Protection maintained operating income of $110 million with premiums 5% higher year-over-year
• Retirement Plan Services reported operating income of $46 million, up 5% year-over-year, with total deposits of $5.0 billion increasing 20%

Strategic Outlook and Forward Guidance

Chairman, President and CEO Ellen Cooper emphasized the "broad-based momentum across Lincoln as we advance our strategic priorities" in her statement. The company's disciplined focus on "maintaining capital flexibility, increasing profitability, and leveraging operational efficiencies" appears to be yielding results despite the revenue shortfall.

Looking ahead, analysts project full-year 2025 revenue of $19.26 billion and Q4 2025 revenue of $4.87 billion. While the company did not provide explicit forward guidance in its release, the strong sales growth across all business segments and record account balances suggest underlying business strength that may support future performance.

The company's capital position remained solid, with annuities achieving record ending account balances and all business segments showing robust sales growth. This balanced performance across both retail and workplace solutions indicates the company's strategic initiatives are gaining traction.

For more detailed earnings information and future estimates, view additional earnings data.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.