Voya Financial Inc (NYSE:VOYA) reported its fourth-quarter and full-year 2025 financial results, delivering a quarter of solid revenue growth but earnings that fell short of Wall Street's expectations. The market's immediate reaction was negative, with the stock trading lower in after-hours activity.
Earnings Snapshot: Revenue Beat, EPS Miss
The company's top-line performance for the quarter was robust, driven by growth across its core business segments. However, profitability on a per-share basis did not meet analyst forecasts.
- Reported Revenue: $2.11 billion, a 5.0% increase from the prior-year quarter.
- Analyst Revenue Estimate: $2.08 billion. Voya's revenue exceeded expectations.
- Reported Adjusted EPS: $1.94.
- Analyst EPS Estimate: $2.12. Voya's earnings per share fell short of expectations.
For the full year 2025, the company reported after-tax adjusted operating earnings of $861 million, or $8.85 per diluted share, representing significant growth from $736 million, or $7.25 per share, in 2024.
Market Reaction and Segment Performance
The post-earnings stock decline suggests investor focus may be on the earnings miss and the associated cost pressures noted in the report. The company highlighted higher accruals for performance-based compensation in its Corporate segment, reflecting the strong full-year results, which weighed on quarterly earnings.
The press release detailed strength in Voya's primary business units, which underpinned the revenue beat:
- Retirement: Pre-tax adjusted operating earnings grew to $255 million in Q4, up from $210 million a year ago. Full-year earnings reached $959 million. Total client assets surged 30% year-over-year to $797 billion, bolstered by the acquisition of OneAmerica and record organic net inflows.
- Investment Management: The segment achieved over $1 billion in net revenue for the first time in firm history in 2025. It also generated a record $14.6 billion in net inflows for the year, representing 4.8% organic growth.
- Employee Benefits: This segment showed marked improvement, with a full-year adjusted operating margin of 13.6%, up dramatically from 4.1% in 2024. The company noted an intentional strategy prioritizing margin improvement over top-line growth in its Stop Loss business.
Capital Returns and Outlook
Voya demonstrated strong capital generation, with approximately $775 million in excess capital for the full year, a 19% increase over 2024. The company returned a total of $374 million to shareholders through share repurchases ($200 million) and common stock dividends ($174 million).
While the press release did not provide specific quantitative financial guidance for 2026, CEO Heather Lavallee expressed confidence, stating, "our strong free-cash-flow generation... positions us to enter the year with solid momentum." Analysts currently estimate revenue of approximately $8.50 billion and EPS of $10.29 for the full year 2026.
For a detailed look at historical earnings and future analyst estimates for Voya Financial, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
