Lincoln Financial Group (NYSE:LNC) reported stronger-than-expected second-quarter earnings on Thursday, although revenue came in below Wall Street forecasts. Investors responded positively to the results, sending the insurer’s shares higher in premarket trading.
The stock gained 3.72% ahead of the market open following the earnings release.
Profit Exceeds Forecasts Despite Revenue Miss
Lincoln Financial posted adjusted earnings of $2.24 per share for the second quarter, beating the analyst consensus estimate of $2.00 per share.
Revenue totalled $4.54 billion, falling short of the expected $4.88 billion. Even so, sales increased 12% from $4.04 billion in the same quarter last year.
Adjusted operating income available to common stockholders rose to $439 million for the quarter ended June 30, 2026, compared with $427 million a year earlier, supported by growth across the company’s business segments.
Business Segments Deliver Mixed Performance
The Annuities division generated operating income of $287 million, unchanged from the prior-year period, while ending account balances reached a record $182 billion, an increase of 9% year over year.
Life Insurance delivered one of the strongest performances during the quarter, with operating income climbing 78% to $57 million, benefiting from favourable mortality experience.
Group Protection reported operating income of $147 million, producing a margin of 10.4%.
Meanwhile, Retirement Plan Services increased operating income by 32% to $49 million compared with the same period last year.
Liquidity Improves as Capital Position Strengthens
Lincoln Financial ended the quarter with $903 million in available holding company liquidity, excluding prefunding amounts.
During the period, the company also completed a $500 million subordinated debt offering, providing additional financial flexibility to support potential preferred stock repurchases or redemptions.
Insurance Sales Show Diverging Trends
Total annuity sales declined 13% from a year earlier to $3.5 billion.
In contrast, Life Insurance sales increased sharply, rising 79% year over year to $216 million.
Lincoln Financial Group stock price
