| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 97 | 3.3x | 17.3x | Top tier | |
Growth | 68 | 7.9% | 7.1% | Top tier | |
Quality | 95 | — | — | Top tier | |
Safety | 8 | — | — | Bottom tier | |
Capital Return | 37 | 4.48% | 0.06% | Bottom tier | |
Momentum | 69 | 8.8% | -1.6% | Top tier | |
Sentiment | 45 | 8 | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lincoln National Corporation operates in life insurance, group protection, annuities, and retirement plan services, serving more than 17 million customers according to its earnings presentation for quarter 2 of fiscal year 2026 ended 2026-06-30. Its business combines insurance premiums, fees linked to account balances, and investment spreads on savings and retirement products. Its results are therefore affected by mortality and disability claims experience, account inflows and outflows, and investment returns; it seeks to expand spread-based products and reduce capital-intensive legacy insurance liabilities.
Revenue for quarter 2 of fiscal year 2026 was approximately $4.5 billion, up 12.3% from the same quarter of the previous year, while net income was $1.3 billion and diluted earnings per share were $6.72. However, adjusted operating income available to common stockholders was $439 million, up 3% from the same quarter of the previous year, and adjusted earnings per share were $2.24; reported net income primarily benefited from favorable changes in market risk benefits. According to EL7 data, operating cash flow for the quarter was negative $558.0 million, making the distinction between accounting earnings and cash flows essential to understanding the results.
At the segment level in quarter 2 of fiscal year 2026, operating income was $287 million for annuities, $147 million for group protection, $57 million for life insurance, and $49 million for retirement plan services; these are segment results, not a breakdown of group revenue. Group protection recorded a margin of 10.4%, down 210 basis points from the same quarter of the previous year. In annuities, spread-based products represented 63% of sales and 31% of account balances, showing that the sales mix is shifting faster than the existing asset base.
Q2 FY2026
When: 2026-11-05
Revenue compared with the $4.5 billion baseline in quarter 2 of fiscal year 2026 ended 2026-06-30
Net annuity outflows compared with the $2.9 billion level in quarter 2 of fiscal year 2026 ended 2026-06-30
The indicative value based on the median analyst target is $46, within a range of $44 to $49 across 3 analysts, reflecting growth expectations and carrying low confidence due to limited coverage. The industry-multiple value is $44, within a range of $13 to $117, based on a median price-to-book multiple of 0.7 across 29 companies, meaning it prices Lincoln based on peer comparisons. The two central values are close at $44 and $46, but the wide industry-multiple range shows how sensitive the comparison is to differences among insurers, while analyst targets focus on expected performance. Analyst targets tend to be optimistic by nature, and the LNC consensus remains neutral with an average target of $46.33, without the convergence of the two methods making either a definitive value.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Net income was $1.3 billion and diluted earnings per share were $6.72 in quarter 2 of fiscal year 2026 ended 2026-06-30. In the same period, adjusted operating income available to common stockholders was $439 million and adjusted earnings per share were $2.24. The difference primarily came from favorable changes in market risk benefits as equity markets and interest rates rose, so the full amount of net income does not represent an equivalent increase in recurring operating profitability.
A $6.3 billion reinsurance transaction was reported as completed on 2026-10-01. When announcing the agreement on the earnings call for quarter 2 of fiscal year 2026 ended 2026-06-30, Lincoln explained that it covers approximately $5.8 billion of guaranteed universal life insurance reserves and approximately $500 million of funding agreement business. Management expected a statutory capital impact of approximately $200 million and an ongoing increase in annual free cash flow of between $30 million and $40 million after closing. Lincoln retains policy administration, recordkeeping, and claims management, with reported net income expected to decline due to amortization of the deferred loss, while no material change in adjusted operating income is expected from the transaction.
Automated analysis for informational purposes only — not investment advice.
When: Quarter 3 of fiscal year 2026
Annualized return on alternative investments at the 10% target
When: Fiscal year 2026
Group protection margin within the target range of 8% to 9%
Management did not announce a date for resuming share repurchases on the 2026-07-30 call, despite confirming that an existing authorization had been reaffirmed by the board. Holding company cash, net of prefunding, was approximately $900 million at the end of quarter 2 of fiscal year 2026 ended 2026-06-30, and the company issued $500 million of hybrid securities during the quarter to fund part of its preferred stock actions. The alternatives discussed by management include maintaining a larger cash buffer, addressing the remaining preferred stock, and repurchasing common stock, so increased flexibility does not constitute a commitment to execute any of them.
Annuity sales reached $3.5 billion in quarter 2 of fiscal year 2026 ended 2026-06-30, with spread-based products accounting for 63%. RILA sales rose 10% from the same quarter of the previous year, but the segment recorded net outflows of approximately $2.9 billion, mostly from traditional variable products. The issue is therefore whether new sales and an improving mix can offset outflows from the existing business while the company maintains pricing discipline.
The expected earnings announcement date is 2026-11-05, with the ability of spread-based products to offset outflows a key focus. The baseline for net annuity outflows was approximately $2.9 billion in quarter 2 of fiscal year 2026 ended 2026-06-30. Management also expected alternative investment returns to reach the 10% target or above in quarter 3 of fiscal year 2026, with life insurance earnings broadly similar sequentially to the $57 million recorded in quarter 2 of fiscal year 2026. Together, these results will show whether improved returns offset a reduction in the exceptional benefit from mortality experience.