| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 97 | 3.6x | 17.8x | Top tier | |
Growth | 66 | 7.9% | 7.1% | Top tier | |
Quality | 95 | — | — | Top tier | |
Safety | 7 | — | — | Bottom tier | |
Capital Return | 40 | 4.11% | 2.12% | Bottom tier | |
Momentum | 77 | 7.6% | 2.9% | Top tier | |
Sentiment | 63 | 9 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, 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 under the Lincoln Financial brand through four interconnected businesses: annuities, life insurance, group protection, and retirement plan services. The company generates income from fees on managed balances, spreads on fixed-return products, insurance premiums, and underwriting and investment results; annuity account balances after reinsurance reached $169 billion in Q1 FY2026, while average retirement plan balances reached $125 billion. The company is redirecting its mix toward products that are less market-sensitive and more capital-efficient, such as fixed annuities, RILA, accumulation IUL and VUL products, and executive benefits.
In Q2 FY2026, EDGAR data showed revenue of $4.5 billion, net income of $1.3 billion, and earnings per share of $6.72, equivalent to a calculated net income margin of approximately 29%. According to the August 1, 2026 report, adjusted earnings per share were $2.24, exceeding expectations by $0.28, with revenue growth of 12%. For the twelve months ended FY2026, revenue was $19.3 billion, net income was $2.4 billion, and earnings per share were $12.01, compared with revenue of $18.2 billion and net income of $1.2 billion in FY2025.
The Q1 FY2026 breakdown shows significant variation among the businesses: annuity operating income was $275 million, group protection was $112 million with an 8% margin, retirement plan services was $43 million, and life insurance was $41 million. Total annuity sales reached $3.9 billion, with spread-based products representing 64%, while life insurance sales increased by more than 30% to $129 million. This reflects the current reliance of earnings on annuities, alongside improving contributions from group protection, life insurance, and retirement plans.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $46, within a relatively narrow range of $44 to $50, while the average is below the 52-week range high of $47.67 and well above its low of $32.18. The “Neutral” consensus reflects a balance between improving capital and earnings and the resumption of share repurchases on one hand, and annuity and retirement plan outflows and sensitivity to fees and markets on the other.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Lincoln National operates through annuities, life insurance, group protection, and retirement plan services. In Q1 FY2026, these businesses generated operating income of $275 million, $41 million, $112 million, and $43 million, respectively. Annuity account balances after reinsurance reached $169 billion, while average retirement plan balances reached $125 billion. Therefore, annuities remain the largest operating contributor, with notable improvement in the other three businesses.
Lincoln National announced on August 1, 2026 that it had completed a $5.8 billion reinsurance transaction aimed at improving capital efficiency. The transaction followed financial leverage reaching the long-term target of 25% and the risk-based capital ratio exceeding the 420% target in Q1 FY2026. The assessment of the transaction's impact linked the release of capital to supporting free cash flow and the resumption of share repurchases. On August 10, 2026, the company confirmed its intention to resume repurchases during Q3 FY2026.
The company is focusing on FIA, RILA, and spread-based products instead of products that are more market-sensitive or dependent on pricing competition. In Q1 FY2026, spread-based products accounted for 64% of the $3.9 billion in annuity sales, and FIA sales increased by more than 90% year over year. RILA balances also grew 15% and fixed annuity balances grew 24%, increasing the share of spread-based products to 31% of balances. In contrast, variable annuity sales declined to $1.4 billion and recorded net outflows of $2.6 billion.
Life insurance generated operating income of $41 million in Q1 FY2026, compared with an operating loss of $16 million a year earlier, its strongest Q1 performance in five years. Life insurance sales increased by more than 30% to $129 million, led by accumulation IUL and VUL products and executive benefits. In group protection, operating income increased 11% to $112 million and the margin expanded 60 basis points to 8%. However, the disability loss ratio increased from 70.1% to 73.4%, making the sustainability of the underwriting improvement a key point to monitor.
The annuity business recorded net outflows of $2.2 billion in Q1 FY2026, driven by $2.6 billion of outflows from traditional variable annuities. In retirement plan services, management expects outflows of between $2 billion and $2.5 billion in Q2 FY2026 due to known termination cases involving a limited number of plans. This is mitigated by continued positive flows in fixed annuities and RILA of $100 million and $285 million, respectively. Holding company liquidity after excluding prefunding also reached $805 million at the end of Q1 FY2026.
The analyst consensus rates LNC shares as “Neutral,” with an average price target of $46. The target range is $44 to $50, compared with a 52-week range of $32.18 to $47.67. The average target being below the 52-week range high indicates that analysts are not basing their estimates on a significant move above the peak recorded within that range. This valuation balances improving earnings and capital on one hand against continued outflows and volatility in market-related earnings on the other.
