Insurance and retirement company Lincoln National (NYSE: LNC) reported Q3 2026 results beating Wall Street’s revenue expectations, with sales up 5.8% year on year to $5.06 billion. Its non-GAAP profit of $1.72 per share was 12% below analysts’ consensus estimates.

Is now the time to buy LNC? Find out in our full research report (it’s free for active Edge members).

StockStory’s take

Lincoln Financial Group delivered a quarter marked by strong top-line growth, with management attributing the performance to momentum in Life Insurance and Retirement Plan Services, alongside robust alternative investment returns. However, the market reacted negatively, largely due to non-GAAP earnings per share falling short of Wall Street’s expectations. CEO Ellen Cooper emphasized that diversification across business lines helped offset lower results in Group Protection, and highlighted progress in reshaping the company’s risk profile through reinsurance transactions and liability management.

Looking forward, management’s guidance centers on continued investments in technology, disciplined capital return to shareholders, and operational improvements across all segments. Ellen Cooper stressed that the next phase will focus on accelerating profitable growth—particularly in fixed annuities and accumulation-oriented life insurance—while optimizing operating costs through further technology adoption. Interim CFO Adam Cohen pointed out that free cash flow generation and capital flexibility will underpin the ability to increase share repurchases, noting, “We are well-positioned to build on that activity in the fourth quarter and into 2027.”

Key insights from management’s remarks

Management cited business line diversification, investment returns, and operational milestones as key drivers behind the quarter’s results and their evolving strategic plan.

• Life Insurance recovery: Life Insurance earnings more than doubled year-over-year, driven by favorable mortality experience and alternative investment income. Management noted these gains were partly cyclical and do not expect continued outsized benefits from mortality trends.
• Fixed Annuities momentum: Fixed annuity sales more than doubled sequentially, supported by expanded distribution and differentiated crediting strategies. The company now retains all fixed annuity sales, positioning this product as a central growth driver.
• Group Protection margin pressure: Group Protection margins declined due to elevated disability claim severity and a normalization of incidence rates. Management described the severity spike as short-term volatility, but signaled that the prior period’s favorable experience is unlikely to recur.
• Retirement Plan Services realignment: The Retirement Plan Services segment began a strategic overhaul, focusing on higher-return segments and modernizing technology. This transition led to uneven sales and outflows but is expected to support more profitable growth over time.
• Capital and liquidity actions: Lincoln completed major reinsurance transfers and reduced preferred equity, freeing up balance sheet capacity for resumed share repurchases. Management highlighted progress on de-risking and indicated that further capital return is expected as cash generation improves.

Drivers of future performance

Lincoln’s outlook hinges on accelerating growth in core product lines, managing expense efficiency, and sustaining capital return, while navigating headwinds in Group Protection and broader market competition.

• Fixed annuity and spread growth: Management expects fixed annuities and spread-based products to contribute a growing share of earnings and free cash flow, as account balances and investment yields rise across these segments.
• Technology-driven expense savings: Ongoing investments in technology and artificial intelligence are expected to lower the company’s expense base, improve customer experience, and support the rollout of new products. These efficiencies should help offset competitive pressures and support margin resilience.
• Group Protection normalization: While management anticipates some moderation in disability claim severity, they have cautioned that the normalization of historically low incidence rates may continue to pressure Group Protection margins. The company plans to address these trends through pricing actions, business mix shifts, and targeted growth in supplemental health and local markets.

Catalysts in upcoming quarters

For the next quarters, the StockStory team will track (1) the pace of fixed annuity and spread-based product growth, (2) evidence of improvement or continued pressure in Group Protection margins as disability trends evolve, and (3) the success of technology-driven expense initiatives and Retirement Plan Services realignment. The scale of share repurchases and further balance sheet optimization will also be key indicators of execution.

Lincoln Financial Group currently trades at $39.18, down from $41.60 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

Our favorite stocks right now

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.