Insurance and retirement company Lincoln National (NYSE: LNC) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 6.4% year on year to $4.92 billion. Its non-GAAP profit of $2.21 per share was 16.5% above analysts’ consensus estimates.

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"Fourth-quarter results reflected continued broad-based momentum and strong execution against our strategic priorities. Each of our businesses contributed meaningfully to our performance, supported by disciplined capital management, improving profitability, and an increasingly efficient operating model," said Ellen Cooper, Chairman, President and CEO of Lincoln Financial.

Company Overview

Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.

Revenue Growth

Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities, or other value-added services. Regrettably, Lincoln Financial Group’s revenue grew at a weak 1% compounded annual growth rate over the last five years. This was below our standards and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Lincoln Financial Group’s annualized revenue growth of 9.2% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Lincoln Financial Group reported year-on-year revenue growth of 6.4%, and its $4.92 billion of revenue exceeded Wall Street’s estimates by 1.9%.

Net premiums earned made up 63% of the company’s total revenue during the last five years, meaning insurance operations are Lincoln Financial Group’s largest source of revenue.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.

Lincoln Financial Group’s BVPS declined at a 15.2% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 22.1% annually over the last two years from $34.82 to $51.88 per share.

Over the next 12 months, Consensus estimates call for Lincoln Financial Group’s BVPS to grow by 47.1% to $70.51, elite growth rate.

Key Takeaways from Lincoln Financial Group’s Q4 Results

It was good to see Lincoln Financial Group beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its book value per share missed. Still, this print had some key positives. The stock traded up 6.3% to $40.94 immediately following the results.

Is Lincoln Financial Group an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).