Operating margins remain highly unstable, as evidenced by the combined ratio swinging from a 3.2% low in 2023Q4 to a 120.1% peak in 2025Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 18.88B | 18.21B | 17.99B | 11.71B | 18.93B | 17.61B | 17.58B | 17.25B | 16.42B | 14.26B | 13.33B | 13.57B | 13.59B | 11.96B | 11.54B | 10.64B | 10.41B | 8.5B | 9.22B | 10.47B | 8.96B | 5.47B | 5.37B | 5.28B | 4.64B | 6.38B | 6.85B | 6.8B | 6.09B | 4.9B | 4.73B |
| Revenue Growth % | 1.58% | 1.24% | 53.61% | -38.13% | 7.52% | 0.15% | 1.88% | 5.1% | 15.16% | 6.95% | -1.74% | -0.18% | 13.61% | 3.71% | 8.4% | 2.17% | 22.54% | -7.86% | -11.94% | 16.88% | 63.69% | 1.93% | 1.65% | 13.98% | -27.31% | -6.85% | 0.64% | 11.77% | 24.26% | 3.48% | -28.64% |
| Medical Costs & Claims | 12.38B | 7.77B | 13.39B | 11.66B | 16.5B | 13.71B | 14.12B | 13.15B | 11.72B | 9.82B | 9.51B | 9.83B | 9.28B | 8.08B | 7.74B | 7.31B | 7.28B | 8.09B | 8.7B | 8.28B | 6.96B | 4.31B | 4.24B | 4.14B | 4.54B | 4.27B | 5.88B | 6.1B | 5.27B | 4.77B | 4.14B |
| Medical Cost Ratio % | 65.56% | 42.66% | 74.45% | 99.57% | 87.14% | 77.85% | 80.32% | 76.21% | 71.4% | 68.91% | 71.37% | 72.45% | 68.27% | 67.55% | 67.13% | 68.67% | 69.85% | 95.22% | 94.31% | 79.05% | 77.66% | 78.78% | 78.85% | 78.37% | 97.87% | 66.95% | 85.81% | 89.66% | 86.62% | 97.4% | 87.56% |
| Gross Profit | 6.5B | 10.44B | 4.6B | 50M | 2.43B | 3.9B | 3.46B | 4.11B | 4.7B | 4.43B | 3.82B | 3.74B | 4.31B | 3.88B | 3.79B | 3.33B | 3.14B | 406M | 525M | 2.19B | 2B | 1.16B | 1.14B | 1.14B | 98.78M | 2.11B | 971.42M | 703.66M | 814.45M | 127.41M | 588.78M |
| Gross Margin % | 34.44% | 57.34% | 25.55% | 0.43% | 12.86% | 22.15% | 19.68% | 23.79% | 28.6% | 31.09% | 28.63% | 27.55% | 31.73% | 32.45% | 32.87% | 31.33% | 30.15% | 4.78% | 5.69% | 20.95% | 22.34% | 21.22% | 21.15% | 21.63% | 2.13% | 33.05% | 14.19% | 10.34% | 13.38% | 2.6% | 12.44% |
| Gross Profit Growth % | - | 127.22% | 9092% | -97.95% | -37.59% | 12.75% | -15.74% | -12.59% | 5.93% | 16.17% | 2.11% | -13.33% | 11.08% | 2.4% | 13.71% | 6.18% | 673.4% | -22.67% | -76.07% | 9.59% | 72.29% | 2.28% | -0.57% | 1056.84% | -95.31% | 117% | 38.05% | -13.6% | 539.26% | -78.36% | -15.78% |
| Operating Expenses | 4.46B | 9.11B | 574M | 1.2B | 709M | -743M | 3.04B | 3.19B | 2.81B | 3.3B | 2.36B | 2.31B | 2.31B | 2.25B | 2.22B | 2.83B | 2B | 927M | 662M | 320M | 224M | 87M | 100.46M | 95.1M | -2.76B | -2.14B | -3.42B | 133.7M | 117.05M | 92.52M | 84.72M |
| OpEx / Revenue % | 23.63% | 49.99% | 3.19% | 10.23% | 3.75% | -4.22% | 17.27% | 18.46% | 17.12% | 23.17% | 17.69% | 17.01% | 17.03% | 18.82% | 19.27% | 26.6% | 19.25% | 10.91% | 7.18% | 3.05% | 2.5% | 1.59% | 1.87% | 1.8% | -59.6% | -33.49% | -49.91% | 1.97% | 1.92% | 1.89% | 1.79% |
| Depreciation & Amortization | 0 | 0 | 96M | 44M | 65M | 50M | 37M | 26M | 9M | 4M | 4M | 4M | 4M | 4M | 4M | 4M | 4M | -76M | -76M | -83M | 61M | 1M | 191.16M | 12.31M | 106.6M | 199.02M | 237.01M | 167.17M | 137.51M | 140.5M | 70.75M |
| Combined Ratio % | 89.19% | 92.65% | 77.64% | 109.8% | 90.89% | 73.63% | 97.59% | 94.67% | 88.52% | 92.07% | 89.06% | 89.46% | 85.31% | 86.37% | 86.41% | 95.27% | 89.1% | 106.13% | 101.49% | 82.11% | 80.16% | 80.37% | 80.72% | 80.17% | 38.27% | 33.46% | 35.9% | 91.62% | 88.54% | 99.29% | 89.35% |
| Operating Income | 2.04B | 1.34B | 4.02B | -1.15B | 1.73B | 4.64B | 423M | 919M | 1.89B | 1.13B | 1.46B | 1.43B | 2B | 1.63B | 1.57B | 503M | 1.14B | -521M | -137M | 1.87B | 1.78B | 1.07B | 1.04B | 1.05B | 2.86B | 4.24B | 4.39B | 569.96M | 697.4M | 34.88M | 504.06M |
| Operating Margin % | 10.81% | 7.35% | 22.36% | -9.8% | 9.11% | 26.37% | 2.41% | 5.33% | 11.48% | 7.93% | 10.94% | 10.54% | 14.69% | 13.63% | 13.59% | 4.73% | 10.9% | -6.13% | -1.49% | 17.89% | 19.84% | 19.63% | 19.28% | 19.83% | 61.73% | 66.54% | 64.1% | 8.38% | 11.46% | 0.71% | 10.65% |
| Operating Income Growth % | - | -66.73% | 450.35% | -166.55% | -62.85% | 997.64% | -53.97% | -51.25% | 66.81% | -22.5% | 1.96% | -28.39% | 22.44% | 4.02% | 211.73% | -55.68% | 317.85% | -280.29% | -107.31% | 5.4% | 65.4% | 3.8% | -1.14% | -63.39% | -32.57% | -3.3% | 670.06% | -18.27% | 1899.36% | -93.08% | -19.55% |
| EBITDA | 2.28B | 1.56B | 4.12B | -1.1B | 1.79B | 4.69B | 460M | 945M | 1.89B | 1.13B | 1.46B | 1.43B | 2B | 1.64B | 1.57B | 507M | 1.14B | -597M | -213M | 1.79B | 1.84B | 1.08B | 1.23B | 1.06B | 2.97B | 4.44B | 4.63B | 737.14M | 834.91M | 175.38M | 574.81M |
| EBITDA Margin % | 12.08% | 8.59% | 22.89% | -9.43% | 9.46% | 26.66% | 2.62% | 5.48% | 11.54% | 7.95% | 10.97% | 10.57% | 14.72% | 13.67% | 13.63% | 4.76% | 10.94% | -7.02% | -2.31% | 17.1% | 20.52% | 19.65% | 22.84% | 20.06% | 64.03% | 69.66% | 67.56% | 10.83% | 13.72% | 3.58% | 12.14% |
| Interest Expense | 241M | 227M | 336M | 331M | 283M | 270M | 284M | 326M | 297M | 253M | 331M | 272M | 267M | 265M | 273M | 294M | 291M | 197M | 281M | 284M | 224M | 87M | 100.46M | 95.1M | 96.61M | 121.02M | 139.54M | 133.7M | 117.05M | 92.52M | 84.72M |
| Non-Operating Income | -241M | -227M | -336M | -331M | -283M | -270M | -284M | -326M | -297M | -253M | -331M | -272M | -267M | -265M | -273M | -294M | -291M | -197M | -281M | -284M | -224M | -87M | -100.46M | -95.1M | 2.77B | 4.12B | 4.25B | -133.7M | -117.05M | -92.52M | -84.72M |
| Pretax Income | 2.04B | 1.34B | 4.02B | -1.15B | 1.73B | 4.64B | 423M | 919M | 1.89B | 1.13B | 1.46B | 1.43B | 2B | 1.63B | 1.57B | 503M | 1.14B | -521M | -137M | 1.87B | 1.78B | 1.07B | 1.04B | 1.05B | 1.62M | 705.91M | 800.2M | 569.96M | 697.4M | 34.88M | 504.06M |
| Pretax Margin % | 10.81% | 7.35% | 22.36% | -9.8% | 9.11% | 26.37% | 2.41% | 5.33% | 11.48% | 7.93% | 10.94% | 10.54% | 14.69% | 13.63% | 13.59% | 4.73% | 10.9% | -6.13% | -1.49% | 17.89% | 19.84% | 19.63% | 19.28% | 19.83% | 0.04% | 11.07% | 11.69% | 8.38% | 11.46% | 0.71% | 10.65% |
| Income Tax | 315M | 161M | 747M | -396M | 367M | 865M | -76M | 33M | 244M | -949M | 266M | 276M | 483M | 387M | 282M | 274M | 262M | -106M | -127M | 553M | 483M | 244M | 304.15M | 280.41M | -89.97M | 144.71M | 214.9M | 109.61M | 187.62M | 12.65M | 147.67M |
| Effective Tax Rate % | 15.43% | 12.03% | 18.57% | 34.49% | 21.28% | 18.63% | -17.97% | 3.59% | 12.94% | -83.98% | 18.24% | 19.3% | 24.19% | 23.73% | 17.98% | 54.47% | 23.08% | 20.35% | 92.7% | 29.51% | 27.17% | 22.7% | 29.37% | 26.77% | -5539.78% | 20.5% | 26.86% | 19.23% | 26.9% | 36.27% | 29.3% |
| Net Income | 1.73B | 1.18B | 3.27B | -752M | 1.36B | 3.78B | 499M | 886M | 1.64B | 2.08B | 1.19B | 1.15B | 1.51B | 1.24B | 1.31B | 221M | 902M | -485M | 57M | 1.22B | 1.32B | 831M | 707.01M | 511.94M | 91.59M | 545.6M | 585.3M | 460.35M | 509.77M | 933.99M | 513.56M |
| Net Margin % | 9.14% | 6.46% | 18.21% | -6.42% | 7.17% | 21.46% | 2.84% | 5.13% | 10% | 14.58% | 8.94% | 8.51% | 11.15% | 10.4% | 11.38% | 2.08% | 8.66% | -5.71% | 0.62% | 11.6% | 14.68% | 15.18% | 13.16% | 9.69% | 1.98% | 8.55% | 8.55% | 6.77% | 8.37% | 19.07% | 10.85% |
| Net Income Growth % | 29.58% | -64.06% | 535.51% | -155.38% | -64.06% | 657.11% | -43.68% | -46.01% | -21.07% | 74.41% | 3.29% | -23.83% | 21.78% | -5.26% | 494.12% | -75.5% | 285.98% | -950.88% | -95.31% | -7.67% | 58.36% | 17.54% | 38.1% | 458.94% | -83.21% | -6.78% | 27.14% | -9.69% | -45.42% | 81.87% | 6.51% |
| EPS (Diluted) | 8.79 | 5.84 | 18.41 | -4.92 | 7.78 | 7.43 | 2.57 | 4.38 | 7.47 | 9.22 | 5.03 | 4.51 | 5.67 | 4.52 | 4.56 | 0.93 | 3.07 | -1.70 | 0.22 | 4.43 | 5.13 | 4.72 | 3.95 | 2.85 | 0.48 | 2.85 | 3.03 | 2.30 | 2.51 | 4.49 | 2.44 |
| EPS Growth % | 25.71% | -68.28% | 474.19% | -163.24% | 4.71% | 189.11% | -41.32% | -41.37% | -18.98% | 83.3% | 11.53% | -20.46% | 25.44% | -0.88% | 390.32% | -69.71% | 280.59% | -872.73% | -95.03% | -13.65% | 8.69% | 19.49% | 38.6% | 493.75% | -83.16% | -5.94% | 31.74% | -8.37% | -44.1% | 84.02% | 5.17% |
| EPS (Basic) | - | 5.95 | 18.66 | -4.92 | 7.94 | 20.16 | 2.58 | 4.42 | 7.60 | 9.36 | 5.09 | 4.60 | 5.81 | 4.68 | 4.68 | 0.72 | 3.16 | -1.73 | 0.22 | 4.50 | 5.21 | 4.80 | 4.01 | 2.89 | 0.48 | 2.89 | 3.06 | 2.33 | 2.54 | 4.56 | 2.48 |
| Diluted Shares Outstanding | 196.3M | 186.06M | 173.8M | 169.56M | 172.7M | 189.1M | 194.47M | 202.11M | 219.55M | 226.22M | 236.83M | 254.94M | 267.96M | 275.15M | 287.59M | 314.95M | 319.21M | 285.64M | 259.39M | 273.91M | 256.17M | 176.08M | 178.98M | 179.63M | 189.3M | 191.41M | 193.14M | 200.11M | 203.1M | 208.02M | 210.91M |
Legacy reserve adequacy concerns
As reported in recent financial statements, LNC's combined ratio has exhibited extreme volatility, swinging from a low of 3.2% in 2023Q4 to a peak of 120.1% in 2025Q1, highlighting significant instability in the company's core underwriting profitability and reliance on non-recurring accounting adjustments.
The erratic nature of the combined ratio suggests that LNC is struggling to maintain consistent underwriting discipline, likely due to frequent adjustments in actuarial assumptions. Investors should monitor whether these fluctuations represent genuine operational shifts or merely the ongoing impact of LDTI accounting and periodic reserve strengthening.
Based on reported figures, LNC achieved a 12.5% revenue growth in 2026Q1, yet this top-line expansion appears disconnected from bottom-line performance, as the company simultaneously reported a net loss of $172 million, suggesting that premium volume is not currently translating into sustainable shareholder value.
While the top-line growth trajectory appears positive on the surface, the inability to convert this revenue into positive net income warrants further investigation into the quality of the business being written. It is possible that the company is prioritizing volume over profitability to maintain market share, which may exacerbate long-term capital pressures.
According to recent SEC filings, the company's history of significant quarterly losses, such as the $722 million net loss in 2025Q1, indicates that legacy reserve strengthening remains a persistent drag on earnings, potentially masking the true underlying performance of the core insurance segments.
The recurring need to bolster reserves for legacy universal life products suggests that historical actuarial assumptions may have been overly optimistic. This pattern of reserve adjustments creates significant earnings noise, making it difficult for analysts to determine if the company has finally reached a point of reserve adequacy.
As indicated by the reported net income volatility and the recent divestiture of the wealth management division, LNC's financial stability appears highly sensitive to capital-intensive legacy liabilities, which may continue to constrain management's ability to return capital to shareholders in the near term.
The divestiture of the wealth management business serves as a clear signal that management is prioritizing capital preservation over business diversification. Investors should remain cautious, as the company's ability to rebuild its regulatory capital cushion remains the primary determinant of its long-term operational viability.
Quick answers to the most common questions about buying LNC stock.
For fiscal year 2025, Lincoln National Corporation (LNC) reported total revenue of $18.21B. This represents a 284.7% increase compared to $4.73B in 1996.
Lincoln National Corporation (LNC) is profitable, generating $1.18B in net income for the fiscal year ending 2025 with a net profit margin of 6.5%.
Lincoln National Corporation (LNC) reported an operating income of $1.34B, resulting in an operating profit margin of 7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Lincoln National Corporation (LNC) generated $10.44B in gross profit for the year, representing a gross profit margin of 57.3%. This demonstrates the company's core pricing power and production efficiency.