Is LNC a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The bull case for Lincoln National Corporation (LNC) rests on Annuities and net investment income: Annuities is Lincoln's largest earnings engine, and higher interest rates have lifted net investment income on the general account while supporting strong annuity deposit flows. Revenue (TTM) is ~$18.5B. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: As a life insurer, Lincoln carries substantial interest-rate, credit, and equity-market risk through its large general-account bond portfolio and its variable-annuity guarantees, so a sharp move in rates, spreads, or stocks can swing reported results and capital. Whether LNC is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
Lincoln National Corporation, which operates as Lincoln Financial, is a diversified US life insurer and retirement company with four segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services. It sells fixed and variable annuities, term and universal life insurance, workplace group benefits, and defined-contribution retirement plans, earning money from insurance premiums, fees on account balances, and net investment income on a large general-account bond portfolio. The investment picture is that of a turnaround value name in the insurance sector. After several difficult years, Lincoln has reported a run of consecutive quarters of adjusted operating income growth (up roughly 16 percent year over year in the first quarter of 2026), helped by strong annuity deposits, rising net investment income, and expense discipline. The stock trades at a very low earnings multiple and a mid-single-digit dividend yield, so it is a bet on continued balance-sheet repair and earnings consistency rather than on rapid top-line growth.
What's the case for buying LNC?
1. Annuities and net investment income
Annuities is Lincoln's largest earnings engine, and higher interest rates have lifted net investment income on the general account while supporting strong annuity deposit flows. Continued favorable equity markets also raise the fee-based value of variable annuity and account balances. This segment is central to the recent run of operating income growth.
2. Balance-sheet repair and capital
Much of the story is Lincoln rebuilding capital and free cash flow after prior reserve and hedging pressures, including reinsurance transactions that freed up capital. Management has emphasized improving its risk-based capital position and persistent balance-sheet strengthening. Progress here is what would let the company sustain its dividend and buybacks.
3. Deep valuation discount
LNC trades at a very low price-to-earnings multiple (around 4 to 5 times) and near or below book value, a discount to peers like Principal and MetLife. If earnings prove durable and the balance sheet keeps improving, that gap could narrow. The mid-single-digit dividend yield pays holders while that thesis plays out.
4. Group Protection and Retirement Plan Services
The Group Protection (workplace disability, life, dental) and Retirement Plan Services segments diversify earnings away from market-sensitive annuities. Group Protection margins have been a focus after weaker sales, while Retirement Plan Services adds fee income. Steadier results here would reduce reliance on investment markets.
What are the risks to LNC?
As a life insurer, Lincoln carries substantial interest-rate, credit, and equity-market risk through its large general-account bond portfolio and its variable-annuity guarantees, so a sharp move in rates, spreads, or stocks can swing reported results and capital. The company has a history of reserve charges and hedging losses that drove past net losses, and quarterly GAAP results can still show volatility even when adjusted operating income rises. Commercial real estate and other credit exposures within the investment portfolio are a watch item. The dividend, while covered, depends on continued subsidiary cash flow and capital ratios. Competition from larger and better-capitalized insurers pressures pricing across annuities, life, and group benefits.
How is LNC valued? (as of JULY 2026)
Snapshot for LNC as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Revenue (TTM): ~$18.5B
- Market cap: ~$7B
- P/E ratio: ~4 to 5x
- Dividend yield: ~4.9%
- Q1 2026 adjusted EPS: ~$1.66
- Q1 2026 operating revenue: ~$4.9B
Lincoln trades at a strikingly low earnings multiple and near book value, reflecting the market's memory of prior charges more than current results. First-quarter 2026 adjusted operating income rose about 16 percent year over year on strong annuity deposits and higher net investment income. The mid-single-digit dividend yield and modest payout ratio give holders income while the balance-sheet recovery continues.
How do you decide if LNC is a buy?
Rather than asking whether LNC is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold LNC indirectly through an index or sector ETF before adding more.
For the full picture, see the LNC stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about LNC against your real portfolio and see your actual exposure before deciding.
The bottom line on LNC
The bottom line: Lincoln National Corporation's story right now is Annuities and net investment income, with revenue (ttm) at ~$18.5B. If you believe that narrative continues, the call is about sizing LNC sensibly and checking overlap with what you own; if you doubt it (the risk: as a life insurer, Lincoln carries substantial interest-rate, credit, and equity-market risk through its large general-account bond portfolio and its variable-annuity guarantees, so a sharp move in rates, spreads, or stocks can swing reported results and capital.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
More on LNC
- LNC stock guide (what the company does, ETFs that hold it, similar stocks, and the themes it fits)
- LNC stock forecast (the drivers and risks shaping the outlook)
- Does LNC pay a dividend?
Build a basket around LNC with Walnut
Use Lincoln National Corporation as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is LNC a good stock to buy right now?
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The case for Lincoln National Corporation right now is Annuities and net investment income, with revenue (ttm) at ~$18.5B. If you believe that thesis holds, LNC is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is as a life insurer, Lincoln carries substantial interest-rate, credit, and equity-market risk through its large general-account bond portfolio and its variable-annuity guarantees, so a sharp move in rates, spreads, or stocks can swing reported results and capital. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does Lincoln National Corporation do?
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Lincoln National Corporation, which operates as Lincoln Financial, is a diversified US life insurer and retirement company with four segments: Annuities, Life Insurance, Group Prot
What are the main risks of LNC?
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As a life insurer, Lincoln carries substantial interest-rate, credit, and equity-market risk through its large general-account bond portfolio and its variable-annuity guarantees, so a sharp move in rates, spreads, or stocks can swing reported results and capital. The company has a history of reserve charges and hedging losses that drove past net losses, and quarterly GAAP results can still show volatility even when adjusted operating income rises. Commercial real estate and other credit exposures within the investment portfolio are a watch item. The dividend, while covered, depends on continued subsidiary cash flow and capital ratios. Competition from larger and better-capitalized insurers pressures pricing across annuities, life, and group benefits.
What does LNC stand for?
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LNC is the NYSE ticker for Lincoln National Corporation, the holding company that operates under the Lincoln Financial brand. It is a US life insurance and retirement services company, not to be confused with the unrelated Lincoln vehicle brand.
What business is Lincoln National in?
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Lincoln National sells annuities, life insurance, workplace group protection benefits, and retirement plan services. It earns money from insurance premiums, fees on annuity and account balances, and net investment income on a large bond portfolio.
How big is Lincoln National?
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As of July 2026 Lincoln National has a market capitalization of roughly $7 billion and trailing twelve-month revenue of about $18.5 billion, placing it among the mid-size US life insurers rather than the largest players like MetLife or Prudential.
Why is LNC's P/E ratio so low?
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LNC trades around 4 to 5 times earnings, well below the market and many peers. The low multiple reflects the market's caution after prior reserve charges and hedging losses that produced past net losses, even as recent adjusted operating income has been growing.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell LNC; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.