Track market-moving stories before they get noisy

Shares of Chinese electric vertical take-off and landing (eVTOL) company EHang Holdings (EH 3.15%) crashed to Earth on Tuesday, falling 23% through 12:10 p.m. ET after apparently missing analyst forecasts for sales by a wide margin this morning.

According to Yahoo! Finance data, Wall Street analysts expected EHang to report $53.9 million in sales for its first fiscal quarter of 2026. When the news actually came out, though, it turned out EHang had booked a mere $3.7 million in sales -- while losses grew significantly.

Image source: Getty Images.

EHang Q1 earnings Revenue calculated in Chinese renminbi actually declined slightly year over year as EHang booked only four sales of its EH216 eVTOL aircraft -- down from 11 units sold in the year-ago quarter, and way down from the 61 units sold in fiscal Q4 2025 (plus five VT35s sold last quarter as well).

Gross profit margin did tick higher, up 10 basis points to 62.5% -- but that minuscule improvement wasn't enough to offset a 94% sequential decline in units sold!

Today's Change

(

-3.15

%) $

-0.21

Current Price

$

6.61

What's next for EHang stock? So what's going on here? Have buyers simply fallen out of love with EHang's products?

Perhaps. It's also possible, though, that Chinese eVTOL shoppers may be delaying purchase of the EH216 model in anticipation of the more advanced VT35, which is still in development and awaiting full certification. Described as a "long-range lift-and-cruise eVTOL aircraft," the new model should have more use cases and attract a wider range of buyers once it's certified.

While Q1's sales number certainly came as a shock, if what we're looking at here is a simple case of pent-up demand, there's still hope for EHang to pull out of its tailspin yet.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

EHang's investment thesis centers on a focused, actionable opportunity with clear catalysts. Key drivers, valuation, and risk factors are evaluated to support the recommendation. The article emphasizes EH's forward-looking strategic positioning and potential portfolio impact.

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RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial (NYSE:LNC) announced today that the board of directors of Lincoln National Corporation has declared a quarterly dividend of $562.50 per share on the corporation’s 9.000% Non-Cumulative Preferred Stock, Series D, $25,000 liquidation preference per share, represented by depositary shares each representing a 1/1,000th interest in a share of the preferred stock, holders of which will receive $0.5625 per depositary share (NYSE: LNC PRD). The dividend will be payable June 1, 2026 to holders of record on May 15, 2026.

About Lincoln Financial

Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2025, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of December 31, 2025, the company had $349 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, PA, Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

More News From Lincoln Financial

Back to Newsroom

RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial (NYSE: LNC) today reported financial results for the first quarter ended March 31, 2026.

Sustained progress against strategic and financial objectives drove solid first quarter performance. First quarter net loss available to common stockholders was $(211) million, or $(1.10) per diluted share. First quarter adjusted operating income available to common stockholders was $326 million, or $1.66 per diluted share. The difference between net income and adjusted operating income was primarily attributable to the non-economic impact of changes in market risk benefits. Holding company available liquidity increased to $805 million, net of prefunding amounts. “Our first quarter results reflect continued disciplined execution and consistent, meaningful progress against our strategic priorities," said Ellen Cooper, Chairman, President and CEO of Lincoln Financial. "Group Protection delivered record first quarter earnings, while Life Insurance and Retirement Plan Services generated strong earnings growth. In Annuities, we achieved another quarter of diversification in new business with a more balanced mix and less market sensitivity.

"The cumulative impact of the actions we’ve taken — strengthening our capital foundation, optimizing our operating model, and diversifying our business mix — are translating into a more resilient, higher-quality earnings profile. We remain focused on advancing these priorities to further build on this trajectory and create sustainable, long-term value for shareholders.”

Business Highlights

Our 2026 first quarter performance represents sustained, company-wide progress against our strategic and financial objectives.

Retail Solutions

Annuities delivered operating income of $275 million, down 5% compared to the prior-year quarter, driven by the impact of the previously disclosed net investment income allocation refinement and unfavorable tax-related items. Adjusting for these items, operating income was up 1%, driven by favorable equity markets and growth in spread income, offset by variable annuity outflows. Annuities recorded $169 billion in ending account balances, net of reinsurance, and sales of $3.9 billion, up 4% year over year. Spread-based products accounted for approximately two-thirds of total sales in the quarter, reflecting our continued strategic shift towards spread-based business. Life Insurance delivered operating income of $41 million, a $57 million increase from the prior-year quarter, driven by strong alternative investment income and the impact of the fourth quarter 2025 captive consolidation. Annualized consolidated alternative investment income returns were approximately 12.3%, which is more than 2% higher than our annual target. Total sales were $129 million, up 33% compared to the prior-year quarter, reflecting sales growth across all product lines, most notably in Executive Benefits. Workplace Solutions

Group Protection delivered operating income of $112 million, compared to $101 million in the prior-year quarter, driven by favorable life experience. Premiums were 2% higher year over year, as strong sales over the prior twelve months were partially offset by a large case lapse. Adjusting for the large case lapse, premiums were up 3.4% compared to the first quarter of 2025. Sales of $150 million were 4% lower year over year and demonstrated a disciplined approach to balanced growth in the segment. Retirement Plan Services reported operating income of $43 million in the quarter, up 26% year over year, driven by spread expansion and favorable equity markets, partially offset by trailing-twelve-month outflows. Net outflows were $0.2 billion, compared to $2.2 billion in the prior-year quarter. Total deposits were $4.1 billion in the quarter, up 1% over the prior-year quarter, with first-year sales of $1.1 billion, up 3% year over year. Earnings Summary

(in millions, except per share data)

For the Three Months Ended

3/31/25

3/31/26

Net income (loss)

$

(722

)

$

(172

)

Net income (loss) available to common stockholders — diluted

(756

)

(211

)

Net income (loss) per diluted share available to common stockholders

$

(4.41

)

$

(1.10

)

Adjusted income (loss) from operations

314

360

Adjusted income (loss) from operations available to common stockholders

280

326

Adjusted income (loss) from operations per diluted share available to common stockholders

$

1.60

$

1.66

Reconciliation of Net Income (Loss) to Adjusted Income (Loss) from Operations(1)

(in millions)

For the Three Months Ended

3/31/25

3/31/26

Net income (loss) available to common stockholders — diluted

$

(756

)

$

(211

)

Less:

Preferred stock dividends declared

(34

)

(34

)

Adjustment for deferred units of LNC stock in our deferred compensation plans

—

(5

)

Net income (loss)

(722

)

(172

)

Less:

Net annuity product features, pre-tax(1)

(1,092

)

(695

)

Net life insurance product features, pre-tax

42

22

Credit loss-related adjustments, pre-tax

(28

)

(20

)

Investment gains (losses), pre-tax

(103

)

(42

)

Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, pre-tax(1)

(90

)

179

Gains (losses) on other non-financial assets, pre-tax

—

(6

)

Other items, pre-tax(1)

(35

)

(111

)

Income tax benefit (expense) related to the above pre-tax items

270

141

Adjusted income (loss) from operations

$

314

$

360

Adjusted income (loss) from operations available to common stockholders

$

280

$

326

  (1) Refer to the full reconciliation at the back of this release for footnotes.

Variable Investment Income

Alternative Investment Income, after-tax(1)

For the Three Months Ended

(in millions)

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Annuities

$

2

$

3

$

2

$

3

$

3

Life Insurance

55

74

75

90

95

Group Protection

1

1

2

2

2

Retirement Plan Services

1

2

1

3

2

Other Operations

—

—

—

—

—

Consolidated

$

59

$

80

$

80

$

98

$

102

  (1) Excludes alternative investment income on investments supporting our modified coinsurance and coinsurance with funds withheld agreements as we have limited economic interest in those investments.

Prepayment Income, after-tax

For the Three Months Ended

(in millions)

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Annuities

$

—

$

3

$

3

$

5

$

1

Life Insurance

1

—

1

1

2

Group Protection

—

1

—

—

1

Retirement Plan Services

—

—

1

1

—

Other Operations

—

—

—

—

—

Consolidated

$

1

$

4

$

5

$

7

$

4

Items Impacting Segment and Other Operations Results

For the Three Months Ended March 31, 2026

(in millions, after-tax)

Annuities

Life Insurance

Group Protection

Retirement Plan Services

Other Operations

Alternative investment income compared to return target(1)

$

—

$

19

$

—

$

—

$

—

Prepayment income(2)

1

2

1

—

—

Annual assumption review

—

—

—

—

—

Tax items(3)

(7

)

—

—

—

—

Other

—

—

—

—

—

Total impact

$

(6

)

$

21

$

1

$

—

$

—

For the Three Months Ended March 31, 2025

(in millions, after-tax)

Annuities

Life Insurance

Group Protection

Retirement Plan Services

Other Operations

Alternative investment income compared to return target(1)

$

(1

)

$

(16

)

$

—

$

(1

)

$

—

Prepayment income(2)

—

1

—

—

—

Annual assumption review

—

—

—

—

—

Tax items

—

—

—

—

—

Other

—

—

—

—

—

Total impact

$

(1

)

$

(15

)

$

—

$

(1

)

$

—

  (1) Alternative investment income comparison to return target assumes a 10% annual return on the alternative investment portfolio.

(2) Prepayment income is actual income reported in the quarter.

(3) Tax-related items including dividends-received deduction and foreign tax credit true-ups.

Capital and Liquidity

As of or For the Three Months Ended

(in millions, except percent and per share data)

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Holding company available liquidity(1)

$

466

$

466

$

461

$

1,055

$

1,205

Holding company available liquidity,

net of prefunding

$

466

$

466

$

461

$

655

$

805

RBC ratio(2)

>420%

>420%

>420%

>420%

>420%

Book value per share (BVPS), including AOCI

$

41.96

$

44.91

$

49.56

$

51.88

$

47.87

Book value per share, excluding AOCI(3)

$

67.04

$

67.95

$

69.66

$

73.10

$

71.06

Adjusted book value per share(3)

$

73.19

$

72.77

$

74.23

$

76.33

$

77.77

  (1) Holding company available liquidity presented as of 12/31/25 and 3/31/26 includes the $400 million prefunding of a 2026 maturity.

(2) The RBC ratio is calculated annually as of December 31, but is reported in the March statutory reporting, and as such, the quarterly ratios presented for 3/31/25, 6/30/25, 9/30/25 and 3/31/26 are considered estimates based on information known at the time of reporting.

(3) Refer to the reconciliation to book value per share, including AOCI, at the back of this release.

Annuities

(in millions, except ROA data)

As of or For the Three Months Ended

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Change

Total operating revenues

$

1,198

$

1,214

$

1,270

$

1,308

$

1,283

7.1

%

Total operating expenses

858

876

902

939

949

10.6

%

Income (loss) from operations before taxes

340

338

368

369

334

(1.8

)%

Federal income tax expense (benefit)

50

51

58

58

59

18.0

%

Income (loss) from operations

$

290

$

287

$

310

$

311

$

275

(5.2

)%

Income (loss) from operations, excluding impact of annual assumption review

$

290

$

287

$

318

$

311

$

275

(5.2

)%

Total sales

$

3,789

$

4,019

$

4,467

$

4,889

$

3,939

4.0

%

Net flows

$

(1,676

)

$

(1,162

)

$

(1,143

)

$

(1,227

)

$

(2,196

)

(31.0

)%

Average account balances, net of reinsurance

$

163,688

$

159,806

$

170,318

$

174,668

$

175,173

7.0

%

Return on average account balances (bps)

71

72

73

71

63

Return on average account balances (bps), excluding impact of annual assumption review

71

72

75

71

63

Income from operations was $275 million for the first quarter, compared to $290 million in the prior-year quarter, driven by the impact of the previously disclosed net investment income allocation refinement and unfavorable tax-related items. Adjusting for these items, operating income was up 1%, driven by favorable equity markets and growth in spread income, offset by variable annuity outflows. Total sales were $3.9 billion in the quarter, increasing 4% compared to the prior year. Spread-based products comprised nearly two-thirds of total sales. Net outflows were approximately $2.2 billion in the quarter, compared to net outflows of $1.7 billion in the prior-year quarter, primarily driven by traditional variable annuities. Average account balances, net of reinsurance, were $175 billion. The year-over-year increase of 7% was driven by growth across all product lines. Life Insurance

(in millions)

As of or For the Three Months Ended

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Change

Total operating revenues

$

1,587

$

1,602

$

1,610

$

1,643

$

1,628

2.6

%

Total operating expenses

1,619

1,568

1,586

1,555

1,586

(2.0

)%

Income (loss) from operations before taxes

(32

)

34

24

88

42

231.3

%

Federal income tax expense (benefit)

(16

)

2

(1

)

11

1

106.3

%

Income (loss) from operations

$

(16

)

$

32

$

25

$

77

$

41

NM

Income (loss) from operations, excluding impact of annual assumption review

$

(16

)

$

32

$

54

$

77

$

41

NM

Average account balances, net of reinsurance

$

44,390

$

45,147

$

47,503

$

49,150

$

49,232

10.9

%

Total sales

$

97

$

121

$

298

$

142

$

129

33.0

%

Income from operations was $41 million, compared to a loss of $16 million in the prior-year quarter. The year-over-year improvement was driven by strong alternative investment income and the impact of the fourth quarter 2025 captive consolidation. Total sales were $129 million, up 33% compared to the prior-year quarter, as sales of accumulation products continued to drive growth, most notably in Executive Benefits. Average account balances, net of reinsurance, were $49 billion, up 11% versus the prior-year quarter. Group Protection

(in millions, except margin data)

As of or For the Three Months Ended

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Change

Total operating revenues

$

1,521

$

1,538

$

1,507

$

1,535

$

1,554

2.2

%

Total operating expenses

1,393

1,319

1,319

1,397

1,412

1.4

%

Income (loss) from operations before taxes

128

219

188

138

142

10.9

%

Federal income tax expense (benefit)

27

46

39

29

30

11.1

%

Income (loss) from operations

$

101

$

173

$

149

$

109

$

112

10.9

%

Income (loss) from operations, excluding impact of annual assumption review

$

101

$

173

$

110

$

109

$

112

10.9

%

Insurance premiums

$

1,371

$

1,386

$

1,352

$

1,380

$

1,399

2.0

%

Total sales

$

157

$

187

$

116

$

391

$

150

(4.5

)%

Total loss ratio

72.4

%

65.9

%

68.3

%

71.4

%

71.1

%

Total loss ratio, excluding the impact of the annual assumption review

72.4

%

65.9

%

72.2

%

71.4

%

71.1

%

Operating margin(1)

7.4

%

12.5

%

11.0

%

7.9

%

8.0

%

Operating margin, excluding the impact of annual assumption review

7.4

%

12.5

%

8.1

%

7.9

%

8.0

%

  (1) Operating margin is calculated by dividing income (loss) from operations by insurance premiums.

Income from operations was $112 million in the quarter, 11% higher than the prior-year quarter driven by favorable life experience. Operating margin was 8.0%, 60 basis points higher than the prior-year quarter, and the total loss ratio decreased 130 basis points to 71.1%, driven by favorable life experience partially offset by unfavorable disability severity. Insurance premiums were $1.4 billion in the quarter, increasing 2% year over year, driven by strong sales over the past twelve months. Adjusting for a large case lapse, premiums were up 3.4% compared to the first quarter of 2025. Sales decreased 4% year over year, demonstrating a disciplined approach to balanced growth in the segment. Retirement Plan Services

(in millions, except ROA data)

As of or For the Three Months Ended

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Change

Total operating revenues

$

327

$

331

$

343

$

352

$

346

5.8

%

Total operating expenses

289

289

290

298

295

2.1

%

Income (loss) from operations before taxes

38

42

53

54

51

34.2

%

Federal income tax expense (benefit)

4

5

7

8

8

100.0

%

Income (loss) from operations

$

34

$

37

$

46

$

46

$

43

26.5

%

Deposits

$

4,115

$

3,594

$

5,008

$

3,939

$

4,142

0.7

%

Net flows

$

(2,184

)

$

(585

)

$

755

$

(998

)

$

(213

)

90.2

%

Average account balances

$

113,075

$

111,734

$

119,259

$

123,533

$

124,766

10.3

%

Return on average account balances (bps)

12

13

15

15

14

Income from operations was $43 million in the quarter, up 26% compared to the prior year, primarily resulting from spread expansion and favorable equity markets, partially offset by outflows. Net outflows were $0.2 billion, compared to $2.2 billion of net outflows in the prior-year quarter. Total deposits were $4.1 billion, up 1% over the prior-year quarter. First-year sales of $1.1 billion were up 3% year over year. Average account balances were $125 billion, increasing 10% from the prior year, driven by favorable equity markets. Other Operations

(in millions)

As of or For the Three Months Ended

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Change

Total operating revenues

$

52

$

41

$

50

$

56

$

57

9.6

%

Total operating expenses

164

157

177

181

199

21.3

%

Income (loss) from operations before taxes

(112

)

(116

)

(127

)

(125

)

(142

)

(26.8

)%

Federal income tax expense (benefit)

(17

)

(25

)

(28

)

(27

)

(31

)

(82.4

)%

Income (loss) from operations(1)

$

(95

)

$

(91

)

$

(99

)

$

(98

)

$

(111

)

(16.8

)%

  (1) Income (loss) from operations does not include preferred dividends.

Unrealized Gains and Losses

The company reported a net unrealized loss of $9.1 billion (pre-tax) on its available-for-sale securities as of March 31, 2026, compared to a net unrealized loss of $9.4 billion (pre-tax) as of March 31, 2025. The year-over-year decrease was primarily due to tighter spreads.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share excluding AOCI, and adjusted book value per share to net income (loss), net income (loss) available to common stockholders, and book value per share including AOCI, calculated in accordance with GAAP.

This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.

For other financial information, please refer to the company’s first quarter 2026 statistical supplement and first quarter 2026 earnings supplement, which are available in the investor relations section of its website http://www.lincolnfinancial.com/investor.

Conference Call Information

Lincoln Financial will discuss the company’s first quarter results with the investment community in a call beginning at 8:00 a.m. Eastern Time on Thursday, May 7, 2026.

The call will be broadcast live through the company’s website at www.lincolnfinancial.com/webcast. Please log on to the webcast at least 15 minutes prior to the start of the call to download and install any necessary streaming media software. A replay of the call will be available by 10:30 a.m. Eastern Time on May 7, 2026, at www.lincolnfinancial.com/webcast.

About Lincoln Financial

Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2025, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of March 31, 2026, the company had $340 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, PA., Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

Non-GAAP Measures

Management believes that the use of the non-GAAP financial measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders (or adjusted operating income (loss)) and adjusted income (loss) from operations per diluted share available to common stockholders is helpful to investors in evaluating the company’s performance.

Management believes that excluding the following items from adjusted income (loss) from operations enhances understanding of the underlying trends and long-term performance of the company’s business. Management excludes “net annuity product features” as this adjustment primarily represents the difference between the valuation of reserves and the valuation of derivatives utilized for hedging our variable annuity and indexed annuity products, which can fluctuate significantly from period to period based on changes in equity markets and interest rates. This difference is due to the hedge focus on managing risks to statutory capital as opposed to the GAAP reserves. Management excludes “net life insurance product features” for similar reasons. In addition, management excludes “credit loss-related adjustments” and “investment gains (losses)” as the timing of changes in allowances or sales of credit-impaired investments depends largely on market credit cycles and can vary considerably from period to period and the timing of other sales of investments that would result in gains or losses is driven by market conditions, including interest rates, and other factors. Management excludes “changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans” as this adjustment represents the economics of investments in underlying funds withheld portfolios supporting reinsurance agreements that have been transferred to third-party reinsurers, which is not indicative of our ongoing results.

Finally, management excludes from adjusted income (loss) from operations certain additional items (as set forth in the definition below) that are not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management believes excluding these items better explains the results of the company’s ongoing businesses in a manner that allows for enhanced understanding of underlying trends, company performance and business fundamentals.

Management also believes that the use of the non-GAAP financial measures book value per share, excluding accumulated other comprehensive income (“AOCI”), and adjusted book value per share enables investors to analyze the amount of our net worth that is attributable to our business operations. Book value per share, excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Adjusted book value per share is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.

For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Supplements for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: http://www.lincolnfinancial.com/investor.

Definitions of Non-GAAP Measures Used in this Press Release

Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share, excluding AOCI, and adjusted book value per share, as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), net income (loss) available to common stockholders, and book value per share, including AOCI, the most directly comparable GAAP measures.

Adjusted Income (Loss) from Operations

Adjusted income (loss) from operations is GAAP net income (loss) excluding the following items, as applicable:

Items related to annuity product features, which include changes in market risk benefits (“MRBs”), changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits, and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products (collectively, “net annuity product features”); Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”); Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”); Changes in the fair value of equity securities and certain other investments, the impact of certain derivatives, and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”); Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”); Income (loss) from the initial adoption of new accounting standards, accounting policy changes and new regulations, including changes in tax law; Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; Income (loss) from discontinued operations; Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; transaction, integration and other costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business, and certain other corporate initiatives; mark-to-market adjustment related to the LNC stock component of our deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances. Adjusted Income (Loss) from Operations Available to Common Stockholders

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends.

Book Value Per Share, Excluding AOCI

Book value per share, excluding AOCI, is calculated based upon a non-GAAP financial measure.

It is calculated by dividing (a) stockholders’ equity, excluding AOCI and preferred stock, by (b) common shares outstanding. Book value per share is the most directly comparable GAAP measure. Adjusted Book Value Per Share

Adjusted book value per share is calculated based upon a non-GAAP financial measure.

It is calculated by dividing (a) stockholders’ equity, excluding AOCI, preferred stock, changes in MRBs, guaranteed living benefit (“GLB”) and guaranteed death benefit (“GDB”) hedge instruments gains (losses), and the difference between amounts recognized in net income (loss) on reinsurance-related embedded derivatives and the underlying asset portfolios (“reinsurance-related embedded derivatives and portfolio gains (losses)”) by (b) common shares outstanding. Book value per share is the most directly comparable GAAP measure. Other Definitions

Holding Company Available Liquidity

Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial paper outstanding.

Sales

Sales as reported consist of the following:

Annuities and Retirement Plan Services – deposits from new and existing customers; Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received; MoneyGuard® linked-benefit products – MoneyGuard® (UL) and MoneyGuard Market Advantage® (VUL), 150% of commissionable premiums; Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of single premium deposits; Term – 100% of annualized first-year premiums; and Group Protection – annualized first-year premiums from new policies. Lincoln National Corporation

Reconciliation of Net Income (Loss) to Adjusted Income (Loss) from Operations and

Average Stockholders' Equity to Adjusted Average Stockholders' Equity

  For the

(in millions, except per share data)

Three Months Ended

March 31,

2026

2025

Net Income (Loss) Available to Common

Stockholders – Diluted

$

(211

)

$

(756

)

Less:

Preferred stock dividends declared

(34

)

(34

)

Adjustment for deferred units of LNC stock in our

deferred compensation plans

(5

)

—

Net Income (Loss)

(172

)

(722

)

Less:

Net annuity product features, pre-tax (1)

(695

)

(1,092

)

Net life insurance product features, pre-tax

22

42

Credit loss-related adjustments, pre-tax

(20

)

(28

)

Investment gains (losses), pre-tax

(42

)

(103

)

Changes in the fair value of reinsurance-related

embedded derivatives, trading securities and certain

mortgage loans, pre-tax (2)

179

(90

)

Gains (losses) on other non-financial assets, pre-tax

(6

)

—

Other items, pre-tax (3)(4)(5)(6)

(111

)

(35

)

Income tax benefit (expense) related to the above pre-tax items

141

270

Total adjustments

(532

)

(1,036

)

Adjusted Income (Loss) from Operations

$

360

$

314

Add:

Preferred stock dividends declared

(34

)

(34

)

Adjusted Income (Loss) from Operations Available to Common Stockholders

$

326

$

280

Earnings (Loss) Per Common Share – Diluted

Net income (loss)

$

(1.10

)

$

(4.41

)

Adjusted income (loss) from operations

1.66

1.60

Stockholders’ Equity, Average

Stockholders' equity

$

10,559

$

8,231

Less:

Preferred stock

986

986

AOCI

(4,262

)

(4,671

)

Stockholders’ equity, excluding AOCI and preferred stock

13,835

11,916

Changes in MRBs

3,037

2,649

GLB and GDB hedge instruments gains (losses)

(3,820

)

(3,027

)

Reinsurance-related embedded derivatives and portfolio gains (losses)

(172

)

(173

)

Adjusted average stockholders' equity

$

14,790

$

12,467

(1)

For the three months ended March 31, 2026 and 2025, includes changes in MRBs of $(997) million and $(1,302) million, respectively; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $177 million and $268 million, respectively; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $125 million and $(58) million, respectively.

(2)

Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.

(3)

Includes certain legal accruals of $(122) million for the three months ended March 31, 2026.

(4)

Includes severance expense related to initiatives to realign the workforce of $(7) million and $(6) million for the three months ended March 31, 2026 and 2025, respectively.

(5)

Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(20) million related to the sale of our wealth management business for the three months ended March 31, 2025.

(6)

Includes deferred compensation mark-to-market adjustment of $18 million and $(9) million for the three months ended March 31, 2026 and 2025, respectively.

Lincoln National Corporation

Reconciliation of Book Value per Share

  As of the Three Months Ended

3/31/25

6/30/25

9/30/25

12/31/25

3/31/26

Book Value Per Common Share

Book value per share

$

41.96

$

44.91

$

49.56

$

51.88

$

47.87

Less:

AOCI

(25.08

)

(23.04

)

(20.10

)

(21.22

)

(23.19

)

Book value per share, excluding AOCI

67.04

67.95

69.66

73.10

71.06

Less:

Changes in MRBs

12.42

15.05

16.42

17.94

13.72

GLB and GDB hedge instruments gains (losses)

(17.43

)

(18.89

)

(19.40

)

(19.94

)

(19.87

)

Reinsurance-related embedded derivatives and portfolio gains (losses)

(1.14

)

(0.98

)

(1.59

)

(1.23

)

(0.56

)

Adjusted book value per share

$

73.19

$

72.77

$

74.23

$

76.33

$

77.77

Lincoln National Corporation

Digest of Earnings

  For the

(in millions, except per share data)

Three Months Ended

March 31,

2026

2025

Revenues

$

5,306

$

4,691

Net Income (Loss)

$

(172

)

$

(722

)

Preferred stock dividends declared

(34

)

(34

)

Adjustment for deferred units of LNC stock in our

deferred compensation plans (1)

(5

)

—

Net Income (Loss) Available to Common

Stockholders – Diluted

$

(211

)

$

(756

)

Net Income (Loss) Per Common Share – Basic

$

(1.08

)

$

(4.41

)

Net Income (Loss) Per Common Share – Diluted (2)

$

(1.10

)

$

(4.41

)

Average Shares – Basic

191,891,461

171,321,440

Average Shares – Diluted

196,496,544

174,087,020

FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA. Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

Weak general economic and business conditions that may affect demand for our products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience; Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures; The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations; Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’ products; the required amount of reserves and/or surplus; our ability to conduct business; and our affiliate reinsurance arrangements; Changes in tax law or the interpretation of or application of existing tax laws that could impact our tax costs and the products that we sell; The impact of regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor or other federal or state regulators or self-regulatory organizations that could adversely affect our distribution model and sales of our products and result in additional disclosure and other requirements related to the sale and delivery of our products; The impact of existing and emerging rules and regulations relating to privacy, cybersecurity and artificial intelligence (“AI”) that may lead to increased compliance costs, reputation risk and/or changes in business practices, and challenges with properly managing the use of AI that could result in reputational harm, competitive harm and legal liability; Continued scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio; Actions taken by reinsurers to raise rates on in-force business; Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products; Increasing or sustained higher interest rates that may negatively affect our profitability, value of our investment portfolio and capital position and may cause policyholders to surrender annuity and life insurance policies, thereby causing realized investment losses; The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings; A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefits, including riders on certain of our annuity products and secondary guarantees on certain variable universal life insurance products; Ineffectiveness of our risk management policies and procedures, including our various hedging strategies; A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products and in establishing related insurance reserves, which may reduce future earnings; Changes in accounting principles that may affect our consolidated financial statements; Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition; Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention and profitability of our insurance subsidiaries and liquidity; Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets; Interruption in or failure of the telecommunication, information technology or other operational systems of the company or the third parties on whom we rely or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches in security of such systems; The effect of acquisitions and divestitures, including the inability to realize the anticipated benefits of acquisitions and dispositions of businesses and potential operating difficulties and unforeseen liabilities relating thereto, as well as the effect of restructurings, product withdrawals and other unusual items; The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives; The adequacy and collectability of reinsurance that we have obtained; Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for policyholder claims and adversely affect our businesses and the cost and availability of reinsurance; Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products; The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and The unanticipated loss of key management or wholesalers. The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors. Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to correct or update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

The reporting of Risk-Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

Lincoln National (LNC - Free Report) came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $1.6 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.59%. A quarter ago, it was expected that this insurance and retirement business would post earnings of $1.86 per share when it actually produced earnings of $2.21, delivering a surprise of +18.82%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Lincoln National, which belongs to the Zacks Insurance - Life Insurance industry, posted revenues of $4.87 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $4.69 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Lincoln National shares have lost about 15.5% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Lincoln National?While Lincoln National has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Lincoln National was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.11 on $4.89 billion in revenues for the coming quarter and $7.79 on $19.63 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Life Insurance is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, GoHealth (GOCO - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly loss of $2.17 per share in its upcoming report, which represents a year-over-year change of -361.7%. The consensus EPS estimate for the quarter has been revised 12.8% higher over the last 30 days to the current level.

GoHealth's revenues are expected to be $16.78 million, down 92.4% from the year-ago quarter.

Lincoln National Corporation (LNC) Q1 2026 Earnings Call Transcript

Key Takeaways LNC's Q1 adjusted EPS rose 3.7% year over year to $1.66 and beat estimates by 1.8%.Lincoln National's net investment income climbed 9.8% year over year to $1.6 billion.LNC's estimated RBC ratio improved to more than 420% at the end of the first quarter. Lincoln National Corporation (LNC - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.66, which surpassed the Zacks Consensus Estimate by 1.8%. The bottom line rose 3.7% year over year.

Adjusted operating revenues grew 3.9% year over year to $4.9 billion. However, the top line missed the consensus mark by 0.2%.

The quarterly earnings were supported by strong annuity deposits and solid Life Insurance performance. Higher net investment income, favorable equity markets and reduced expenses also contributed to the upside. Nevertheless, the positives were partly offset by a decline in the sales of Group Protection and lower insurance premiums.

Key Takeaways From LNC’s Q1 ResultsLNC’s estimated RBC ratio rose to more than 420% at the first-quarter end.

Insurance premiums inched down 0.1% year over year to $1.7 billion, missing the Zacks Consensus Estimate by 2.4%.

Fee income was $1.4 billion, which improved 0.3% year over year but missed the consensus mark by 1.7%. Net investment income advanced 9.8% year over year to $1.6 billion and beat the consensus mark by 7.5%.

Meanwhile, other revenues of $184 million rose 8.9% year over year in the quarter under review.

Total expenses declined 1.6% year over year to $5.6 billion. Interest credited rose 12.2% year over year to $999 million.

Lincoln National reported a net loss of $172 million compared to the prior-year quarter’s loss of $722 million.

Lincoln National’s Segmental PerformancesThe Annuities and Life Insurance segments form part of LNC’s Retail Solutions business, while Group Protection and Retirement Plan Services units make up the Workplace Solutions business.

The Annuities segment’s operating income totaled $275 million in the first quarter, which fell 5.2% year over year and missed the Zacks Consensus Estimate of $295.6 million due to the impact of a previously disclosed net investment income allocation refinement and unfavorable tax-related items. The unit's operating revenues rose 7.1% year over year to $1.3 billion, driven by 12.7% growth in net investment income, partly offset by a 14.3% decline in insurance premiums. Total annuity deposits were $3.9 billion, which climbed 3.7% year over year.

The Life Insurance unit recorded an operating income of $41 million, improved from the prior-year quarter’s loss of $16 million and beat the consensus mark of $7.2 million. The metric benefited from higher alternative investment income. Operating revenues grew 2.6% year over year to $1.6 billion. Total Life Insurance sales of $129 million advanced 33% year over year. Total deposits grew 2.9% year over year to $1.3 billion.

The Group Protection segment’s operating income increased 10.9% year over year to $112 million and beat the Zacks Consensus Estimate of $110.4 million. The unit was supported by a favorable life experience. Operating revenues totaled $1.6 billion in the quarter under review, which improved 2.2% year over year. The metric was driven by a 2% rise in insurance premiums. Sales of $150 million fell 4.5% year over year.

The Retirement Plan Services segment recorded an operating income of $43 million, which rose 26.5% year over year and beat the consensus mark of $42.3 million. The metric benefited from the expansion of spreads and favorable equity markets. Operating revenues increased 5.8% year over year to $346 million. Total deposits were $4.1 billion, which advanced 0.7% year over year.

Other Operations incurred an operating loss of $111 million, wider than the year-ago quarter’s loss of $95 million and the Zacks Consensus Estimate of $94.5 million.

Lincoln National’s Financial Update (As of March 31, 2026)Lincoln National exited the first quarter with cash and invested cash of $7.3 billion, which declined from the 2025-end level of $9.5 billion. Total assets of $406.2 billion fell from the figure at the 2025-end of $417.2 billion.

Long-term debt amounted to $6 billion, up from the figure of $5.9 billion as of Dec. 31, 2025.

Total stockholders’ equity of $10.2 billion declined from the 2025-end level of $10.9 billion.

Book value per share, excluding accumulated other comprehensive income, was $71.06, which fell from the 2025-end level of $73.10. Adjusted income from operations ROE deteriorated 20 basis points year over year to 8.8%.

LNC’s Dividend UpdateLincoln National paid out quarterly dividends of $86 million.

LNC’s 2026 OutlookIn 2026, the Annuities, Life Insurance, Group Protection and Retirement Plan Services units were projected to account for 58-60%, 8-9%, 24-25% and 8-9%, respectively, of the company’s total operating income earnings.

Management had earlier projected an RBC ratio of more than 420% for 2026 and over the long term.

LNC’s Zacks RankLNC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?Several companies in the insurance space, including RenaissanceRe Holdings Ltd. (RNR - Free Report) , AMERISAFE, Inc. (AMSF - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:

RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%. The bottom line improved from the year-ago quarter’s operating loss of $1.49. Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%. RNR’s quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments.

AMERISAFE reported first-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. The bottom line declined 16.7% year over year. Operating revenues increased 7.9% year over year to $81.75 million but missed the consensus estimate by 0.9%. AMSF’s quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower fee income and weaker investment income. Stronger premium growth partially offsets the downside.

Hartford posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%. Operating revenues totaled $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%. HIG’s weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.

Lincoln National remains a 'Buy,' with shares offering 30% upside and a 5.2% secure dividend yield. LNC's capital position is strong, with a risk-based capital ratio above 420% and leverage at its 25% target. Private credit fears are overstated for LNC, as 75% of its exposure is investment grade and direct lending is just 1.5% of the portfolio.

Few investors deserve to be called legends. But Bill Miller is one of them.

Miller famously beat the S&P 500 (^GSPC +0.49%) for 15 consecutive years, from 1991 to 2005. His specialty is identifying deep value opportunities overlooked or spurned by most investors. The billionaire founded Miller Value Partners in 1999 and served as its chairman and chief investment officer until 2023. His son, Bill Miller IV, now runs the fund, although the legendary investor still owns a stake.

Miller Value Partners continues to use the same approach that made Miller so successful through the years. While the fund unsurprisingly is loaded with value stocks, it also owns several dividend stocks. Here are the three top ultra-high-yield dividend stocks in the fund's portfolio.

Image source: Getty Images.

1. Lincoln National Lincoln National (LNC +1.94%) provides financial products, including annuities, insurance, retirement, and wealth protection, to around 17 million customers. The company's roots date back to 1905. It was named after President Abraham Lincoln.

This financial stock ranks as the second-largest holding in Miller Value Partners' portfolio, comprising nearly 8% of total assets. However, the fund trimmed its position somewhat in the fourth quarter of 2025, selling around 3%.

Today's Change

(

1.94

%) $

0.71

Current Price

$

37.31

Lincoln National's share price has plunged more than 20% year to date after soaring 40% in 2025. The sharp pullback has caused the stock's valuation to become attractive to value investors, with shares trading at only four times forward earnings.

Income investors could also find Lincoln National appealing. The company's forward dividend yield is 5.3%. Although Lincoln National hasn't increased its dividend in recent years, the dividend appears relatively safe, with a payout ratio below 20%.

2. Gray Media Gray Media (GTN 3.19%) is the largest owner of local TV stations in the U.S. It operates in 118 markets, reaching around 37% of the country's households. The company also owns the largest Telemundo Affiliate group as well as other media businesses, including digital media agency Gray Digital Media and Raycom Sports.

The communication stock is Miller Value Partners' third-largest holding. Unlike Lincoln National, Gray Media is a growing position within the fund's portfolio. Miller Value Partners increased its stake in Gray Media by 12% in the fourth quarter of 2025.

Today's Change

(

-3.19

%) $

-0.13

Current Price

$

3.93

Gray Media has taken investors on a roller coaster ride so far in 2026. However, it's been a decidedly downhill ride in recent years, with the stock sinking more than 80% below its late 2021 peak. This sell-off has pushed Gray Media's forward earnings multiple down to below 2x -- a super-low level.

Meanwhile, the company has continued to pay steady dividends. Its payout ratio of 74% isn't as reassuring as Lincoln National's. But Gray Media's 7.7% dividend yield is especially juicy.

3. Quad/Graphics Quad/Graphics (QUAD +1.07%) focuses on marketing experience, or MX. Its MX Solutions Suite helps customers create marketing content and analyze marketing campaigns. Quad serves around 2,100 clients, including Amazon (AMZN 1.50%), Citigroup (C +1.75%), and Kroger (KR +0.69%).

This stock is the fifth-largest holding in Miller Value Partners' portfolio. The fund increased its position by around 4.4% in the fourth quarter of 2025.

Today's Change

(

1.07

%) $

0.08

Current Price

$

7.58

Unlike Lincoln National and Gray Media, Quad has delivered solid returns so far in 2026. The stock has more than doubled over the last three years. Even with the impressive gains, it remains attractively valued, with shares trading at 6.2 times forward earnings.

Quad/Graphics offers a forward dividend yield of 5.5%. After slashing its dividend between 2019 and 2024, the company has begun to increase its payout over the last couple of years.

Another common denominator We've already seen two common denominators shared by Lincoln National, Gray Media, and Quad/Graphics. First, they're all high-yield dividend stocks. Second, they're all value stocks. However, these three stocks also have another thing in common: None of them are large-cap stocks.

Lincoln National is the biggest of the trio, with a market cap of $6.5 billion. Gray Media and Quad, though, are small-cap stocks, with market caps below $500 million. That shouldn't be surprising. Miller has long held that the best mispriced opportunities are typically smaller stocks that don't receive as much analyst attention.

To be sure, these stocks won't appeal to every investor. Some could view them as value traps. However, ultra-high yields and ultra-low expectations can sometimes create great opportunities for aggressive investors. Just ask Bill Miller.

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RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial (NYSE:LNC) announced today that the board of directors of Lincoln National Corporation declared a quarterly cash dividend of $0.45 per share on the corporation’s common stock. The dividend on the common stock will be payable August 3, 2026, to shareholders of record at the close of business on July 10, 2026.

About Lincoln Financial
Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2025, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of March 31, 2026, the company has $340 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

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Lincoln Financial (NYSE: LNC) today announced the promotion of three senior leaders to its Senior Management Committee (SMC): Darrel Tedrow as Executive Vice P

Posted by Defense World Staff on Apr 24th, 2026

Cwm LLC raised its holdings in KeyCorp (NYSE:KEY – Free Report) by 159.0% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 130,736 shares of the financial services provider’s stock after acquiring an additional 80,257 shares during the period. Cwm LLC’s holdings in KeyCorp were worth $2,698,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of KEY. Wellington Management Group LLP raised its holdings in shares of KeyCorp by 90.2% in the 3rd quarter. Wellington Management Group LLP now owns 36,370,694 shares of the financial services provider’s stock valued at $679,768,000 after acquiring an additional 17,245,128 shares in the last quarter. Capital World Investors raised its holdings in shares of KeyCorp by 169.2% in the 3rd quarter. Capital World Investors now owns 20,788,957 shares of the financial services provider’s stock valued at $388,546,000 after acquiring an additional 13,067,326 shares in the last quarter. Two Sigma Investments LP purchased a new stake in shares of KeyCorp in the 3rd quarter valued at about $66,683,000. Victory Capital Management Inc. raised its holdings in shares of KeyCorp by 39.6% in the 3rd quarter. Victory Capital Management Inc. now owns 6,856,534 shares of the financial services provider’s stock valued at $128,149,000 after acquiring an additional 1,945,368 shares in the last quarter. Finally, Barclays PLC raised its holdings in shares of KeyCorp by 49.3% in the 3rd quarter. Barclays PLC now owns 5,237,786 shares of the financial services provider’s stock valued at $97,894,000 after acquiring an additional 1,730,046 shares in the last quarter. Hedge funds and other institutional investors own 79.69% of the company’s stock.

KeyCorp News Summary Here are the key news stories impacting KeyCorp this week:

Positive Sentiment: KeyCorp announced a definitive agreement to acquire Clearwater Corporate Finance LLP (Clearwater UK), giving Key its first strategic foothold in Western Europe and bolstering its middle‑market M&A/advisory franchise — a revenue and fee‑generation opportunity that supports long‑term growth in investment banking. KeyCorp to Acquire Clearwater UK, Expanding Financial Advisory Capabilities Positive Sentiment: Key reported a solid Q1 (EPS $0.44 vs. $0.41 consensus; revenue up ~10% y/y to $1.95B) and unveiled a US$1B share buyback program — both supportive of near‑term EPS accretion and valuation multiple expansion. This combination is a clear positive for shareholder returns. KeyCorp (KEY) Valuation Check After Strong Q1 Results And New US$1b Share Buyback Program Neutral Sentiment: Analysts’ Q1‑call questions highlighted key monitoring areas (capital returns, credit trends, margin/expense outlook and deployment of the buyback). These items set the metrics investors will watch but are not immediate binary catalysts. 5 Must-Read Analyst Questions From KeyCorp’s Q1 Earnings Call Neutral Sentiment: Third‑party analyst commentary grouped Key with peers when discussing industry dynamics; useful context but not a standalone catalyst. Monitor further analyst revisions for guidance on ratings or targets. Analysts Offer Insights on Financial Companies: Visa (V), Zions (ZION) and KeyCorp (KEY) Negative Sentiment: The acquisition details did not disclose financial terms publicly, leaving near‑term earnings impact, integration costs and regulatory approvals unclear — factors that can introduce short‑term uncertainty and temper upside until more detail is provided. KeyCorp to acquire UK-based Clearwater Corporate Finance, terms undisclosed KeyCorp Price Performance Shares of KeyCorp stock opened at $22.03 on Friday. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $23.63 billion, a PE ratio of 13.51, a price-to-earnings-growth ratio of 0.71 and a beta of 1.07. The business’s 50-day moving average price is $20.68 and its 200-day moving average price is $20.00. KeyCorp has a 12 month low of $14.43 and a 12 month high of $23.34.

KeyCorp (NYSE:KEY – Get Free Report) last announced its quarterly earnings data on Thursday, April 16th. The financial services provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. The firm had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.93 billion. KeyCorp had a return on equity of 10.80% and a net margin of 17.03%.The company’s revenue was up 10.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.38 EPS. Sell-side analysts forecast that KeyCorp will post 1.81 EPS for the current fiscal year.

Insider Activity In other news, insider Angela G. Mago sold 62,850 shares of the stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $21.55, for a total transaction of $1,354,417.50. Following the transaction, the insider directly owned 261,415 shares in the company, valued at approximately $5,633,493.25. This represents a 19.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Andrew J. Paine III sold 65,961 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $23.23, for a total value of $1,532,274.03. Following the transaction, the insider owned 166,583 shares in the company, valued at $3,869,723.09. This trade represents a 28.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.56% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth KEY has been the topic of several recent analyst reports. Piper Sandler raised their price target on KeyCorp from $23.00 to $24.00 and gave the company an “overweight” rating in a report on Friday, April 17th. Morgan Stanley lowered their price target on KeyCorp from $26.00 to $24.00 and set an “equal weight” rating on the stock in a report on Tuesday, March 31st. Royal Bank Of Canada raised their price target on KeyCorp from $22.00 to $24.00 and gave the company an “outperform” rating in a report on Friday, April 17th. Evercore reaffirmed an “outperform” rating on shares of KeyCorp in a report on Tuesday. Finally, Barclays raised their price target on KeyCorp from $20.00 to $24.00 and gave the company an “equal weight” rating in a report on Monday, January 5th. Twelve equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $23.13.

Check Out Our Latest Stock Report on KEY

KeyCorp Profile (Free Report)

KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank’s offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.

The company’s product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.

Featured Stories Five stocks we like better than KeyCorp Want to see what other hedge funds are holding KEY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for KeyCorp (NYSE:KEY – Free Report).

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By PYMNTS  |  April 28, 2026

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Treasury solutions provider Qolo has launched an expanded partnership with KeyBank.

The collaboration, announced Tuesday (April 28), has resulted in the debut Key Virtual Card (KeyVC), a virtual commercial card program designed to help businesses more easily monitor and handle payments.

“Managing commercial payments can be complex, often requiring businesses to juggle multiple systems and reporting processes,” Rouzbeh Rotabi, Qolo’s chief operating officer, said in a news release.

“KeyVC is designed to reduce that complexity by allowing clients to use virtual cards alongside other treasury tools, with consistent reporting and simplified reconciliation across payment types. Businesses want payment tools that fit naturally into how they already operate.”

According to the release, the new offering lets KeyBank’s commercial clients create and manage virtual cards within KeyBank’s Virtual Account Management platform (KeyVAM).

By making virtual cards part of the same system clients use for treasury and cash management, the program helps businesses pay suppliers more efficiently while offering stronger spending and reconciliation oversight, the company said.

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“Commercial clients are increasingly looking for simpler and more controlled ways to manage payments,” said John Withrow, head of commercial cards at KeyBank.

“By expanding our partnership with Qolo, we’re making virtual cards easier to use within our existing treasury platforms, helping clients streamline accounts payable, improve visibility, and maintain better control over how and when money is spent.”

Qolo and KeyBank launched KeyVAM in 2024, with the bank making an equity investment in Qolo last year. KeyBank has also turned to Qolo to offer clients embedded banking solutions.

This extension to their partnership comes as businesses are increasingly adopting virtual cards and ACH as they shift away from payment methods like paper checks.

These tools “support digital onboarding, automated approvals and straight-through processing; and they are able to integrate with procurement, accounts payable and treasury systems,” as PYMNTS wrote last month.

One of their benefits is their ability to lessen the friction that appears “when payments live in a separate, analog universe,” that report added.

“Those companies that do it right are starting to see benefits by using digital payments as a strategic tool,” Daniel Artin, head of strategic partnerships at Boost Payment Solutions, said in an interview with PYMNTS earlier this year.

Research by PYMNTS Intelligence shows that small businesses are seeing benefits from these cards that include dispute protection and refunds — cited by 63% of businesses — and the ability to manage liquidity without immediate cash (59%).

, /PRNewswire/ -- Key Private Bank, the high-net worth and ultra-high-net-worth wealth management segment of KeyCorp (NYSE: KEY), has been selected as a winner for 'Regional Private Bank' at the Thirteenth Annual Family Wealth Report Awards, marking the third time the firm has received this distinction.

Key Private Bank was selected for this award for delivering exceptional results through accountability, deep local expertise, and client-centric planning. Selected from a competitive field of finalist institutions, the award recognizes firms that demonstrate excellence in client service, thoughtful innovation, and the delivery of sophisticated wealth management solutions. Key Private Bank's repeated recognition underscores its long‑standing commitment to helping clients navigate complex financial needs across generations.

The annual Family Wealth Report Awards honor the most innovative and outstanding firms, teams, and individuals serving North America's family offices, family wealth managers, and trusted advisor communities. Winners are selected by an independent panel of judges comprising senior leaders from family offices, private banks, advisory firms, and professional service providers with deep industry expertise.

"Earning this recognition again reflects the strength of our advisors, the depth of our capabilities, and the trust our clients place in us," said Cathy O'Malley Kearney, national director and head of Key Private Bank. "Our focus remains on delivering personalized advice and coordinated solutions that help clients protect, grow, and transfer their wealth with confidence."

Family Wealth Report is a leading industry publication covering trends, best practices, and innovation within the global wealth management and family office sector.

About Key Private Bank

Key Private Bank is a provider of wealth management solutions and advice for high-net worth and ultra-high-net-worth clients, including wealth advisory, investment management, trust administration, customized credit, and private banking services. Key's wealth management platform combines the market insights of local advisors with a national team of wealth and investment strategists to deliver personalized advice and expertise to clients. Advisors also leverage partnerships with financial experts to build wealth plans tailored to meet each client's specific need. Key Private Bank's wealth management platform is delivered across 15 of the United States. Key Private Bank has approximately $60 billion in AUM and $124 billion in AUA at March 31, 2026.

About KeyCorp

KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2026.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.

CFMA042426 - 4385628

SOURCE KeyBank

The program empowers business owners to navigate the complexities of their financial operations

, /PRNewswire/ -- In recognition of Small Business Month, KeyBank (NYSE: KEY) is highlighting how its Certified Cash Flow Advisor Program is changing the way it serves small‑to‑midsize businesses—by putting real conversations and practical advice at the center of the relationship.

KeyBank’s branch in West Valley City, Utah In 2024, KeyBank made a significant investment in expanding this expertise across the organization by providing its advisors with a common framework for engaging business owners through Key Conversations—purposeful discussions focused on how cash moves in and out of a business and how financial processes can work harder for the owner's goals.

Rather than offering one‑size‑fits‑all solutions, Certified Cash Flow Advisors take time to understand the realities of each business. From invoicing and receivables to liquidity, automation, and fraud protection, advisors deliver tailored guidance that addresses operational pain points and helps owner‑operators improve efficiency and profitability. Since inception, KeyBank's advisors have had more than 147,800 conversations with small and midsized businesses across the country. By emphasizing an advice-driven philosophy, KeyBank aims to strengthen relationships with business owners and help them achieve long-term success in an increasingly complex financial landscape.

"Business owners are experts at what they do—but they're often stretched thin trying to do everything," said Mike Walters, President of Business Banking at KeyBank. "Our role is to help our small business owner/operators maximize their business financially so they can grow and thrive. The Key Conversation gives us a way to step back with the client, look holistically at their cash flow, and uncover opportunities that might otherwise be missed. This people‑first approach enables KeyBank to deliver more than transactions -- it provides insight, clarity, and collaboration. By leading with advice instead of products, we're redefining what business banking can be for small businesses."

These conversations are backed by a full suite of business banking capabilities designed to put advice into action. KeyBank's small business clients have access to intuitive digital banking platforms that provide visibility into cash flow, merchant services that accelerate payments and reduce friction at the point of sale, flexible lending solutions tailored to growth and working capital needs, and integrated payroll services that streamline operations. When paired with the insight and expertise of a Certified Cash Flow Advisor, these tools become more than products—they become part of a strategic plan to help business owners work smarter, scale sustainably, and protect what they've built.

In addition, KeyBank recently received five 2026 Best Bank Awards from Coalition Greenwich for the support it provides to small business clients. This reinforces that relationships built on earned trust, combined with best-in-class service and advice-driven solutions help our clients grow in the communities they serve.

Strong advisory relationships are essential to helping business owners adapt, grow, and succeed over the long term, and KeyBank is committed to delivering that partnership every day. Learn more about KeyBank's business banking expertise at www.key.com/smallbusiness.

ABOUT KEYCORP

KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2026. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

All credit products are subject to collateral and/or credit approval, terms, conditions, availability and subject to change.

CFMA #260501-4415928

SOURCE KeyBank

KeyCorp (KEY) Shareholder/Analyst Call Prepared Remarks Transcript

With markets at elevated multiples in May 2026, low share prices can mislead investors into thinking quality is out of reach. Stocks trading below $30 with strong balance sheets offer income, deleveraging stories, or growth at valuations that build in a margin of safety.

Here are five stocks trading under $30 that pair solid books with a credible upside case.

Pfizer (NYSE: PFE) Pfizer (NYSE:PFE | PFE Price Prediction) is a global biopharma whose portfolio spans immunology, oncology, cardiology, and vaccines, anchored by Eliquis, Prevnar, and the Comirnaty/Paxlovid COVID franchise.

Shares last traded at $25.33, below the 52-week high of $28.28, with a 6.68% dividend yield and a forward P/E of 9x. Q4 2025 adjusted EPS of $0.66 beat the $0.57 estimate, and the consensus analyst target sits at $29.19.

The bull case rests on 9% operational lift in the non-COVID portfolio, the Metsera-driven obesity pipeline, and insider conviction: CEO Albert Bourla and 11 directors acquired phantom stock units at $26.67 on April 23, 2026.

Key risk is a $1.5B revenue headwind from 2026 loss of exclusivity combined with MFN drug pricing pressure. The yield-supported setup has management backing the thesis.

AT&T (NYSE: T) AT&T (NYSE:T) is the second-largest US wireless carrier, pairing 5G with a rapidly expanding fiber footprint.

At $24.43, shares carry a forward P/E of 11x and a 4.5% dividend yield. Q1 2026 adjusted EPS came in at $0.57 (+11.8% YoY) on revenue of $31.51B. Analyst target: $30.37.

The bull case is execution and cash. AT&T added 584,000 internet customers in Q1 2026, plans $45B in shareholder returns through 2028, and lifted cash to $18.2B at year-end 2025 from $3.3B a year earlier.

Risks include total debt of $173.99B and legacy wireline declines exceeding 20% in 2026. Converged connectivity plus growing free cash flow makes the dividend durable.

SoFi Technologies (NASDAQ: SOFI) SoFi Technologies (NASDAQ:SOFI) is a digital financial services company holding a national bank charter and the Galileo technology platform.

At $15.71, shares are down 39.99% YTD, even after Q1 2026 produced net income of $166.7M (+134% YoY) and record originations of $12.18B (+68% YoY). Forward P/E is 26x; analyst target $21.10.

The bull case: shareholder equity reached $10.81B while total debt fell from $3.2B to $1.8B over the prior year. CEO Anthony Noto bought 15,545 shares at $16.00 on May 11, 2026 after purchasing 56,000 shares at $17.88 on March 2, 2026.

Risks include personal loan charge-offs at 3.03% and a 27% decline in Technology Platform revenue after a large client departure. The pullback has reset expectations into the growth runway.

Kinross Gold (NYSE: KGC) Kinross Gold (NYSE:KGC) operates gold mines across the US, Brazil, Chile, and Mauritania.

Shares slipped under $30 to $28.51 after an 18.4% one-month pullback, even as the stock remains up 109.22% over one year. Forward P/E sits at 11x against an analyst target of $40.55. Q1 2026 adjusted EPS hit $0.71 on revenue of $2.41B (+61% YoY), with free cash flow of $837.5M.

The balance sheet is pristine: $2.19B in cash against only $3.66B in total liabilities, plus record 2025 FCF of $2.47B and $255.1M of Q1 buybacks.

Primary risk is gold price volatility and geopolitical exposure. The recent pullback creates a window for investors seeking operating leverage to bullion.

KeyCorp (NYSE: KEY) KeyCorp (NYSE:KEY) is a Cleveland-based regional bank serving consumer and commercial clients alongside KeyBanc Capital Markets.

At $21.07, KEY trades at a forward P/E of 12x with a 3.89% dividend yield. Q1 2026 EPS of $0.44 beat the $0.4073 estimate, NIM expanded 29 basis points YoY to 2.87%, and ROTCE topped 13%. Analyst target: $24.97.

Management raised 2026 net interest income guidance to 9-10%, plans $1.3B+ in buybacks, and targets 15%+ ROTCE by year-end 2027.

Watch item: nonperforming assets ticked up to 63 bps from 59 bps. A rising-margin franchise returning capital at scale supports the thesis here.

Bottom Line A share price below $30 is no substitute for diligence. Each name carries identifiable risks alongside balance sheet strengths. Investors should size positions to their risk tolerance and verify the latest disclosures before acting.

With Treasury yields sliding and the broader market trading near record highs, retail investors hunting for reliable passive income are getting squeezed. That makes brand-name dividend payers trading under $40 a share unusually interesting right now: you get household-name stability, room to compound shares, and yields that comfortably top what a savings account is paying. A $5,000 starter position in each of the three names below puts roughly $15,000 to work and turns into a meaningful quarterly paycheck.

With that in mind, here are three blue-chip dividend stocks trading under $40 that income investors should have on their radar today.

AT&T (NYSE: T) AT&T (NYSE:T | T Price Prediction) is the converged telecom giant pairing nationwide 5G wireless with one of the fastest-growing fiber footprints in the country. At $24.98, a $5,000 allocation buys roughly 200 shares, an accessible entry point for almost any retail portfolio.

The fundamentals back up the income thesis. Q1 2026 adjusted EPS came in at $0.57, up 11.8% year over year, on revenue of $31.51 billion, while management guided 2026 adjusted EPS to $2.25 to $2.35 with free cash flow above $18 billion. The quarterly dividend sits at $0.2775, or $1.11 annualized, a payout AT&T has held steady for eight straight quarters and has committed to maintain through 2028. That works out to roughly a roughly 4.4% yield, or about about $222 a year on a $5,000 stake.

The bull case is simple: 584,000 fiber net adds in Q1, a path to 60 million fiber locations by 2030, and $8 billion in buybacks planned for 2026. The clear risk is the balance sheet: $138.4 billion in total debt and net debt/EBITDA of 2.71x leave little margin for error. For income investors who can stomach that, AT&T remains a credible long-duration paycheck.

Kinder Morgan (NYSE: KMI) Kinder Morgan (NYSE:KMI) operates the largest natural gas pipeline network in the United States, a toll-road business model that throws off remarkably steady cash. Shares trade at $34.31, up 27.2% year to date, so a $5,000 stake gets you roughly 145 shares.

Q4 2025 adjusted EPS of $0.39 beat the $0.37 consensus, capping a year of 12.4% revenue growth and a 17% jump in net income. Management is guiding 2026 adjusted EPS to $1.36 and just raised the dividend target to $1.19 per share, a 2% bump. At the current price that is roughly a roughly 3.4% yield, or about about $170 a year on $5,000.

The bull case is structural. Kinder Morgan touches roughly 70% of the markets driving future data-center power demand, carries a $10 billion project backlog, and just earned an S&P upgrade to BBB+ in January 2026. The risk is leverage of 3.8x net debt to EBITDA and permit timing on new builds. For investors who want infrastructure-grade dividend income tied to the AI power buildout, KMI fits the bill.

KeyCorp (NYSE: KEY) KeyCorp (NYSE:KEY) is the Cleveland-based regional bank behind KeyBank and KeyBanc Capital Markets. At $20.92, a $5,000 investment buys roughly 239 shares, the largest share count of the three.

Q1 2026 EPS of $0.44 beat the $0.41 estimate and grew 33% year over year, with net interest margin expanding 29 basis points to 2.87%. Tangible book value per share rose 18% YoY to $13.77, and management is targeting $1.30 billion or more in buybacks for 2026. The $0.205 quarterly dividend, or $0.82 annualized, yields about roughly 3.9%, generating roughly roughly $196 a year on $5,000.

The bull case is leverage to a steeper yield curve, with KeyCorp guiding 2026 revenue up around 7% and net interest income up 9% to 10%. The risk is credit: nonperforming assets ticked up to 63 basis points from 59, and consumer loan balances are still shrinking. For investors comfortable owning a regional bank, KeyCorp offers a strong yield plus capital return.

Each of these names carries real business risk, and a high yield can mask balance-sheet stress if you do not look closely. Use this list as a starting point for your own research into payout coverage, debt loads, and sector outlook before putting $5,000 to work.

, /PRNewswire/ -- KeyCorp (NYSE: KEY) announced today that Clark Khayat, Chief Financial Officer, will speak at the Morgan Stanley US Financials Conference on Wednesday, June 10, 2026, at 1:00 p.m. ET.

KeyCorp plans to review its performance, strategy, and outlook, and the discussion may include forward-looking statements and other material information. The live audio webcast will be available on the day of the conference at www.key.com/ir. If you are unable to join the live webcast, or wish to hear a re-broadcast, access www.key.com/ir and select Events & Presentations.

ABOUT KEYCORP
KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2026. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

SOURCE KeyCorp

Investors with an interest in Banks - Major Regional stocks have likely encountered both KeyCorp (KEY - Free Report) and State Street Corporation (STT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

KeyCorp and State Street Corporation are both sporting a Zacks Rank of #2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

KEY currently has a forward P/E ratio of 11.92, while STT has a forward P/E of 13.11. We also note that KEY has a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STT currently has a PEG ratio of 0.88.

Another notable valuation metric for KEY is its P/B ratio of 1.34. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, STT has a P/B of 1.85.

These metrics, and several others, help KEY earn a Value grade of B, while STT has been given a Value grade of D.

Both KEY and STT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KEY is the superior value option right now.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at KeyCorp (KEY - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. KeyCorp currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if KEY is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For KEY, shares are up 2.02% over the past week while the Zacks Banks - Major Regional industry is up 2.12% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.93% compares favorably with the industry's 7.21% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of KeyCorp have increased 15.82% over the past quarter, and have gained 38.61% in the last year. In comparison, the S&P 500 has only moved 9.34% and 23.96%, respectively.

Investors should also pay attention to KEY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. KEY is currently averaging 11,845,738 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with KEY.

Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost KEY's consensus estimate, increasing from $1.81 to $1.83 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that KEY is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep KeyCorp on your short list.

SoundHound AI stock is gaining positive traction. Why are SOUN shares climbing? Omnichannel AI Deal Expands Enterprise ReachSoundHound AI says it plans to acquire LivePerson to combine its voice agentic AI with LivePerson's digital messaging, positioning the combined business as an end-to-end omnichannel conversational AI platform.

The company says the deal creates one of the most comprehensive enterprise footprints in the space, including 25 of the Fortune 100, and it expects a $500M revenue opportunity with an accelerated path to profitability.

The broader market is also trading in a risk-on tone, with the S&P 500 up 0.2% and the Nasdaq up 0.29% as market breadth stays slightly positive.

Critical Levels To Watch for SOUN StockSoundHound's chart is still working through a longer-term downtrend, but the recent rebound is trying to reassert itself after the March swing low. The stock is trading 23.2% above its 20-day simple moving average (SMA) and 8% below its 100-day SMA, which points to strong short-term momentum but a still-challenged intermediate trend.

The moving average structure remains a headwind: the 20-day SMA is below the 50-day SMA, and the death cross (50-day SMA below the 200-day SMA) that occurred in January signals the longer trend has been bearish. The moving average convergence divergence (MACD), a trend/momentum measure, is currently above its signal line with a positive histogram, which leans toward improving upside pressure versus the prior downswing.

The stock's 12-month gain of 12.6% shows it has produced net upside over the past year, even though it remains far below the October 2025 52-week high of $22.17. With the 52-week low set in March at $5.83 and a nearby resistance zone around $9.00, traders often watch whether rallies can hold above recent breakout attempts rather than fading back into the prior range.

Key Resistance: $9.00 — an area where recent rallies have tended to stall. Key Support: $7.00 — a level where buyers have recently shown up. SOUN Earnings Preview For MayLooking further out, the next major catalyst for the stock arrives with the May 7 (estimated) earnings report.

EPS Estimate: Loss of 7 cents (Down from a loss of 6 cents YoY) Revenue Estimate: $42.62 million (Up from $29.13 million YoY) SOUN Stock Price Movement TodaySOUN Stock Price Activity: SoundHound AI shares were up 1.20% at $8.42 at the time of publication on Tuesday, according to Benzinga Pro data.

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SoundHound AI (SOUN 1.21%), a provider of voice AI solutions for the automotive, TV, IoT, and customer service industries, closed at $7.85, down 5.65%. Shares declined after news of an all-stock LivePerson acquisition. Investors will be watching the shareholder dilution from the deal and for execution on omnichannel AI growth targets. Trading volume reached 54.2 million shares, about 107% above its three-month average of 26.2 million shares. SoundHound AI IPO'd in 2022 and has grown 5% since going public.

How the markets moved todayThe S&P 500 slipped 0.65% to 7,063, while the Nasdaq Composite fell 0.59% to finish at 24,260. Among software (application) peers, C3.ai closed at $9.20 (-1.97%) and BigBear.ai ended at $3.79 (-1.30%), reflecting cautious sentiment around AI software names.

What this means for investorsSoundHound AI made a big move today, acquiring conversational AI peer LivePerson and its Conversational Cloud for roughly $250 million, including LivePerson’s debt balance. The complementary deal forms a powerhouse in the conversational AI niche, serving 25 of the Fortune 100 and 12 of the top 15 global banks.

Management believes the combined company will generate between $350 million and $400 million in revenue in 2027, and that cross-selling could push this figure to $500 million as the two firms integrate. While the all-equity deal will be dilutive to shareholders, SOUN’s balance sheet is projected to remain debt-free. Projected to more than double its sales in 2027, SOUND remains an intriguing stock, especially if it keeps advancing toward profitability.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.

Key Takeaways SoundHound's LivePerson deal targets one platform for voice, text, chat, mobile and web channels.SOUN would add nearly 1B LivePerson messages monthly to strengthen its data moat.SOUN cites a $500M revenue opportunity and expects no debt after closing the $43M equity deal. SoundHound AI’s (SOUN - Free Report) planned acquisition of LivePerson could become one of the most important moves in the company’s growth journey. The transaction would combine SoundHound’s proprietary voice AI and agentic AI capabilities with LivePerson’s established digital messaging and customer engagement platform. This would create a more complete conversational AI ecosystem spanning voice, text, chat, mobile and web channels.

For enterprises, customer interactions are increasingly moving across multiple channels. Many customers may start a conversation through voice and later continue through text or web chat. A unified platform that manages these touchpoints seamlessly can become highly valuable. That is where this acquisition could strengthen SoundHound’s market relevance.

Shares of SoundHound gained 3.7% in the after-hour trading session yesterday.

SOUN Gains Stronger Scale and Data MoatOne of the biggest benefits from the acquisition is the combined scale of customer interactions. LivePerson powers nearly one billion customer messages per month, while SoundHound already handles billions of voice interactions annually. Together, the companies would control a vast dataset across both digital and voice environments.

That matters because conversational AI improves with more real-world interactions. Larger datasets can help train models, improve intent recognition, boost automation rates and deliver more accurate responses. This could enhance SoundHound’s competitive edge against rivals in the rapidly growing AI customer service market.

SoundHound Expands Customer Reach Across IndustriesThe deal would also significantly expand SoundHound’s enterprise footprint. The combined company is expected to operate across more than 30 countries and serve major customers, including 12 of the top 15 global banks, four of the top five global airlines, four of the top five global automakers and more than 10 leading telecom providers.

This diversification could reduce dependence on any single end market. While SoundHound has built strong traction in automotive, restaurants and enterprise voice solutions, LivePerson adds stronger exposure to financial services, telecom, travel, healthcare and retail.

Revenue Synergies Could Lift SOUN’s GrowthThe acquisition may also unlock strong cross-selling opportunities. SoundHound can introduce its voice AI offerings to LivePerson’s large enterprise customer base, while its existing clients can adopt LivePerson’s digital messaging tools.

Management said the combined business could reach a $500 million revenue opportunity based on the current customer base alone. That suggests meaningful upside without relying solely on new customer wins.

Attractive Deal Structure Strengthens SOUN OutlookSoundHound is set to acquire LivePerson at an equity value of $43 million, reflecting an approximately 22% premium to LivePerson’s 30-day volume-weighted average valuation. Upon closing, SoundHound expects to receive $74 million from LivePerson’s cash balance prior to repayment of the 2026 Convertible Senior Notes. Including discounted treatment of the remaining debt, the transaction implies a total enterprise value of nearly $250 million.

SoundHound ended 2025 with $248 million in cash and no debt. Management expects the combined company to maintain a strong balance sheet with no debt after closing, while the added scale could accelerate the path to profitability.

The LivePerson acquisition appears strategically attractive. It could make SoundHound a more diversified, scaled and data-rich conversational AI company. If integration execution remains strong, the deal may support faster revenue growth, stronger margins and improved long-term shareholder value.

How SOUN Is Positioned Against Key AI RivalsAmong notable competitors, Microsoft (MSFT - Free Report) remains a major force in conversational AI through its Azure cloud platform, Copilot offerings and OpenAI partnership. Microsoft benefits from deep enterprise relationships, vast financial resources and global distribution reach. The company can bundle AI solutions with productivity software, cloud infrastructure and security tools, creating a powerful ecosystem advantage.

However, Microsoft’s broader focus spans many categories, while SoundHound remains more specialized in voice AI, automotive and customer interaction use cases. That focused approach may help SoundHound move faster in niche markets where tailored deployment matters.

Another competitor is NICE Ltd. (NICE - Free Report) , a leader in customer experience software and contact-center automation. NICE has built a strong presence among enterprises seeking AI-driven customer service solutions. The company offers analytics, workforce management and digital engagement tools, making it a well-established rival in enterprise service automation.

However, NICE is more rooted in legacy contact-center platforms, whereas SoundHound emphasizes next-generation voice AI and agentic automation. As businesses modernize customer engagement systems, SoundHound’s innovation speed could help it compete effectively against NICE.

SOUN’s Price Performance, Valuation & EstimatesSoundHound shares have gained 13.9% in the past month compared with the industry’s growth of 1.8%.

SOUN’s 1-Month Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 13.46, above the industry’s average of 12.51.

SOUN’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has remained unchanged at 9 cents, although the expected loss remains narrower than the previous year’s loss of 13 cents.

EPS Trend of SOUN Stock

Image Source: Zacks Investment Research

SOUN’s Zacks RankSOUN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to:

TruBridge, Inc. (NASDAQ: TBRG)'s sale to Inventurus Knowledge Solutions, Inc. for $26.25 in cash per share. If you are a TruBridge shareholder, click here to learn more about your rights and options.  

Helix Energy Solutions Group, Inc. (NYSE: HLX)'s merger with Hornbeck Offshore Services, Inc. Upon closing of the proposed transaction, Helix shareholders will own approximately 45% of the combined company on a fully diluted basis. If you are a Helix shareholder, click here to learn more about your legal rights and options.

LivePerson, Inc. (NASDAQ: LPSN)'s sale to SoundHound AI, Inc. for an equity value of $43 million. If you are a LivePerson shareholder, click here to learn more about your rights and options.

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