Shares of Lincoln National (LNC) tumbled 5.01% in pre-market trading on Friday, following the release of its second-quarter earnings report for 2025. Despite beating earnings expectations, the insurance and financial services company faced investor concerns over missed revenue targets and potential future challenges.

Lincoln National reported non-GAAP earnings per share of $2.36 for Q2 2025, surpassing analyst estimates by an impressive 25.5%. However, the company's non-GAAP revenue of $4.308 billion fell short of expectations, missing the $4.66 billion consensus estimate by 7.6%. This mixed performance, coupled with other factors, appears to have triggered the sell-off.

While the Group Protection segment delivered record earnings and its highest-ever margin in Q2 2025, investors seemed more focused on the challenges in other areas. The Annuities segment experienced negative net flows of $1.2 billion, while the Retirement Plan Services segment saw net outflows of $0.6 billion for the quarter ended June 30, 2025. These outflows, if persistent, could pressure future recurring fee income. Additionally, the company's ongoing shift towards lower-return spread-based products, while reducing volatility, may impact long-term profitability. These factors, combined with the revenue miss, appear to have overshadowed the positive earnings surprise, leading to the stock's sharp decline in pre-market trading.