Title

Earning Preview: F&G ANNUITIES & LIFE INC this quarter’s revenue is expected to increase by 15.66%, and institutional views are neutral

Abstract

F&G ANNUITIES & LIFE INC will report its fourth-quarter 2025 results on February 19, 2026, Post Market, with estimates pointing to year-over-year growth in revenue and adjusted EPS amid a neutral sell-side stance.

Market Forecast

Based on the latest compiled estimates, F&G ANNUITIES & LIFE INC’s fourth-quarter 2025 revenue is projected at 1.55 billion, implying 15.66% year-over-year growth, while adjusted EPS is expected at $1.20, suggesting 7.41% year-over-year expansion; margin forecasts for the quarter are not formally guided in the available dataset. The core revenue engine remains anchored by interest and investment income and recurring premium fees, with the company’s internal quarter-on-quarter dynamics supported by stable spreads and fee-based flows. The most promising segment in absolute terms continues to be interest and investment income, which contributed 748.00 million last quarter, against a backdrop of consolidated revenue growth of 17.31% year-over-year.

Last Quarter Review

In the previous quarter, F&G ANNUITIES & LIFE INC delivered revenue of 1.69 billion, a gross profit margin of 30.28%, GAAP net profit attributable to the parent company of 118.00 million, a net profit margin of 6.97%, and adjusted EPS of $1.22, with consolidated revenue rising 17.31% year-over-year. A key highlight was the substantial quarter-on-quarter rebound in net profit, with a 195% increase, underscoring the sensitivity of reported earnings to investment portfolio outcomes and realized items. Main business contributions were led by interest and investment income at 748.00 million and life insurance premiums and other fees at 711.00 million, supported by realized gains/losses of 211.00 million and own distribution revenue of 24.00 million, while consolidated revenue grew 17.31% year-over-year.

Current Quarter Outlook

Main Business: Interest and Investment Income and Recurring Fee Flows

Interest and investment income is the largest single contributor to F&G ANNUITIES & LIFE INC’s top line, representing 748.00 million last quarter. This stream sits at the intersection of portfolio yield, credit performance, and credited rates on annuity liabilities, making quarterly EPS outcomes highly sensitive to asset allocations, spread stability, and realized items. With revenue forecast at 1.55 billion for the current quarter and adjusted EPS at $1.20, the company’s ability to maintain portfolio yield modestly ahead of crediting rates is central to achieving the 15.66% year-over-year revenue growth and 7.41% year-over-year EPS growth embedded in consensus estimates.

Fee-like revenues from life insurance premiums and other charges—711.00 million last quarter—add ballast to the earnings profile by smoothing volatility from investment marks and realized gains. A steady cadence of new business sales and persistency is essential for sustaining fee income and supporting both net interest margins and overall profitability. In the near term, product mix and distribution effectiveness will influence the balance between spread-based earnings and fee contributions, with scale effects potentially aiding operating leverage if sales momentum holds.

Quarter-on-quarter movements in GAAP net income have recently been pronounced—net profit rose 195% sequentially last quarter—highlighting how gains realization, market marks, and timing differences can produce substantial swings. For the quarter to be reported in February, the key watch point for the main business is whether portfolio performance and spread maintenance can track alongside the revenue growth forecast. If asset yields remain consistent and credited rates are prudently managed, the expected EPS expansion is aligned with the forecast, while adverse spread compression or elevated realized losses would be the principal counterweights.

Most Promising Business: Interest and Investment Income Scale and Mix Optimization

The most promising near-term lever remains scaling interest and investment income, which was 748.00 million last quarter and benefits from both AUM expansion and portfolio construction choices across fixed maturities and other yield-generating assets. Incremental yield capture without materially increasing credit risk can provide a durable uplift to net interest margins, reinforcing EPS. At the same time, optimizing the duration and sector mix—while keeping investment-grade concentration high—offers a path to preserving capital and smoothing marks across cycles.

Revenue diversification between interest income and fee-based premium flows supports resilience in reported results; however, the lion’s share of earnings momentum still depends on spreads and credit outcomes. For the current quarter, the forecasted 1.55 billion revenue implies healthy execution in the core investment engine. Management discipline on allocation and hedging can mitigate volatility from market movements, facilitating performance that matches the 7.41% year-over-year EPS growth implied by estimates. Over time, reinvestment spreads and turnover of lower-yielding assets into moderately higher-yield paper—subject to credit constraints—can provide a layered tailwind to the segment’s contribution.

A critical aspect of realizing the potential of this segment in the quarter ahead lies in balancing realized gains activity and maintaining book yields while avoiding outsized exposure to sectors with uneven credit trajectories. If realized items remain supportive without detracting from future income streams, and credit conditions stay stable, the interest and investment income segment should anchor both the top-line and EPS forecasts. Any meaningful deviation in credit costs or negative marks could put pressure on the margin framework, hence the emphasis on tactical flex within asset allocation.

Stock Price Drivers This Quarter

Several variables are likely to influence the stock’s behavior around the upcoming print. First, reported spreads and margin commentary will be closely parsed against the headline revenue and EPS beats/misses; with no explicit gross or net margin guidance available, investors will look to qualitative management color to triangulate how spreads behaved in the quarter. Second, the balance between realized gains/losses and underlying recurring income will shape perceptions of earnings quality, especially after a quarter marked by a 195% quarter-on-quarter jump in GAAP net profit. Clarity on the sustainability of such swings can moderate or amplify the market’s response.

Third, the cadence of sales and persistency feeding life insurance premiums and fees will be viewed alongside the trajectory of adjusted EPS, as sustained sales strength supports fee streams and can improve operating leverage. The reported split last quarter—interest and investment income at 748.00 million and premium and fee income at 711.00 million—underscores how both pillars are required to deliver stable growth. Lastly, investors will monitor capital deployment choices and capital adequacy metrics, as these are intertwined with asset allocation freedom and the ability to support new business while maintaining prudent risk buffers. Anything that hints at tighter capital flexibility could be interpreted as a headwind to growth execution, while confirmation of adequate headroom would underpin confidence in the revenue and EPS projections.

Analyst Opinions

Within the January 1, 2026 to February 12, 2026 window, identifiable sell-side previews specific to F&G ANNUITIES & LIFE INC’s upcoming quarter were limited, resulting in a neutral prevailing stance rather than a clear split into bullish or bearish cohorts. In the absence of fresh rating changes or major preview notes in this period, the majority view can be characterized as neutral: the market appears to be awaiting confirmation that fourth-quarter revenue of 1.55 billion and adjusted EPS of $1.20 can be delivered, with year-over-year growth of 15.66% and 7.41%, respectively. This neutral posture is consistent with the practical reality that margins were not explicitly guided in the available dataset, prompting investors to focus on the quality of earnings—namely, the balance of recurring spread income versus realized items—when parsing the upcoming release.

Despite the lack of new institutional calls recorded during the specified time frame, the structural elements embedded in expectations serve as a proxy for consensus thinking. Revenue growth of 15.66% year-over-year points to confidence in sales flow and investment income, but the market appears to prefer validation from actual reported spreads and net interest margins before adopting a more directional view. The observed 195% quarter-on-quarter jump in GAAP net profit last quarter, while positive, is also a reminder of how realized gains and marks can influence headline figures; analysts and investors generally look beyond these swings to assess normalized earnings power, which explains the neutral stance ahead of the print.

Interpreting the neutral majority view through the lens of the upcoming results, the primary analytical emphasis is on earnings quality and sustainability. Delivering adjusted EPS in line with the $1.20 expectation, alongside evidence that spread maintenance is durable and fee revenues are solid, would validate the year-over-year growth embedded in forecasts. Conversely, if revenue lands near 1.55 billion but is accompanied by indications of spread compression or a heavier reliance on realized items to meet EPS, the neutral camp is likely to remain in place while awaiting more clarity in subsequent quarters. Put simply, the neutral view reflects the balance between favorable revenue momentum and the desire to see confirmation that margins and recurring earnings drivers are aligned with the forecasted trajectory.

From a practical perspective, the neutral consensus also recognizes that F&G ANNUITIES & LIFE INC’s quarterly performance is sensitive to portfolio-level decisions that are not pre-disclosed in detail. The main business lines—interest and investment income and premium and fee income—have performed well enough to support double-digit top-line growth in the recent actuals, but the transmission of that growth to bottom-line metrics depends on spread management and asset quality. As a result, the majority neutral view is less a lack of conviction and more a prudent holding pattern awaiting tangible detail on margin drivers, sales persistence, and the mix between recurring and realized earnings. Should the company provide clear narrative on these elements in the February 19, 2026 release, market views could coalesce into a more directional stance.

In sum, the neutral majority opinion centers on verification. The market is prepared to recognize the company’s forecasted growth in revenue and adjusted EPS, but it seeks affirmation regarding spreads, credit outcomes, and the durability of fee income. The fourth-quarter report thus serves as a key validation point for the current projections of 1.55 billion in revenue and $1.20 in adjusted EPS, as well as for the role of interest and investment income in supporting both the top line and earnings power without undue reliance on realized items. A clean print with balanced contributions from the main business segments would likely nudge the consensus out of neutrality, while a mixed signal on margins or earnings quality would keep the stance unchanged pending additional data.