Voya Financial reported fourth‑quarter 2025 results that surpassed revenue expectations but fell short of earnings estimates. Adjusted operating earnings per share were $1.94, missing the consensus range of $2.08 to $2.12 by roughly $0.14. Net income available to common shareholders rose 46% year‑over‑year to $136 million, driven by a $28 billion net inflow of defined‑contribution assets and the continued integration of the OneAmerica acquisition.
Revenue climbed to $2.11 billion, an 11.3% increase from the same quarter a year earlier, beating the consensus estimate of about $1.99 billion. The growth was largely powered by the $28 billion net inflow of defined‑contribution assets, which added new business and broadened Voya’s fee‑based revenue base. The OneAmerica acquisition also contributed to the top‑line, adding significant assets under administration and expanding the company’s workplace‑solutions footprint.
Segment performance highlighted a strong retirement business, which delivered $255 million in pre‑tax adjusted operating earnings—a 24% year‑over‑year gain—while the investment‑management arm added $72 million, reflecting a 4.8% organic growth in assets under management. The employee‑benefits segment, however, posted a narrower loss of $10 million, a sharp improvement from the $102 million loss reported in Q4 2024, underscoring progress in underwriting and pricing strategy.
The earnings miss was largely attributable to higher accruals for performance‑based compensation in the corporate segment, which increased operating expenses and offset revenue gains. Cost inflation and the need to reserve for future benefit liabilities also weighed on profitability, explaining why the $1.94 EPS fell short of expectations despite a robust revenue beat.
Management reiterated its 2026 outlook, maintaining confidence in continued growth and reaffirming its commitment to return excess capital through dividends and share repurchases. CEO Heather Lavallee emphasized the strategic importance of the OneAmerica acquisition, stating, "Completing this acquisition is an important milestone in our commitment to growing our Workplace Solutions businesses," highlighting the company’s focus on scaling fee‑based operations.
Investors reacted negatively to the earnings miss, with market sentiment turning cautious as the EPS shortfall outweighed the revenue beat. The focus on the earnings miss reflects concerns about the sustainability of profitability in the face of rising compensation accruals and the need for continued cost discipline.
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