Voya Financial’s third quarter results were met with a negative market reaction, despite revenue and non-GAAP earnings per share coming in above Wall Street expectations. Management attributed the quarter’s performance to strong Retirement segment results, robust net flows in Investment Management, and disciplined execution in Employee Benefits. CEO Heather Lavallee highlighted the impact of organic net flows and the integration of OneAmerica, noting, “Our results build on the success we’ve seen year-to-date, with adjusted operating EPS in the quarter up nearly 30%.” However, management acknowledged higher corporate expenses tied to performance-related compensation as a headwind.
Is now the time to buy VOYA? Find out in our full research report (it’s free for active Edge members).
Voya Financial (VOYA) Q3 CY2025 Highlights:
- Revenue: $1.94 billion vs analyst estimates of $1.72 billion (4% year-on-year growth, 13% beat)
- Adjusted EPS: $2.45 vs analyst estimates of $2.25 (8.9% beat)
- Adjusted Operating Income: $290 million vs analyst estimates of $316 million (14.9% margin, 8.2% miss)
- Operating Margin: 15.8%, up from 6.2% in the same quarter last year
- Market Capitalization: $6.76 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Voya Financial’s Q3 Earnings Call
-
Elyse Greenspan (Wells Fargo) asked about the scale of Wealth Management investment for 2026. CFO Michael Katz confirmed up to $75 million of capital, mostly in adviser recruitment and technology, with a back-half weighting.
-
Joel Hurwitz (Dowling & Partners) followed up on Stop Loss reserve development and wealth management revenue timelines. Katz cited better claims experience so far but stressed the need to see Q4 data; CEO Heather Lavallee said Wealth revenue growth should be more visible in 2027 and beyond.
-
Ryan Krueger (KBW) questioned the sustainability of higher corporate expenses. Katz attributed the rise to performance-related compensation and expects a return to normal run rates next year.
-
Thomas Gallagher (Evercore ISI) asked if adviser hiring is focused on servicing or capturing rollovers. CEO Heather Lavallee stated rollovers are a key target, with a successful recapture rate in tax-exempt business and plans to expand to broader client segments.
-
Suneet Kamath (Jefferies) pressed for clarity on capital return run rates post-2026. Katz emphasized 2026 guidance reflects current investment needs and is not meant as a long-term run rate, with future flexibility expected as investments normalize.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) execution of Wealth Management adviser hiring and technology rollouts, (2) successful integration milestones and retention rates related to the OneAmerica acquisition, and (3) margin dynamics in Employee Benefits, particularly as claims data for Stop Loss is updated. Developments in the regulatory environment and the effectiveness of bundled product offerings will also be key markers for progress.
Voya Financial currently trades at $71.05, down from $73.62 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.