Voya Raises Dividend and Buyback After Profit Recovery

The Tip Desk · November 2, 2026 · 3 min read

After-tax adjusted operating earnings reached $240 million, or $2.60 a share, as Retirement and Employee Benefits offset weaker Investment Management capital income.

Voya Financial (VOYA) reported third-quarter 2026 net income available to common shareholders of $193 million, or $2.09 a diluted share, compared with $176 million, or $1.80 a share, a year earlier. The company said the increase was primarily due to lower losses on businesses exited and higher adjusted operating earnings.

After-tax adjusted operating earnings were $240 million, or $2.60 a share, versus $239 million, or $2.45 a share, in the year-ago quarter. Voya said the increase reflected higher earnings in Retirement and Employee Benefits, largely offset by lower investment capital income in Investment Management and $25 million of pre-tax severance expense. Earnings per share also benefited from a lower share count from continued repurchases.

The sequential path was sharper. Adjusted operating earnings rose from $140 million, or $1.51 a share, in the second quarter of 2026, after a second-quarter dip from $214 million, or $2.26 a share, in the first quarter. Net income available to common shareholders followed the same recovery, from $90 million, or $0.97 a share, in the second quarter.

Chief executive Heather Lavallee said Voya delivered a strong third quarter reflecting the improvement expected in the second half, with commercial momentum in Retirement and Investment Management, continued margin improvement in Employee Benefits and disciplined expense management.

Retirement pre-tax adjusted operating earnings were $266 million, up from $261 million a year earlier, which the company attributed to revenue growth supported by sustained commercial momentum and continued operating efficiencies while funding strategic growth opportunities. Trailing-twelve-month net revenues through September 30, 2026 increased 6% from the prior-year period, a slower pace than the 10% increase in the trailing twelve months ended June 30, 2026. Adjusted operating margin for the trailing twelve months was 37.8%, versus 39.8% a year earlier; the company said the decrease includes lower alternative investment income. Total client assets were $878 billion as of September 30, 2026, and Retirement participants grew to 10.3 million.

Investment Management pre-tax adjusted operating earnings, excluding noncontrolling interest, were $58 million, compared with $62 million a year earlier, primarily from lower investment capital income. Trailing-twelve-month net revenues grew 5%, and adjusted operating margin was 28.6%, consistent with the prior-year period. The segment generated net inflows of $1.4 billion, excluding divested businesses and a sub-advisor transition, in the three months ended September 30, 2026. Assets under management were $363 billion, a decline the company said primarily reflected divestitures and a sub-advisor transition, nearly offset by positive net flows and market appreciation. Assets under advisory were $62 billion.

Employee Benefits pre-tax adjusted operating earnings were $51 million, versus $47 million a year earlier, including a $12 million favorable annual assumption update and lower expenses. Trailing-twelve-month net revenues increased 10%, and the aggregate loss ratio improved to 74% from 78%. Adjusted operating margin for the trailing twelve months was 11.4%, versus 6.0% a year earlier, which the company tied to underwriting discipline, pricing actions and expense management. Annualized in-force premiums and fees of $3.5 billion were lower versus the prior-year period as the company prioritized margin over growth.

Corporate pre-tax adjusted operating losses, excluding noncontrolling interest, were $87 million, versus $80 million a year earlier. The quarter included approximately $25 million of severance expense related to actions to create a more efficient cost structure.

Excess capital generation was approximately $225 million, exceeding 90% conversion of after-tax adjusted operating earnings. Voya returned approximately $150 million through dividends and share repurchases and made the final $20 million payment related to the OneAmerica transaction. Excess capital was approximately $250 million as of September 30, 2026.

The board authorized a 21% increase in the quarterly common stock dividend to $0.57 a share, beginning in the fourth quarter of 2026, and a $500 million increase in the share repurchase authorization, in addition to approximately $163 million of remaining capacity as of September 30, 2026.